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Agreement with Prudential for Administration of <br />457 Deferred Compensation Plan <br />July 17, 2018 <br />Page 3 <br />Prudential's proposal met the Committee's requirements and needs in all areas. The cost <br />structure presented by Prudential offers a cost effective platform for all participants, is consistent <br />with other vendors and provides the best value to the Plan. Prudential will provide an enhanced <br />participant experience through its emphasis on participant education and financial planning and <br />through its comprehensive and flexible investment options. In particular, Prudential presented a <br />more proactive approach to data analysis and participant engagement in comparison to other <br />vendors. <br />Additionally, Prudential will continue to support the Plan's open architecture investment platform <br />and will provide forty-eight educational days along with ten financial planning days per year. The <br />proposed agreement will allow for greater expansion of fund selection and flexible liquidity <br />restrictions while significantly reducing Plan Provider fees from 10 basis points to 4.9 basis points <br />or approximately 104% reduction in fees. Prudential will also provide participants with an asset <br />allocation model ("Goalmaker') at no cost and an on-site financial planner, which will assist <br />participants in determining investment options. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item allows the City to meet Goal #7 Team Santa Ana, Objective #4 (Establish <br />employee compensation that attracts and retains a highly qualified workforce). <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. All administrative fees pertaining to the <br />services will be borne by the plan participants. Internal Revenue Code permits administrative <br />reimbursement from plan assets, which will be utilized to offset fiduciary advisory, participant <br />education and staffing costs related to the management of the 457 Plan. <br />�(�ftcv�n�j�r� lel <br />Francisco Gutierrez <br />Executive Director <br />Finance and Management Services Agency <br />EXHIBITS: 1. 457 Services Agreement <br />2. Trust Agreement <br />3. Investment Agreement <br />AC <br />25D-3 <br />