Chancellor Daryl Fansler has ruled in favor of the city of Knoxville in a dispute by 30-odd city employees who wanted back into the city pension plan.
The employees had opted for a 401(k)-based plan instead of the city’s defined benefits plan. Then the stock market tanked. They asked the pension board to let them back into the defined benefit plan, and the pension board said okay. Since the employees had not been making contributions, this caused problems with plan results. The city objected and said the employees could not rejoin the plan.
Fansler ruled in favor of the city last week. The employees now have the option of taking their case to the appeals court.