City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01299 7/23/2024 Consent Item 18.
Amendment to Retiree Health Savings Plan Administrative Services Agreements File ID: 2024-01299
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or designee to execute an amendment to the Retiree Health Savings Plans for the Sacramento Police Officers Association.
Contact: Samantha Hardy, HR Manager, (916) 808-7657, [email protected], Department of Human Resources
Presenter: Samantha Hardy, HR Manager, (916) 808-7657, [email protected], Department of Human Resources
Attachments:
1-Description/Analysis
2-Retiree Health Savings Plan 803742 Amendment
3-Retiree Health Savings Plan 803743 Amendment
Description/Analysis
Issue Detail: The City of Sacramento (City) offers two (2) Retiree Health Savings (RHS) Plans (Plans) covering classifications in Rep Unit 02, as represented by the Sacramento Police Officers Association (SPOA). The Plans are currently held with MissionSquare Retirement and are Plans 803742 and 803743.
The labor agreement with SPOA approved by City Council on December 12, 2023, includes language that upon adoption of the agreement, any administrative fees associated with SPOA MissionSquare Retiree Health Savings accounts shall be the sole responsibility of the employee, participant, or qualified beneficiary. The administrative fees for these plans are currently paid by the City.
MissionSquare requires the City to execute amendments to Section 6 of the administrative services agreements for each SPOA RHS plan in order for the administrative fees to be charged to an accountholder’s account. There are no other changes to the administrative services agreements covering the Plans.
File ID: 2024-01299 7/23/2024 Consent Item 18.
Policy Considerations: Executing the amendments ensures compliance with the labor agreement between the City and SPOA.
Economic Impacts: None.
Environmental Considerations: The report contains administrative activities that will not have a significant effect on the environment and that do not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines Sections 15061(b)(3) and 15378(b)(2).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Approval of this action complies with the terms set forth in the labor agreement between the City and SPOA.
Financial Considerations: The savings related to shifting the administrative fees from the City to the accountholder were already included in the costing of the labor agreement approved by Council in December 2023.
Local Business Enterprise (LBE): Not applicable.
JPC 9-2-16 | PL15-0586
AMENDMENT TO THE Administrative Services Agreement for Plan Numbers 803742 This Amendment to the January 1, 2018, Administrative Services Agreement () for Plan number 803742 ed by and between City of Sacramento The International City Management Association Retirement Corporation doing business as MissionSquare Retirement MissionSquare WHEREAS, the Employer sponsors the Plans on behalf of its eligible employees and retirees; WHEREAS, the Employer entered the Agreement to engage MissionSquare to provide administrative services and investments for the Plan under the terms specified in the Agreement; WHEREAS, the parties wish to amend the Agreement to change the Compensation and Payment section; WHEREAS, Section 11 of the Agreement provides that the Agreement may be amended pursuant to a written instrument signed by the parties. NOW, THEREFORE, the Agreement is hereby amended as follows: AMENDMENT 1. Replacing Section 6. Section 6 of the Agreement is restated in full by replacing it with the following: 6. Compensation and Payment Absent an explicit agreement to the contrary between MissionSquare and Employer, participant fees and expenses shall be payable from RHS assets, in accordance with the requirements of the RHS Program as set forth below. (a) Asset-based fees will be included in the daily unit value of each MSQ Fund Class S, and no separate asset-based fees JPC 9-2-16 | PL15-0586
will be assessed. (b) A $25 annual account administration fee will be charged ($6.25) (c) The account administration fee is subject to change with appropriate prior notification. (d) Compensation for Advisory and other Services to MissionSquare Funds Class M. Employer acknowledges that MissionSquare, including certain of its wholly owned subsidiaries, receives compensation for advisory and other services furnished to the MSQ Funds Class M, which are collective funds serving as the underlying funds to certain MSQ Funds Class S. 2. All Other Terms Remain in Force. Except as amended by section 1 above, all terms and conditions of the Agreement remain in full force. 3. Effective Date. This Amendment becomes effective when both parties have signed it, as indicated by the dates in the signature blocks below. 4. Signatures; Counterparts. The parties may sign this Amendment with electronic or digital signatures. In addition, the parties may sign this Amendment in counterparts, each of which will be considered an original, but all of which will constitute the same agreement. Delivery of a signed counterpart may be accomplished by email transmission of a pdf file as follows: For delivery to the City, [email protected]. For delivery to MissionSquare Retirement, [email protected]. 5. Entire Agreement. This Amendment regarding the matters set forth above and is intended to be their final, complete, and exclusive expression of those matters. (Signature Page Follows) In all other material respects, the Agreement is hereby ratified and affirmed.IN WITNESS WHEREOF, Employer has caused this Amendment to be executed by its duly authorized officer as of this day, (please enter date) __________________________.CITY OF SACRAMENTOApproved As to Form:By: _______________________________Print Name: _______________________Title: _____________________________By: _______________________________Print Name: _________________________Title: ______________________________THE INTERNATIONAL CITY MANAGEMENT ASSOCIATION RETIREMENT CORPORATION doing business asMISSIONSQUARE RETIREMENTBy _____________________________Erica McFarquharAuthorized Representative
JPC 9-2-16 | PL15-0586
AMENDMENT TO THE Administrative Services Agreement for Plan Numbers 803743 This Amendment to the January 1, 2018, Administrative Services Agreement () for Plan number 803743 ed by and between City of Sacramento The International City Management Association Retirement Corporation doing business as MissionSquare Retirement MissionSquare WHEREAS, the Employer sponsors the Plans on behalf of its eligible employees and retirees; WHEREAS, the Employer entered the Agreement to engage MissionSquare to provide administrative services and investments for the Plan under the terms specified in the Agreement; WHEREAS, the parties wish to amend the Agreement to change the Compensation and Payment section; WHEREAS, Section 11 of the Agreement provides that the Agreement may be amended pursuant to a written instrument signed by the parties. NOW, THEREFORE, the Agreement is hereby amended as follows: AMENDMENT 1. Replacing Section 6. Section 6 of the Agreement is restated in full by replacing it with the following: 6. Compensation and Payment Absent an explicit agreement to the contrary between MissionSquare and Employer, participant fees and expenses shall be payable from RHS assets, in accordance with the requirements of the RHS Program as set forth below. (a) Asset-based fees will be included in the daily unit value of each MSQ Fund Class S, and no separate asset-based fees JPC 9-2-16 | PL15-0586
will be assessed. (b) A $25 annual account administration fee will be charged ($6.25) (c) The account administration fee is subject to change with appropriate prior notification. (d) Compensation for Advisory and other Services to MissionSquare Funds Class M. Employer acknowledges that MissionSquare, including certain of its wholly owned subsidiaries, receives compensation for advisory and other services furnished to the MSQ Funds Class M, which are collective funds serving as the underlying funds to certain MSQ Funds Class S. 2. All Other Terms Remain in Force. Except as amended by section 1 above, all terms and conditions of the Agreement remain in full force. 3. Effective Date. This Amendment becomes effective when both parties have signed it, as indicated by the dates in the signature blocks below. 4. Signatures; Counterparts. The parties may sign this Amendment with electronic or digital signatures. In addition, the parties may sign this Amendment in counterparts, each of which will be considered an original, but all of which will constitute the same agreement. Delivery of a signed counterpart may be accomplished by email transmission of a pdf file as follows: For delivery to the City, [email protected]. For delivery to MissionSquare Retirement, [email protected]. 5. Entire Agreement. regarding the matters set forth above and is intended to be their final, complete, and exclusive expression of those matters. (Signature Page Follows) In all other material respects, the Agreement is hereby ratified and affirmed.IN WITNESS WHEREOF, Employer has caused this Amendment to be executed by its duly authorized officer as of this day, (please enter date) __________________________.CITY OF SACRAMENTOApproved As to Form:By: _______________________________Print Name: _______________________Title: _____________________________By: _______________________________Print Name: _________________________Title: ______________________________THE INTERNATIONAL CITY MANAGEMENT ASSOCIATION RETIREMENT CORPORATION doing business asMISSIONSQUARE RETIREMENTBy _____________________________Erica McFarquharAuthorized Representative