City of Alexandria, Virginia
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MEMORANDUM
DATE: NOVEMBER 20, 2025
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: KEVIN C. GREENLIEF, DIRECTOR OF FINANCE
DOCKET TITLE:
TITLE
Consideration of a Resolution to Amend the City of Alexandria’s Supplemental Retirement Plan.
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ISSUE: Consideration of a Resolution to Amend the City of Alexandria’s Supplemental Retirement Plan.
RECOMMENDATION: That City Council pass the proposed resolution (Attachment 1) to amend the Supplemental Retirement Plan to 1.) comply with technical IRS changes to the Required Minimum Distribution (RMD) age for all Supplemental Retirement Plan employees; and, 2.) match the Deputy Sheriffs’ Supplemental Retirement Plan with their VRS Enhanced Hazardous Duty Plan.
BACKGROUND: The City of Alexandria’s Supplemental Retirement Plan (the “Plan”) is a defined benefit plan, established in 1970. It is intended to supplement retirees’ income from the Virginia Retirement System (“VRS”). As a defined benefit plan, it is designed to provide a monthly income for life. Membership in the Supplemental Retirement Plan is provided for all full-time general schedule employees, deputy sheriffs, fire marshals, medics and part-time general schedule employees who are employed in positions that are at least the equivalent of 50 percent of a full-time position.
Required Minimum Distribution (RMD)- All Supplemental Retirement Plan Employees
The SECURE 2.0 Act of 2022, signed into law on December 29, 2022, as part of the federal Consolidated Appropriations Act, 2023, contains over 90 provisions impacting the rules for employer-sponsored defined benefit (DB) plans. The act requires that DB plans formally amend their plans by December 31, 2026. The table below summarizes the recent changes to the RMD age.
*The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act)
The proposed plan amendment includes language that would increase the RMD age and bring the Plan into compliance with the federal regulations as required in Secure 2.0.
Supplemental Retirement Plan (Plan) - Retirement Eligibility for Deputy Sheriffs
In January 2020 the City’s Deputy Sheriffs began to participate in the Viginia Retirement System’s (VRS) Enhanced Hazardous Duty Plan. One of the benefits of participating in the VRS Enhanced Hazardous Duty Plan is improved retirement eligibility under the VRS Plan. This results in the Deputy Sheriffs having a more advantageous retirement eligibility under VRS than is available under the Supplemental Retirement Plan.
In the FY2026 Approved budget the City Council funded an amendment to improve the Deputy Sheriffs’ retirement eligibility under the Plan to match their retirement eligibility under the VRS Enhanced Hazardous Duty Plan.
The proposed plan amendment would change the retirement eligibility for Deputy Sheriffs and the Sheriff to match the retirement eligibility under the VRS Enhanced Hazardous Duty Plan. The proposed plan amendment improves the Deputy Sheriffs’ and the Sheriff’s Normal Retirement eligibility to age 60 with 5 years of service or age 50 with 25 years. Deputy Sheriffs and the Sheriff would be eligible for Early Retirement at age 50 with 5 years of service. Participants choosing to retire under early retirement provisions will have their benefit actuarially reduced to be equivalent to the Plan. The proposed amendments update the Deputy Sheriffs’ and the Sheriff’s retirement eligibility under the City’s Supplemental Retirement Plan to match the retirement eligibility for VRS Enhanced Hazardous Duty Plan.
The attached chart compares the retirement eligibility for the various classes of City employees.
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FISCAL IMPACT: City Council has already allocated $155,000 in the FY 2026 Approved budget during the add/delete process. The cost was calculated based on a study provided by Cheiron, the Plan’s actuary.
ATTACHMENTS:
1. Resolution to Amend the Supplemental Retirement Plan
2. Amendment to the Supplemental Retirement Plan.
STAFF:
Jane Christenson, Deputy City Manager
Kadira Coley, Retirement Administrator
Sarah McElveen, Asst City Attorney