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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 2, 2020 <br />TITLE <br />ADOPT A RESOLUTION AND APPROVE <br />AN AGREEMENT WITH PUBLIC AGENCY <br />RETIREMENT FOR ADMINISTRATIVE, <br />RECORDKEEPING AND <br />COMMUNICATION SERVICES <br />PERTAINING TO THE 3121 (SOCIAL <br />SECURITY ALTERNATIVE) <br />PART TIME- SEASONAL DEFERRED <br />COMPENSATION PLAN <br />(NON -GENERAL FUND) <br />/s/ Kristine <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1 s' Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />RECOMMENDED ACTION <br />1. Adopt a resolution designating Public Agency Retirement Services (PARS) to <br />continue to provide administrative and recordkeeping services for the City's part- <br />time employee retirement plan. <br />2. Authorize the City Manager to execute an agreement with Public Agency Retirement <br />Services (PARS) for a period of five years beginning July 1, 2020 and expiring on June <br />30, 2025 with provisions for two one-year extensions for the period July 1, 2025 and <br />expiring on June 30, 2027, subject to non -substantive changes approved by the City <br />Manager and City Attorney. <br />DISCUSSION <br />The City of Santa Ana and its employees do not participate in Social Security. As such, the <br />City is required to offer a replacement retirement plan. For temporary and seasonal <br />employees, the replacement plan is a Social Security Alternative Plan (Internal Revenue Code <br />§3121 Plan). It is a defined contribution plan, wherein the City contributes 3.75% of wages <br />and the employees contribute 3.75%. PARS is the current plan administrator and manages <br />approximately $4.3 million in participant assets on behalf of 3,120 participants. <br />Request for Proposals (RFP) Process <br />The City retained the consulting services of Benefit Financial Services Group ("BFSG") to work <br />with the Plan Investment Committee ("Committee") to conduct a fiduciary review of its 3121 <br />Part -Time Seasonal Temporary Deferred Compensation Plan, prepare the RFP, and assist <br />with the proposal evaluation process. The Committee comprises of individuals from Finance <br />and Management Services Agency (FMSA) who provide oversight on behalf of plan <br />participants. <br />55A-1 <br />