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Council reviews proposal to raise supplemental retirement match to 4% for sworn employees excluded from Social Security
Summary
Human resources presented an ordinance change that would allow sworn police officers and firefighters — employees who do not participate in Social Security — to receive a 401(k) match up to 4 percent. Staff said the annual cost is approximately $282,000 and that that expense is included in the mayor’s proposed budget.
Provo City human-resources staff proposed an amendment to the city code to increase the city’s supplemental retirement match to up to 4 percent for employees who do not participate in Social Security — specifically sworn police officers and firefighters — while leaving the existing 2 percent match for other employees.
HR Director Daniel Safdie reviewed the background for the change: Provo City historically opted out of Social Security for sworn public-safety positions because those employees participate in the Utah Retirement System (URS). The city currently matches up to 2 percent of employee contributions to supplemental 401(k) accounts. HR staff surveyed other Utah agencies and reported that the median supplemental contribution among agencies that opt out of Social Security is 4 percent. The proposal would align Provo’s contribution for non-Social-Security positions with that market median.
Safdie said the estimated annual cost of raising the match to 4 percent for the affected positions is approximately $282,000 and that the mayor’s proposed budget includes that amount. Councilors asked whether the city could instead apply the full Social Security employer-equivalent amount (6.2 percent) into retirement; staff replied agencies that do so exist but many opt for partial matching and the proposed 4 percent aligns with peer practice and budget reality.
Councilors asked about retirement tiers and how the supplemental match interface with URS benefits for long-tenured sworn employees (some with 20-year retirements, others on 25-year schedules). Staff confirmed the match is supplemental to URS benefits and that the policy would be implemented through ordinance revision and the adopted FY 2025–26 budget if council votes to include it.
Why this matters: The change affects recruitment and retention for sworn public-safety employees who do not participate in Social Security and aligns the city with peer agencies that offer higher supplemental matches to compensate for the Social Security exclusion.
What’s next: The proposed ordinance change is included in the mayor’s budget package; staff will bring the ordinance language and cost details to the council during the adoption process.
