PILLAR: Fiscally Sound
AGENDA DATE: November 10, 2026
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller’s Office
PRIORITY: N/A
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SUBJECT
Title
Authorize amendments to the City of Dallas Employee Voluntary Deferred Compensation 401(k) Retirement Savings and the 457(b) Defined Contribution Plans to adopt the mixed deferrals option and allow for all plan participants to have the option to make contributions to these plans as a fixed dollar amount or as a percentage of their paycheck - Financing: This action has no cost consideration to the City (see Fiscal Information)
Body
BACKGROUND
City of Dallas Employee Voluntary Deferred Compensation Retirement Plans currently have the option to make contributions to either plan as a percentage of their paycheck. Plan Board members expressed interest in amending the plans and adopting mixed deferrals.
On July 30, 2026, the Plan Board members of the 401(k) and 457(b) Plans voted to allow mixed deferrals for both Plans. This option was briefed to the Finance Committee on October 26, 2026.
Currently, participants of either plan can make contributions as a percentage of their gross pay every pay period. This new fixed dollar contribution option will provide an alternative to the current percentage of gross pay option. The minimum contribution per pay period will be $25.
This change has no impact on 457(b)PST deferred compensation plan which requires a mandatory contribution of 7.5 percent of gross pay every pay period for all City of Dallas part-time, temporary, and seasonal employees as well as elected officials.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The 401(k) and 457(b) Boards were briefed on mixed deferrals on June 5, 2026. No action was taken.
The 401(k) and 457(b) Boards were briefed on mixed deferrals during a Special Called Meeting on July 30, 2026, and voted to include the mixed deferrals to both Plans. The motion passed by majority vote of both Plans.
The 401(k) and 457(b) Boards were briefed with a demo of the mixed deferrals on September 11, 2026. No action was taken.
The Finance Committee was briefed by memorandum regarding this matter on October 26, 2026. <https://dallascityhall.com/government/citymanager/Documents/Council%20Materials/Proposed%20Amendment%20to%20the%20Deferred%20Compensation%20voluntary%20plans.pdf>
FISCAL INFORMATION
This action has no cost consideration to the City. Any costs paid by the General Fund related to the implementation of the mixed deferrals will be reimbursed by the Fidelity Revenue Credit Agreement.