Agenda Item Name:
Title
Consolidation of Deferred Compensation Record-keepers
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Presenter:
John Carnell, 264-6967
Description:
Review the results of the survey and the consolidation of the Deferred Compensation plan to one contract holder, ICMA, as approved unanimously by the Deferred Compensation Committee on 10/14/2019
Recommended Action:
Recommended Action
Approve consolidation of Deferred Compensation plan to one contract holder, ICMA
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Prior Board Motions:
Resolution 83-52 approving the ICMA Deferred Compensation Plan
Resolution 93-90 adding NACO (Nationwide) as a plan under Alachua County’s deferred Compensation Plan
March 10, 2020 - Commissioner Cornell moved the substitute motion to defer the decision, conduct surveying, and involve the various stakeholders to develop the questions asked on the survey. Once the data is received then the Board will make a decision.
Commissioner Wheeler, County Manager Lieberman, Chair Hutchinson, and Commissioner Byerly presented comments.
The substitute motion carried 3-2 with Commissioners Byerly and Hutchinson voting “Nay”.
Fiscal Consideration:
Fiscal Consideration
Participants will collectively save over $145,000 per year in fees
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Background:
On July 26, 1983, the County created a Deferred Compensation plan administered by ICMA. On September 16, 1993, the County Employees' Deferred Compensation Advisory Council approved a resolution to add the National Association of Counties' Deferred Compensation Plan (now known as NATIONWIDE) to the County deferred compensation program. On October 14, 2019 the deferred Compensation Committee recommended that Alachua County Consolidate to ICMA-RC with a new open architecture of funds. This will decrease administrative fees and collectively save the employees over $145,000 annually.
Although no County funds are used in the plan, as the plan sponsor, the County maintains a fiduciary responsibility to provide the cost effective service to the participants.
A survey was sent to all participants in the two plans. 712 surveys were sent and 340 responded. That’s a response rate of 47.75%. 67.06% of participants were for consolidating to one record keeper and 32.94% were against consolidation.