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Jenks adopts defined‑benefit retirement option, seeds fund with $1.975 million
Summary
The council approved ordinances to adopt a defined‑benefit retirement plan through OKMRF, require a 5.25% employee match, extend employer vesting to 10 years, and passed a $1,975,023 supplemental appropriation to fund the initial deposit.
The Jenks City Council on June 23 approved Ordinance 1688 and related measures to change how the city and its authorities provide retirement benefits. The package creates a defined‑benefit option (via OKMRF), requires employees to contribute 5.25% of salary, and establishes a 10‑year employer vesting period for employer contributions.
City Manager Robert Shrout and staff framed the move as an investment strategy to improve long‑term returns on reserve funds that currently earn low Treasury yields. Shrout noted that the 10‑year average Treasury bill return has been about 2.25%, while the OKMRF pooled fund assumes a 7% return and has averaged better returns historically: “Over the last 10 years, they've returned almost 11%,” he told the council.
The council also approved Resolution 902, a supplemental appropriation of $1,975,023 to seed the new fund; staff said the funds come from reserves rather than operating revenues. Councilors discussed funding sufficiency and the desire to reduce operating volatility by investing the reserve funds in a dedicated retirement vehicle.
Implementation and choices: Current employees will have a one‑time opportunity to choose between the new defined‑benefit plan or a similar defined‑contribution alternative; new hires will be placed into the defined‑benefit program. Councilors emphasized the plan is fully funded at the outset and intended to deliver better returns for employee retirement funds while reducing pressure on operating budgets.
What’s next: Staff will finalize enrollment mechanics and provide information to employees about the one‑time election for current staff. The appropriation was approved and staff will complete the transfer to OKMRF.
