To: MAYOR AND CITY COUNCIL
From: DIANE STRICKFADEN, DIRECTOR OF HUMAN RESOURCES
TITLE
title
APPROVE AN AGREEMENT BETWEEN THE CITY OF REDONDO BEACH AND MISSIONSQUARE RETIREMENT FOR THE ADOPTION OF A GOVERNMENTAL TAX QUALIFIED MONEY PURCHASE PLAN (401A PLAN) FOR PUBLIC SAFETY CHIEFS UNDER SECTION 401A OF THE INTERNAL REVENUE CODE
ADOPT BY TITLE ONLY, RESOLUTION NO. CC-2512-093, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, APPROVING THE CITY OF REDONDO BEACH 401(A) PUBLIC SAFETY CHIEF PLAN (PLAN NO. 100507), APPROVING ALL PLAN DOCUMENTS NECESSARY FOR ADOPTION OF THE PLAN AND AUTHORIZING THE CITY'S PLAN ADMINISTRATOR OR DESIGNEE TO EXECUTE ALL DOCUMENTS AND TAKE ALL ACTIONS NECESSARY TO ADMINISTER THE CITY'S 401(A) AND 457(B) PLANS
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EXECUTIVE SUMMARY
MissionSquare Retirement (MissionSquare) is the administrator of the City's five existing tax deferred 457(b), 401a, Roth IRA and Retirement Health Savings plans. Through MissionSquare, public employees are provided with opportunities to save for retirement via various investment options in accordance with IRS regulations. On September 16, 2025, the City Council approved an Administrative Services Agreement with MissionSquare for a new, sixth retirement plan under Section 401(a) of the Internal Revenue Code. Participation in this new plan would only be available to Police or Fire Chiefs with more than 30 years of service in the City of Redondo Beach, and it would be first effective in December 2025.
BACKGROUND
The City's contract with CalPERS allows up to one year of unused sick leave to be converted to service credit when a member retires. However, when a Police Officer reaches thirty years of service, they have already reached their maximum benefit available from CalPERS, and the conversion of unused sick leave no longer has value. In early 2025, as an employee retention tool, the City Council approved an amendment to the Management and Confidential Pay Plan that wou...
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