AGENDA ITEM REPORT
TITLE:
title
A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE THE ATTACHED ADMINISTRATIVE SERVICES AGREEMENT WITH THE INTERNATIONAL CITY MANAGEMENT ASSOCIATION RETIREMENT CORPORATION DOING BUSINESS AS MISSIONSQUARE RETIREMENT FOR SECTION 457 AND 401 PLAN NUMBERS 300490, 109337, 109336, 109335, 107812, AND 106098.
body
BACKGROUND:
The City currently partners with the International City Management Association Retirement Corporation (ICMA-RC), doing business as MissionSquare Retirement (MissionSquare), to administer and manage investments for the City’s 457 and 401 retirement plans.
To reduce participant expenses while maintaining quality administrative services, the City is transitioning to a new administrative services agreement. The attached agreement will replace the existing agreement for plans 300490, 109337, 109336, 109335, 107812, and 106098, which was approved by Resolution No. 2019-115 and executed on June 3, 2019.
DISCUSSION:
The attached administrative services agreement supersedes and replaces the previous agreement between the City of Coconut Creek and MissionSquare for the 457 and 401 plans. The revised agreement enhances investment savings by upgrading the tier class in MissionSquare funds from R5 and R7 to R5 and R9, resulting in an average expense reduction of 0.10%-equating to approximately $556,000 in savings over the agreement’s duration. Additionally, the annual administrative allowance credit increases from $35,000 to $40,000. The allowance is used for participation incentives and plan sponsor administrative costs.
RECOMMENDATION:
Staff recommends approval of this resolution.
FISCAL IMPACT:
REVENUES: $ 0
EXPENDITURES: $ 0
BUDGETED? N/A
NOTES: Expense savings will be realized by each individual employee. The $40,000 administrative allowance credit will be deposited to account 61-T22004 and used for participation incentives and plan sponsor administrative costs.