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<br /> <br /> <br /> <br /> REQUEST FOR <br /> COUNCIL ACTION <br /> <br /> CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: <br /> <br /> DECEMBER 6, 2010 <br /> TITLE: APPROVED <br /> ? As Recommended <br /> AGREEMENT WITH ICMA-RC FOR ? As Amended <br /> DEFERRED COMPENSATION SERVICES El Ordinance on 1st Reading <br /> ? Ordinance on 2rd Reading <br /> ? Implementing Resolution <br /> ? Set Public Hearing For <br /> CONTINUED TO <br /> r <br /> FILE NUMBER <br /> CITY MANAGER <br /> <br /> RECOMMENDED ACTION <br /> <br /> Authorize the City Manager and the Clerk of the Council to execute the attached agreement with <br /> ICMA-RC for deferred compensation services for a period of 5 years with provisions for two one-year <br /> extensions, subject to non-substantive changes approved by the City Manager and City Attorney. <br /> <br /> <br /> DISCUSSION <br /> <br /> The City of Santa Ana's full-time employee 457 Deferred Compensation Plan (Plan) was established <br /> in 1973, with the adoption of City Resolution 73-21. The 457 Plan is a voluntary deferral program that <br /> is separate and distinct from the CaIPERS pension system. The establishment of this deferred <br /> compensation plan, pursuant to regulations in §457 of the Internal Revenue Code, provides <br /> participants the opportunity of supplementing their CaIPERS retirement by allowing them to defer a <br /> portion of their current earnings and associated taxes until retirement or separation. <br /> <br /> The Plan is administered through the Finance & Management Services Agency. Currently, the Plan <br /> has approximately $95.7 million in participant assets, with 1,388 participants. The Plan fund portfolio <br /> maintains 30 different investment options including mutual fund, bond fund and fixed asset funds. In <br /> 2005, the City retained the services of Benefit Funding Services Group (BFSG), to assist in the <br /> review of the plan structure including investments and service levels. BFSG is an independent public <br /> and private sector retirement plan fiduciary consulting firm. In 2006-07, with the assistance of BFSG, <br /> a Request for Information (RFI), was released to assess the competitiveness of the City's existing <br /> Plan. Based on the survey, the City determined that there could be a potential gain for the <br /> participants as well as operational savings from a new deferred compensation plan agreement. <br /> On February 9, 2010, the City issued a Request for Proposal (RFP) for administrative, recordkeeping, <br /> communication, and investment management services of the City's 457 Deferred Compensation Plan <br /> to 13 firms. Seven proposals were received. <br /> <br /> Each vendor's response was evaluated based on the committee's criteria of vendor's proven <br /> commitment to the 457 plan marketplace, state-of-the-art technology and premium recordkeeping <br /> platform, investment flexibility and performance; strong compliance support, maintain or reduce <br /> 25A-1 <br />