DATE: January 21, 2020
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, Director of Human Resources
SUBJECT: Administrative Services Agreement with Nationwide Retirement Solutions, Inc.
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a three (3) year agreement, with two one (1) year extensions, with Nationwide Retirement Solutions, Inc., to provide record-keeping and communication services to the County of Fresno 457(b) Deferred Compensation Plan, effective January 24, 2020, not to exceed five (5) total years, total not to exceed $2,000,000.
REPORT
Approval of the Recommended Actions will authorize Nationwide Retirement Solutions, Inc. (hereafter, "Nationwide") to provide administrative services to the County of Fresno 457(b) Deferred Compensation Plan (hereafter, the "Plan").
ALTERNATIVE ACTION(S):
Your Board may reject staff's recommendation and select a different bidder. However, this would result in higher fees to Plan participants and a costly transition process to a new provider.
FISCAL IMPACT:
There is no net County cost associated with the recommended action. All administrative costs are borne by the Plan.
DISCUSSION:
The County established the Plan as authorized by Internal Revenue Code (IRC) Section 457, in 1976. The Plan allows employees to defer pre-tax or after-tax dollars into a variety of investment options for the purpose of saving for retirement. Currently, the Plan has over 6,600 participants (this includes active and separated County employees) with over $280 million in assets.
Your Board 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 your Board. The Council is responsible for the selection an...
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