R2014-106 APPROVING PRO-ACCOUNT PLAN SPONSOR AGREEMENT WITH NATIONWIDE INVESTMENT ADVISORS

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COUNCIL MEMORANDUM #2014-16 DATE: August 27, 2014 TO: Honorable Mayor Michael T. McElroy and City Council FROM: Ryan P. McCrady, City Manager Jerry Bauer, Assistant City Manager I SUBJECT: Nationwide Deferred Compensation Pro-Account Agreement SUMMARY RECOMMENDATION: Staff recommends that City Council adopt the attached resolution, authorizing the City to enter an agreement with Nationwide Investment Advisors, LLC, (NIA) for investment management services for participants in the Fire Fighters Deferred Compensation (Section 457) Plan. BACKGROUND: As explained in the attached materials from Nationwide, NIA offers a managed account service, called Nationwide Pro-Account, that provides professional management of assets in participant directed deferred compensation retirement plans, such as the City's current plan with Nationwide for employees represented by IAFF Local 505. Nationwide Pro-Account offers individualized investment advice to plan participants, at no cost to the plan sponsor (the City). For participants to access this service, the City is required to enter into the Pro-Account agreement with NIA. Participants who elect to use the service are charged an annual service fee of 50 to 100 basis points of their account balance, depending on the size of the balance. POTENTIAL OBJECTORS: There are no known objectors to this recommendation. The recommendation has the concurrence of the Fire Fighters' Union. INPUT FROM OTHER SOURCES: The Pro-Account Agreement was provided by Donald Regan of Nationwide Retirement Solutions, Inc. STAFF REFERENCE: If you have questions about this item, please contact Jerry Bauer at 424-2801 or ibauera_decaturil.gov. BUDGET/TIME IMPLICATIONS: There will be no impact on the budget for entering this agreement and providing this service to plan participants. As mentioned above, costs for use of the service will be borne exclusively by plan participants.