HomeMy WebLinkAboutContract 45466-R1 CSC No.
CITY OF FORT WORTH
CONTRACT RENEWAL NOTICE
CITY SECRETARY
December 30,2016
CONTRACT N0. —
TIAA
730 Third Ave—16s'Floor
New York,NY
Re: NOTICE OF CONTRACT RENEWAL
Recordkeeping Services Agreement for 457 Plan
Contract No.CSC No.45466(the"Contract")
Renewal Term No, 1:April 1,2017 to April 1,2018
The above referenced Contract will expire on April 1, 2017.Pursuant to the Contract, contract renewals are at the sole option of the
City. This letter is to inform you that the City is exercising its right to renew CSC No.45466 for an additional one year period,which
will begin immediately upon the expiration of the current term and will end on April 1,2018.All other terms and conditions of CSC
No. 45466 remain unchanged. Please return this signed acknowledgement letter, along with a copy of your current insurance
certificate,to the address set forth below,acknowledging receipt of the Notice of Contract Renewal.
Please log onto BuySpeed Online at http://fortworthtexas.gov/purchasipg to insure that your company information is correct and up-to-
date.
If you have J- ect s concerning this Contract Renewal Notice,please contact me at the telephone number listed below.
S'
ickerr of Human Resources
817-392-778
817-392-2624-Fax
I hereby acknowledge receipt of the Contract Renewal Notice for CSC No.45466 for a one year period ending on r'w
By: _ t1 Date:
�rPrinted Name and Title U ,�
Signature
CITY O FORT WORTH: Affj �XAS
1 4
Susan Ian# ,Assistant City Manager aly J.Kayser, City Secretary
Date: 13 o M&C No. C-26571
RECOMMENDED BY:
Name and Title APPROVED AS TO FORM ACJU B.EUALMV.-
OFFICIAL RECORD PM,ffTORNFY
CITY SECRETARY
FT.WORTH,TX
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FORT ll
COUNCIL ACTION: Approved on 11/19/2013
DATE: 11/19/2013 REFERENCE NO.: C-26571 LOG NAME: 14TIAA-CREF
CODE: C TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT: Authorize Agreement with TIAA-CREF to be the Third-Party Administrator for the City of
Fort Worth's 457 Deferred Compensation Plan (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize an Agreement with TIAA-CREF to be the third-party
administrator for the City of Fort Worth's 457 Deferred Compensation Plan.
DISCUSSION:
The purpose of this Mayor and Council Communication is to seek authorization to negotiate and enter into
an Agreement with TIAA-CREF to be the 457 Deferred Compensation Third-Party Administrator with all
associated fees paid by participants in the plan.
Background:
The City of Fort Worth established a 457 Deferred Compensation Program with ICMA-RC in March
1981. In July 1982, Nationwide Retirement Solutions (formerly PEBSCO) was added as a second
provider. These two firms (ICMA-RC and Nationwide) currently provide recordkeeping, investment, and
trustee/annuity services to the Plan as well as enrollment, communication, and education services to the
Plan participants. As of December 31, 2012, there were 2,736 employees contributing to the Plan: 2,231
with Nationwide (the amount of$134,032,620.00 in plan assets) and 505 with ICMA-RC (the amount of
$27,433,660.00 in plan assets).
In 2011, the City formed an Oversight Committee for the City's 457 Deferred Compensation Program. The
Committee, comprised of 13 plan participants (active and retired), recommended the issuance of a Request
for Proposal (RFP) and the consolidation of plan recordkeeping and investment services with a single
provider. The Committee was engaged in the development of the RFP with help from an independent
consulting firm, The Retirement Store, Inc. A five member Plan Sub-Committee (Sub-Committee) was
appointed to evaluate proposal responses with the help of the consultant.
On June 13, 2013, the City received 10 responses to the RFP issued on April 17, 2013. The Sub-
Committee reviewed all responsive submittals and selected four firms to make presentations, ICMA-RC,
Nationwide, Prudential and TIAA-CREF.
The Sub-Committee considered the following criteria for selecting the finalists:
Proposer's Experience and Financial Stability -20 points available
Participant Services - 25 points available
Administration and Regulatory Services - 10 points available
Investment Options -20 points available
Fees/Revenue - 25 points available
The following is the Sub-Committee assessment of TIAA-CREF:
RFP Section Comments
Experience and
Financially very strong; not-for-profit; huge retirement services
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=19254&eouncildate=11/19/2013 4/3/2017
M&C Review Page 2 of 2
Financial Stability organization particularly in education market; large local presence
Lewisville
Committed to 52 days/on-site annually with 2 representatives;
Participant/Plan investment advice/retirement planning included at no additional charge;
Sponsor Services no managed account conflicts; Saturday customer service; webinars;
state-of-the-art technology including social media
Administration and Sound recordkeeping system; extensive service commitments at both
Regulatory plan and participant level; good recommendations regarding current life
insurance in Plan; robust ad hoc reporting capabilities
Stable Value Proposed better share class of existing Wells Fargo/Galliard option - no
Investment Option disruption to current Nationwide participants
Variable Investment Open architecture; average investment cost of proposed fund menu =
Option 49.5 basis points (bps)
Pricing/Revenue No on-going loan service fees; lower Self-Directed Brokerage fees;
highly competitive pricing at 10 bps
Committee felt strongly that Plan participants would benefit from the
Other Considerations completely different perspective that TIAA-CREF would
provide. Committee was also very impressed with their technology and
customer service capabilities.
After the completion of vendor presentations, the Sub-Committee unanimously agreed to recommend TIAA-
CREF to make a presentation to the full Committee. On September 13, 2013, the full Committee
unanimously voted to recommend that TIAA-CREF serve as the sole Plan Administrator for the City's 457
Deferred Compensation Plan.
TIAA-CREF will absorb all costs associated with the plan transition including all participant-related
notification expenses, any Market Value Added (MVA), Contingent Deferred Sales Change (CDSC), or any
other fees that might be assessed to the plan by existing providers upon termination.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that this action will not increase the total
appropriations of City funds. All associated fees related to the 457 Deferred Compensation Plan are paid
by the participants in the plan.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Harry Anderson (2632)
Additional Information Contact: Margaret Wise (8058)
ATTACHMENTS
http://apps.cfwnet.org/council_packet/mc—review.asp?ID=l 9254&councildate=1 1/19/2013 4/3/2017