Item 08 - Agreement with Benefit Financial Services Group for Administrative, Investment, and Communication Services

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Finance and Management Services www.santa-ana.org/finance Item # 8 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report December 3, 2024 TOPIC: Administrative, Investment, and Communication Advisory Services AGENDA TITLE Agreement with Benefit Financial Services Group for Administrative, Investment, and Communication Advisory Services RECOMMENDED ACTION Authorize the City Manager to execute an agreement with Benefit Financial Services Group ("BFSG") for administrative, investment, and communication advisory services for a total aggregate amount not -to -exceed $175,000 for a three-year term beginning January 1, 2025, and expiring December 31, 2027, with a provision for a two-year extension (Agreement No. A-2024-XXX). GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION The City of Santa Ana's full-time employee 457 Deferred Compensation Plan ("Plan") was established in 1973, with the adoption of City Resolution 7-21. The 457 Deferred Compensation Plan is a voluntary supplemental retirement savings program that allows employees to make contributions to the Plan up to an amount established by the Internal Revenue Service. Other than the amounts pursuant to City Council -appointee contracts, the City does not contribute any funds to the plan. As of June 30, 2024, the City's 457 Deferred Compensation Plan holds $152 million in plan assets for 1,349 participants. The Retiree Health Savings plan holds $17 million in plan assets. The 457 Deferred Compensation Plan is administered through the Finance and Management Services Agency, with advisory contributions from Human Resources. Management of the plan includes quarterly performance review of investments, analyzing the Plan's fund options, maintaining and revising the Plan's investment policy Statements as necessary, and ensuring the Plan's cost-effectiveness. In addition, the Retiree Health Savings (RHS) plan was included as part of the Request for Proposals (more information is in the paragraph below), so the selected firm will provide services similar to those provided to the 457 plan. Currently, the City utilizes an independent fiduciary firm, Benefits Financial Services Group (BFSG), to assist in reviewing investments, compliance, and fund selection.