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Council puts deferred‑comp auto‑enrollment on first reading for new hires
Summary
Council placed an ordinance on first reading to implement automatic enrollment of new employees into the city's 457 deferred compensation plan at 4% (opt‑out allowed), effective Oct. 10, 2026; council members asked about ease of opt‑out and bargaining‑unit engagement.
The Wichita City Council on July 21 approved placing on first reading an ordinance to automatically enroll new city hires in the city's 457 deferred compensation plan at a 4% contribution rate, with step increases over time and an opt‑out option.
Mark Manning, Department of Finance, said the change would apply only to new employees beginning Oct. 10, 2026, and would not affect current employees. "Employees would be automatically enrolled 60 days after hire at a 4% contribution and would be able to opt out at any time," he said, noting the plan's recordkeeper is Empower LLC and that the deferred compensation board and bargaining units had been consulted.
Council members sought practical details: Council member Tuttle asked whether employees who miss orientation could easily opt out; Manning replied the online process and staff assistance would make unenrollment straightforward and refunds possible for early opt‑outs. Council member Johnston noted tax advantages and Roth options.
The council authorized first reading of the ordinance and authorized the necessary signatures; staff said the recommended action requires changes to city code to implement the auto‑enrollment provision.
