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<br /> <br /> <br /> REQUEST FOR s_ <br /> <br /> COUNCIL ACTION ~=I <br /> <br /> CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: <br /> <br /> DECEMBER 19, 2011 <br /> TITLE: APPROVED <br /> RESOLUTION AND AGREEMENT ? As Recommended <br /> WITH PUBLIC AGENCY RETIREMENT ? As Amended <br /> SERVICES FOR SOCIAL SECURITY El Ordinance on Reading <br /> El Ordinance on 2n "d Reading <br /> ALTERNATIVE PROGRAM SERVICES ? Implementing Resolution <br /> ? Set Public Hearing For <br /> r,. CONTINUED TO <br /> FILE NUMBER <br /> CITY MANAGER <br /> <br /> RECOMMENDED ACTION <br /> <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 /> <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 /> <br /> DISCUSSION <br /> <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 /> <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 /> <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 <br />