Information distributed at the Metro Charter Commission meeting on Thursday, April 29, 2010 indicated the new Metro Government would assume the following "unfunded liabilities" for retirement:
-Shelby County has a surplus or $26,772,516 in its pension fund and an "unfunded liability" for "Other Post Employment Benefits" of -$257,543,000.
-The City of Memphis has an "unfunded liability" of -$449,527,000 in its pension fund and -$934,240,000 for"Other Post Employment Benefits".
Unfunded liabilities are an accounting figure estimating future liability that is not covered by current assets or revenues. "Other Post Employment Benefits" are mostly for retirement. It is not unusual for government or private businesses to have large "unfunded liabilities" for retirement.
Under the proposed "Metro Government" consolidation, the over $1,383,767,000 in "unfunded liabilities" of the City of Memphis is expected to become the liability of all of Shelby County residents and property owners, in addition to the existing Shelby County unfunded liability of $257,543,000.
Due to the type of retirement system provided Lakeland personnel, the City of Lakeland does not have any similar "unfunded liabilities" for either pensions or "Other Post Employment Benefits".
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