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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, City Financial Officer/City Treasurer
DATE: January 17, 2014
SUBJECT:
A Resolution Authorizing the Execution of an Investment Fiduciary Service Agreement for the Implementation of Fund Menu Option 2B of the Section 457 Deferred Compensation Plan Offered by the City of Aurora Through Nationwide Retirement Solutions and Other Related Actions.
PURPOSE:
To obtain the City Council's approval of the attached resolution that would authorize the execution of an investment fiduciary service agreement for the implementation of fund menu option 2B of the Section 457 deferred compensation plan offered by the city through Nationwide Retirement Solutions and other related actions.
BACKGROUND:
Section 457 of the Internal Revenue Code permits local governments to offer tax-deferred retirement savings plans to their employees. The City of Aurora currently offers four plans. Those plans are offered through the following vendors:
1. Illinois Public Pension Fund Association (IPPFA).
2. ING Life Insurance and Annuity Company.
3. Nationwide Retirement Solutions.
4. Waddell & Reed Financial Services.
The four vendors offer approximately 150 investment options (funds) across a broad range of asset classes (i.e., stable, fixed income, small-cap stocks, medium-cap stocks, large-cap stocks, balanced, and global/international).
In 2003, pursuant to Resolution No. R03-487, the city established its Deferred Compensation Administration Committee. The committee is comprised of:
Chief Financial Officer/City Treasurer (chair)
Director of Human Resources
Corporation Counsel
The committee is charged with evaluating new deferred compensation plans that have been proposed for offering to city employees. In addition, the committee assesses p...
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