HomeMy WebLinkAboutItem 20 - Adopt Resolution appointing the Executive Director of Finance as Plan Administrator for Employee Savings Plans Finance and Management Services
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Item # 20
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
August 1, 2023
TOPIC: Adopt Resolution appointing the Executive Director of Finance as Plan
Administrator for Employee Savings Plans
AGENDA TITLE
Adopt Resolution appointing the Executive Director of Finance as Plan Administrator for
Employee Savings Plans.
RECOMMENDED ACTION
Adopt a resolution appointing the Executive Director of Finance as plan administer of
the 457(b) Deferred Compensation Plan, the 401(a) Retirement Savings Plan, and the
401(h) Retirement Health Savings Plan.
DISCUSSION
The City sponsors and administers the following employee savings plans:
•Deferred compensation savings plan (Internal Revenue Code section 457(b));
•Retirement savings plan (IRC 401(a)) for past employees; and
•Retirement health savings plan (IRC 401(h)).
All third-party expenses to administer the plans are paid by current and past
participating employees.
Although employee savings plan assets are owned by current and past employees, and
not the City, the City Council has fiduciary responsibilities for the plans. It has been the
practice for the Executive Director of Finance to act as plan administrator, consistent
with City Treasurer duties outlined in Santa Ana Municipal Code Section 2-300.8(h) as
follows.
“Direct treasury administration for the city; including the receiving and
collecting of revenues and receipts from whatever source; have custody
of all public funds belonging to or under the control of the city or any
office, department, or other agency of the city government; and deposit
all funds received in such depository as may be designated by resolution
of the city council, or, if no such resolution be adopted, by the city
Adopt Resolution appointing the Executive Director of Finance as Plan Administrator for
Employee Savings Plans.
August 1, 2023
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manager, in compliance with the provisions of the state constitution and
laws of the state governing the handling, depositing, and securing of
public funds”
Staff recommends adoption of the proposed resolution to formalize the delegation of
authority to administer the employee savings plans. Administration includes withholding
employee contributions from pay, settlement of plan transactions, making administrative
changes to plan documents to conform to law and best practices, and selection of third-
party record keepers and investment advisors. The Executive Director of Finance is
advised by an internal committee comprised of the Human Resources Director and two
of his appointees, the Assistant Director of Finance, and one additional appointee from
Finance.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
There is no fiscal impact associated with the recommendation.
EXHIBIT(S)
1. Resolution
Submitted By: Kathryn Downs, Executive Director of Finance and Management
Services
Approved By: Kristine Ridge, City Manager
Resolution No. 2023-XXX
Page 1 of 1
RESOLUTION NO. 2023-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AMENDING RESOLUTIONS 2011-024 AND
2016-053 AND APPOINTING THE EXECUTIVE DIRECTOR
OF THE FINANCE AND MANAGEMENT SERVICES AGENCY
AS THE PLAN ADMINISTRATOR FOR THE CITY’S 457(B),
401(A) AND 401(H) PLANS.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1: The City Council hereby finds, determines and declares as follows:
A.The City sponsors a 457(b) Deferred Compensation Plan currently
through Prudential, 401(a) Retirement Savings Plan through Public
Agency Retirement Services (“PARS”), and 401(h) Retirement Health
Savings Plan through Mission Square (the “Plans”) which are funded
through employee salary deferrals and any employer matching
contributions authorized by the City Council. All thi rd-party expenses
of administering the Plans are paid by those current and former
employees participating in the Plans.
B.As sponsor, the City has fiduciary obligations relating to the Plans.
These fiduciary obligations generally include monitoring the investment
funds available to participants in the Plans, determining whether
changes should be made to investment funds available through the
Plan, maintaining compliance with applicable federal and state laws
and regulations, and completing necessary paperwork related to the
Plans.
C.Pursuant to Resolution 2011-80 as amended by Resolution 2016-053,
the Executive Director of Finance was appointed as the City’s Plan
Trustee and the Executive Director of Human Resources as Plan
Administrator for the City’s 401(h) Retirement Health Savings Plan.
Pursuant to Resolution 2011-024, the Executive Director of Human
Resources was designated as Plan Administrator for the 401(a) PARS
Plan.
D.It is now desired to appoint the Executive Director of Finance and
Management Services Agency (“Finance Director”) as the Plan
Administrator for all the Plans and to amend Resolutions 2011-024 and
2016-053 as to the designated Plan Administrator.
EXHIBIT 1
Resolution No. 2023-XXX
Page 2 of 2
Section 2: The Santa Ana City Council hereby amends Resolutions 2011-024
and 2016-053 as to the designation of the Plan Administrator and appoints the Finance
Director as Plan Administrator for the 457(b) Deferred Compensation Plan, 401(a)
Retirement Savings Plan, and 401(h) Retirement Health Savings Plan, which includes
full authority and responsibility to manage all fiduciary requirements associated with the
Plans including but not limited to maintaining the City’s participation in the Plans, and
maintaining compliance with any relevant federal or state law or regulation.
Section 3: The Santa Ana City Council further grants the authority to manage
all settlor functions associated with the Plan s, including but not limited to optional
amendments of the Plans, except am endments that increase the cost, which shall
require the approval of the City Council.
Section 4: The Santa Ana City Council further grants the Finance Director the
authority to select, monitor, and deselect service providers as necessary to effectively
exercise the authority granted through this Resolution, except for service providers that
increase the cost, which shall require approval of the City Council.
Section 5: The Santa Ana City Council also hereby grants authority to the
Finance Director to delegate or assign specific responsibilities or tasks to City
employees or outside service providers utilizing the City’s n ormal contracting provisions
provided the Finance Director monitors and manages the actions of such delegates.
Section 6. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
ADOPTED this 1st day of August, 2023.
___________________________
Valerie Amezcua
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
By: __________________
Laura A. Rossini
Chief Assistant City Attorney
Resolution No. 2023-XXX
Page 3 of 3
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, JENNIFER HALL, City Clerk, do hereby attest to and certify the attached Resolution No.
2023-___ to be the original Resolution adopted by the City Council of the City of Santa
Ana on August 1, 2023.
Date: ___________________ ____________________________
City Clerk
City of Santa Ana