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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 17, 2018 <br />TITLE: <br />APPROVE AN AGREEMENT WITH <br />PRUDENTIAL RETIREMENT INSURANCE AND <br />ANNUITY COMPANY FOR ADMINISTRATIVE, <br />RECORDKEEPING AND COMMUNICATION <br />SERVICES PERTAINING TO THE 457 <br />DEFERRED COMPENSATION PLAN <br />(STRATEGIC PLAN NO. 7,4) <br />i <br />Cn MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on V Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />1) Authorize the City Manager and Clerk of the Council to execute an agreement with <br />Prudential Retirement Insurance and Annuity Company ('Prudential') for the <br />administrative, recordkeeping and communication services ("services") pertaining to the <br />457 Deferred Compensation Plan for an initial three-year term beginning October 1, 2018 <br />through September 30, 2021, with a provision for a two-year extension exercisable by the <br />City Manager and the City Attorney, subject to non -substantive changes approved by the <br />City Manager and the City Attorney. <br />2) Authorize the City Manager and Clerk of the Council to execute the trust agreement with <br />Prudential Bank and Trust, FSB for trustee services related to the 457 Deferred <br />Compensation Plan for an initial three-year term beginning October 1, 2018 through <br />September 30, 2021, with a provision for a two-year extension exercisable by the City <br />Manager and the City Attorney, subject to non -substantive changes approved by the City <br />Manager and the City Attorney. <br />DISCUSSION <br />The City of Santa Ana offers full-time employees a 457 Deferred Compensation Plan ("plan" or <br />"457 plan"), which was established in 1973, with the adoption of City Resolution 7-21, along with <br />a corresponding US Internal Revenue Service approval. The plan is a voluntary deferral program <br />that is separate and distinct from the CaIPERS pension system. Specifically, the establishment of <br />this plan, pursuant to regulations in §457 of the Internal Revenue Code, provides participants an <br />opportunity to supplement their CaIPERS retirement by allowing them to defer a portion of their <br />own current earnings. <br />2513-1 <br />