TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Lizette Guerrero, Human Resources Director
DATE: July 25, 2025
SUBJECT: AMENDMENT NO. 1 TO THE RETIREMENT HEALTHCARE
PROGRAM ADMINISTRATIVE SERVICES AND
RECORDKEEPING AGREEMENT BETWEEN TEACHERS
INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
(TIAA) AND THE CITY OF SAN MARINO DATED MAY 1,
2017, APPROVING THE ANNUAL FEE FOR TRUST
SERVICES
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government
BACKGROUND
The City of San Marino (City) provides a program for its employees to invest their tax deferred contributions in various types of investments as directed by the employees. On February 28, 2014, the City contracted with the Teachers Insurance and Annuity Association of America (TIAA) (refer to Attachment 1) to administer the employees’ deferred compensation programs, including the Management Money Purchase Plan, the 457 (b) plans and the Retirement Health Savings Plans for the City.
DISCUSSION
During a recent audit, TIAA discovered that they had been undercharging the City of San Marino for trust services for the City of San Marino’s Retirement Health Savings Plan. According to Schedule D of the Record Keeping Agreement (refer to Attachment 2), the annual fee should be $2,500, but Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
according to their records, they have been charging the City $1,500. TIAA has agreed to not recoup the difference in fees for previous years.
After further discussion with their audit and finance team, TIAA has decided to continue charging the City a $1,500 annual fee for Trust Services. This means there will be no change to our current annual contribution, however they have requested to update our Recordkeeping Agreement to ensure that it reflects the correct amount (refer to Attachment 3).
FISCAL IMPACT & PROCUREMENT REVIEW
No additional fiscal impact.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the City Council to approve Amendment No. 1 to the Retirement Healthcare Program Administrative Services and Recordkeeping Agreement between Teachers Insurance and Annuity Association of America (TIAA) and the City of San Marino dated May 1, 2017, approving the annual fee for trust services and authorize the City Manager to execute the agreement. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve Amendment No. 1 to the Retirement Healthcare Program Administrative Services and Recordkeeping Agreement between Teachers Insurance and Annuity Association of America (TIAA) and the City of San Marino dated May 1, 2017, approving the annual fee for trust services and authorize the City Manager to execute the agreement.”
ATTACHMENTS
1. Teachers Insurance and Annuity Association of America Recordkeeping Services Agreement for Governmental Plan(s) dated December 1, 2013
2. Retirement Healthcare Program Administrative Services and Recordkeeping Agreement between Teachers Insurance and Annuity Association of America (TIAA) and the City of San Marino dated May 1, 2017
3. Amendment No. 1 to the Retirement Healthcare Program Administrative Services and Recordkeeping Agreement between Teachers Insurance and Annuity Association of America (TIAA) and the City of San Marino dated May 1, 2017