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Update Agreement with Great West <br />September 2, 2014 <br />Page 2 <br />City's Plan policy, investments and service levels. BFSG indicated that there were opportunities <br />to improve upon the fee and service structure provided. <br />As a result, City Finance staff in conjunction with BFSG and Fiduciary Experts has been <br />negotiating with Great -West on changes to the plan structure that would promote greater fund <br />transparency, better access, lower fees, and varied investment options for plan participants. <br />Fiduciary Experts LLC, researched opportunities to restructure from the current annuity -based <br />contract. <br />The new agreement, will allow for a greater expansion of fund selection flexibility than provided <br />under the current annuity -based contract. In addition, and most importantly it provides for <br />significantly reduced management, fund, and participant fees that will provide for an annual <br />reduction of approximately $223,000. As an example, a portion of these fees can be used to pay <br />for fiduciary advisory fees and offset staff administrative costs. For example, average 457 <br />account balances with $84,000 may experience savings of $184 per year. <br />Some of the key Plan and participant benefits are: <br />Plan Item Past Update <br />Reduction in Plan 35 Basis Points 10 Basis Points <br />Provider Fees <br />Significance <br />Significantly lower service fees <br />to participants <br />Allows Plan to provides <br />Portfolio Structure Annuity -Based Open Architecture Participants fund options from <br />the universe of institutional <br />funds <br />• ... -- - - - - -. ..... <br />Index, No -Load Not Contractually Provides greater participant <br />and Target Funds Available Available choices, reduced fees, and <br />Plan portfolio flexibility <br />Website Generic "City of Santa Ana" City controls website design <br />Branded Portal and communications <br />Beneficiary Participant can directly enroll <br />Paper Driven Digital Process via <br />Designation, and processing Web Access and update changes via <br />Enrollment branded portal website 2417 <br />In addition, all 457 Plans are required to perform and fully document plan monitoring, analysis, <br />plan provider and fund selection, investment recommendations, and reporting using portfolio and <br />fund -level based evaluation methodologies. Plan and fund -level detailed quarterly and annual <br />reports are the required fiduciary foundation for proper plan management, required plan <br />participant education, and transparency as guided by federal statutes. <br />25J -2 <br />