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City Employees of Knoxville to Receive Less Retirement
Employees working for the city of Knoxville won't receive as much in retirement than in year's past.

The Knoxville City Council voted five to two Monday night to decrease the retirement investment from 6-percent to 5-percent based on last year's gross pay.

Alderman Jim McGovern says the cut is necessary because of the current financial situation. He also says the retirement fund is just another way of diverting city money and says he'd rather see a systematic change.

"The employees of this town may not even use this as retirement because we set into a simple retirement plan, which they can simply just draw out," he said. "It can be considered a percentage bonus whatever we write out and that's what I have a problem with."

"I'd much rather see if we are going to support a retirement plan, some sort of a matching of a retirement plan, not just handing them a retirement plan."

Employees eligible for the investment must have worked for the city at least 3 years and make at least $550-dollars a week.

Acting Mayor Bob Johnson says he first instituted the retirement plan when he was Knoxville's Mayor back in the early 1990s. He says the payback has always been between 5 and 6-percent.
02 07 12 by Newsroom
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