DATE: 05/20/2026
TO: Honorable Mayor and City Council Members
FROM: Human Resources Department
2026-166
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
APPROVAL OF AMENDMENTS TO THE ADMINISTRATIVE SERVICES
AGREEMENTS WITH NATIONWIDE RETIREMENT SOLUTIONS, INC., FOR CONTINUED ADMINISTRATION OF THE CITY’S 457 (B) AND 401 (A) DEFERRED
COMPENSATION PLANS
EXECUTIVE SUMMARY:
This staff report asks the City Council to approve a resolution authorizing the execution of amendments to the current deferred compensation agreements with Nationwide. The amendments will extend the term of the agreements and reduce Nationwide’s fees charged to employees and retirees who participate in these programs.
RECOMMENDED ACTION:
That the City Council adopt Resolution No. 2026-030, approving the first amendments to the Administrative Services Agreements with Nationwide Retirement Solutions, Inc., related to the administration of the City’s 457 (b) and 401 (a) Deferred Compensation Plans for City employees and retirees.
BACKGROUND & HISTORY:
Since at least 2017, the City has provided a 457 deferred compensation program for City employees. In 2022, a 401 (a) plan was also adopted.
In 2021, City Treasurer Chad Willardson recommended that the City issue a Request for Proposals (RFP) for a single program provider, rather than utilizing two providers as was the practice at the time. Through that RFP process, Nationwide Retirement Solutions (“Nationwide”) was ultimately selected to be the sole provider of these services, and the City Council adopted Resolution 2021-090 approving the required agreements with Nationwide. By consolidating the plans with a single provider and thereby creating plan efficiencies, annual fees to participating employees and retirees were reduced by over 70%. The approved Agreement with Nationwide was for a five (5) year term, with the option for two additional one-year renewals.
ANALYSIS:
Since adopting the new deferred compensation plans in 2021, the City has also retained the services of a third-party fiduciary services firm, Wealthspire, to assist with the compliance activities and monitoring Nationwide’s performance. In late 2025, Wealthspire conducted a pricing review with Nationwide along with other major deferred compensation plan companies. The goal of this initiative was to determine if Nationwide’s fees remained competitive in the marketplace.
As a result of those efforts, Nationwide agreed to reduce its annual fees from 0.04% of plan value (4 basis points) to 0.025% of plan value (2.5 basis points) for plan participants, representing a 37.5% reduction in Nationwide’s fees. In consideration of the fee reduction, Nationwide proposed to amend its agreements to begin new 5-year terms, with two possible one-year extensions, for both the 457 (b) and 401 (a) plans.
The proposed resolution will authorize approval of amendments to the Administrative Services Agreements to implement the proposed fee reductions and term amendments to both the 457 (b) and 401 (a) plans. The amendments were reviewed and are recommended for approval by the City’s Deferred Compensation Committee, which consists of various Finance, Human Resources, and City Manager’s Office staff, as well as City Treasurer Chad Willardson.
FINANCIAL IMPACT:
There is no cost to the City by these actions. City employees and retirees will experience lower investment fees on their respective accounts due to Nationwide's fee reduction.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the action is not subject to CEQA. This action is to approve the first amendments to the Administrative Services Agreements with Nationwide Retirement Solutions, Inc., and there is no possibility that approving this agreement will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: KATIE AMATO, ADMINISTRATIVE ASSISTANT I
REVIEWED BY: LORI SASSOON, CHIEF TALENT OFFICER
ATTACHMENTS:
1. Exhibit 1 - Resolution No. 2026-030, Amending Nationwide Documents
2. Exhibit 2 - First Amendment to the Administrative Services Agreement for the Governmental 401(a) Plan of the City of Corona, California
3. Exhibit 3 - First Amendment to the Administrative Services Agreement for the Governmental 457(b) Deferred Compensation Plan of the City of Corona, California