Consider three-year renewal agreement with MissionSquare Retirement to provide recordkeeper services to Yolo County's Deferred Compensation Plan. (No general fund impact) (Pistochini)

Authorize the Chair to execute a three-year renewal for MissionSquare Retirement to provide recordkeeper services to Yolo County's Deferred Compensation Plan (Att. A).

The County offers a defined contribution retirement program, commonly referred to as a 457 plan. County employees voluntarily enroll themselves into the plan to make contributions to tax-advantaged retirement accounts.  Additionally, select labor groups also have a 401a deferred compensation plan.  The County's deferred compensation plan is approximately 1,309 participants with $93+ million dollars of assets under management.

Employers offering deferred compensation plans generally contract with a third party to perform recordkeeper services which are responsible for managing the assets of the plan, offering an investment lineup menu, and interacting with employees/participants.  The existing agreement with MissionSquare Retirement was approved by the Board of Supervisors on April 24, 2018 as a result of a competitive solicitation process.  The contract was for seven years plus three one-year option years.  The contract is expiring and the Deferred Compensation Committee (a panel of the Human Resources Director, Chief Financial Officer, and seven county employees) considered options and are recommending a three-year extension (Att. A).  This extension will lower the administrative fee charged by MissionSquare to participant accounts from 7.5 basis points (0.075%) to 5.3 basis points (0.053%).  The extension was negotiated by the County's independent fiduciary advisor, Hyas Group. 

The extension, if approved, will mean the County has been with MissionSquare as the sole deferred compensation plan recordkeeper for a ten-year period at the end of the contract term.  The Deferred Compensation Committee recommends that it conduct a new competitive solicitation process to select a recordkeeper after the ten year period has expired.  In the coming year, the Deferred Compensation Committee will consider strategies for a future contract, as it is a complex endeavor to undertake.

The Deferred Compensation Committee is satisfied with the existing recordkeeper.  The original contract was competitively solicited in 2017 and approved by the Board in 2018 for a seven year contract with and option to extend for up to three years.  This proposed three year term significantly reduces the recordkeeper fee as a result of a negotiation between the County and MissionSquare Retirement.