CITY OF SAN MATEO
RESOLUTION NO. ____ (2025)
AUTHORIZING THE USE OF AN ALTERNATIVE PURCHASING PROCEDURE AND APPROVING AN AGREEMENT WITH VOYA FINANCIAL RETIREMENT SOLUTIONS TO ADMINISTER THE CITY’S DEFERRED
COMPENSATION PLAN AND NFP TO PROVIDE DEFINED CONTRIBUTION PLAN AND INVESTMENT ADVISOR SERVICES.
WHEREAS, the City has been receiving services from Voya to provide deferred compensation program services for employees and retirees since May 1, 2015; and WHEREAS, the City has been receiving services from NFP to provide defined contribution plan and investment advisory services since January 1, 2022; and WHEREAS, on an ongoing basis, the City’s deferred compensation committee reviews the services provided by Voya and the investment options offered to plan participants. The committee found that from an overall cost perspective our existing agreement with Voya was competitively priced and provided the services required from a record keeper; and
WHEREAS, NFP periodically reviews its advisory fee to ensure it remains fair and competitive. NFP prepared a Retirement Plan Fee Benchmarking Analysis comparing advisory service fees across similar type plans. The study found that NFP’s fee has been significantly below the average, as well as below the lower band, plans within our peer group. Continuing the service agreement with NFP overseeing the City’s Defined Contribution Plan provides continuity in investment oversight, compliance support, and participant education; and
WHEREAS, Municipal Code Section 3.60.070(h) (3) provides that an alternative purchasing procedure can be used if the Council finds that the procedure is in the best interest of the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:
1. This purchase is not a project as defined by the California Environmental Quality Act in that they will not cause a physical change in the environment. (CEQA Guidelines Section 15378(b)(5)).
2. Pursuant to Municipal Code section 3.60.070(h) (3), using an alternate purchasing procedure is in the best interest of the City. Voya has provided quality service and still offers a lower fee that will benefit our employees and retirees. Maintaining Voya as the City’s Deferred Compensation Plan administrator ensures continuity, minimizes disruption, and supports the best interests of plan participants.
3. The Agreement with Voya Financial Retirement Solutions to administer the City's deferred compensation program for employees and retirees is approved.
4. Pursuant to Municipal Code section 3.60.070(h) (3), using an alternate purchasing procedure is in the best interest of the City because NFP continues to provide competitive fees and continuity in quality investment oversight, compliance support, and participant education.
5. The Agreement with Voya NFP to provide defined contribution plan and investment advisory services for 1 2
4 7
9 the City's deferred compensation program is approved.
6. The City Manager is authorized to execute the agreements.