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TO: Mayor Richard C. Irvin
FROM: Daniel Ferguson, Accounting Manager
Linda Read, Comptroller and Deputy Treasurer
Christopher Minick, CFO and City Treasurer
DATE: December 10, 2024
SUBJECT:
A resolution authorizing a five-year agreement with Creative Planning Retirement Services at a total cost of $325,000 to perform 457(b) fiduciary and consulting services for the City's deferred compensation plans.
PURPOSE:
The City of Aurora seeks to perform a detailed analysis of the current plans offered by the City, as it is our fiduciary duty to offer competitive options at current market costs for our participants.
BACKGROUND:
Section 457 of the Internal Revenue Code permits local governments to offer tax-deferred retirement savings plans. In 2002, the City offered 6 deferred compensation plans and hired Becker, Burke Associates per R02-630, to evaluate the City's plans. At the time, there were complaints that the City offered too many plans for individuals to reasonably evaluate. As a result of their evaluation, the City closed four of those plans to new participants and added one new plan per R03-466. The four plans were closed to new participants (referred to as "Soft Close") due to a combination of significant redundancy in investment options, low enrollment in some plans, poor customer service, and high fees. In 2009, one of the closed plans was reopened, resulting in four plan options accepting new participants at the current time. Here is a list of the plans that the City currently maintains and administers, with reference to the year the plan was started:
Zurich Life (Kemper) - 1987 (Soft close 2003)
Voya (ING/Aetna) - 1987
Nationwide (USCM) - 1987
MissionSquare (ICMA) - 1989 (Soft close 2003)
Security Benefit (Parkstone) - 1994 (Soft close 2003)
LPL (Waddell & Reed) - 1996 (Soft close 2003; reopened 2009)
NPPFA Benefits (IPPFA) - 2003.
DISCUSSION:
To fulfil our fiduciary duty of offering competitive options for our participants, the City issued ...
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