Department of Finance
Reference: Pension Board Updates
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Catrina Asher, Finance Director
Date Prepared: February 17, 2026
PURPOSE
To provide City Council with an overview of the City's Pension Board and its responsibilities, and to propose updates to Municipal Code regarding the makeup and operations of the Pension/Retirement Board.
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 the 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 beha...
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