Title
Retirement Plans Investment Consulting Services Requests for Proposals
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FileID
File ID: 2025-00376
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion recommending the City award a contract for Retirement Plan Investment Consulting Services as a result of Request for Proposals #P26081021003.
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Contact
Contact: Samantha Hardy, Human Resources Manager, (916) 808-7657, shardy@cityofsacramento.org, Human Resources Department
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Presenter
Presenter: Samantha Hardy, Human Resources Manager, (916) 808-7657, shardy@cityofsacramento.org, Human Resources Department
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Attachments
Attachments:
1-Description/Analysis
2-Fiduciary Consulting Group Proposal
3-Retirement Plan Advisors Proposal
4-Creative Planning Retirement Services Proposal
5-Innovest Portfolio Solutions Proposal
6-Fiduciary Consulting Group Presentation
7-Retirement Plan Advisors Presentation
8-Creative Planning Retirement Services Presentation
9-Innovest Presentation
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Description/Analysis
IssueDetail
Issue Detail: The City currently contracts with Nationwide Retirement Solutions to administer the City’s 401(a), 457(b), and Retiree Health Reimbursement Arrangement Plans. In 2019, the City and the Defined Contribution Plans Committee (Committee) completed a Request for Proposals (RFP) process for investment consulting services to support the administration of these Plans and to provide advisory support to the Committee. As a result of that process, Hyas Group was selected as the investment consulting firm, and the City entered a five-year contract with Hyas Group in February 2021.
During the term of the contract, Hyas Group became Fiduciary Consulting Group, a business unit within Morgan Stanley Institutional Investment Advisors LLC. While the City has been pleased with and appreciative of the services provided, because the award of a contract for services is estimated at $250,000 or more, the City issued an RFP on October 21, 2025.
The cost of the awarded contract will be paid from the Administrative Allowance Account held at Nationwide, which is funded solely by 457(b) plan participants through a monthly administrative fee of $1.50 deducted from their plan balances. The current balance in the Administrative Allowance Account which includes the 2025 3rd quarter fees and expense reimbursements requested is $154,181. The 2025 4th quarter fees do not post until after the close of the quarter. At the June 18, 2025, Committee meeting, the Committee approved a budget of $59,167 for 2026.
The City received six responsive proposals in response to the RFP. As a result of the review and scoring process by the RFP review panel, the four firms with the highest scored proposals were invited to present to the Committee at the December 10, 2025 meeting.
Scores for Firms invited to present to the Committee:
|
Fiduciary Consulting Group |
95.33 |
|
Retirement Plan Advisors |
87.33 |
|
Creative Planning Retirement Services |
83.00 |
|
Innovest Portfolio Solutions |
82.33 |
Proposed Costs
Fiduciary Consulting Group: $50,000/year
Retirement Plan Advisors: Year 1 $49,500, Year 2 $49,500, Year 3 $51,000, Year 4 $51,000, Year 5 $52,500
Creative Planning Retirement Services: Year 1 $60,000, Year 2 $60,000, Year 3 $60,000, Year 4 $62,400, Year 5 $64,272
Innovest Portfolio Solutions: Year 1 $49,000, Year 2-5 annual CPI Adjustment
The Committee received presentations from each qualified firm at the December 10, 2025, meeting. The Committee did not make a recommendation during the meeting and passed a motion to continue the item to a future meeting.
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PolicyConsiderations
Policy Considerations: Due to the estimated total value of a five-year contract for services, the City’s practice is to issue an RFP.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: None.
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Sustainability
Sustainability: None.
Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: The City seeks an experienced investment consultant with demonstrated expertise in advising public sector clients and advisory committees on the oversight and management of non-pension retirement plan investment lineups and related practices. To identify a qualified firm and award a contract with an estimated value of $250,000 or more, the City issued the RFP to solicit competitive proposals. The City now seeks the Committee’s recommendation for the selection of a firm.
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FinancialConsiderations
Financial Considerations: The cost of the contract is paid for solely by 457(b) participants who pay an administrative fee of $1.50 per month from their 457(b) plan balance.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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