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City hears SageView report: Cocoa’s employee deferred compensation and 401 plan post solid multi‑year returns
Summary
SageView Advisory reported the city’s 457(b) deferred compensation and 401(a) plans hold about $15.6 million in assets, with year‑to‑date returns around 6.6% and 7.07% respectively, and discussed fee benchmarks, watch‑list procedures and imminent Secure 2 regulatory changes effective Jan. 1, 2026.
The council received a quarterly investment‑oversight briefing from Lisa Drake of SageView Advisory, the city’s fiduciary adviser for the 457(b) and 401(a) plans. Drake reported approximately $15.6 million in combined plan assets and year‑to‑date performance of about 6.6% for the deferred compensation plan and 7.07% for the 401(a) plan.
She told the council the plans use institutional share classes with weighted investment expenses of about 0.40% (457) and 0.46% (401a) and described the committee’s watch‑list policy (four consecutive underperforming quarters triggers recommended replacement). The PIMCO high‑yield bond fund is currently on a three‑quarter watch list, Drake said.
Drake also summarized Secure 2 regulatory changes: some provisions became effective earlier this year and others take effect Jan. 1, 2026 (for instance, mandated Roth treatment for certain catch‑up contributions for employees over 50 who earn above specified thresholds). She said staff and MissionSquare (recordkeeper) are preparing plan‑document amendments to comply with IRS requirements.
Council thanked the presenter for a concise briefing and asked no substantive follow‑up questions.
