DATE: December 17, 2024
TO: Board of Supervisors
SUBMITTED BY: Hollis Magill, Director of Human Resources
SUBJECT: Administrative Services Agreement with Nationwide Retirement Solutions, Inc.
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute an agreement with Nationwide Retirement Solutions, Inc., to provide record-keeping and communication services to the County of Fresno 457(b) Deferred Compensation Plan and the County of Fresno 401(a) Defined Contribution Plan, effective January 24, 2025, not to exceed five consecutive years.
REPORT
Approval of the recommended action will authorize Nationwide Retirement Solutions, Inc. (hereafter, "Nationwide") to provide administrative services to the County of Fresno 457(b) Deferred Compensation Plan and the County of Fresno 401(a) Defined Contribution Plan (hereafter, the "Plans"). This item is countywide.
ALTERNATIVE ACTION(S):
Your Board may reject staff's recommendation and select a different bidder. However, this would result in higher fees and a potentially disruptive transition to a new record-keeper for participants in the Plans.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. All administrative costs are borne by participants in the Plans.
DISCUSSION:
1. General Description of the Plans
The County adopted the County of Fresno 457(b) Deferred Compensation Plan (the "457(b) Plan") on January 20, 1976. The 457(b) Plan allows employees to defer pre-tax or after-tax dollars into a variety of investment options for the purpose of saving for retirement. The 457(b) Plan has nearly 8,700 participants (this includes active and separated County employees) and approximately $400 million in assets. As of October 1, 2024, 68% of active County employees are contributing to the 457(b) Plan.
The County adopted the County of Fresno 401(a) Defined Contribution Plan (the "401(a) Plan") on April 5, 2022. The 401(a) Plan allows the County to make employe...
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