City Council approves new retirement plan options for public safety employees

During the recent City Council Work Session in Sierra Vista, a significant proposal was discussed regarding the enhancement of retirement options for city employees. The council is considering the addition of two new retirement plans, the Public Safety Personnel Retirement System (PSPRS) and the Arizona State Retirement System (ASRS), both administered through Nationwide. This move aims to provide city employees with more flexible investment choices for their retirement savings.

Currently, the city offers two options for 457 plans, with the PSPRS plan presenting a lower transaction fee of 5 cents compared to the existing plans, which charge between 55 to 90 cents per transaction. This change is expected to benefit employees by reducing costs associated with their retirement investments.

City staff reported that the addition of these plans would not impose any IRS implications or additional burdens on the city’s finances. Employees will have the option to either remain in their current plans or transfer to one of the new options, which also include a broader range of investment choices. This flexibility is particularly important for public safety personnel, who have expressed a need for more tailored retirement solutions.

If approved, the new plans will be rolled out on June 1, allowing ample time for the Human Resources department to process the changes before the start of the new fiscal year. Information sessions will be organized to help employees understand their options and facilitate a smooth transition.

This initiative reflects the city’s commitment to supporting its workforce by providing valuable resources for their financial futures, ultimately enhancing employee satisfaction and retention. As the council moves forward with this proposal, it underscores the importance of adapting to the evolving needs of city employees in Sierra Vista.