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Update Agreement with Great West September 2, 2014 Page 3 Benefit Funding Services Group (BFSG), a retirement plan and investment consulting firm, will assist as a fiduciary in the update transition from the current structure with the Plan Provider to the new modern fund portfolio structure and assist in monitoring plan asset fund transfers and deposits. Fiduciary Experts LLC, will provide important strategic communications for the update agreement transition including plan participant education and other advisory services within the contract period to the City's 457 Deferred Compensation Plan. Upon Council authorization, the Plan will begin the process of updating from the current annuity - based agreement to a modern fund portfolio structure and include new federal consumer protections statues for managing 457 Plan assets. This will include digitization of City -held beneficiary documents via the new access portal. The transition will be accompanied with a comprehensive communications campaign including multi -site meetings, and individual and retiree appointments to insure employees are informed on the transition to the updated 457 agreement. The update is a foundational stage shifting from annuity -based to transparent market performance metrics prior to release of a Request for Proposal (RFP) within the term of this agreement for all- inclusive 457 Plan Provider services. The intent of that RFP will be to gauge what the 457 plan provider market can offer to the City in additional Plan benefits and quality of services. Upon conclusion of the transition, BFSG and Fiduciary Experts LLC, will evaluate the market and assist staff to in the development of the RFP and subsequent selection process. STRATEGIC PLAN ALIGNMENT Approval of this item is correlated to Goal #7 Team Santa Ana, Objective #4 (Establish employee compensation that attracts and retains a highly qualified workforce). FISCAL IMPACT There is no fiscal impact associated with this action as funds come from fees based on Plan assets. There is a net reduction in overall costs to participants and the Plan due to lower service fees to the plan provider vendor. Internal Revenue Code substantiates administrative reimbursement from plan assets that assist to offset actual fiduciary advisory, participant education and staffing costs related to the 457 Plan. �4� �eFranciscG t� Executive Director Finance and Management Services Agency ED Exhibits: 1. Agreement with Great -West Financial 2. Agreement with Benefit Funding Services Group, Inc. 3. Agreement with Fiduciary Experts LLC 25J -3