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City reviews MissionSquare retirement plan updates and optional Secure Act 2.0 "super catch‑up" adoption
Summary
Staff summarized changes made to city retirement plans in 2024 (reduced fees, new 457 Roth option, in‑service withdrawals) and recommended adopting the optional Secure Act 2.0 super catch‑up that would raise catch‑up limits for eligible older employees; council gave direction to proceed.
City staff reviewed recent changes to the MissionSquare retirement plans and presented an additional optional change under the Secure Act 2.0 at the Aug. 18 work session.
Ron Shelby said the city implemented an open‑architecture fund structure and completed a competitive RFP for record‑keeping and new investment offerings, reducing plan fees from about 1.01% to an actual realized 0.78% in the second quarter. Staff added a 457 Roth option and adjusted in‑service withdrawal rules; they also proposed allowing the Secure Act 2.0 optional "super catch‑up" provision that raises the allowable catch‑up contribution (for employees turning age 60–63) from $7,500 to $11,250.
Shelby also reviewed proposed fund lineup changes recommended by Baldwin Advisors, including selecting lower‑cost equivalents for certain real estate and target‑date funds and adding options such as a BlackRock commodity strategies fund and Pimco international bond exposure to broaden choices.
Council raised no objections to moving forward; staff said they would implement the optional super catch‑up unless directed otherwise.
What’s next: Staff will proceed with the recommended plan changes and the optional Secure Act 2.0 catch‑up provision unless council indicates otherwise in follow‑up.
