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<br /> <br /> <br /> REQUEST FOR <br /> <br /> COUNCIL ACTION <br /> <br /> CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: <br /> <br /> DECEMBER 6, 2010 <br /> TITLE: APPROVED <br /> RESOLUTION AND AGREEMENT ? As Recommended <br /> WITH PUBLIC AGENCY RETIREMENT ? As Amended <br /> Reading <br /> Ils' <br /> SERVICES FOR SOCIAL SECURITY El Ordinance on <br /> El Ordinance on 2 n nd Reading <br /> ALTERNATIVE PROGRAM SERVICES ? Implementing Resolution <br /> ? Set Public Hearing For <br /> CONTINUED TO <br /> l <br /> FILE NUMBER <br /> CITY MANAGER <br /> RECOMMENDED ACTION <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 /> <br /> DISCUSSION <br /> <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 /> <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 /> <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 /> <br /> <br /> <br /> 55A-1 <br />