City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 25, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF 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 Firefighters and Police Officers Pension Plan to Incorporate Collective Bargaining Agreement Changes. (Not a Public Hearing Item)
BODY
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ISSUE: Consideration of a Resolution to Amend the Firefighters and Police Officers Pension Plan to Incorporate Collective Bargaining Changes.
RECOMMENDATION: That City Council adopt the attached resolution (Attachment 1) which incorporates the approved Collective Bargaining Changes.
BACKGROUND: The City of Alexandria’s Firefighters and Police Officers Pension Plan (the “Plan”) is a defined benefit plan, established in 2004. As a defined benefit plan, it is designed to provide a monthly income for life. Membership in the Plan is provided for all full-time sworn firefighters and police officers.
Changes for Firefighters - 25-year DROP
In Article 53 of the Collective Bargaining Agreement between the City of Alexandria and the International Association of Fire Fighters Local 2141 effective from July 1, 2026, the City agreed to amend the Plan to include a 25-year Deferred Retirement Option Program (DROP) for firefighters. The amendment will be effective as of July 1, 2026.
Changes for Collectively Bargained Police Officers - 20 year early retirement
In Article 38 of the Collective Bargaining Agreement between the City of Alexandria and the Southern States Police Benevolent Association Alexandria Chapter effective from July 1, 2026, the City agreed to amend the Plan to include a cost-neutral 20-year early, reduced retirement for collectively bargained police officers. The amendment will be effective as of July 1, 2027.
The agreement goes on to state that a participant electing early retirement under this amended provision will not change the participant's eligibility for the City’s health care retirement supplement.
Required Minimum Distribution (RMD)
The SECURE 2.0 Act of 2022, signed into law on December 29, 2022, as part of the 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.
DISCUSSION:
Changes for Firefighters - 25-year DROP
In Article 53 of the Collective Bargaining Agreement between the City of Alexandria and the International Association of Fire Fighters Local 2141 effective from July 1, 2026, the City agreed to amend the Plan to include a 25-year Deferred Retirement Option Program (DROP) for firefighters.
This DROP will allow employees with at least 25 years of service to retire under the pension plan for benefit calculation purposes while continuing to work for up to three years. During this period, their pension benefit is deferred and credited into a DROP Account, and they must continue making employee contributions until they leave City employment. This option defers the start of pension payments while the individual remains actively employed. This DROP option is available to all eligible firefighters, regardless of their date of hire.
Changes for Collectively Bargained Police Officers - 20-year early retirement
In Article 38 of the Collective Bargaining Agreement between the City of Alexandria and the Southern States Police Benevolent Association Alexandria Chapter effective from July 1, 2026, the City agreed to amend the Plan to include a cost-neutral 20-year early, reduced retirement for collectively bargained police officers.
The table below shows the current retirement eligibility and the proposed enhanced early retirement eligibility for the collectively bargained police employees:
Required Minimum Distribution (RMD)
The proposed plan amendment includes language that would increase in the RMD age and bring the Plan in compliance with the regulations as required in Secure 2.0.
FISCAL IMPACT: There is no fiscal impact to the Plan for the Required Minimum Distribution Amendment. The Plan change for police officers was designed to be cost-neutral, meaning it has no cost impact to the City.
The cost study for the 25-year DROP program was completed by the Plan’s actuary, Cheiron. The actuary has estimated that the addition of a 25-year DROP will increase the Plan’s recommended contribution by approximately $170,000 annually.
ATTACHMENTS:
Attachment 1 - Resolution to Amend the Firefighters and Police Officers Pension Plan
Attachment 2 - Amendment to the Firefighters and Police Officers Pension Plan
STAFF:
Kevin C. Greenlief, Director of Finance
Kadira Coley, Assistant Director of Finance, Pension and Payroll