TITLE
Recommendation to authorize City Manager to execute contract with Arnerich Massena & Associates, Inc., to perform a comprehensive evaluation of the City's 457 Deferred Compensation Savings Plan; assist City staff in developing employee education materials; and at the City Manager's discretion assist the City in conducting a request for proposal for deferred compensation provider services, for an amount not to exceed $92,000 for a period of one year. (Citywide)
DISCUSSION
Currently, the City offers a 457 Deferred Compensation Retirement Savings Plan (Plan)
to its employees. The Plan is offered through three providers, ICMA, ING and National
Deferred. These three firms offer a wide breadth of retirement investment options and
services. As the deferred compensation market has matured, investment vehicles and
service delivery methods have proliferated. To knowledgeably fulfill its fiduciary duty to
its employees, the City is obligated to conduct regular examinations of its benefits and
keep abreast of current trends in deferred compensation management, including
services, service delivery and pricing.
The regulatory environment for retirement plans also continually evolves. Over time,
the escalating regulatory expectations of employers have made it imperative that a
comprehensive review of this Plan be undertaken on a regular basis. Staff issued a
request for proposal (RFP) to fifteen firms for assistance with this review. Seven firms
submitted RFP responses, and five firms were invited to present their qualifications and
proposals.
Staff recommends that the City Council authorize the City Manager to execute a
contract with Arnerich Massena & Associates, Inc., for professional services to perform
a comprehensive review (Phase I) of the City's current Plan at a cost not to exceed
$40,000. Based on the findings of the review, at the City Manager's discretion, a
request for proposal (RFP) for selected services may be conducted, as Phase II, at a
cost also not...
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