The Independence City Council on Oct. 6 voted 5-2 to amend and approve a contract change to select Option 1 for the city’s optional deferred compensation plan recordkeeping with Voya.

Council member Perkins moved to substitute Option 1 in place of Option 2 in the proposed contract; the amendment passed 5-2. The subsequent approval of the contract as amended also passed 5-2 (yes: Perkins, Stewart, Wylie, Vaught, Mayor Roland; no: Fears, McCandless).

The discussion centered on recordkeeping fees and whether certain participant groups—specifically a group of participants invested in a fixed 4% account—would continue to pay no direct recordkeeping fee and therefore be cross‑subsidized by other plan participants. Council members and employee representatives described the plan makeup: 953 participants in the plan family were referenced in staff remarks, with approximately 413 invested in the 4% fixed option and smaller subgroups paying or not paying recordkeeping fees.

One council member with retirement-plan experience outlined that the proposal would leave some participants (including those invested in stock/bond portfolios) paying recordkeeping fees for others who would not. That member said the arrangement raised equity concerns and stated they could not support the amendment; another council member argued the amendment preserved the fixed‑rate option and reflected the employee committee’s recommendation.

City staff explained the amendment substitutes the earlier recommended Option 2 with Option 1 in the contract documents. The council voted on the amendment and then on the amended contract; both votes passed 5-2.

What the council did and did not do: the council amended the city's action to select Option 1 in the Voya contract and authorized the city to enter the amended contract. Council members asked for additional staff follow‑up to clarify how fee allocations affect active employees and retirees and to provide further details to any employees with questions.

Next steps: the city will finalize the contract with Voya under Option 1 and staff said they would continue to work with employee representatives to clarify how the fee structure will be applied to different participant groups.