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Seat Pleasant staff ask council to suspend police 401(a) while applying for state law-enforcement retirement program

2108845 · January 14, 2025
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Summary

A police department representative asked the Seat Pleasant City Council for a resolution to suspend the city's 401(a) plan for sworn officers while the department applies to a state law-enforcement retirement program, and said an actuary study will be required to estimate cost and sustainability.

A police department representative told the Seat Pleasant City Council that the department needs a council resolution to suspend sworn officers’ participation in the city’s 401(a) retirement plan while it applies for the state law-enforcement officer retirement program.

The representative said the state application requires that sworn officers not be covered by any other pension program and that the department had to show the state “a 100% of the department wanted to join the program.” The speaker said the city’s 401(a) is a city-funded plan to which employees do not contribute, and that the city has reached a vendor who indicated there would be no penalty for suspending or later reactivating employer contributions.

The request matters because suspending the 401(a) would change how the city funds sworn officers’ retirement and could affect long-term costs. The department asked the council to adopt a resolution to pause 401(a) contributions for sworn officers until the state completes its review. The department also said it will commission an actuary study to estimate the cost and sustainability of moving into the state program; that study will go to the finance committee and the full council before any final decision.

Council members asked staff to clarify variables and cost factors for new hires, vesting and the overall fiscal impact. The department representative said the city missed the application deadline for the current cycle and is now working toward a 2026 timeline for a decision from the state.

No formal council vote on a suspension resolution was recorded in the available transcript. City staff said they will forward the actuary study results to the finance committee and the council for review before any final action.

The item remains at the study-and-report stage: staff asked for a resolution to be drafted, an actuary study to be completed, and additional information to be delivered to the finance committee and council prior to a formal decision.