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TO: Mayor John D. Laesch
FROM: Daniel Ferguson, Accounting Manager
Stacey Peterson, CFO/City Treasurer
DATE: July 28, 2026
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 ("DCAC") was established. DCAC is comprised of the Chief Financial Officer/City Treasurer (Chair), Director of Human Resources, and Corporation Counsel and is charged with evaluating the deferred compensation plans and has only met as needed concerning the acceptance or termination of plans in the past.
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 DCAC 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.
Pursuant to the adoption of R25-283, the revised rules for the DCAC was approved. This last revision focused on two aspects: (1) expanded the committee to a total of five members, including two participant members, and (2) replaced the existing Corporation Counsel member with the Mayor's Chief of Staff or other representative of the Mayor's Office appointed by the Mayor. The committee is now comprised of the Chief Financial Officer/City Treasurer (Chair), Chief Human Resource Officer, Mayor's Chief of Staff or other representative of the Mayor's Office appointed by the Mayor, active employee plan participant, and retired employee plan participant.
DISCUSSION:
We are back to make a minor change to the eligibility requirements of the retired employee participant member. We are proposing that the retired employee participant member shall be a current or past participant in the City's deferred compensation plans.
Existing wording - One retired City of Aurora employee that is a current participant in the City’s deferred compensation plans.
Proposed wording - One retired City of Aurora employee that is a current or past participant in the City’s deferred compensation plans.
The intent of the previous rule revision was to incorporate the perspective of active and retired plan participants in overall plan oversight and decision-making moving forward. An appointment was made to fill that retired employee participant member, but it was recently discovered that there was an administrative oversight related to that appointment. This proposed revision ensures that the requirements are clear and will avoid any technicality concerns.
Furthermore, we seek to implement quarterly analysis and evaluation of the available plans, investment performance, participant engagement, and recordkeeper services moving forward. This will be similar to the oversight and governance currently provided during the quarterly meetings for the City's Retiree Health Insurance Trust Fund ("RHITF"). To accomplish this, we will be presenting a governing document draft to DCAC, which will specify its obligations, as well as rules directing committee membership and meetings.
Ultimately, we expect the revised Deferred Compensation Administration Committee, with representation from current and/or past 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 current and/or prior 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 initially established by R03-487 and previously revised by resolution R25-283; 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.