Title:
Title
Contract Amendment to Professional Services Agreement with Nationwide Retirement Solutions for Retirement Plan Administrative and Recordkeeping Services
End
FileID
File ID: 2020-01515
Location
Location: Citywide
End
Recommendation:
Recommendation
Pass a Motion authorizing the City Manager, or the City Manager's designee, to execute an amendment to Professional Services Agreement C2016-1425 to add a plan expense fee for participants in the 457(b) plan.
FileName
Contact: Samantha Wallace, HR Manager, (916) 808-7657, Department of Human Resources
Body
Presenter: None.
Attachments:
1-Description/Analysis
2-Professional Services Agreement
3-Second Amendment to Professional Services Agreement
Description/Analysis
Issue Detail: The City of Sacramento (City) has a Professional Services Agreement (Agreement) with Nationwide Retirement Solutions (Nationwide) to provide administrative and recordkeeping services in support of the City's 401(a) money purchase plans and 457(b) defined contribution plan. The agreement was approved by Council in November 2016. On November 17, 2020, Council approved the first amendment to the Agreement to add a 401(a) plan for certain classifications in Sacramento-Sierra's Building and Construction Trades Council. This second amendment to the Agreement will add a plan expense fee, to be paid solely by 457(b) plan participants, and the fee collected will be used in accordance with the Fee and Expense Policy Statement approved by Council on July 31, 2018.
The Defined Contribution Plans Committee (Committee) started their discussion and evaluation of a plan expense fee beginning with their first meeting on January 9, 2019. The discussion and evaluation continued through subsequent meetings until the Committee passed a motion on October 16, 2019, recommending staff present two options to the City's Recognized Employee Organizations (REOs) to include: 1) a flat fee of $18.00 per 457(b) participant, per year; or 2)...
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