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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />DECEMBER 19, 2011 <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 1ST Reading <br />? Ordinance on 2"d 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 <br />administrative and recordkeeping services and Union bank to provide trustee services for <br />the City's part-time employee retirement plan. <br />2) Authorize the City Manager and Clerk of the Council to execute the attached agreement <br />with Public Agency Retirement Services and Union Bank for a period of five years with <br />provisions for two one-year extensions. <br />DISCUSSION <br />The City of Santa Ana is required to provide a retirement plan similar to Social Security for its <br />temporary and seasonal employees. Government agencies are allowed to participate in a <br />program designated as a Social Security Alternative Plan (3121 Plan). The 3121 Plan is a <br />compulsory deferral program that replaces City and participant contributions to Social Security <br />under federal Omnibus Budget Reconciliation Act 90, Section 11332. The establishment of the <br />3121 Plan is pursuant to regulations of the Internal Revenue Code §3121. Currently, the Plan <br />has approximately $3.13million in participant assets, with 2,828 participants and is administered <br />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 <br />the service model, recordkeeping, administration, management, vendor service team, plan <br />expenses and fees, and overall proposal responsiveness, the Plan Administrator Committee <br />recommends Public Agency Retirement Services (PARS) as the new 3121 Social Security Plan <br />provider. <br />Unfortunately, during the period of service and contract development the representative for PARS <br />fell ill and eventually passed. Recently, the City and PARS re-established discussions and City <br />staff is prepared to move the program forward. The new PARS proposal is intended to enhance <br />the current services provided to part-time employees as well as the City. <br />55C-1