Title
Investment Policy Statement
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FileID
File ID: 2026-01178
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion approving the Investment Policy Statement for the purpose of guiding investment oversight of the 457(b) Deferred Compensation, 401(a) Defined Contribution, and Health Reimbursement Arrangement Plans.
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Contact
Contact: Samantha Hardy, Interim Director, (916) 808-7657, shardy@cityofsacramento.org, Department of Human Resources
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Presenter
Presenter: Rasch Cousineau, Executive Director, Fiduciary Consulting Group
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Attachments
Attachments:
1-Description/Analysis
2-Investment Policy Statement June 2026 - Redline
3-Investment Policy Statement June 2026 - Clean Copy
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Additional Description/Analysis
IssueDetail
Issue Detail: The Investment Policy Statement establishes the investment policies, guidelines, objectives, and oversight framework for the City’s 457(b) Deferred Compensation Plan, 401(a) Defined Contribution Plan, and Health Reimbursement Arrangement Plan (Plans). The document is intended to assist the City and the Defined Contribution Plans Committee in carrying out its responsibilities in a manner that is in the best interest of Plan participants and beneficiaries.
The Investment Policy Statement outlines the roles and responsibilities of the Plan Sponsor, Committee, investment consultant, investment providers, investment managers, and service providers in the management and selection of investment funds for the Plans. It also establishes the framework for selecting, monitoring, evaluating, and, when necessary, replacing investment options offered through the plans.
The purpose of the Investment Policy Statement is to ensure the plans provide participants with a broad range of investment options with varying levels of risk, return, and investment complexity. The document recognizes that participants are responsible for their own investment decisions, while the City and the Committee are responsible for maintaining a prudent investment menu, monitoring investment performance, reviewing fees and expenses, and ensuring the plans continue to support participants’ retirement objectives.
The Investment Policy Statement has been presented to the Committee for review and consideration at prior meetings. This version included for review includes prior edits, along with additional updates intended to keep the document current over time, including removing specific references to target date fund years.
The updated Investment Policy Statement will be scheduled for approval by City Council at the next available meeting.
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PolicyConsiderations
Policy Considerations: The Investment Policy Statement provides a documented and consistent framework for investment oversight to ensure Plan investment options are selected, monitored, and reviewed in a transparent and participant-focused manner.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: This action is not subject to the California Environmental Quality Act (CEQA) because it is not a “project” as defined in section 15378 of the CEQA Guidelines.
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Sustainability
Sustainability: None.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: Maintaining a current Investment Policy Statement supports responsible and transparent oversight of the investment options available through the City’s Plans.
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FinancialConsiderations
Financial Considerations: None.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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