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Agreement with Empower for 457 Deferred Compensation and <br />Authorization to Issue Request For Proposal <br />October 4, 2016 <br />Page 2 <br />based contract. As a result of these efforts, employees participating in the Plan experienced <br />significantly reduced management, fund and participant fees. <br />Below are some of the key Plan and employee benefits: <br />Plan Item <br />... <br />Past <br />....... <br />Updated <br />...... <br />Significance <br />...... ...... <br />Reduction in Plan <br />35 Basis Points <br />10 Basis Points <br />Significantly lower service fees <br />Provider Fees <br />to employees <br />.... <br />Allows Plan to provide greater j <br />Portfolio Structure <br />Annuity - Based <br />': Open Architecture <br />diversification of investment <br />options <br />Index, No -Load <br />Not Contractually <br />Provides greater participant <br />and Target Funds <br />Available <br />Available <br />j choices, reduced fees, and <br />Plan portfolio flexibility <br />......... <br />............... ........ .......... <br />"City of Santa Ana <br />....... ............ <br />Website design and <br />Website <br />Generic <br />Branded Portal <br />communications under the <br />purview of the City...... <br />Beneficiary <br />Paper Driven <br />Digital Process via <br />1 Participant can directly enroll <br />Designation, and <br />Processing <br />eb Access <br />and update changes via <br />Enrollment <br />I.......... <br />branded portal Website 24/7 <br />The terms, conditions and services that were negotiated by the City in 2014 will remain in full <br />effect and the current plan and fee structure will remain unchanged within the new agreement. <br />During the term of this agreement and in compliance with a core fiduciary best practice (issuance <br />of a Request for Proposal (RFP) every five to seven years), staff is recommending the issuance <br />RFP in order to gauge what the 457 plan provider market can offer to employees in additional <br />Plan benefits and quality of services. The 457 plan provider is a dynamic marketplace and is <br />constantly changing as new plan providers enter the market, which may result in employees <br />obtaining an even more cost - effective Plan. As such, BFSG will evaluate the market and assist <br />staff in the development of the RFP and subsequent selection process. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item allows the City to meet Goal #7 - Team Santa Ana, Objective #4 (Establish <br />employee compensation that attracts and retains a highly qualified workforce). <br />25B -2 <br />