County of San Mateo - File #: 23-150

• File #: 23-150
• Version: 1
• Type: Resolution
• Status: Passed
• File created: 2/16/2023
• Departments: HUMAN RESOURCES
• On agenda: 3/14/2023
• Final action: 3/14/2023
• Title: Adopt a resolution: A) Accepting the Deferred Compensation Advisory Committee's unanimous recommendation to select Empower as the County's deferred compensation plans provider; and B) Authorizing an agreement with Empower to administer the County's deferred compensation plans for the period from March 22, 2023, to March 21, 2028, for an amount not to exceed $175,000 annually.

Date	Ver.	Action By	Action	Result
3/14/2023	1	BOARD OF SUPERVISORS	approved	Pass

Special Notice / Hearing: None__
Vote Required: Majority

To: Honorable Board of Supervisors
From: Rocio Kiryczun, Director of Human Resources
Subject: Authorize agreement with Empower to administer the County's deferred compensation program

RECOMMENDATION:
title
Adopt a resolution:

A) Accepting the Deferred Compensation Advisory Committee's unanimous recommendation to select Empower as the County's deferred compensation plans provider; and

B) Authorizing an agreement with Empower to administer the County's deferred compensation plans for the period from March 22, 2023, to March 21, 2028, for an amount not to exceed $175,000 annually.

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BACKGROUND:
The County's current provider for its deferred compensation plans is Empower, formerly known as MassMutual. A deferred compensation plan reduces income in the year an employee puts money into the plan and allows that money to grow for retirement savings without annual tax being assessed on the invested earnings. The current agreement with Empower resulted from the request for proposal (RFP) process in 2015 and contract extension in 2021; it expires on March 21, 2023. Empower currently administers the County's 457 retirement savings plan, a 401(a) retirement plan and the extra help employees' 457 and 401(a) OBRA retirement savings plans. Pursuant to its fiduciary duty on behalf of the County, the Deferred Compensation Advisory Committee initiated an RFP in February 2022 to ensure that the County is receiving the best plan benefits currently available in the marketplace.

DISCUSSION:
The Deferred Compensation Advisory Committee received proposals from five providers: Empower, Nationwide, Fidelity, Voya and AIG. The County's investment consultant, Innovest, determined all five were reputable and had the capacity to successfully service plans the size of the County's (about $625 million in total). The County evaluated all proposals on the following RFP criteria: firm overview, personnel, participa...