CROSSVILLE CITY COUNCIL HEARS EARLY RETIREE/REHIRE PROBLEMS

One of the discussions that Crossville City Council members held at a work session earlier this week centered around retired city employees returning to work for the city. In 2013, the city decided to opt out of the Tennessee Consolidated Retirement System(TCRS) in favor of a cheaper program, the International City/County Management Association(ICMA), which required an employee investment that the city would match up to 8 percent. Those hired before 2013 could choose to stay with TCRS. In 2014, the city offered an early-retirement settlement to vested city employees which several decided to accept, including Police Chief David Beaty. Last month, Beaty was re-hired into the same position, and Human Resource Director Leah Crockett told the council that because of a TCRS ruling, any retiree rehired must stop collecting retirement payments and must return to the more expensive TCRS program. Crockett said that there had been some miscommunication on the subject which had stated that anyone rehired would be placed in the new retirement program. She said in the long-run, it will turn out to be more expensive for the city as the city is required to place 18 percent of the employee’s salary into the TCRS fund. The council decided to table the discussion and allow the new city manager and HR Dept. to work out the details and present them to employees.

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