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Agreement with Public Agency Retirement June 2, 2020 Page 2 In February 2020, Staff issued a Request for Proposal (RFP) for administrative, recordkeeping, communication, and investment management services of the City's 3121 Social Security Alternative Plan. The RFP included but not limited to the following criteria categories: • Recordkeeping and Administration • Client and Participant Service • Investment Management • Reasonableness of Costs After careful consideration of the proposals, the Committee selected PARS to continue as the 3121 Social Security Plan provider for the city. Key Highlights of PARS proposal include: • Plan administration is performed in-house (PARS), and the relationship manager is based in Newport Beach • PARS maintains the most number of plans in California with assets less than $25.0 million • Transparent cost -structure, and sufficient liquidity on its primary investment fund • Permanent Data Retention Policy for plan participants • Forty one percent (41 %) fee reduction from existing contract which includes an administration fee range of 0.62% - 1.12% based on assets up to $2.5 million PARS remains one of the few true specialists in the administration of these plans having served more than 500,000 part time, seasonal and temporary employees at 250 plus public agencies over the last thirty six (36) years. PARS, will continue to offer a participant communication plan that includes on -site group education forums and materials supported by locally based staff. Furthermore, PARS provides the City the flexibility to select from a variety of 3121-designed investment portfolios so the City may select a diversified option for participant investment, rather than being limited to long-term Certificates of Deposit and Guaranteed Interest Accounts, as offered by other prospective vendors. Additionally, the investment and fee structure at PARS is the most transparent among the prospective vendors, with sufficient liquidity for the cash equivalent option and clearly identified expense ratios and fees. Moreover, PARS has offered improved service and accountability to the Committee, including the addition of new and expanded quarterly/annual staff reporting, the establishment of secure records through a digital archiving program for participant authorization and beneficiary forms, and the establishment of a new escheatment process for meeting State of California requirements. FISCAL IMPACT There is no fiscal impact associated with this action. Plan participant expenses are paid through the plan assets. Exhibits: 1. Resolution 2. Agreement 3. Trust Document 4. Alternative Retirement Plan 55A-2