PENSION

The City of Franklin operates a defined benefit plan for its full time employees. In addition to the defined benefit plan, employees are required to contribute 3% of salary to a “money purchase” 401 plan that is portable.

 

The defined benefit plan was created by the Board of Mayor and Aldermen and its operation is supervised by the Human Resources Department and an eight—person oversight committee. The Committee meets quarterly to review investment results and review legal or finance matters that affect the Plan. An independent actuarial firm is retained to conduct an annual study of the employee demographics, earnings and actuarial assumptions. The actuary determines the amount that the City must contribute to maintain viability of the Plan. An independent trustee (currently SunTrust Bank) has custody of all assets and is charged with making payments to retirees and filing required reports.

 

The pension benefits under the plan are equal to or superior employee plans provided by the State or other Tennessee local government jurisdictions. Assets of the plan now exceed $28 million. Details of the assets, funding ratios, and other data are included in the Comprehensive Annual Financial Report.

 

Oversight of City pension programs is provided by the Human Resources Department. For more information, contact Pam Conner at pamc@franklin-gov.com.