1 CHARTER OF THE
CITY OF FAIRFIELD DEFINED CONTRIBUTION RETIREMENT COMMITTEE
ADOPTED: _______________________, 2024
AMENDED: N/A
I. INTRODUCTION
This Charter sets forth the rights, powers, responsibilities, and obligations of the City of Fairfield Defined Contribution Retirement Committee (the “Committee”), which serves as the fiduciary oversight body for the City of Fairfield’s Defined Contribution retirement savings plans and Retirement Health Plan (each a “Plan” and, collectively, the “Plans”). The Committee is charged with carrying out the duties specified in this Charter in accordance with and subject to the documents governing the Plans.
II. MEMBERSHIP OF THE COMMITTEE
The Committee will comprise voting members consisting of the individuals who hold the following positions with the City: City Manager as Committee Chair, Assistant City Manager, Director of Finance, Director of Human Resources, or successor positions as confirmed by a quorum of the Committee, and five representatives from the City of Fairfield employee associations, as delegated by the president of each association: Fairfield Professional Firefighters’ Association, Fairfield Fire Managers’ Association, Fairfield General Management Association, and Fairfield Employees’ Association. The Fairfield Police Officers’ Association and the Fairfield Police Management Association will have one representative on this committee. Should any individual in these roles cease to hold their position, that individual’s successor will automatically assume membership on the Committee.
Committee members will serve without additional compensation. All reasonable out-of- pocket expenses of the Committee will be paid by the City in accordance with its standard reimbursement policies unless paid from Plan assets.
III. COMMITTEE ACTION
Should the Committee Chair not be able to attend a Committee meeting, they may delegate the position of Chair in writing in advance of the meeting to another Committee member.
The City’s Director of Human Resources will serve as Secretary of the Committee. The Secretary shall keep minutes of the Committee’s proceedings and be responsible for the data, records, and documents pertaining to the Committee’s duties associated with the Plans.
With respect to any matter brought to the Committee for a vote, each member is entitled to one vote.
2 The Committee shall act by a majority of its members, and such action may be taken either by a vote at a meeting with at least three members present physically or through teleconferencing. The Chairperson is authorized to execute any document related to the ongoing administration of the Plan, such as the Investment Policy Statement.
The Committee will meet at least twice per calendar year. At least once per calendar year, the Committee shall present a report to the City summarizing the Committee’s activities regarding its administrative and investment responsibilities under this Charter.
IV. ADMINISTRATION OF PLANS
The Committee shall act with the authority and discretion to control oversight of the administration of the Plans and will have all powers necessary to accomplish these purposes.
The responsibility and authority of the Committee will include the following:
A. To determine the investment options offered to participants of the Plans pursuant to Section V below.
B. To review the performance of all service providers engaged in the administration of the Plans.
C. To interpret the provisions of the Plans and publish rules and regulations that are deemed necessary, within the scope of the Committee, and not inconsistent with the terms of the Plans.
D. To prepare and monitor budget for the Plans regarding payment of the Plans’ expenses to the extent not paid by the City.
E. To engage all service providers necessary or desirable for the administration of the Plans including a consultant(s), record keeper(s), third-party administrator(s), trustee(s), custodian(s), insurance company(ies), regulated investment company(ies) and/or other such service provider(s) as shall be necessary or appropriate for the administration and operation of the Plans.
F. To provide recommendations to the City Council regarding the operation of the Plans.
G. To disseminate Plan benefit information to all current and prospective participants of the Plans and inform all eligible City employees of the benefits offered by the Plans.
H. To make determinations relating to the eligibility of employees to participate in the Plans.
3 I. To calculate and certify to the amount and kind of benefits payable to any participant, spouse or beneficiary.
J. To authorize disbursements from and transfer of the Plan assets.
K. To maintain all necessary records for the administration of the Plans.
L. Any other responsibilities and authorities necessary to facilitate the proper administration and operation of the Plans.
V. INVESTMENT OF PLAN ASSETS
The Committee is responsible for reviewing the Plans’ investment performance and the Plans’ investment options offered in accordance with the Plans’ Investment Policy Statement. The Committee will also make changes to the investment offerings as provided under each Plan’s Investment Policy Statement and as warranted.
The Committee has the following responsibilities related to investment of the Plans’ assets:
A. Selecting the investment design features of the Plans. This includes establishing:
1. The investment guidelines and objectives,
2. The number and types of investment alternatives available to Plan participants, and
3. Participant investment procedures;
B. Appointing, monitoring and evaluating all investment fund options in accordance with guidelines and benchmarks established within this document and consistent with applicable laws;
C. Monitoring costs charged to the Plans assets or paid by the Plans’ participants, including, but not limited to, investment management fees, trustee fees and fees paid to other service providers for the Plans;
D. Providing general investment information to the Plans’ participants regarding the procedures for making investment choices under the Plans and general investment information regarding each of the investment options offered under the Plans; and
E. Ensuring the service providers to the Plans are providing education to the Plans’ participants.
Additional information regarding the Plans’ investments may be found in the Investment 4 Policy Statement.
VI. ALLOCATION AND DELEGATION OF RESPONSIBILITY
The Committee may, by written rule or by its minutes, allocate responsibilities among Committee members and may delegate to persons other than Committee members the authority to carry out responsibilities under the Plan. If a responsibility is allocated to a Committee member or delegated to a non-committee member, no other Committee member will be liable for any act or omission of that person in carrying out such responsibility except as may otherwise be required by law.
The Benefits/Employee Relations Division will be tasked with managing the day-to-day activities related to the Plan. These tasks are ministerial and non-fiduciary.
VII. INDEMNIFICATION
The City shall indemnify and defend individual Committee members through its liability insurance generally and its errors and omissions insurance policy specifically as well as pursuant to California Government Code, including but not limited to Government Code sections 825 and 995.
VIII. STANDARD OF CARE
The Committee shall discharge its duties with respect to the Plans in such a manner as to comply with applicable law and regulations, including article 16, section 17 of the California Constitution.
IX. PLAN DOCUMENTS
The Plans are governed by and administered under plan documents and trust agreements.
These documents and trust agreements, together with any other formal documents maintained for the operation and administration of the Plans, will be on file in the permanent records of the Committee and will be available for inspection by Plan participants during business hours within the Human Resources Department.
5 X. AMENDMENT
This Charter may be amended by a majority vote of the City Council of the City of Fairfield executed by the City Clerk.
Effective this day of _______________, 2024.
By:
Title:
Dated
As of the adoption of this Charter, the active Plans and their current recordkeepers are listed below; subject to change and subject to the authority of this Charter:
Two 401(a) defined contribution plans:
o Fairfield 401(a) General Managers (MissionSquare)
o City of Fairfield Management (Nationwide)
Three 457(b) eligible deferred compensation plans:
o City of Fairfield 457(b) Deferred Compensation Plan (MissionSquare) o City of Fairfield 457(b) Deferred Compensation Plan (Nationwide) o California Public Employees' Deferred Compensation Plan (Voya) A retiree HRA: VantageCare Retirement Health Savings Plan (MissionSquare)