Report to Mayor and City Council
Tuesday, July 05, 2022
Consent
SUBJECT:
Title
CONSIDER ADOPTING RESOLUTION 22-141, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON APPOINTING THE CITY MANAGER AS THE PLAN ADMINISTRATOR OF THE CITY'S DEFINED CONTRIBUTION PLANS
Body
I. SUMMARY
The City offers 457(b) and 401(a) defined contribution pension plans to its employees. Shuster Advisory Group, LLC is the pension consultant and investment advisor, and the City Council is the Plan Administrator and thus both are considered fiduciaries. This exposes individual Council members to liabilities associated with their actions or lack thereof related to the Plans. City Council may appoint a staff position to replace it as Plan Administrator, thus transferring the associated fiduciary liabilities. Resolution 2022-141 is to appoint City Manager as the Plan Administrator.
II. RECOMMENDATION
Recommendation
WAIVE further reading and ADOPT Resolution No. 22-141, a "RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, APPOINTING THE CITY'S CITY MANAGER AS THE PLAN ADMINISTRATOR OF THE CITY'S DEFINED CONTRIBUTION PLANS."
Body
III. ALTERNATIVES
Council may take any other actions it deems appropriate. However, not appointing a staff position as Plan Administrator exposes Council members to liabilities associated with their role as fiduciaries.
IV. BACKGROUND
Currently City Council is the Plan Administrator for City's 457(b) and 401(a) defined contribution plans. This exposes individual Council members to liabilities associated with their actions or lack thereof related to the Plans. Resolution 22-141 will appoint City Manager to replace Council as Plan Administrator, thus transferring the associated fiduciary liabilities. The City's Fiduciary Liability insurance policy provides coverage for City employees, including City Manager, when they act as plan fiduciaries.
As Plan Administrator, City Manager, will have the authorit...
Click here for full text