TO: Mayor and Commission AGENDA DATE: 11/18/2024
FROM: City Manager AGENDA ITEM: 10 - A
SUBJECT:
Title
Request for approval of an agreement with NFP Retirement Inc. to provide Investment Advisory, Compliance, and Plan Education Services for the Employee 401(a) and 457(b) Deferred Compensation Plans.
Body
LOCATION:
N/A
COST:
Approximately $35,000/year based on total plan assets, consisting of 30 basis points (bps) administration fee and 5 bps for “The Participant Effect” plan education services
SOURCE OF FUNDS:
Not Applicable - the fee is charged to the plan and not paid by the City.
ORIGINATING DEPARTMENT:
Finance
POTENTIAL MOTION:
Recommendation
“I hereby move to award the agreement to NFP Retirement Inc. to provide Investment Advisory, Compliance, and Plan Education services for the City’s section 401(a) and 457(b) deferred compensation plans.”
END
BACKGROUND:
Background
As the sponsor of Section 401(a) and 457(b) deferred compensation plans for its employees, the City has a fiduciary responsibility to comply with ERISA standards, including establishing plan procedures, providing plan information to employees, and evaluating fees charged to the plan by investment providers. To ensure our continued compliance with these standards, staff recommends contracting with a vendor to perform these duties. The City of Leesburg entered into an agreement with NFP Retirement Inc. via the RFP process and this contract allows for “piggybacking” by other municipalities. NFP’s management fee is charged to the plans and not paid by the City, but NFP estimates this will be more than offset by renegotiating the administrative fees currently charged to the plan investments.
Upon approval of this item authorizes any and all necessary actions, documents or budget transfers to facilitate Commission approval and further authorized the Interim City Manager to sign any documents necessary to further Commission approval of this item.
End