Hollywood City to add defined-contribution and hybrid pension options; employees get one-time, irrevocable choice

Hollywood City pension staff and trustees presented details of two new retirement options — a defined-contribution (DC) plan and a hybrid plan combining a reduced defined-benefit (DB) multiplier with a DC component — and said employees will have a one-time, irrevocable 30-day election window to choose whether to move from the current DB plan.

The presentation, led by Dave Keller, a pension office presenter, and Christine, the pension fund administrator, explained the mechanics, timeline and consequences of the change and answered employees’ questions. "It's completely voluntary," Keller said. "You don't have to change anything." The effective date for the new options is Jan. 1, 2026.

Why it matters: The two new options, negotiated during collective bargaining with AFSCME, give employees more portability and individual control over investments while the pension board says moving some members into DC accounts would reduce the DB plan's unfunded liability and increase its funded ratio more quickly. "To the extent that anyone leaves the plan and goes to the defined contribution plan, the plan becomes stronger," Keller said.

Key details

- Options and timing: Current employees may remain in the existing DB plan or choose either a DC plan or a hybrid plan. Officials said they expect a roughly 30-day election window in October or November 2025; that choice is irrevocable for the employee's career at the city.

- Contributions and mechanics by group: The city divides employees into three groups based on hire date. Under the current DB plan, Group 1…