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ITEM 17

City Council Memorandum Human Resources Memo No. N/A

Date:

June 27, 2024

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Tadd Wille, Assistant City Manager
Rae Lynn Nielsen, Human Resources Director

From:

Fernanda Acurio, Benefits & Compensation Manager

Subject:

Agreement No. HR3-953-4609, Amendment No. 1, with Nationwide Retirement Solutions, Inc., for Deferred Compensation 457 Plan and Post Employment Health Plan Administration, Investment, and Trust Services

Proposed Motion:

Move City Council approve Agreement No. HR3-953-4609, Amendment No. 1, with Nationwide Retirement Solutions, Inc., for Deferred Compensation 457 Plan and Post Employment Health Plan administration, investment, and trust services.

Background/Discussion:

The City of Chandler maintains a deferred compensation plan in accordance with Internal Revenue Code Section 457 (the "457 Plan"). Additionally, the City has established Post Employment Health Plans (PEHP), formerly called Retirement Health Savings plans (RHS). The PEHP covers all full-time employees and benefit-eligible part-time employees, City Council members, and retirees who are eligible for medical expense reimbursement payments as specified by IRS regulations.

During the transition from the current provider, MissionSquare Retirement (formerly ICMA-RC), to Nationwide, the vendor identified an error in the per participant fee for the PEHP, reflected in the Compensation and Funding Vehicle for PEHP (Exhibit B) and the Fee Schedule (Exhibit C) of the original agreement approved by City Council. This amendment corrects the errors in the original Exhibits B and C. No other changes are required.

Evaluation:

On February 22, 2024, City Council approved an agreement with Nationwide Retirement Solutions, Inc., for the Deferred Compensation 457 Plan and Post Employment Health Plan (PEHP) administration, investment, and trust services, for a three-year period. Staff recommends the approval of this amendment to correct the error in Exhibits B and C to the original agreement. There are no other changes to the terms and conditions of the original agreement.

Financial Implications:

There is no financial impact to the City, as this program is an employee-paid benefit. The per participant annual cost structure is as follows:

PEHP (RHS) - $53 per participant annually. These fees will be computed on a quarterly basis (per quarter per participant), based on their investments.

Fiscal Impact

Account No.

Fund Name

Program Name

Dollar Amount

CIP Funded Y/N

N/A

Attachments

Amendment