Interest credits on participant cash balance accounts.
Memphis Code of Ordinances § 4-34-14
in effectSec. 4-34-14. - Interest credits on participant cash balance accounts.
For each 2016 plan participant, the "interest crediting rate" applied to the participant's cash balance account shall be based on the plan's return on assets for the applicable plan year less one percent. For periods of less than 12 months the interest crediting rate applied to the participant's cash balance account shall be based on the year to date (YTD) return on assets for the applicable plan year through the second month preceding the month in which the annuity commencement date occurs less one percent. Such interest credit shall be allocated in the following manner:
1. Effective as of the last of each plan year, the dollar amount credited to each participant's cash balance account is calculated as the sum (a) and (b) below:
a. The interest crediting rate multiplied by the cash balance account on the last day of the prior plan year.
b. The interest crediting rate multiplied by the sum of participant cash balance plan contributions and city cash balance plan allocations for the current plan year times one-half.
For any plan participant who ends employment in accordance with section 4-34-31, 4-34-32, 4-34-33, 4-34-42, or 4-34-43, the cash balance account at the annuity commencement date shall not be less than the accumulated participant cash balance contributions and city cash balance plan allocations. For any plan participant who ends employment in accordance with section 4-34-34, the cash balance account shall at no point be less than the accumulated participant cash balance contributions. This provision may be referred to as the "preservation of principal."
(Ord. No. 5573, § III, 12-16-2014)
Source: City of Memphis, Code of Ordinances and Charter and Related Laws (Municode Library, library.municode.com)URL: https://library.municode.com/tn/memphis/codes/code_of_ordinances?nodeId=TIT4PERESY_CH4-342016CABAPLDECOPL_ART3CABAPLCO_S4-34-14INCRPACABAACFetched: 10/28/2026