HomeMy WebLinkAbout2000 02 21 Regular E Pension Plan R.F.P.
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City of Winter Springs
February 14,2000
Regular Agenda Item "E"
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COMMISSION AGENDA
ITEM E
Consent
Informational
Public Hearin s
Re ular
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February 14,2000 .
Meeting
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Mgr. / Dept.
Authorization
REQUEST: City Manager requesting the Commission to receive an update on the progress of
the Pension Plan RF.P. andrequesting the Commission to provide direction relative to continued
action on the RF.P.
PURPOSE: The purpose of this Agenda Item is for the Commission to receive an update on the
RF.P. and to provide direction on two issues:
CONSIDERATION:
There are two basic issues the Commission needs to decide relative to the issuance of the RF.P.
1. Clarification of the Scope of Services; and
2. Clarification of the timing for release of the RF.P.
ISSUE l. - Clarification of R.F.P. Scope of Services
On February 8, 1999 the Commission directed the City Manager to issue a Request for Proposals
(R.F.P.) for Pension Investment Services to determine if better investment services could be
obtained at equal or less cost.
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City of Winter Springs
February 14, 2000
Regular Agenda Item "E"
Page 2 of3
The City has a unique floor off-set plan which is a hybrid plan including components of a
defined benefits plan and a defined contribution plan requiring the following professional
servIces:
Service
Current Service Provides
Legal
Actuarial
Investment
Plan Administration
Rick Burke, Gray, Robinson and Harris
Sandra Turner, Turner, Bates
SunTrust
SunTrust
LEGAL/ACTUARIAL: Since this is a relatively new and complex plan it may be advantageous
to the City to maintain the services of the current attorney and actuary.
INVESTMENT: Staff believes that investment services can be significantly improved at a
reduced cost through competition in the marketplace.
PLAN ADMINISTRATION: Staff believes that plan administration can be significantly
improved through competition in the marketplace.
QUESTION: Which services does the Commission desire to be submitted to request for
proposals?
Legal
Actuarial
Investment
Plan Administration
ISSUE D. - Timing of R.F.P.
Employees have requested the City to include two new benefits to the plan as follows:
1. Purchase of past governmental service
2. Inclusion of a 3% per year benefit.
The pension attorney has completed drafts of plan amendments to provide for the additional
benefits.
In order to complete the documents several policy issues need to be decided by the Board of
Trustees and the Commission. These policy issues could impact the proposals.
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City of Winter Springs
February 14, 2000
Regular Agenda Item "E"
Page 3 of3
Examples of policy decisions that need to be decided are as follows:
1. Will the 3% benefit be allowed retroactively or forward only?
2. Should this benefit be offered to individuals, departments, or citywide only?
QUESTION: Does the Commission desire to issue the RF.P. now or wait until the policy
matters are settled and reflected in the RF.P.?
RECOMMENDATION:
It is recommended that the Commission provide direction relative to the following:
A. Scope of Services: Which service does the Commission desire to be included in the RF.P.?
Legal
Actuarial
Plan Administration
Investment
Staff believes the RFP and Actuarial Services should not be included at this time.
B. Timing ofRF.P.: When does the Commission desire for theRF.P. to be issued?
Prior to the policy issue being decided?
After the policy issues ,being decided?
Staff believes the RFP should be issued after the policy issues are completed.
ATTACHMENTS:
COMMISSION ACTION: