55C - RESOLUTION AND AGREEMENT PUBLIC AGENCY RETIREMENT SVCS

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Resolution and Agreement with Public Agency Retirement Services and Union Bank for 3121 Plan December 19, 2011 Page 2 PARS is one of the largest and longest serving providers of 3121 Plans in the nation servicing 110 California cities with 12 clients in Orange County. PARS, will offer a new 3121-specific Communications Plan that includes on-site group education forums and materials supported by locally based staff. In addition, PARS provides the City the flexibility to select from 3121-designed investment funds for choosing a meaningful participant investment fund option, rather than being limited to solely long-term Certificates of Deposit. As well, PARS will significantly improve fund transparency of accountholder investment performance, liquidity and safety with clearly identified expense fees, and implementation of Qualified Domestic Relations Order processing. Moreover, greater service and accountability to City's Plan Administrator Committee including the addition of new and expanded quarterly/annual staff reporting, establishment of secure records through a digital archiving program for participant authorization and beneficiary forms, and establishment of new escheatment process for meeting State of California requirements. Upon Council authorization, a comprehensive transition plan will take place for the 3121 Plan over the next 120 days. The conversions will consist of comprehensive communications, multi- site meetings, and individual participant and retiree appointments to insure employees are informed and updated on all the new plan improvements and enhancements. FISCAL IMPACT There is no fiscal impact associated with this action. Francisco Gutierrez Executive Director Finance & Management Services Agency FG/ed/tmr Exhibit: 1. Resolution 2. Agreement 3. Trust Document 4. Alternative Retirement Plan 55C-2