TITLE
Recommendation to authorize City Manager to: 1) amend the City’s Deferred Compensation Plan to conform to recent legislative and regulatory changes; 2) amend the Administrative Service Agreement with International City Management Association-Retirement Corporation (ICMA-RC) to extend the term for five years and enable implementation of recent changes; and 3) enter into a Consulting Service Agreement with Hyas Group, LLC, to continue providing investment advisory services to the City’s Deferred Compensation Plan at an annual amount not to exceed $90,000 with an initial term of one year, with an option to extend the term for up to two separate, consecutive one-year periods. (Citywide)
DISCUSSION
In September 2007, the City’s Deferred Compensation Plan transitioned from three administrative service providers to a more cost-effective single provider. As part of this transition, a Deferred Compensation Advisory Committee was formed, comprised of both representatives of all nine employee labor associations, and City Management, including the City Treasurer, City Attorney, and Human Resources Director, as well as an investment advisor hired to advise the City on the plan investment strategies and management of the plan.
The City’s Deferred Compensation Plan establishes the City’s participation in an eligible deferred compensation plan as defined in section 457 of the Internal Revenue Code. The City’s Plan was last updated in 2002 and now requires amendments resulting from recent legislative and regulatory changes, including the Pension Protection Act of 2006.
As the City’s Deferred Compensation Plan Service Administrator, ICMA-RC continues to work effectively with the Deferred Compensation Advisory Committee to ensure efficient administration of the City’s current and former employee investments. Since becoming the City’s single service provider, they have implemented outstanding service initiatives, including providing an on-site Retirement Plan Specialis...
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