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Agreement with Great -West Financial & BFSG <br />December 19, 2017 <br />Page 2 <br />In 2014, the City retained the services of BFSG in order to enhance employee's investment <br />experience. City finance staff in conjunction with BFSG, negotiated with Great -West to change <br />the plan structure, which provided participants with greater fund transparency, better access, and <br />varied investment options. The negotiated agreement allowed for greater expansion of fund <br />selection and flexibility than provided under the former annuity -based contract. As a result of <br />these efforts, employees participating in the plan experienced significantly reduced management, <br />fund and participant fees. <br />The terms, conditions and services that were negotiated by the City in 2014 will remain in full <br />effect. The current plan and fee structure will remain unchanged. <br />During the month of August 2017, staff was given administrative direction to evaluate the plan, its <br />related services, and the 457 market to ensure that the investment and plan options currently <br />provided to participants is the most cost-effective plan and highest quality of customer service. <br />On September 19, 2017, the City Council adopted a third amendment for a three-month period <br />with Great -West as well as a three-month agreement with BFSG. The three-month period was <br />needed to allow staff to analyze the 457 market and determine the necessary next steps. <br />As such, and in compliance with a core fiduciary best practice, staff is recommending the <br />development and issuance of two Requests for Proposal ("RFP") (1. for Recordkeeping and <br />Communication Services and 2. for Investment Advisory Services) in order to gauge what the <br />457 plan provider market can offer employees in additional plan benefits and quality of services. <br />The 457 plan provider is a dynamic marketplace and is constantly changing as new plan <br />providers enter the market on a periodic basis. <br />Approval of these amendments will allow staff to develop and issue the RFP and related <br />selection process. It is anticipated that staff will release an RFP no later than February 2018 and <br />take approximately nine months to determine whether to stay with the current provider or select a <br />new provider. The following is a preliminary timeline for each RFP: <br />Recordkeeping : Communication <br />Services <br />Issuance of RFP <br />February 2018 <br />Responses Evaluated <br />April 2018 <br />Vendor Interviews/Selection <br />May 2018 <br />City Council Approval <br />June 2018 <br />Conversion Period <br />August -September 2018 <br />New Agreement <br />October 1, 2018 <br />25D-2 <br />