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Jonesboro committee forwards amendment to open 457(b) plan to uniformed personnel and full-time elected officials
Summary
The Community Committee voted to forward to full council a resolution to amend the City of Jonesboro'0457(b) retirement savings plan so uniformed police and fire personnel and full-time elected officials may make elective pretax deferrals (effective Jan. 1, 2026); the amendment specifies there will be no city matching contributions.
The Community Committee of the City Council of Jonesboro voted to forward a resolution that would change eligibility for the city's nonuniform employees 457(b) retirement savings plan to include uniformed police and fire personnel and full-time elected officials.
City staff explained the adoption agreement would rename the plan the City of Jonesboro 457(b) plan and make the amendment effective Jan. 1, 2026. Staff said the change would allow those newly eligible to make pretax elective deferrals to the 457(b) plan but that those contributions would not receive city matching through the 401(a) defined-contribution plan.
"We also are taking the opportunity to open this up for uniformed personnel and elected officials to be part of that 457," City staff (Speaker 2) said, adding the change is "no cost to the city" and should not create deferred liability. Staff noted the city previously adopted the nonuniform retirement plan in 2012 and that First Security Banks had served as trustee; Milliman is now the record keeper.
Committee members asked for clarifications about overlap with existing plans and part-time eligibility. "So this is in addition to if I'm nonuniformed and I already can contribute to the 401(a), then I can contribute to this also?" asked Speaker 3. Staff confirmed nonuniform employees can continue to contribute to the 457(b) and receive matching via the 401(a); the amendment gives an additional elective-contribution option to uniformed staff and full-time elected officials without matching.
Speaker 4 pressed for clarity on hours and eligibility; staff confirmed the attachment to the adoption agreement indicates the amendment is not intended for part-time employees (those working less than 40 hours). Speaker 4 asked that that interpretation be placed on the record.
The committee moved to forward the resolution to full council for final consideration; the meeting transcript records a motion and a second and that members were asked to record their votes, but vote tallies were not included in the committee transcript.
The next step is consideration of the resolution by the full City Council, where council members will vote on final adoption and any implementing documents.
