To: Honorable Mayor and Members of City Council
From: Rajneil Prasad, Finance Director
Prepared By: Rajneil Prasad, Finance Director
TITLE:
Title
Deferred Compensation Plan Restatement and Money Purchase Defined Contribution Plan Adoption
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution adopting a qualified retirement plan (Governmental Money Purchase Plan) and authorizing the Finance Director to execute plan documents.
Adopt a resolution adopting the restatement of Governmental 457(b) retirement plan and authorizing the Finance Director to execute plan documents.
Body
DISCUSSION:
The City of Napa has had two recordkeepers for its Deferred Compensation 457(b), 401(a) and Retirement Health Savings plans, Nationwide and Mission Square. The city also has a Defined Contribution Plans Advisory Committee with representation from each of the six bargaining units, unrepresented, City Manager's office, Finance, and HR. The Finance Director functions as the chairperson of the committee. The committee meets quarterly to review the Deferred Compensation 457(b), 401(a) and Retirement Health Savings plans.
The Hyas Group is an institutional consulting firm based in Portland, Oregon. They are the market leader in public sector DC consulting space. Hyas Group was hired by the City in May 2021 and facilitates reporting and meetings with the City of Napa Defined Contribution Plans Advisory Committee each quarter.
The Hyas Group, who serves as a co-fiduciary to the City of Napa's Defined Contribution (DC) 457(b), 401(a) and Retirement Health Savings plans, distributed an RFP for plan recordkeeping and administration on April 17th, 2024. The objective of the RFP was to consolidate the two current DC Plan providers (MissionSquare and Nationwide) to a single recordkeeper, which is a best practice in the industry. Responses were received on June 6, 2024, from eight vendors, including: Corebridge, Empower, Lincoln, MissionSquare, Nationwide, OneAmerica, TIAA a...
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