Department of Finance
Reference: Updates to the Brighton Municipal Code Regarding the Pension Board
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Catrina Asher, Finance Director
Date Prepared: February 19, 2026
PURPOSE
To seek approval of an ordinance updating the Municipal Code regarding the makeup and operations of the Pension/Retirement Board.
Previous Discussions - This item was discussed with City Council at the February 17th Study Session. That presentation was informational and included the same information presented below.
BACKGROUND
The Pension Board
The City’s Pension Board was established under the City’s Municipal Code Article 2-64. This code defines the Board, its composition, and its authority. When it was established, the City offered an actual pension plan. The City no longer offers a pension, but the City does offer a mandatory retirement plan authorized under IRS regulation 401(a). This retirement plan is a social security replacement plan, meaning City employees do not contribute or pay into social security but instead pay into the 401(a) plan. One of the upcoming changes will be to correctly refer to this board as a Retirement Board rather than a Pension Board.
The Board is responsible for oversight of the City’s retirement plans, including the 401(a) plan which is a Social Security replacement, and the 457(b) plan which provides employees with the option to contribute additional amounts to their retirement through pre-tax or Roth contributions.
The Board’s role with regard to these plans is fiduciary in nature, acting on behalf of the best interests of the participants. The Board has oversight of contracts for management of the plan, including the recordkeeper (currently Empower Retirement) and advisors (currently Innovest). The Board reviews and monitors the plans investment options and approves changes in the investment choices offered to employees when necessary. The Board reviews and approves the contract terms with the recordkeeper, including the fees associated with plan management. The Board may advocate on behalf of participants when necessary and takes participant feedback into consideration when making decisions on the terms of the plan.
The Board is currently made up of the following members:
- Appointed Positions
o City Manager’s Office - Karen Borkowski Surine
o Finance Department - Catrina Asher
- Elected Positions
o Kelsey Archuleta (Co-Chair)
o Holly Prather
o Jeremy Rowe (Co-Chair)
- Advisory Positions
o Human Resources - Kevin Young (Plan Administrator)
o City Attorney’s Office - Alica Calderón
The City’s Retirement Plans
Below is a summary of the plans offered by the City and overseen by the Retirement Board:
|
|
401(a) Plan |
457(b) Plan |
|
Participation |
Required |
Optional |
|
Contributions |
Employer - 11% Employee - 9% |
Employer - 0% Employee - up to IRS defined limits |
|
Vesting |
Immediate |
|
Investment Options |
List defined by the Pension Board |
|
Recordkeeper |
Empower Retirement |
All full-time, benefited employees are eligible to participate in the plans listed above with the exception of Sworn Officers. Sworn Officers in the Police Department participate in a separate, but similar, plan managed by FPPA. Those plans are overseen by a separate governing body and are not within the City.
It is important to note that the City does not participate in Social Security and that the 401(a) plan is a Social Security replacement plan.
Proposed Code Updates
The Municipal Code that established the Pension Board was created in 1985 and last updated in 2001. The Pension Board, with support of the City Attorney’s Office, has reviewed the code and proposes several updates as outlined below:
- Change the name of the plan and board from Pension Plan and Pension Board to Retirement Plan and Retirement Board. This naming better reflects the types of plans in place as they are not “pension” plans.
- Update the City’s Contribution from a fixed 9% to a minimum of 9% with the option for increases based on the recommendation of the City Manager and subject to budget adoption. The City has been increasing employer contributions in recent years to match state mandated increases in FPPA contributions. As of 2026, the employer contributions are at 11%.
- Removal of a specific retirement age in the plan which was internally inconsistent. The retirement age is defined in the plan documents and does not need to also be reflected in Code.
- Updates to the following appointed positions:
o Rename City Treasurer to Finance Director.
o Formally appoint the Human Resources Director as the Plan Administrator.
- Remove the language regarding participant loans as this is addressed in the Board’s bylaws.
-
FINANCIAL IMPACT
There are no direct financial impacts of these changes. Any impact of future contribution changes would be subject to approval in the budget process.
STAFF RECOMMENDATION
Staff recommends approval of the Ordinance as presented at the following City Council meetings.
- March 3 - Ordinance (first reading)
- March 17 - Ordinance (final reading)
Attachments:
Ø Ordinance Draft
Ø Presentation