Report to Mayor and City Council
Tuesday, December 03, 2019
Consent
SUBJECT:
Title
APPROVE CONTRACT AMENDMENT NO. 2 WITH VOYA RETIREMENT INSURANCE AND ANNUITY COMPANY AND VOYA FINANCIAL PARTNERS, LLC (CITY COUNCIL)
Body
I. SUMMARY
On May 1, 2015, the City of Carson entered into the City of Carson Deferred Compensation Program Administrative Services Agreement with Voya Retirement Insurance and Annuity Company and Voya Financial Partners, LLC to make improvements to the City of Carson's Deferred Compensation Plan and City of Carson 401(a) Retirement Plan, Voya Plan Numbers 666972 and 666973. Shuster Financial Group (SFG) is the Investment Advisor and consulting firm that has been assisting the City in performing its fiduciary responsibilities with respect to the 457(b) and 401(a) plans under California law. SFG conducted an RFP on the City's current plans and presented the City with the results and a recommendation for the City to continue having Voya manage the City's Deferred Compensation and Retirement Plans.
Since the effective date of Amendment No. 1, the cost to administer the Plan has been reduced from .33 basis points to .21 basis points, i.e., 0.21% on all assets. This consists of Voya's revenue requirement of 0.08% on all assets in addition to the SFG fee of 0.13% per year paid to the Registered Investment Advisor (RIA) effective October 1, 2019. The Administrative Service Agreement Amendment implements the reduced fee, investment option changes and adds fee levelization.
II. RECOMMENDATION
Recommendation
WAIVE further reading and APPROVE THE VOYA ADMINISTRATIVE SERVICES CONTRACT AMENDMENT NO. 2 WITH VOYA RETIREMENT INSURANCE AND ANNUITY COMPANY AND VOYA FINANCIAL PARTNERS, LLC."
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III. ALTERNATIVES
Take any other action deemed appropriate.
IV. BACKGROUND
On May 1, 2015, the City entered into the City of Carson Deferred Compensation Program Administrative Services Agreement with Voya Retirement Insurance and Annuity Com...
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