Retirement Benefits
Our Mission Statement
At the City of Memphis, we are committed to honoring the dedication of our employees by providing comprehensive retirement benefits that support their well-being and financial security. Our goal is to offer clear accessible information and resources to assist both current and future retirees in navigating their benefits, including pension plans, health insurance options, and wellness programs. We strive to ensure that every retiree feels valued and supported as they transition into and enjoy their retirement years.
Services Offered
The retirement and disability function provides administration, governance and guidance for all the City’s pension, retirement and disability plans. Subject matter experts focus on providing a consultative and advisory service by answering questions and assisting with resolving pension, retirement and disability issues offered by the City.
The City of Memphis Retirement Team can assist you with the application process for Special Pension Election, DROP Enrollment/Exit, and Regular Retirement. Individual consultations are available to you via Phone, In-Person, or Virtually.
The retirement and disability function provides administration, governance and guidance for all the City’s pension, retirement and retirement disability plans. Subject matter experts focus on providing a consultative and advisory service by answering questions and assisting with resolving pension, retirement and disability issues offered by the City.
The City of Memphis’s Article 5 – DROP (Deferred Retirement Option Plan) Program allows eligible employees to effectively retire for pension purposes while continuing to work for a set period (up to 3 years). During this period, pension benefits accrue and are deposited into an interest-bearing account, but are not immediately paid out. Upon actual retirement, the employee receives the accumulated DROP funds as a lump sum, along with their regular pension payments.
The DROP Program (or Deferred Retirement Option Plan), is a new feature of the City of
Memphis Retirement System. It allows eligible employees, who agree to retire in one,
two, or three years, to cease participating in, and contributing to, the Retirement Plan.
Thus, an electing employee’s pay will increase by the amount he or she was contributing
to the Retirement Plan.
The DROP Freeze Ordinance in Memphis allows certain City of Memphis employees participating in the Deferred Retirement Option Program (DROP) to temporarily suspend their participation for a set period, essentially freezing their retirement benefits at a specific point in time and allowing them to continue working.
- Defined Benefit Plan
- Hybrid Benefit Plan
- Social Security Supplemental Plan
- 401(A) Matching Retirement Benefit
The 2016 Hybrid Plan is a retirement plan funded with both employee contributions and
employer contributions. The 2016 Hybrid Plan has two components, the Cash Balance Plan and
the Defined Contribution Plan.
Employees with less than 7.5 years of service as of June 30, 2016
The 2016 Cash Balance and Defined Contribution Plan (Hybrid Plan) as defined in the City
Ordinance 5573, Chapter 25, sec. 25-210 to 25-274, is a tax-deferred Cash Balance/Defined
Contribution retirement plan qualified under Internal Revenue Code Section 401(a). The Plan is
established to provide retirement benefits for eligible employees and their beneficiaries. The
purpose of this Summary Plan Description (SPD) is to provide Commissioned Police Officers
and Firefighters with an informal guide to the key provisions of the Hybrid Plan. Every effort
has been made to summarize the Hybrid Plan. However, in the event of a conflict between this
Summary Plan Description and Ordinance 5573, the ordinance, as amended from time to time,
will govern.
The 2016 Cash Balance and Defined Contribution Plan (Hybrid Plan) as defined in the City
Ordinance 5573, Chapter 25, sec. 25-210 to 25-274, is a tax-deferred Cash Balance/Defined
Contribution retirement plan qualified under Internal Revenue Code Section 401(a). The Plan is
established to provide retirement benefits for eligible employees and their beneficiaries. The
purpose of this Summary Plan Description (SPD) is to provide General Employees with an
informal guide to the key provisions of the Hybrid Plan. Every effort has been made to
summarize the Hybrid Plan. However, in the event of a conflict between this Summary Plan
Description and Ordinance 5573, the ordinance, as amended from time to time, will govern.
This Plan Summary Document is for use by Police Officers and/ or Firefighters only.
For the purposes of this Plan, you are a police officer if you are an employee of the Police Services Division of the City, commissioned by the State as a law enforcement officer whose primary responsibility is the prevention and detection of crime. For the purposes of this plan you are a firefighter if you
are an employee of the Fire Services Division of the City and have been commissioned by the Division’s Director.
This Plan Summary Document is not intended for use by Police Officers
or Firefighters.
This booklet discusses the Plan as it applies to individuals retiring on or after July 1, 2012 in simplified terms. It reflects the Plan as amended by various Pension Ordinances through July 1, 2012. This is however, only a summary.
It does not cover everything described in the actual Plan Document. Should the provision of this Summary Plan Description and the actual legal Plan document differ, the legal document shall govern.
