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Enterprise officials consider restoring Tier 1 retirement benefits for city employees
Summary
City staff presented options to the Enterprise City Council on restoring RSA Tier 1 retirement benefits citywide, recommending adoption of two state acts; council members voiced support and directed staff to prepare ordinance language for a near-term vote.
City staff and elected officials discussed whether to restore Tier 1 retirement benefits for city employees during the Enterprise City Council meeting on June 9, 2025.
City staff recommended adopting two state acts that would permit Tier 2 employees to receive Tier 1 benefits. The recommendation calls for the council to enact both acts, which staff said would change employer and employee contribution rates and require secondary steps before the change would take effect.
Mister Tullis (city staff) summarized timing and process, saying the city would need to submit paperwork to the Retirement Systems of Alabama (RSA) in August if the council chose to act now and that detailed actuarial work and formula changes would be required. “Unless an action is taken within the next 6 weeks … it’ll be moot until FY2027,” he said.
Allison Love, the human resources director, and Leanne Schwartz (city CFO) walked council members through a benefits comparison showing the differences between Tier 1 and Tier 2 for law enforcement/fire/correctional employees and for regular employees. The…
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