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REQUEST •' <br />COUNCIL • Illi: <br />r - <br />CITY COUNCIL MEETING DATE: <br />CLERK OF COUNCIL USE ONLY: <br />SEPTEMBER 19, 2017 <br />TITLE: <br />ADOPT THE THIRD AMENDMENT WITH <br />APPROVED <br />❑ <br />GREAT -WEST FINANCIAL FOR <br />❑ <br />RECORDKEEPING AND COMMUNICATION <br />❑ <br />❑ <br />SERVICES PERTAINING TO THE 457 <br />DEFERRED COMPENSATION PLAN WITH <br />O <br />SUPPORTING INVESTMENT & FIDUCIARY <br />PLAN ADVISORY SERVICES WITH <br />BENEFIT FINANCIAL SERVICES GROUP <br />{STRATEGIC PLAN NO. 7,4) �— <br />RECOMMENDED ACTION <br />As Recommended <br />As Amended <br />Ordinance on 1s'Reading <br />Ordinance on 2ndReading <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 a third amendment with Great - <br />West Financial, for recordkeeping and communication services pertaining to the 457 deferred <br />compensation plan for a three month period beginning October 1, 2017 through December 31, <br />2017, subject to non -substantive changes approved by the City Manager and City Attorney. <br />2) Authorize the City Manager and Clerk ,of the Council to execute an agreement with Benefit <br />Financial Services Group (BFSG), for plan and investment advisory services pertaining to the <br />457 deferred compensation plan for a three month period beginning September 19, 2017 <br />through December 31, 2017 for an amount not to exceed $10,000, subject to non -substantive <br />changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />The City of Santa Ana's full-time employee 457 Deferred Compensation plan ("plan" or "457 plan") was <br />established in 1973, with the adoption of City Resolution 7-21, along with a corresponding US Internal <br />Revenue Service approval. The plan is a voluntary deferral program that is separate and distinct from <br />the CalPERS pension system. Specifically, the establishment of this plan, pursuant to regulations in <br />§457 of the Internal Revenue Code, provides participants an opportunity to supplement their CalPERS <br />retirement by allowing them to defer a portion of their current earnings and associated taxes until <br />retirement or separation. <br />The plan is administered through the Finance & Management Services Agency and as of June 30, <br />2017 maintains plan assets approximating $106.9 million with 1,172 participants. Great West Financial <br />("Great -West"), the Plan Sponsor, operating under its subsidiary Empower, has been engaged to <br />provide administrative, recordkeeping and communication services for the plan, including: providing <br />the portfolio structure (36 highly diversified options: mutual funds, bond funds, and fixed asset funds), <br />25M-1 <br />