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Finance committee hears payroll reconciliation update; $144,000 Social Security refund returned, 401(a) catch-up underway
Summary
City staff told the City Council finance committee that most payroll errors have been corrected, public safety 401(a) deposits are current, a $144,000 Social Security overpayment was refunded, and the city is moving recordkeeping from 1America/Voya to Empower this summer.
City Council finance committee members on Monday heard an update on a months-long payroll reconciliation that staff said has left employees “made whole” while the city cleans up systems and vendor connections.
Lauren Weaver, payroll manager, told the committee that the city confirmed a Social Security overpayment that was returned and that public safety 401(a) contributions have been “all current and caught up.” She said staff have uploaded city Social Security and retirement portions and are continuing work on civilian 401(a) matches and other integrations.
Why it matters: payroll errors can expose the city to employee hardship, cash-flow strain and additional consulting costs. Committee members pressed staff for an itemized accounting of direct and consultant costs tied to the reconciliation. The committee also received details about a planned third‑party record‑keeper conversion that will affect employee retirement account access later this year.
Most important facts
- “We did get it confirmed that we got a $144,000 refund back for the Social Security overpayment,” Weaver said, describing a special payroll run that staff processed in March and a deposit that reached the city bank about a month later.
- Staff reported public‑safety 401(a) contributions are current and deposited with the record keeper (previously identified as “1 America”). A separate civilian 401(a) match remains in process; staff expect manual calculations for the last 11 weeks to be completed soon.
- City staff said they immediately corrected errors that affected employee pay and did not require employees to repay missed health‑insurance deductions; the committee was told roughly $5,000 for those deductions was paid from general fund dollars.
- The city is transitioning retirement recordkeeping from 1America (the vendor previously associated with plans bought by Voya) to Empower; staff said the conversion will take place in late summer and will include a temporary blackout period for account access.
Costs and outside help
Staff reported one Baker Tilly invoice of roughly $25,000 had been received so far. Committee members requested an itemized breakdown at the next meeting listing consultant fees, staff hours spent, and any unbilled amounts. At the meeting one committee member voiced a large, uncertain estimate for total consulting costs; staff did not confirm that figure and characterized it as speculative.
Other details and follow-up
Weaver described three implementation parts tied to payroll system changes: connecting third‑party time systems for police and fire, linking benefit carriers to payroll for automated deductions, and completing the record‑keeper transfer. Amy, the city’s broker, is leading much of the record‑keeper conversion work, staff said.
The committee asked staff to return with an itemized cost report at the next meeting, including known bills, unbilled consultant time and staff hours expended on payroll remediation.
Ending
Committee members thanked staff for the progress and for making employees whole. Staff committed to a follow‑up report with a detailed cost breakdown and a status update on civilian 401(a) contributions and the Empower conversion timetable.
