Council delays decision on proposed 401(k) employer match after URS constraints raised

Pleasant Grove leaders delayed a decision on adding an employer 401(k) contribution match after staff reported constraints raised by Utah Retirement Systems. The proposal under consideration was a 2% match, discussed in response to an employee survey request for retirement benefits improvements.

Human Resources Manager David Packard told the council that URS advised staff the sort of vesting/forfeiture arrangement the council had discussed previously may not be allowable: once employer match funds are contributed through URS, the funds cannot be clawed back. Administrator Scott Darrington said the initial approach would rely on existing probationary waits (six months for general employees, one year for public safety) rather than a separate clawback mechanism. "According to them, once that money goes in, there is no way to take that money back out," Packard said.

Several council members asked for clearer options and alternatives before voting. Council Member Steve Rogers said he preferred tabling the item until staff had full information and warned against asking the council to approve an approach materially different from earlier discussions. The item was formally continued to the Aug. 19, 2025 council meeting to allow staff to clarify URS constraints and present recommended language.