Council approves amendment and emergency clause to city retirement plan after actuarial review

Chris, a representative for the Oklahoma Municipal Retirement Fund, told the council the city’s retirement system has improved from about 65% funded to roughly 88% and that the city has the capacity to upgrade plan-level benefits without new net dollars.

“That is approximately what the city contributes into the retirement system,” Chris said, describing the city’s current effective contribution at about 13.2% and the employee share at 4.5%. He said an upgrade to a higher plan level would raise employee contribution later (a proposed July amendment would move employee contributions to 5.25%) while improving benefit levels for current employees.

Chris presented figures from the actuarial study: liabilities of about $17.7 million, $15.6 million in plan assets as of 07/01/2024, and a projected rise in total liability to roughly $19.0 million under the proposed change in the active-employee group. He said the change would increase retirement benefits for active employees by about 16.2% while remaining fiscally affordable under current funding practices.

During council questions members asked whether approving the change fell within council authority and how employee raises or investment returns could affect liabilities. A council member noted the retirement plan is enacted by city ordinance, and staff confirmed the council has the financial-authority role for this matter.

Council voted to approve Ordinance 2025-32 and separately approved an emergency clause so the change can take effect promptly to avoid disruption of employee benefit coverage; roll call votes were recorded in favor with no opposition on the record.