DATE: June 4, 2019
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, Director of Human Resources
SUBJECT: Retroactive First Amendment to Agreement No. 13-417 with Great-West Trust Company, LLC
RECOMMENDED ACTION(S):
TITLE
Approve and authorize Chairman to execute a retroactive First Amendment to Agreement No. 13-417 with Great-West Trust Company, LLC., reducing management fees effective February 1, 2019, and adding target retirement date options effective following execution.
REPORT
Approval of the recommended action will reduce management fees to County of Fresno 457(b) Deferred Compensation Plan (the "Plan") participants invested in the Great-West Lifetime Trust target-date investment options from 0.12% to 0.09%, retroactive to February 1, 2019. In addition, the recommended action will add the 2020, 2030, 2040, and 2050 Great-West Lifetime target retirement date options to the current Plan investment lineup.
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.
RETROACTIVE AGREEMENT:
The recommended lowering of participant fees from 0.12% to 0.09% is effective February 1, 2019, the date when Great-West made the lower fee available to participants. The recommended addition of the 2020, 2030, 2040, and 2050 Great-West Lifetime target retirement date options is not retroactive and will become effective as soon as practicable upon your Board's approval.
FISCAL IMPACT:
There is no net County cost associated with the recommended actions.
DISCUSSION:
The County has offered its employees a deferred compensation plan, as authorized by Internal Revenue Code Section 457, since 1976. The Plan allows employees to defer pre-tax dollars into a variety of investment options in order to save for retirement. Currently, the Plan has more than 6,400 participants with over $260 million in assets. Your Board has delegated the authority to oversee the Plan to t...
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