AGENDA REPORT
TO:
VIA:
FROM:
DATE:
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF FINANCE
NOVEMBER 21, 2023
Placentia City Council
SUBJECT: UPDATED RESOLUTION APPROVING THE TRANSITION OF THE CITY'S
DEFINED CONTRIBUTION PLAN FOR ELIGIBLE EMPLOYEES FROM PUBLIC
AGENCY RETIREMENT SERVICES (PARS) TO THE ICMA RETIREMENT
CORPORATION GOVERNMENTAL PROFIT-SHARING PLAN & TRUST AND REPEALING RESOLUTION NO. R-2023-79
FISCAL
IMPACT: NONE
SUMMARY:
The City Council approved Resolution R-2023-79 on September 19, 2023 authorizing the transition from Public Agency Retirement Services (PARS) to the ICMA Retirement Corporation Governmental Profit -Sharing Plan & Trust. After submitting the resolution and termination letter to PARS it was determined the transfer of assets date of December 1, 2023 identified in the resolution did not allow sufficient time, and that the date of January 31, 2024 would be the effective date of transfer. Resolution R-2023-89 updates all dates stated in Resolution R-2023-79.
RECOMMENDATION:
It is recommended that the City Council take the following action:
1. Adopt Resolution R-2023-89 authorizing the transition of the City's Defined Contribution Plan for Eligible Employees from PARS to ICMA Retirement Corporation Governmental Profit -Sharing Plan & Trust and repealing Resolution No. R-2023-79 and the discontinuance of the City's participation in the Public Agency Retirement System (PARS) Defined Contribution Plan and related services of PARS as Trust Administrator, U.S. Bank N.A. as Trustee, and John Hancock Retirement Services as Custodian/Record Keeper with updated dates; and
2. Authorize the City Administrator to execute all necessary documents.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to Enhance Employee Development, specifically objective 7.1 Bolster ranks of city employees.
1.k.
Nov 21, 2023
City Council Agenda
November 21, 2023
DISCUSSION:
The City Council approved Resolution R-2023-79 on September 19, 2023 authorizing the transition from Public Agency Retirement Services (PARS) to the ICMA Retirement Corporation Governmental Profit -Sharing Plan & Trust for the city offered 401(a) defined contribution plan for employer contributions for a select group of employees. The purpose of the transition was to significantly reduce fees, improve the investments and services available to eligible employees and consolidate retirement plans with one single provider.
After submitting the resolution and termination letter to PARS it was determined the transfer of assets date of December 1, 2023, identified in the resolution did not allow sufficient time to complete all necessary steps, and that the date of January 31, 2024 would be the effective date of transfer. Resolution R-2023-89 updates all dates stated in Resolution R-2023-79.
FISCAL IMPACT:
There is no fiscal impact to the City to update the dates on the resolution.
Prepared by:
Jennifer Lampman
Director of Finance
Reviewed and Approved by:
Rosanna Ramirez
Deputy City Administrator
Reviewed and Approved by:
/I /D
Alnce Burnett
Director of Human Resources
Reviewed and Approved by:
Damien R. Arrula
City Administrator
Attachment:
Resolution R-2023-89 Authorizing the transition of the City's defined contribution plan for eligible employees from Public Agency Retirement Services (PARS) to the ICMA Retirement Corporation governmental profit-sharing plan & trust and repealing Resolution No. R-2023-79.