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Council to finalize revisions to MissionSquare 401/457 plans to add catch‑up and Roth loan options
Summary
City HR presented second‑reading changes to the MissionSquare 401 and 457 retirement plans to add a 60‑year catch‑up provision, Roth loan options and certain emergency withdrawals; staff said the changes will not cost taxpayers and aimed to make the changes effective Oct. 1 pending signature.
PUNTA GORDA, Fla. — City Human Resources presented a second reading of changes to the MissionSquare 401 and 457 retirement plans that would expand catch‑up contribution windows, allow Roth loan treatment and add distribution options for employees with qualifying emergency needs.
Jeff Payne, HR manager, told council the amendments include a new catch‑up option for employees age 60 (in addition to the existing age‑50 catch‑up), expanded Roth features — including allowing Roth dollars to be used for loans where previously they were not — and certain distributions for victims of domestic abuse. "We're trying to get these effective for October 1," Payne said, noting the tight timeframe to read the changes twice and finalize documentation for the mayor's signature.
Payne said some emergency withdrawals of up to $1,000 would be permitted from the 457 plan for eligible expenses; he noted differences remain between the 401 and 457 plans on which options apply. When a council member asked whether the changes would increase costs for taxpayers, Payne replied, "Correct. Yes. K. Yes." (clarifying that the proposed changes do not cost the city additional employer contributions).
The amendments were presented as staff recommendations for council action at the upcoming regular meeting; staff said they would request the mayor sign the documentation after the second reading and council approval. No additional costs to the city's general fund were reported at the pre‑agenda meeting.
