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Council adds MERS 457 deferred compensation option for employees
Summary
Garden City council unanimously approved adding the MERS 457 deferred compensation plan as a supplemental retirement option for city employees, effective Oct. 1, 2025; city manager said the plan expands employee choices and is a payroll pass-through.
The Garden City City Council voted 7-0 on Sept. 8 to add the MERS 457 deferred compensation plan as an employee supplemental retirement option, effective Oct. 1, 2025.
City Manager Gibbons explained the change during the meeting, describing the addition as an expansion of options for employees alongside existing programs such as Empower Nationwide and MissionSquare. "The city of Garden City offers its employees a number of additional supplemental retirement savings programs... but we want to add MERS to this," Gibbons said, noting the city acts as a payroll pass-through for contributions.
Council member Bridal moved the motion to add the MERS 457 plan, and the motion was supported by Council member Kara Fotis. The council approved the motion by voice vote with no recorded opposition.
Why it matters: The change does not alter city-managed defined-benefit pensions; it adds an employee-elected supplemental option allowing different plan administrators and fee structures. Gibbons characterized the program as similar to a 401(k)-style supplemental plan and said the city must approve the administrative relationship because the city is the plan administrator for payroll processing.
No fiscal impact to the city’s general fund or specific fee amounts were recorded in the meeting minutes; the item was presented as allowing employees more choices and did not include a council discussion of projected enrollment or administrative costs.
Next steps: The action takes effect Oct. 1, 2025, per the motion; staff will implement the payroll pass-through process with MERS and notify employees of the new option.
