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CASE.[457(b) Review & Documentation on August 25, 2025]
I'M THE HR DIRECTOR, AND, UH, WE'RE HERE THIS MORNING.THANKS FOR COMING OUT TO TALK ABOUT SOME CHANGES IN THE 4 57 PLAN.
UM, WE PERIODICALLY REVIEW, UH, ALL THE BENEFITS THAT WE HAVE AT THE CITY, AND WE TRY TO DO A BALANCE BETWEEN THE QUALITY OF THE BENEFITS AND THE COSTS.
WE'RE LOOKING AT THAT ALL THE TIME.
SO THAT'S ONE OF THE REASONS THAT, UH, WE DID THE, UH, RFP ON THE 4 57 PLAN, BECAUSE IT HAD ONE, HAD NOT BEEN DONE IN A LONG TIME, AND WE JUST WANTED TO SEE IF WE WERE FOLLOWING BEST PRACTICES.
UM, I THINK WHAT YOU'LL, I WANNA MAKE SURE I COMMUNICATE IS THAT, YOU KNOW, WE REALLY HAVE A COMMITMENT FROM THE CITY COUNCIL, CITY MANAGEMENT TEAM, UH, TO MAKE SURE THAT WE'RE PROVIDING COMPETITIVE BENEFITS FOR EVERYONE.
AND SO THAT'S ONE REASON WE LIKE TO GO TO MARKET, TO MAKE SURE THAT WE'RE MEETING THE QUALITY, THAT THE COST, AND THAT, YOU KNOW, WE'RE WITHIN THE MARKET, WHAT OTHER CITIES ARE, ARE DOING, AND THAT'S WHAT I'M REAL PROUD ABOUT, THIS CITY MANAGEMENT GROUP.
THEY REALLY TAKE THOSE SERIOUSLY.
THEY HAVE US DO SURVEYS ALL THE TIME TO MAKE SURE THAT WE'RE STAYING IN TUNE WITH THE OTHER CITIES.
SO HENCE THAT'S HOW WE GOT HERE TODAY.
NOW, WHAT I'M GOING TO SHARE WITH YOU ARE FOUR THINGS.
THE PROCESS, WHY THE CHANGE, WHAT'S HAPPENING, AND WHAT'S, WHAT THIS ALL MEANS FOR EACH OF YOU.
RIGHT NOW, AS YOU KNOW, WE, UM, HAVE 2, 4 57 PLAN PROVIDERS, MISSION SQUARE AND NATIONWIDE.
AND YOU CAN SEE WE'VE BEEN WITH MISSION SQUARE SINCE, UH, 1984.
AND THEN IN 2008, WE ADDED ANOTHER RECORD KEEPER OR ADMINISTRATOR, UH, WHICH IS THE, UH, NATIONWIDE PLAN.
FIRST WE THING WE DID IN THE PROCESS, YOU KNOW, WE WANTED TO GET AN EXPERT WITH 4 57 PLANS.
SO WE HIRED A CONSULTANT OUT OF A GROUP CALLED MARINER, AND THIS IS PART OF THE PROCESS, AS YOU CAN SEE, BUT WE WANTED TO ENSURE WE WERE FOLLOWING BEST PRACTICES, AND THEN WE HAD THE, UH, CONSULTANT COME IN AND START, UM, LOOKING WHAT WE'RE DOING, LOOKING AT OUR CONTRACTS, AND ALSO, UH, WORK WITH US TO SET UP A COMMITTEE.
UH, NOW THIS WAS THE FIRST TIME WE'VE HAD A 4 57 COMMITTEE, AND WE'VE HAD, WE HAD 11 INDIVIDUALS ON THAT COMMITTEE.
AND I HAVE TO TELL YOU, THEY TOOK THIS THING REALLY SERIOUSLY, AND THEY WERE, THEY STUCK WITH IT BECAUSE THIS HAS HAD BEEN A LONG PROCESS.
UH, I THINK I SEE TWO OF THE COMMITTEE MEMBERS HERE, STEVE TILTON'S, OUR ASSISTANT CITY MANAGER, HE SERVED ON THE COMMITTEE, AND THEN ANDREW JONES JUST WALKED IN.
MATTER OF FACT, ANDREW WAS THE, UH, CO-CHAIR OF THE COMMITTEE.
SO WE APPRECIATE ALL THE WORK THAT YOU DID ON THIS.
AS I SAID, THIS IS THE FIRST TIME THAT WE HAD A COMMITTEE LIKE THIS, AND, UM, THE COMMITTEE WORKED ALONGSIDE WITH THE CONSULTANT, AND THE FIRST THING THE CONSULTANT DID IS PROVIDE SOME REPORTING TO THE COMMITTEE AND COMPARED US TO THE BENCHMARKS OF WHAT OTHER ENTITIES ARE DOING, WHAT OTHER 4 57 PLANS ARE DOING FOR OTHER CITIES.
AND WHAT WE FOUND IS THAT OUR FEES THAT WERE BEING CHARGED, UH, WERE SIGNIFICANTLY HIGHER THAN WHAT OTHER CITIES WERE PAYING.
NOW WHY IS THIS IMPORTANT TO YOU? THE CITY DOESN'T PUT ANY MONEY INTO THESE PLANS.
IT'S ALL EMPLOYEES MONEY THAT YOU CONTRIBUTE IN YOUR PAYCHECK.
AND SO ANY FEES THAT ARE CHARGED, THAT REDUCES YOUR INVESTMENT RETURN BECAUSE THEY NET THAT OUT ALL THE FEES BEFORE THEY SHOW YOU WHAT YOUR INVESTMENT RETURN IS.
AND THEN THEY ALSO FOUND THAT SOME OF THE, UM, INVESTMENTS THAT WE HAD ON THE LIST, UH, THEY WERE CALLED WHAT WE CALL PRO PROPRIETARY FUNDS.
AND THAT MEANS LIKE NATIONWIDE HAD THEIR FUNDS, MISSION SQUARE HAD THEIR FUNDS, AND THEY MAKE MONEY OFF OF THEIR FUNDS.
AND SO WE DIDN'T, AND THEY'D BEEN IN THERE FOR A LONG TIME AND WE DIDN'T EVEN KNOW, WELL, HOW ARE THOSE REALLY PERFORMING COMPARED TO OTHER BENCHMARKS? UM, WELL, THE CONSULTANT, UH, DID A GREAT JOB OF TALKING TO US AND TELLING US ABOUT HOW THIS, A LOT, SOME OF THOSE FUNDS WEREN'T PERFORMING LIKE THEY SHOULD, BUT BACK IN AUGUST, YOU CAN SEE THE TIMEFRAME STARTED IN OCTOBER, 2023.
UM, JANUARY 24, WE HAD THE OVERSIGHT COMMITTEE.
AUGUST OF 24, THE COUNCIL ADOPTED THE CHARTER FOR THE COMMITTEE, AND THEN THE GROUP SEEING THAT THE ISSUES THAT THEY HAD WERE IDENTIFIED BY THE CONSULTANTS STARTED LOOKING AT THE FUND MENU.
AND SO THE GROUP PUT TOGETHER, THE COMMITTEE PUT
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TOGETHER AND STARTED WORKING ON A FUND MENU THAT WAS MUCH MORE ROBUST AND HAD LESS OF THESE PROPRIETARY FUNDS.ALSO, WHAT THE COMMITTEE'S DOING IS THEY DEVELOPED METRICS SO THAT IN THE FUTURE, IF THE FUNDS AREN'T PERFORMING LIKE THEY SHOULD BE, UH, THOSE WILL BE IDENTIFIED AND THE COMMITTEE CAN MOVE, CHANGE THOSE FUNDS, UH, TO A BETTER PERFORMING FUND.
AND WE DID NOT HAVE THAT ABILITY IN THE PAST.
THEN WE DECIDE, OKAY, IF WE WANT TO DO ALL THESE NEAT THINGS THAT WE'VE LEARNED ABOUT, THEN WE NEEDED TO DO, WHAT DO YOU DO AT THE CITY, RIGHT? AND RFP.
SO IN, UH, FEBRUARY OF THIS YEAR, THERE WAS A RFP ISSUED, AND UM, I THINK THERE WERE ABOUT ANDREW, DO YOU REMEMBER HOW MANY? SEVEN, NINE RESPONDENTS TO IT.
AND, UM, THE COMMITTEES TOOK A LOOK AT THOSE AND, UM, SELECTED FOUR OF THE FINALISTS TO DO INTERVIEWS.
AND SO THE COMMITTEE SPENT, UH, MOST OF A DAY TALKING TO THOSE FOUR AND REALLY ASKING SOME VERY, UH, DEEP QUESTIONS ABOUT, UH, THEIR FUNDS, THEIR CUSTOMER SERVICE, UH, WHAT VALUE ADDS THAT THEY HAD, THEIR PROCESSES IF WE WERE TO CHANGE.
UH, THEY WENT THROUGH ALL OF THAT.
AND, UH, THROUGH THAT PROCESS OF INTERVIEWING THOSE FOUR, THEY MADE A SELECTION.
AND WHAT THIS MEANS IS THIS IS A RECOMMENDING BODY, THIS COMMITTEE, THEY WILL MAKE THIS RECOMMENDATION TO THE CITY MANAGER WHO WILL LOOK AT THIS AND THEN MAKE A RECOMMENDATION TO THE CITY COUNCIL.
UH, I THINK WE'RE PLANNING ON GOING TO, UH, CITY COUNCIL SEPTEMBER 2ND.
AND, UM, AND THEN WE'LL, WE'LL SEE WHERE WE GO FROM THERE.
SO WE CAN REALLY KIND OF FAST TRACK RIGHT UP TO THEN, THEN WE'LL REALLY FAST TRACK IF THE, UH, CITY COUNCIL APPROVES THE RECOMMENDATIONS.
BUT, YOU KNOW, WHY DID WE CHANGE WHAT YOU CAN SEE FROM THE LIST HERE, LOWER FEES, YES, THAT SAYS 225,000.
WHAT, WHAT HAS BEEN CHARGED BY THOSE TWO FIRMS THAT WE HAD? AND THROUGH THIS PROCESS, IF WE GO TO ONE PROVIDER, THE FEES WILL BE $12,000.
UM, I'M GLAD WE ASKED THE QUESTION.
I'M GLAD THE COMMITTEE GOT INVOLVED BECAUSE YOU CAN SEE, UH, THAT IT MAKES A SIGNIFICANT DIFFERENCE IN YOUR RETURNS THAT YOU GET ON YOUR INVESTMENTS.
UM, THIS VOYA IS WHAT THEY, UH, RECOMMENDED, UH, PROVEN RESULTS, BETTER VALUE, STRONGER FIDUCIARY PROTECTIONS BECAUSE NOW WE HAVE MORE BETTER REPORTING.
UH, THEY'VE GOT A VERY INNOVATIVE PARTICIPANT EXPERIENCE AND, UM, USER FRIENDLY AND THEN OUR DEDICATED SERVICE TEAM.
NOW, WHAT DOES THIS MEAN FOR YOU? I'M GONNA REITERATE AGAIN.
WE GO FROM $225,000 TO 12,000 PER YEAR IN SAVINGS.
UM, THOSE, THOSE GO BACK TO YOU.
BETTER INVESTMENTS, UH, I THINK IN THE PAST, BECAUSE WHEN YOU HAVE A LOT OF PRO PROPRIETARY FUNDS, WHEN THEY CAME OUT AND TALKED TO US THERE, THERE WAS IN THEIR INTEREST TO MOVE US TO THOSE, THE NATIONWIDE FUNDS OR TO THE MISSION SQUARE FUNDS.
NOT THAT THEY WERE BAD FUNDS, BUT THERE ARE A LOT, AS YOU CAN SEE, THERE ARE A LOT MORE FEES ATTRIBUTED TO THAT.
AND THIS, UM, RECOMMENDATION THAT THE COMMITTEE'S MAKING, UM, THERE IS ONE FUND, ONE PROPRIETARY FUND THAT THE PARTICIPANTS CAN HAVE AN OPTION TO PUT THAT IN.
AND THAT'S THE ONLY FUND THAT BOY YOU WOULD BE MAKING ANY MONEY OFF OF OTHER THAN THE $12,000 FEE, UH, THAT YOU SAW.
WE THINK THEY'RE BETTER PERFORMING LIST OF FUNDS.
AND SO WE'RE GONNA HAVE BETTER INVESTMENTS THERE AND THEY'RE GONNA BE MONITORED, UH, SELF-DIRECTING FUNDS.
SOME PARTICIPANTS LIKE TO, THEY'RE PROBABLY A LOT MORE SOPHISTICATED THAN I AM IN THEIR FINANCIAL MATTERS AND THEY LIKE TO TRADE AND DO AND HANDLE THEIR OWN INVESTMENTS TO A SELF-DIRECTED FUND.
THIS WILL ALLOW THEM TO DO THAT AND THEY PAY AN EXTRA FEE TO DO THAT.
BUT THEN THEY CAN STILL, THEY CAN MOVE FROM THE CURRENT FUNDS THAT THEY HAVE.
IF THEY HAVE A SELF-DIRECTED FUND, UH, IN MISSION SQUARE, CHARLES SCHWAB HANDLES THAT AND THAT CAN BE REALLY EASILY MOVED OVER 'CAUSE CHARLES SCHWAB IS ALSO DOING, UH, THE VOYA FUNDS.
SO THAT'S A SMOOTH TRANSITION.
NOW, WHAT DOES THIS MEAN TO YOU? THE CITY COUNCIL APPROVES THIS.
YOU CAN SEE WHAT WILL START HAPPENING IN OCTOBER.
UH, THE TRANSITION BEGINS AND ALL YOUR FUNDS WILL AUTOMATICALLY BE MOVED TO VOYA.
AND WHAT THEY DO IS TRY TO MOVE IT INTO LIKE FUNDS THAT YOU HAVE.
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FUND IN YOUR CURRENT UH, PROVIDER, THEY'LL MOVE THOSE INTO THE TARGET FUNDS, UH, IN VOYA.UM, WE'LL BE MAPPING THIS PROCESS OCTOBER THROUGH NOVEMBER.
BUT WHEN THIS IS COMPLETED IN DECEMBER, THAT YOUR FUNDS WILL BE IN A VERY SIMILAR FUND OR A BETTER FUND THAN WHAT THEY WERE IN NOW.
AND THEN WE WERE IMPRESSED OR THE COMMITTEE WAS IMPRESSED WITH VOYA ON THEIR CUSTOMER SERVICE AND THEIR TRANSITION TEAMS TO MOVE ALL THESE MONIES OVER.
UH, BECAUSE THEY'VE DONE THIS, UH, MANY A TIMES, THEY HAVE EXPERIENCE WITH THE NATIONWIDE ADMISSION SQUARE IN MAKING THESE TRANSITIONS.
NEXT STEPS, AS YOU CAN SEE HERE, UH, WE'RE HAVING THESE FEEDBACK MEETINGS.
WE HAD ONE FRIDAY, WE HAVE THIS ONE, THEN WE'LL HAVE ANOTHER ONE THIS AFTERNOON AT THE, UH, PUBLIC SAFETY BUILDING.
UM, I SAID IT LOOKS LIKE IT WAS GOING TO COUNCIL ON THE SECOND.
I'M GETTING THAT CONFUSED WITH OUR PHARMACY AND MEDICAL RFP THAT WILL GO ON THE SECOND AND IT LOOKS LIKE THIS WILL GO ON THE 16TH.
THIS BUYS US SOME TIME THAT THE FEEDBACK THAT WE GET FROM YOU, UH, THAT WE CAN, UH, IMPLEMENT THAT BETWEEN OR, OR LOOK AT THOSE QUESTIONS BETWEEN NOW AND THEN.
UM, THERE'S NO ACTION REQUIRED BY YOU.
IF THIS GOES THROUGH AND APPROVED, EVERYTHING WILL BE DONE AUTOMATICALLY.
OUR UH, NEXT STEPS WOULD BE ONCE THE ACCOUNTS ARE SET UP IN VOYA, THEN THEIR TRANSITION TEAMS WILL CONTACT YOU.
THEY'LL JUST SHOW YOU HOW TO OPEN AN ACCOUNT WITH VOYA.
UH, THEY'VE GOT THE WEBSITE, THEY HAVE A MOBILE APP, AND THEN YOU CAN GO IN AND STARTING IN JANUARY START, IF YOU WANNA MOVE IT TO A DIFFERENT FUND FROM WHAT THEY PUT IT IN, YOU CAN TAKE A LOOK AT THE NEW FUNDS AND YOU HAVE THE FLEXIBILITY TO MOVE IT THERE.
UM, THERE'S GONNA BE A LOT MORE COMMUNICATION.
WE'RE KIND OF HOLDING BACK UNTIL YOU KNOW THAT WE, IT'S APPROVED BECAUSE WE WANT TO GET THE FEEDBACK FIRST AND THEN TAKE IT TO COUNCIL.
AND THEN AFTER THAT THERE'LL BE A BIG PUSH WITH A LOT OF COMMUNICATION, A LOT OF INFORMATION COMING TO YOU FROM VOIA.
AND UM, I HOPE YOU HAVE A LOT OF QUESTIONS THIS MORNING 'CAUSE WE CAN HOPE TO ANSWER THOSE.
BUT THINGS WILL REALLY TAKE OFF AGAIN, UH, ONCE THIS IS APPROVED AND WE GET THE CONTRACT COMPLETED.
SO I'LL REITERATE AGAIN, WE'RE MAKING ALL THESE CHANGE.
THIS CHANGE, IT'S, IT DOESN'T SEEM LIKE A LOT, BUT YOU KNOW HOW IT IS ON ANY CHANGE.
THERE ARE A LOT OF PIECES TO IT, BUT IT'S BECAUSE WE WANNA MAKE SURE THAT WE HAVE THE EMPLOYEES THE BEST BENEFITS THAT WE CAN HAVE QUALITY AND AT A BETTER COST.
AND I THINK THE COMMITTEE HAS FOUND, UH, A PARTNER HERE THAT WILL DO THAT FOR YOU.
ANY QUESTIONS? WE HAD A LOT OF QUESTIONS FRIDAY, SO I'M EXCITED ABOUT GETTING SOME QUESTIONS TODAY.
SO YOU HAVE, THIS IS FOR THE, YOU HAD MENTIONED THAT THERE MAY BE A FEE FOR SELF-DIRECTED FUNDS.
SO IN OTHER WORDS, IF A PERSON RATHER THAN HAVE VOYA MANAGE THE FUNDS, UH, IF YOU YOURSELF WANT TO DIRECT THE FUNDS, IS THERE A FEE IF YOU WANT TO DO IT YOURSELF OR A FEE IF YOU WANT VOYA TO MANAGE IT FOR YOU? QUESTION.
'CAUSE THAT THERE ARE TWO DISTINCT PARTS.
UM, THE FEE FOR THE SELF-DIRECT MANAGED ACCOUNTS THAT'S BASED ON THE AMOUNT OF THE BALANCE THAT YOU'RE PUTTING IN THERE AND BEING MANAGED THE FEE'S BASED ON THAT.
IF YOU JUST WANT SOMEONE TO JUST MANAGE IT FOR YOU, TALK WITH YOU ABOUT IT, YOU KNOW, WHAT ARE YOUR RISK TOLERANCES, HOW LONG BEFORE YOU RETIRE, GET, GIVING THEM INFORMATION LIKE THAT SO THEY CAN HELP YOU MAKE THOSE DEC UH, DECISIONS.
THAT'S A MANAGEMENT TYPE THAT YOU'D PAY A FEE, UH, TO HAVE SOMEONE TO WORK WITH YOU IN THAT WAY.
MY UNDERSTANDING IS THAT RIGHT NOW, IF YOU WANT TO DO THE SELF-DIRECTED, THERE'S ALREADY A FEE FOR THAT.
AND SO IT'S KIND OF LIKE TO LIKE APPLES TO APPLES.
SO RIGHT NOW, UM, IF YOU, WE HAVE, THERE'S A FUND MENU WITHIN THEIR CURRENT PROVIDERS.
IF YOU CHOOSE TO SAY, HEY, I WANT TO ACTIVELY MANAGE MY OWN ACCOUNTS AND CHOOSE SOMETHING THAT'S NOT IN THE CURRENT FUND MENU, YOU CAN DO THAT CURRENTLY AND THAT'S AN ADDITIONAL FEE ALREADY.
SO IT'S KIND OF APPLES TO APPLES FROM THAT.
SO, BUT NO, NO MATTER WHAT YOU DO, YOU ALWAYS HAVE THE CHOICE OF WHAT FUNDS YOU PUT YOUR MONEY INTO WHEN THEY MAP IT, THEY'LL DO THEIR BEST TO LIKE MAP, UH, MAP LIKE TO LIKE, BUT LET'S SAY YOU SAY, OH, YOU KNOW, I DON'T WANT TO DO AN S AND P 500, I WANT TO DO MORE MAYBE A TARGETED, YOU'LL HAVE AN OPPORTUNITY TO CHANGE
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THAT AND THERE'S NO ADDITIONAL FEES THERE.BUT LET'S SAY THAT YOU FOUND AN INVESTMENT THAT IS CURRENTLY NOT BEING OFFERED IN THE FUND MENU AND YOU WANTED TO, UH, AND IT'S OPEN ON LIKE THE NASDAQ OR SOMETHING ELSE THAT IT JUST HAPPENS NOT TO BE IN THIS FUND MENU THAT WOULD BE CONSIDERED A SELF-DIRECTED FUND AND CURRENTLY YOU HA STILL HAVE ACCESS TO THAT CURRENTLY IT'S, AND YOU'LL HAVE THAT IN THE FUTURE AS WELL.
DID THAT ANSWER YOUR QUESTIONS? IT DID.
DOES ANYBODY BACK HERE HAVE A QUESTION? LET ME GIVE YOU WITH, SORRY, THE CURRENT PROVIDER
WITH THE CURRENT PROVIDER, IT'S VERY EASY TO GET ON THE APP AND, AND CHANGE CONTRIBUTIONS AND THINGS LIKE THAT.
DO WE KNOW THAT IT'S GONNA BE JUST AS USER FRIENDLY AND I'LL BE ABLE TO DO THAT MYSELF WITHOUT HAVING TO REACH OUT TO ANYONE THROUGH VOYA? WILL IT HAVE THE SAME EASE OF ACCESS FOR CHANGES LIKE THAT? YES, SIR.
AND UM, ANDREW, DID YOU WANNA GO IN IN MORE OF THAT? IT'S MUCH MORE ROBUST IS WHAT, I'M NOT ON THE COMMITTEE, BUT I WATCHED IT.
YEAH, SO, UH, CURRENTLY VOYA HAS A MUCH BETTER SYSTEM AND I DON'T KNOW WHETHER YOU'RE IN MISSION SQUARED OR NATIONWIDE, UM, BUT OUR, WELL THROUGH OUR DISCOVERY PROCESS WE FOUND THAT THE APPS ARE BETTER RATED.
UM, THEY'RE A LOT MORE USER FRIENDLY AND YOU'RE GONNA HAVE THE SAME FUNCTIONALITIES THAT YOU WOULD HAVE ON THE WEBSITE ALSO ON AN APP OR, UM, SO HOPEFULLY THAT ANSWERS.
ANYONE ELSE BACK HERE? STEVE, DID YOU WANT TO MENTION ANYTHING ABOUT THE WORK OF THE COMMITTEE? YEAH, A REALLY JUST, UH, THANK EVERYONE FOR THE WORK ON THE COMMITTEE AND THERE WAS, TO ME IT WAS KIND OF, UM, TELLING OR ODD THE SLIDE THAT WAS THERE WHEN WE WERE TALKING ABOUT THE FEES THAT ARE GOING COLLECTIVELY BETWEEN TWO PLANS RIGHT NOW, THE 225,000 TO ABOUT $12,000 THE FIRST TIME THE COMMITTEE SAW THAT.
THERE'S A QUESTION OF, WELL, YOU KNOW, WHAT DID WE MISS
SO, SO A COUPLE POINTS ON THAT IS FOR ALL, I THINK WHAT IT DOES IS IT REALLY SHOWS THE VALUE OF GOING THROUGH THIS PROCESS BECAUSE FOR ALL FOUR OF THE FIRMS, UH, THAT WE INTERVIEWED, UH, WERE BASICALLY THE FINALIST FIRMS, ALL OF THEM WERE WITHIN $1,200 ON WHAT THE FEES WOULD DROP TO IF THEY SOLELY MANAGED OUR PROGRAM.
SO ONE OF THE THINGS THAT THE, THAT THE COMMITTEE TOOK INTO CONSIDERATION, IT WAS THE COMMITTEE'S RECOMMENDATION.
UH, OUR THIRD PARTY EXPERT CONCURS WITH IT.
HAVING ONE FIRM MANAGE ALL OF THE PORTFOLIO TO THE COMMITTEE MAKES SOME SENSE FOR TWO PRIMARY REASONS.
UH, THE NUMBER ONE, UH, IS ON THE FEES.
SO AS AN EXAMPLE THAT 2 25, IF NATION SQUA NATIONWIDE AND MISSION SQUARE WERE RETAINED, BUT WE STILL HAD TWO PROVIDERS, THAT NUMBER WOULD DROP, BUT IT WOULD DROP FROM 2 25 TO JUST SHY OF $40,000.
EITHER ONE OF THEM TAKING OVER SOLE KIND OF POSSESSION OF ALL THE FUNDS DROPS THAT NUMBER TO THAT $1,200 GAP OF BETWEEN ROUGHLY I THINK 10,800 AND THE $12,000.
SO THEY'RE ALL VERY, VERY COMPETITIVE IN TERMS OF HOW MUCH THE FEES ARE GONNA BE IF THEY HAVE ALL THE FUNDS.
AND, AND TO YOUR QUESTION, SIR, THE DISTINCTION THAT THE COMMITTEE MADE ON REALLY OKAY, IF, IF GENERALLY SPEAKING THE FEES ARE KIND OF A WASH NOW, A MASSIVE REDUCTION FROM WHERE WE'RE AT, UH, BUT OF COST IS NOT REALLY A CONSIDERATION IN TERMS OF WHERE SHOULD WE PUT OUR FUNDS? UH, I THINK IT'S FAIR TO SAY IT REALLY CAME DOWN TO THE, THE PRESENTATION, UH, AND THE, UH, TECHNOLOGY ADVANCES THAT WE BELIEVE VOYA HAS OVER THE TWO INCUMBENT PROVIDERS.
UH, THEIR PRESENTATION, UM, I WAS NOT A VOTING MEMBER ON THE COMMITTEE, BUT I SAT THROUGH THEM AS WELL.
UH, I WILL CERTAINLY SPEAK FOR MYSELF.
UH, IT, IT FROM MY PERSPECTIVE MUCH BETTER THAN THE TWO INCOME PROVIDERS THAT WE HAD.
AND IF, IF FEES ARE ALL VERY COMPETITIVE AMONG ALL OF THEM, UH, I THINK WE HAVE DONE A GOOD SERVICE FOR ALL OF OURSELVES BY GOING THROUGH THIS TO REALLY GET THOSE FEES REDUCED.
UH, AND WE BELIEVE WE ARE, UH, SELECTING THE COMPANY THAT WILL HELP EACH OF US BEST MANAGE OUR PORTFOLIO.
ONE OF THE WAYS TO DO THAT THROUGH THE TECHNOLOGY UPGRADES AND THE EASE OF USE, UH, CUSTOMER SERVICE THAT WE THINK VOYA WILL OFFER.
NOW I'M, I MUST BE AIRHEADED THIS MORNING BECAUSE THE CHAIRMAN OF THE COMMITTEE IS SITTING RIGHT HERE AND I'M JUST LIKE TALKING LIKE HE'S NOT EVEN HERE, BUT CHIEF ERY WAS, UH, DID A GREAT JOB LEADING THE COMMITTEE OVER THE LAST ALMOST TWO YEARS.
AND SO I APOLOGIZE FOR MISSING I DON'T, I THIS CROWD I MISSED YOU, UH, SITTING IN THE CROWD HERE.
DID YOU HAVE ANYTHING THAT YOU'D WANNA SAY? IT'S GONNA BE A MUCH BETTER PROCESS TO SPEAK TO YOUR POINT ABOUT THE EASE OF SWITCHING OVER.
UM, THE NEW VOYA WEBSITE IS MUCH USER FRIENDLY THAN WHAT WE'RE LOOKING AT NOW THAT I HAVE MISSION SQUARE AND IT'S MUCH EASIER.
IT ALSO TAKES INTO ACCOUNT SOME OF YOUR OUTSIDE BALANCES
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LIKE, UM, UH, TMRS AND SOCIAL SECURITY AND IT PUTS IT ALL IN ONE SPOT ON THE WEBSITE.SO IT'LL BE MUCH EASIER TO ANTICIPATE RETIREMENT LATER ON.
THANK YOU, MR. CHAIRMAN, ANY OF THESE ARE GREAT QUESTIONS.
HEY, SO I'M JUST, UH, NOT FAMILIAR WITH VOYA.
CAN YOU JUST TELL ME A LITTLE BIT ABOUT, UM, ANYTHING YOU CAN TELL ME HOW LONG THEY'VE BEEN AROUND, IF THEY'VE, UH, HANDLED OTHER CITIES, THAT SORT OF THING.
I DON'T HAVE A LOT OF DETAILS ON THAT, BUT I BET THE CO-CHAIR WILL.
UH, SO LENGTH OF, UH, TIME THEY DID CHANGE, HAVE A NAME CHANGE AND SO I DON'T WANT TO TALK OFF OFF THE TOP OF MY HEAD.
I KNOW THEY HAVE BEEN AROUND FOR A LONG TIME AND THEY'RE ONE OF THE BIGGEST PLAYERS IN THIS FIELD, SO THEY HANDLE A LOT OF ACCOUNTS THAT ARE EVEN BIGGER THAN THE CITY OF MCKINNEY'S.
UM, AND THEY HAVE, UH, A REALLY GOOD PROVEN TRACK RECORD OF TRANSITIONING.
I KNOW WE TALKED BRIEFLY ABOUT IT TRANSITIONING FROM, UH, EVEN MISSION SQUARED TO NATIONWIDE.
UH, SO OTHER MUNICIPALITIES AND NONPROFITS AND OTHER ENTITIES.
UM, THEY DON'T HANDLE JUST THESE SORT OF ACCOUNTS, THEY HANDLE OTHER 4 0 1 KS AS WELL.
UM, ULTIMATELY FOR US IN THE PRESENTATION, THEIR CUSTOMER SERVICE STOOD OUT AND THEIR ATTENTION TO THAT CUSTOMER SERVICE WAS KEY.
UM, BECAUSE WE FELT AS THE COMMITTEE, WE FELT LIKE IT, WE WERE A LITTLE LACKING WITH SOME OF THE REPRESENTATION WE WERE HAVING WITH OUR CURRENT PROVIDERS.
YEAH, I JUST READ THAT THEY BOUGHT OUT ANOTHER COMPANY.
IT WAS SEVERAL, SEVERAL BILLIONS OF DOLLARS THAT THEY'RE, UM, TAKING ON.
SO I MEAN THEIR INVESTMENT PORTFOLIO, UH, IN JUST WITH THE PUBLIC SECTORS IN THE BILLIONS.
SO THEY'RE A BIG PLAYER IN THIS SPACE AND I THINK YOU MAY HAVE SEEN THEIR COMMERCIALS, I DIDN'T EVEN REALIZE WHAT I WAS SEEING, BUT THEY HAVE THAT LITTLE ORANGE BUNNY, PAPER BUNNY THAT THEY HAD AND I DIDN'T TIE IT TOGETHER TILL I PAID ATTENTION TO THAT COMMERCIAL.
SO, SO THEY'RE REALLY A BIG PLAYER, UH, AND WILL CONTINUE TO GROW I THINK IN THIS, IN THIS SPACE.
UM, THAT IS A GOOD THING TO, THEY DO SELL OTHER PRODUCTS, SO THEY ALSO HAVE INSURANCE AND OTHER PRODUCTS OUT THERE.
SO WHAT YOU SEE OUT THERE IS TYPICALLY THEIR INSURANCE PRODUCT, NOT THEIR INVESTMENT PRODUCTS, IT'S JUST FY.
ANY OTHERS? WELL, I WON'T, UM, KEEP YOU ANY LONGER, BUT I DO, AGAIN, THERE ARE 11 PEOPLE ON THIS COMMITTEE AND THEY REALLY WERE DEDICATED TO THIS, UM, PROCESS BECAUSE IT TOOK A LOT LONGER THAN THEY WANTED, BUT THEY, IT TOOK LONGER BECAUSE THEY WERE REALLY DOING THEIR DUE DILIGENCE OF MAKING SURE IF WE'RE GONNA MAKE A CHANGE LIKE THIS, THAT IT'S GONNA MEET THE CRITERIA OF WHAT I SAID.
THAT'S GONNA BALANCE THE QUALITY WITH THE COST.
AND I THINK IN THIS CASE THEY UH, HIT A HOME RUN.
SO YOU WILL BE HEARING MORE ABOUT THIS ONCE IT'S APPROVED BY COUNCIL.
THERE'LL BE MORE FOCUS BECAUSE WE'LL HAVE ONE PROVIDER ALL WORKING TOGETHER AND FROM THE HR ASPECT, I THINK WE'RE GONNA SEE A BIG UPTICK IN PARTICIPATION AND I THINK THIS IS SUCH A IMPORTANT SUPPLEMENTAL BENEFIT THAT THIS WILL BE GOOD FOR ALL EMPLOYEES.
ANYTHING ELSE, STEVE, CHIEF? ANDREW? OKAY, WELL IF NOT, YOU KNOW, YOU CAN CONTACT HR ANYTIME WITH THE QUESTIONS.
THE BENEFITS TEAM WILL BE HAPPY TO WORK WITH YOU AND, UM, THANK YOU FOR COMING OUT TODAY.