The Leesburg City Commission has voted to boost its retirement contributions for municipal employees, a move aimed at keeping the city competitive in a tight local government job market.
Commissioners approved a resolution during their July 13 meeting to increase the city’s base employer contribution to the General Employees Retirement Plan from 5% to 8% of an eligible employee’s compensation.
The increase to the 401(a) retirement plan will apply to all eligible workers, regardless of whether they choose to participate in the city’s voluntary 457(b) deferred compensation plan. The decision does not affect a previously approved benefit from 2025, which provides a matching contribution of up to 3% for employees who do opt into the voluntary plan.
According to an agenda memorandum from City Manager Al Minner, the change carries a fiscal impact of $120,000. The funding has already been incorporated into the proposed budget for the 2026-27 fiscal year and will be drawn from individual department personnel budgets.
In the memorandum, city officials noted that local governments across Florida are facing steeper competition to attract and retain qualified staff. Enhancing the retirement package is intended to strengthen Leesburg’s overall benefits and encourage long-term employment with the city.