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Approve Agreement with Empower Annuity Insurance Company for the Employee <br />Deferred Compensation Plan <br />September 19, 2023 <br />Page 2 <br />3 <br />6 <br />8 <br />8 <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 City Rank <br />Empower Greenwood Village, CO 1 <br />Nationwide Retirement Solutions, Inc.Columbus, OH 2 <br />Voya Financial Windsor, CT 3 <br />Variable Annuity Life Insurance Co.Houston, TX 4 <br />MissionSquare Retirement Washington, DC 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.