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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 2, 2014 <br />TITLE: <br />UPDATE AGREEMENT WITH <br />GREAT -WEST FOR 457 <br />DEFERRED COMPENSATION <br />SERVICES WITH <br />SUPPORTING FIDUCIARY <br />PROFESSIONAL SERVICES <br />gV 4 (- <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on1"Reading <br />❑ Ordinance on 2ntlReading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />1) Authorize the City Manager and Clerk of the Council to execute the attached agreement <br />update with Great -West Financial for deferred compensation services for a period of one -year <br />with provision for a one -year extension, subject to non - substantive changes approved by the <br />City Manager and City Attorney. <br />2) Approve execution of attached professional services agreement with Benefit Funding <br />Services Group, Inc. (BFSG), for Deferred Compensation Plan Financial Advisory Services for <br />three -year period, expiring September 3, 2017, in an annual amount of $20,000; subject to <br />non - substantive changes approved by City Manager and City Attorney. <br />3) Approve execution of attached professional services agreement with Fiduciary Experts LLC, <br />for Plan Participant Education and Fiduciary Services for a period of one -year, expiring <br />September 3, 2015 not to exceed $5,000; subject to non- substantive changes approved by <br />City Manager and City Attorney. <br />DISCUSSION <br />The City of Santa Ana's full -time employee 457 Deferred Compensation Plan (Plan) was <br />established in 1973, with the adoption of City Resolution 7 -21, with US Internal Revenue Service <br />approval. The 457 Plan is a voluntary deferral program that is separate and distinct from the <br />CalPERS pension system. The establishment of this deferred compensation plan, pursuant to <br />regulations in §457 of the Internal Revenue Code, provides participants the opportunity of <br />supplementing their CalPERS retirement by allowing them to defer a portion of their current <br />earnings and associated taxes until retirement or separation. <br />The Plan is administered through the Finance & Management Services Agency. Currently, the <br />Plan has over $104 million in participant assets, with 1,210 participants. The Plan fund portfolio <br />maintains 23 different investment options, including mutual fund, bond fund and fixed asset <br />funds. The City retained the services of Benefit Funding Services Group (BFSG), to analyze the <br />25J -1 <br />