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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />DECEMBER 6, 2010 <br />TITLE: <br />RESOLUTION AND AGREEMENT <br />WITH PUBLIC AGENCY RETIREMENT <br />SERVICES FOR SOCIAL SECURITY <br />ALTERNATIVE PROGRAM SERVICES <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 1s1 Reading <br />? Ordinance on 2nd Reading <br />? Implementing Resolution <br />? Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />1) Adopt a resolution designating Public Agency Retirement Services to provide administrative <br />and recordkeeping services and Union bank to provide trustee services for the City's part-time <br />employee retirement plan. <br />2) Authorize the City Manager and Clerk of the Council to execute the attached agreement with <br />Public Agency Retirement Services and Union Bank for a period of five years with provisions <br />for two one-year extensions. <br />DISCUSSION <br />The City of Santa Ana maintains a Social Security Alternative Plan (3121 Plan) for part-time, <br />seasonal and temporary employees. The 3121 Plan is a compulsory deferral program that replaces <br />City and participant contributions to Social Security under federal Omnibus Budget Reconciliation Act <br />90, Section 11332. The establishment of the 3121 Plan is pursuant to regulations of the Internal <br />Revenue Code §3121. Currently, the Plan has approximately $3.13million in participant assets, with <br />2,828 participants and is administered through the Finance & Management Services Agency. <br />In February 2010, the City of Santa Ana issued a Request for Proposal (RFP) for administrative, <br />recordkeeping, communication, and investment management services of the City's 3121 Social <br />Security Alternative Plan. The City received five vendor proposals. After careful deliberation of the <br />service model, recordkeeping, administration, management, vendor service team, plan expenses and <br />fees, and overall proposal responsiveness, the Plan Administrator Committee recommends Public <br />Agency Retirement Services (PARS) as the new 3121 Social Security Plan provider. <br />Upon Council authorization, a comprehensive transition plan will take place for the 3121 Plan over the <br />next 120 days. The conversions will consist of comprehensive communications, multi-site meetings, <br />and individual participant and retiree appointments to insure employees are informed and updated on <br />all the new plan improvements and enhancements. <br />55A-1