Council approves changes to employee retirement plan; moves non‑elective city contribution to 9%

The City Council approved Resolution 202402 on Aug. 20, 2024, amending the city’s defined-contribution retirement plan for general employees. The adopted changes raise the city’s non‑elective contribution (the employer portion added to employee accounts regardless of employee contributions) from 7% to 9% and leave the elective employee-match program at the current 3% match.

Staff and the plan consultant presented the proposal and a budget analysis showing the fiscal impact. Council members asked for specifics and asked staff to confirm the line-item impact in the FY2025 proposed budget. Council amended the resolution on the floor to exclude an immediate change to vesting; that item will return for separate council consideration at a future budget hearing so the council can review updated cost figures. The amended motion to adopt the resolution (with the 7%-to-9% increase and the 3% match unchanged, excluding vesting changes) passed unanimously, 5-0.

City staff said the cost to move the non‑elective contribution from 7% to 9% was included in the current proposed budget and estimated the initial annual impact at roughly $90,000; the figure could vary depending on future salary adjustments and participation rates. The council directed staff to include the adopted change in the budget materials and to return with any required administrative updates to plan documents.

Council asked staff to bring the separate vesting proposal back to a budget hearing so members could examine final cost estimates before changing vesting rules. The resolution directs staff and the plan administrator to implement the amended contribution schedule and update plan documentation as required by law.