HomeMy WebLinkAboutRes 2013-30 - Continue Nationwide - Deferred Comp PgrmRequest:
CITY OF PALM DESERT
FINANCE DEPARTMENT
Informational Report
Rescind Resolution No. 88-107 and adopt Resolution No. 2013- 30
establishing the City of Palm Desert's continued participation with
Nationwide Investment Services in the City of Palm Desert's deferred
compensation program.
Submitted by: Paul S. Gibson, Finance Director
Date: June 13, 2013
Contents: Resolution No. 2013- 30
Recommendation
Waive further reading and adopt Resolution No. 2013-30 , rescinding
Resolution No. 88-107 and establishing the City of Palm Desert's continued
participation with Nationwide Investment Services in the City of Palm Desert's
deferred compensation program.
Background
In 1998, the City Council adopted a resolution adding the United States Conference of Mayors
(USCM) deferred compensation plan to the City's deferred compensation plan. Nationwide
Investment Services (Nationwide) was the company chosen under the USCM to fulfill the City's
needs. Currently, the City of Palm Desert currently maintains two firms in the City's plan,
Nationwide and International City Managers Association (ICMA).
Recent documents received from the USCM indicated that they would no longer retain
Nationwide as their administrator and asked the City to join them in switching to Great -West
Financial. Staff informed the affected employees of the change and offered three choices: 1)
Remain with Nationwide; 2) Move with USCM to Great -West; or 3) Transfer to ICMA. The item
was put to a vote, and the majority decision was to discontinue with USCM and remain with
Nationwide. Those who voted to transfer to ICMA can still do so if they wish.
Participation in deferred compensation plans is the employees' decision, does not affect the
City's funds and is not governed by Council. Staff respectfully requests that Council rescind
Resolution No. 88-107 and adopt Resolution No. 2013-30
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RESOLUTION NO. 2013- 3o
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM DESERT RESCINDING RESOLUTION NO. 88-
107 AND ADOPTING RESOLUTION NO. 2013-
ESTABLISHING THE CITY OF PALM DESERT'S
CONTINUED PARTICIPATION WITH NATIONWIDE
INVESTMENT SERVICES IN THE CITY OF PALM
DESERT'S DEFERRED COMPENSATION PROGRAM
WHEREAS, THE City has established a Deferred Compensation Plan available
to all eligible city employees, elected officials, and independent contractors pursuant to
Federal legislation permitting such Plans; and
WHEREAS, certain substantial tax benefits could accrue to employees, elected
officials, and independent contractors participating in said Deferred Compensation
Plans; and
WHEREAS, such benefits act as incentives to City employees to voluntarily set
aside and invest portions of the current income to meet their future financial
requirements and supplement their City retirement and Social Security (if applicable) at
no cost to the City; and
WHEREAS, the City of Palm Desert previously adopted Resolution No. 88-107
adding the United States Conference of Mayors (USCM) deferred compensation
program to the City of Palm Desert deferred compensation plan; and
WHEREAS, Nationwide Investment Services (Nationwide) was a company utilized
by USCM and subsequently employees, elected officials and independent contractors of
the City of Palm Desert; and
WHEREAS, USCM has discontinued its relationship with Nationwide and is instead
contracting with another company; and
WHEREAS, the City of Palm Desert has no financial interest or decision -making
power relative to the company retained for services, therefore offering City employees the
option to discontinue the relationship with USCM and remain with Nationwide, transfer to
the existing ICMA deferred compensation plan the City currently participates in, or switch
to the USCM's new contractor; and
WHEREAS, City employees voted by majority to remain with Nationwide and
discontinue the relationship with USCM.
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Resolution No. 2013- 30
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY
FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1. The City Council hereby directs the Finance Director and City
Manager to execute any and all documents relative to the decision to remain with
Nationwide.
PASSED, APPROVED AND ADOPTED this 13th day of June 2013, by the
following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Rachelle D. Klassen, City Clerk
Jan C. Harnik, Mayor
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