TITLE
Recommendation to authorize City Manager, or designee, to execute a Second Amendment to Contract No. 32531 with International City Management Association - Retirement Corporation (ICMA-RC), of Washington, DC, for recordkeeping services on behalf of the City’s 457 Deferred Compensation Retirement Savings Program, to extend the contract term for an additional two-year period ending September 30, 2019. (Citywide)
DISCUSSION
City Council action is requested to amend Contract No. 32531 with International City Management Association - Retirement Corporation (ICMA-RC), to provide third-party administrative (TPA) services for the City’s 457 Deferred Compensation Retirement Savings Program. The proposed amendment will extend the term of the contract for an additional two years, through September 30, 2019.
The City’s Deferred Compensation Retirement Saving Program (DCP) is a voluntary supplementary retirement savings plan created under Section 457(b) of the Internal Revenue Code. The DCP allows eligible employees to save and invest tax-advantaged dollars through salary deferral. The City utilizes a third-party administrator as the custodian of the salary deferrals sent from the City payroll system to post and credit these deferrals to various investment options, and post investment gains and losses to participant accounts.
The City currently contracts with ICMA-RC, who, in addition to recordkeeping services, also provides enrollment services, as well as outreach, education and communication services to Plan participants. Under ICMA-RC’s custodianship, total plan assets have exceeded $547 million, and there are more than 5,100 participants. Plan participants pay all costs of the TPA services.
The City has contracted with ICMA-RC since 2007 and the current contract is scheduled to expire on September 30, 2017. The Human Resources Department, with the support of the Deferred Compensation Advisory Committee, recommends that the City issue a request for proposals ...
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