Laserfiche WebLink
Approve Agreement with Empower Annuity Insurance Company for the Employee <br />Deferred Compensation Plan <br />September 19, 2023 <br />Page 2 <br />Currently, Empower handles the administrative, recordkeeping, and communication <br />services for the City's 457 plan. In October 2018, the City executed a five year <br />agreement with Prudential Retirement Insurance and Annuity Company ("Prudential"). <br />Effective April 1, 2022, Empower officially acquired the full service retirement business <br />of Prudential. As of September 30, 2022, the Plan holds $121.2 million in Plan Assets <br />for 1,331 participants. <br />On November 1, 2022, the Finance & Management Services Agency released RFP 22- <br />136 for the administrative, recordkeeping, and communication services, such as <br />providing the investment platform, ensuring Plan compliance with federal regulations, <br />and offering various other participant services (i.e., educational seminars, financial <br />planning, on -site consultation, and website services). <br />Five proposals were received by the RFP deadline on January 5, 2023, opened, and <br />deemed to be responsive. The selection committee with experience in the related <br />program services evaluated proposals. Based on criteria outlined in the RFP, the <br />following summarizes the responding firms and their rankings: <br />Firm <br />City <br />Rank <br />Empower <br />Greenwood Village, CO <br />1 <br />Nationwide Retirement Solutions, Inc. <br />Columbus, OH <br />2 <br />Voya Financial <br />Windsor, CT <br />3 <br />Variable Annuity Life Insurance Co. <br />Houston, TX <br />4 <br />MissionSquare Retirement <br />Washington, DC <br />5 <br />Staff recommends awarding an agreement to the highest -ranked vendor, Empower <br />Annuity Insurance Company. Their proposal demonstrated the vendor has the <br />necessary resources and expertise to complete the required services as specified in the <br />RFP. <br />The fee structure presented by Empower offers a cost-effective platform for all <br />participants. Empower will continue to provide an enhanced participant experience <br />through its emphasis on participant education and financial planning and through its <br />comprehensive and flexible investment options. <br />Additionally, Empower will continue to support the Plan's open architecture investment <br />platform and will provide 28 on -site educational days along with 10 financial planning <br />days per year. Empower will also provide participants with an asset allocation model <br />("Goalmaker") at no cost and an on -site financial planner, which will assist participants <br />in determining investment options. <br />City Council 19 — 2 9/19/2023 <br />