City of Coral Gables

File #: 15-4421    Version: 1 Name:
Type: Resolution Status: Adopted
File created: 10/14/2015 In control: City Commission
On agenda: 10/27/2015 Final action: 10/27/2015
Enactment date: 10/27/2015 Enactment #: 2015-270
Title: A Resolution authorizing the issuance of a Request for Proposals (RFP) to consolidate record keeping providers of the City’s deferred compensation and defined contribution plans; further authorizing the use of The Bogdahn Group to serve as plan consultant to the City and fiduciary to the above plans, and further authorizing the execution of the associated documents necessary to implement the intent of this Resolution. (At the request of IAFF leadership, the IAFF participants will not be included in this RFP and will remain with Nationwide).
Attachments: 1. Signed Resolution 2015-270, 2. Agenda Cover - Defined Contribution consolidation 10-27-15.pdf, 3. Agenda Resolution- Defined Contribution consolidation 10-27-15, 4. Review Committee Attendance, 5. Coral Gables DC Plan (TBG Agreement), 6. Verbatim Transcript - CCMtg October 27 2015 - Agenda Item H-1 - Reso authorizing RFP to consolidate recording keeping providers citys deferred compensation
Title
A Resolution authorizing the issuance of a Request for Proposals (RFP) to consolidate record keeping providers of the City’s deferred compensation and defined contribution plans; further authorizing the use of The Bogdahn Group to serve as plan consultant to the City and fiduciary to the above plans, and further authorizing the execution of the associated documents necessary to implement the intent of this Resolution. (At the request of IAFF leadership, the IAFF participants will not be included in this RFP and will remain with Nationwide).
Body
In May of 1986, Resolution No. 25652 authorized three different recordkeeping providers (ICMA, AETNA- now VOYA, and PEBSCO - now Nationwide) in various combinations to administer the deferred contribution (457(b)) and defined contribution (401(a)) retirement plans for the City. All three current providers offer a deferred contribution (457(b)) plan to all employees and ICMA also provides a defined contribution (401(a)) plan to certain employees (City Manager, City Attorney, Assistant City Managers, Deputy City Attorney). Total plan assets for all three are approximately $60 million, with approximately 770 total participants (active and retirees).

In June 2015, the City Manager formed an Ad Hoc Defined Contribution Plan(s) Review Committee, constructed of representatives from employee groups eligible to participate in the plans including police officers, firefighters, union members, excluded employees and retirees. This Committee has been given the responsibility to review whether the plans are being administered under well documented “best practices” relating to fees, investments, participant education and administration on behalf of eligible employees and retired participants, as well as, whether or not consolidation to one record keeping provider was warranted.

Research and actual results in the marketplace strongly support using a single record keeper in order to reduce complexity for participants and ...

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