25D - AGMT RECORDKEEPING SVC 457 PLAN

Home Browse Search

Agreement with Prudential for Administration of 457 Deferred Compensation Plan July 17, 2018 Page 2 Administration (Due Diligence) Currently, the 457 Deferred Compensation Plan is administered through the Finance & Management Services Agency. Management of the account consists of oversight by the Plan Administrative and Investment Committee ("Committee"), which includes, but not limited to: quarterly performance review of investments, analyzing the Plan's fund line-up, maintaining and revising, when necessary, the Plan's Investment Policy Statement, and ensuring the Plan's cost effectiveness. The Committee is comprised of the Executive Director of Finance, the Assistant Finance Director, the Treasury Manager and a Budget Analyst. The Committee utilizes a third party consultant, Benefits Financial Services Group ("BFSG") to assist in reviewing investments, compliance and fund selection. BFSG assisted the City in the development of the current RFP and evaluation of the pricing structure of proposals. As of June 30, 2018, the Plan holds $113.5 million in Plan Assets for 1,170 participants. Request for Proposals On December 19, 2017, the City Council authorized staff to issue a Request for Proposals ("RFP") for the administrative, recordkeeping and communication services, such as, providing the investment platform, ensuring Plan compliance with federal regulations and offering various other participant services (i.e., educational seminars, financial planning, on-site consultation & website services). On February 28, 2018, an RFP (RFP No. 18-025) for the aforementioned services was issued by BFSG. Nine proposals were received and evaluated by the Committee, with assistance from BFSG. Vendors were evaluated based on the following criteria: 1) Recordkeeping and Administration (15 pts); 2) Client & Participant Services (15 pts); 3) Communication & Education (25 pts); 4) Investment Platform (25 pts); and 5) Plan Provider Fees (20 pts); Four finalists were selected. The finalists were invited to attend an in-person interview and demonstration to provide an overview of more specific services, such as educational services, website services, the proposed investment strategies and proposed plans to address the market to book value for one of the Plan's investment option. The vendors were ranked accordingly, as follows: Rank Firm Comprehensive Analysis out of 100points) 1 Prudential 92.1 2 Nationwide 84.1 3 Empower 83.5 4 MassMutual 79.3 25D-2