25D - AGMT 457 COMP PLAN SVCS - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 5, 2019 TITLE: APPROVE AN AGREEMENT WITH BENEFIT FINANCIAL SERVICES GROUP FOR PLAN AND INVESTMENT ADVISORY SERVICES PERTAINING TO THE 457 DEFERRED COMPENSATION PLAN {STRATEGIC PLAN NO. 7,41 CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 11' Reading ❑ Ordinance on 2nd Reading, ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an agreement with Benefit Financial Services Group ("BFSG") for plan and investment advisory services ("services") pertaining to the 457 Deferred Compensation Plan for an initial three-year term beginning March 5, 2019 through December 31, 2022 for an annual not -to -exceed amount of $28,000, with a provision for a two-year extension exercisable by the City Manager and the City Attorney for an annual not -to -exceed amount of $28,000 for a total aggregate of $140,000 (including extension), subject to non -substantive changes approved by the City Manager and the City Attorney. DISCUSSION The City of Santa Ana offers full-time employees a 457 Deferred Compensation Plan ("plan" or "457 plan"), which was established in 1973, with the adoption of City Resolution 73-021, along with a corresponding US Internal Revenue Service approval. The plan is a voluntary deferral program that is separate and distinct from the CaIPERS pension system. Specifically, the establishment of this plan, pursuant to regulations in §457 of the Internal Revenue Code, provides participants an opportunity to supplement their CalPERS retirement by allowing them to defer a portion of their own current earnings on a pre-tax and/or after tax basis. Currently, the 457 Plan is administered through the Finance & Management Services Agency; and, as of January 31, 2018, the Plan holds $111.9 million in Plan Assets for 1,164 participants. Resolution 73-021 also established an oversight Committee to be appointed by the City Manager. The oversight of the Plan is now provided by the Plan Administrative and Investment Committee and the fiduciary responsibility lies within the Committee ("Committee"), which is comprised of the Executive Director of Finance, the Assistant Finance Director, the Treasury Manager and the Budget Analyst. Oversight activities conducted by the Committee include, but are not limited to: quarterly performance review of investments, analysis of investment options, maintaining and 25D-1