Issue Sheet ATH2026-044
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City of Smyrna Issue Sheet File Number: ATH2026-044 A Max Bacon City Hall 2800 King Street Smyrna, GA 30080 1 4 9 9 Agenda Date: 4/6/2026 In Control: City Council File Type: Authorization Agenda Section: Formal Business Department: Human Resources Agenda Title: Authorization to reinstate quarterly top-out bonuses for the seven employees who reached the maximum of their designated pay ranges as of December 2025 with recommended payment dates of April 2026, July 2026, October 2026, and January 2027 at a total annual cost $20,086.66, or $5,021.66 per quarter. Citywide ISSUE AND BACKGROUND: In December 2019, twelve employees reached the maximum of their designated pay ranges. At that time, the Council authorized “top-out bonuses” equal to the amount exceeding the pay range maximum, distributed quarterly. These payments were issued in March, July, and October 2020, and January 2021, after which they were discontinued. Following completion of the UGA Class & Compensation Study, it was confirmed that employees who reach the maximum of their pay range—regardless of pay plan adjustments—are considered topped out. This practice has been consistently applied since that determination. RECOMMENDATION / REQUESTED ACTION: Staff recommends reinstating quarterly top-out bonuses for the seven employees who were topped out as of December 2025. Recommended payment dates are April 2026, July 2026, October 2026, and January 2027. The total annual cost of these bonuses is $20,086.66, or $5,021.66 per quarter. As with previous payments, top-out bonuses are subject to Social Security, Medicare, and federal and state taxes at the supplemental rate. They are excluded from retirement contributions and are not included in final average earnings used in retirement benefit calculations.