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Council presses for clarity on 401(a) retirement benefit tied to police chief contract
Summary
Alderman Stacy asked for full public review of resolution R2026-87, which would create an employer-funded 401(a) retirement benefit for employees ineligible for IMRF or police pension; city manager Rob Boyer said the 401(a) was negotiated as part of the police chief's compensation package, prompting public calls for alternatives and transparency.
Alderman Cecilia Stacy asked the Committee of the Whole to discuss resolution R2026-87, a proposal to establish a city-funded 401(a) retirement plan for certain employees not eligible for IMRF or the police pension. Stacy said state law requires the city provide an alternative retirement vehicle for ineligible employees but added that creating a new, employer-funded benefit is a fiscal decision that "warrants careful and deliberate consideration before this council takes final action."
Stacy noted public concern voiced at an earlier meeting, saying opponents outnumbered supporters and that the council owes residents answers about both the short- and long-term fiscal impacts. "We owe it to the public to ensure that decisions involving taxpayers' funds, employees' benefits are made transparently," she said.
City Manager Rob Boyer told the body the 401(a) was part of the police chief Frosto's negotiated compensation package during contract talks. When asked whether alternatives could be presented, the manager said the retirement plan had been negotiated as part of the chief's contract; he described the 401(a) as the "most cost-effective approach" told to the council in answer to a question about options.
Attorney Zito confirmed state law requires the city to offer an alternative retirement vehicle where employees are not IMRF-eligible. Residents in the chamber asked that the council be presented with multiple options and clearer documentation showing why the selected plan was chosen.
No final vote on resolution R2026-87 occurred at this meeting; aldermen and residents called for additional staff information and for the council to review alternatives before taking action.
