HomeMy WebLinkAboutReso 2024-032RESOLUTION NO. 2024-032
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE ADMINISTRATIVE
SERVICES AGREEMENT BETWEEN THE CITY AND
NATIONWIDE RETIREMENT SOLUTIONS, INC.,
APPROVING THE DELEGATION OF PLAN SPONSOR AND
ITS DUTIES OF THE 457(B) AND 401(A) PLANS TO THE
DIRECTOR OF FINANCE/TREASURER, AND APPROVING
THE ESTABLISHMENT OF AN OVERSIGHT COMMITTEE
WHEREAS, under Section 457(b) and 401(a) of the Internal Revenue Code (“IRC”),
government entities may sponsor a deferred compensation plan to allow employees to defer
income tax on retirement savings into future years. The City sponsors a Governmental 457(b)
Deferred Compensation Plan under Section 457(b) and 401(a) Money Purchase Plan under Section
401(a) of the IRC; and
WHEREAS, under the California State Constitution, Article XVI Section 17, government
entities that sponsor a 457(b) and/ or 401(a) plans have fiduciary responsibilities as Plan Sponsors
to ensure the operation and investment of their respective public retirement plans for the exclusive
purpose of providing benefits to participants and beneficiaries. The fiduciary responsibilities
include investing the assets of the plan, administering the plan, and engaging in a prudent process
for making all decisions related to the operation of the plan, including decisions related to the
plan’s investments and related services; and
WHEREAS, the City reached out to Fiduciary Experts, LLC, the City’s fiduciary
retirement plan consulting firm to conduct a blind request for information in late 2023 primarily
to evaluate the administrative fees of the Plans but also to review all the terms and conditions,
including but not limited to investment options, asset values, fixed account interest rates, and
additional fees that may be charged by plan administrators; and
WHEREAS, after evaluations were completed, staff is recommending the City approve a
renegotiated agreement with the City’s current plan administrator since 2005, Nationwide
Retirement Solutions, Inc., hereinafter known as Nationwide, a Delaware Corporation and an
affiliate and subsidiary of Nationwide Financial Services, Inc., under a renegotiated
Administrative Services Agreement and other new terms and conditions that allows the City to
obtain lower plan fees, higher competitive fixed interest rates, enhanced investment options for
plan participants, and a lifetime income product for those who wish to include this into their
retirement income planning; and
WHEREAS, the City desires to continue to contract with Nationwide in connection with
the administration of the Plan; and
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Resolution No. 2024-032
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WHEREAS, the City Council desires to delegate to the Director of Finance/Treasurer the
role of Plan Sponsor to carry out the fiduciary responsibilities of the 457(b) and 401(a) plans and
authorize the Director of Finance/Treasurer to establish a Deferred Compensation Plan Oversight
Committee, hereinafter referred to as “the Committee” to delegate some or all of his or her
administrative and fiduciary oversight duties and authority to the Committee.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it delegates to the Director of Finance/Treasurer the role of Plan Sponsor of the 457(b) and
401(a) plans to carry out the fiduciary responsibilities of the plan.
BE IT FURTHER RESOLVED that the City Council may revoke or change such
delegation of authority and responsibilities under one or more of the Plans at any time.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it
approves the Administrative Services Agreement for the Governmental 457(b) Deferred
Compensation Plan and 401(a) Money Purchase Plan, between the City and Nationwide in the
form presented, with such minor modifications as may be required or approved by the City
Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes the
Director of Finance/Treasurer to sign the Agreement as Plan Sponsor.
BE IT FURTHER RESOLVED that the Director of Finance/Treasurer is authorized to
establish a Deferred Compensation Plan Oversight Committee to delegate some or all of her
administrative and fiduciary oversight duties and authority to the Committee.
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Resolution No. 2024-032
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Presented by Approved as to form by
Sarah Schoen Jill D.S. Maland
Director of Finance/Treasurer Lounsbery Ferguson Altona & Peak
Acting City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 20th day of February 2024 by the following vote:
AYES: Councilmembers: Chavez, Gonzalez, Preciado, and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
John McCann, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2024-032 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 20th day of February 2024.
Executed this 20th day of February 2024.
Kerry K. Bigelow, MMC, City Clerk
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