DATE: March 9, 2021
TO: Board of Supervisors
SUBMITTED BY: Hollis Magill, Interim Director of Human Resources
SUBJECT: Second Amendment to Agreement No. 13-417 with Great-West Trust Company, LLC
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a Second Amendment to Agreement No. 13-417 with Great-West Trust Company, LLC., to add the 2060 Great-West Lifetime target retirement date option to the current County of Fresno 457(b) Deferred Compensation Plan investment lineup.
REPORT
There is no Net County Cost associated with the recommended action. Approval of the recommended action will add the 2060 Great-West Lifetime target retirement date option to the current County of Fresno 457(b) Deferred Compensation Plan investment lineup. This item is countywide.
ALTERNATIVE ACTION(S):
The alternative to the recommended action would be to continue using the current lineup of Great-West Lifetime Trust target-date funds.
FISCAL IMPACT:
There is no Net County Cost associated with the approval of the recommended action.
DISCUSSION:
The County of Fresno 457(b) Deferred Compensation Plan (the “Plan”) allows employees to defer pre-tax and/or after-tax dollars into a variety of investment options in order to save for retirement. Currently, the Plan has over $330 million in assets and more than 6,800 participants (including active and separated/retired employees). In addition, nearly 4,000 or approximately 55% of all active County employees currently contribute to their Plan accounts.
The Board of Supervisors has delegated the authority to oversee the Plan to the Deferred Compensation Management Council (the “Council”), which is comprised of the County Administrative Officer (CAO), Auditor-Controller/Treasurer-Tax Collector, Director of Human Resources, Retirement Administrator, one (1) Department Head appointed by the CAO and two (2) Members-At-Large appointed by the Board of Supervisors. The Council is responsible for the selection and oversight of the Plan investment options, creating policies and procedures related to the Plan, and making recommendations to the Board of Supervisors regarding Plan record-keeping and consulting services.
On July 9, 2013, the Board of Supervisors approved Agreement No. 13-417 (the “Agreement”) with Great-West Trust Company, LLC (Great-West) to provide a suite of target-date investments to Plan participants. Target-date funds are composed of several funds representing different investment styles or asset classes. They have a target date, such as 2035, for retirement and the investment styles adjust to become more appropriate for the investor’s age and retirement status.
On June 4, 2019, your Board approved Agreement No. 13-417-1, which added the 2020, 2030, 2040, and 2050 Great-West Lifetime target retirement date options to the current investment lineup.
Approval of the recommended action will add the 2060 target date option, which will allow participants to better customize their investments to meet their individual needs.
OTHER REVIEWING AGENCIES:
The Council has reviewed the proposed changes to target-date investment options and directed staff to submit said changes to your Board for adoption.
REFERENCE MATERIAL:
BAI #51, June 4, 2019
BAI #36, July 9, 2013
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with the Clerk - Second Amendment to Agreement No. 13-417
CAO ANALYST:
Yussel Zalapa