The Cookeville Regional Board of Trustees voted unanimously to accept the pension repayment plan outlined for the Tennessee Consolidated Retirement System.
A second resolution also passed unanimously Thursday night to fix the payment in lieu of taxes at $700,000 until July 1, 2028. The City Of Cookeville drafted the resolution.
Vice Mayor Laurin Wheaton said the council really wanted to show the medical center its appreciation for rectifying the retirement payment issues by keeping the payments steady.
The Cookeville City Council will consider both resolutions at a specially-called Friday morning meeting.
The repayment plan moves all the assets and liabilities for employees who worked at the medical center prior to the 1999 seperation from the city. The medical center will take over their costs. In addition, Cookeville will receive interest credits based on the money it could have earned during the 20 years.
As Cookeville’s payments into TCRS, the medical center’s payments will increase.
The state error was discovered by former Cookeville City Manager Mike Davidson.
