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Agreement with Great -West Financial & BFSG <br />September 19, 2017 <br />Page 2 <br />ensuring plan compliance with federal regulations, and offering various participant services (i.e., <br />educational seminars, on-site consultation, & website services). In addition, included in this third <br />amendment are additional participant services that Great -West will now automate and manage, <br />including: Qualified Domestic Relationships Orders (QDRO), unforeseen emergency distributions, and <br />distributions due to separation. <br />In 2014, the City retained the services of Benefit Financial Services Group (BFSG) in order to enhance <br />employee's investment experience. City finance staff in conjunction with BFSG, negotiated with Great - <br />West to change the plan structure and thus enabling participants with greater fund transparency, better <br />access, and varied investment options. The negotiated agreement allowed for greater expansion of <br />fund selection and flexibility than provided under the former annuity -based contract. As a result of these <br />efforts, employees participating in the plan experienced significantly reduced management, fund and <br />participant fees. <br />The terms, conditions and services that were negotiated by the City in 2014 will remain in full effect. <br />The current plan and fee structure will remain unchanged and new services will be added within this <br />amendment. <br />Moreover, plan and fund -level detailed quarterly and annual reports are the required fiduciary <br />foundation for proper plan management, required plan participant education and plan transparency as <br />required by federal statutes. BFSG will assist the City with fiduciary requirements as well as plan <br />monitoring and investment analysis and recommendations as it relates to the 457 deferred <br />compensation plan. <br />The extension is requested in order for staff to evaluate the existing Plan structure including <br />recordkeeping and advisory services. Additionally, during the extension time period Staff will also <br />evaluate the plan holistically to determine the best investment and plan options to offer plan members. <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 />FISCAL IMPACT <br />There is no fiscal impact associated with this action. All administrative fees pertaining to the services <br />will be borne by the plan participants. Internal Revenue Code permits administrative reimbursement <br />from plan assets, which will be utilized to offset fiduciary advisory, participant education and staffing <br />costs felated to the management of the 457 Plan. <br />Executive Director <br />Finance and Management Services Agency <br />AC <br />Exhibits: 1. Agreement with Great -West Financial <br />2. Agreement with Benefit Financial Services Group <br />25M-2 <br />