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TO: Mayor John D. Laesch
FROM: Daniel Ferguson, Accounting Manager
Stacey Peterson, CFO/City Treasurer
DATE: August 25, 2025
SUBJECT:
A resolution approving the revised rules for the administration of the City's deferred compensation plans.
PURPOSE:
To obtain City Council's approval of the attached resolution that would establish revised rules for the administration of the City's deferred compensation plans.
BACKGROUND:
Pursuant to the adoption of R03-487, the Deferred Compensation Administration Committee was established. The committee is comprised of the Chief Financial Officer/City Treasurer (Chair), Director of Human Resources, and Corporation Counsel. This committee is charged with evaluating the deferred compensation plans and has only met as needed concerning the acceptance or termination of plans.
Pursuant to the adoption of R24-420, the City executed a five-year agreement with Creative Planning Retirement Services ("CPRS") to perform 457(b) fiduciary and consulting services for these plans. With that agreement, CPRS will provide guidance to the Deferred Compensation Administration Committee on value-add opportunities within the deferred compensation plan design. Most of the plans the City currently offers have been in place for nearly three decades and the current marketplace has drastically changed since that time. As is the City's fiduciary duty, CPRS will ensure that we are offering the competitive options that our participants now expect, but with reasonable fees at current market rates.
DISCUSSION:
To continue our previous presentations regarding the City's deferred compensation plans back in December 2024, we are proposing to expand the Deferred Compensation Administration Committee to a total of five committee members. The two additional committee members will be appointed by the Mayor and shall meet the following eligibility criteria:
a. One active City of Aurora employee that is a current participant in the City’s deferred compensation plans.
b. One retired City of Aurora employee that is a current participant in the City’s deferred compensation plans.
The addition of the two committee members will ensure that plan participants are directly involved in overall plan oversight and decision-making moving forward.
We are also proposing that the Comptroller/Deputy Treasurer replace the Corporation Counsel as a member of the committee. The Comptroller/Deputy Treasurer is an authorized plan representative for the plans currently offered by the City and possesses key expertise in the City's administration of the plans.
Other proposed changes were to update the titles of the previously identified committee members and finance staff, but these are changes in position title only.
Ultimately, we expect the revised Deferred Compensation Administration Committee, with representation from current plan participants and under the advice of CPRS, to do what is in the best interest of our participants moving forward.
IMPACT STATEMENT:
Approval of the revised rules for the administration of the City's deferred compensation plans will directly incorporate plan participants into the oversight and decision-making responsibilities affecting all plan participants.
RECOMMENDATIONS:
We recommend adoption of the resolution that will establish revised rules for the administration of the City's deferred compensation plans.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution approving the revised rules for the administration of the City's deferred compensation plans.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City currently maintains and administers seven deferred compensation plans pursuant to Section 457 of the Internal Revenue Code, and
WHEREAS, the City deems it appropriate and necessary to establish revised rules for the administration of its deferred compensation plans previously established by resolution R03-487; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: That the attached revised rules for the administration of the City's deferred compensation plans are hereby approved.