Items Types:
Business and Financial Services
For Meeting of:
June 2, 2014
District: ALL From:
Contract ID: Document Number:
Exhibits: Yes On File (City Clerk) : No Draft Only: No
Grant Received by City?: No

Administrative Services Agreement with ICMA Retirement Corporation for the City's Defined Contribution and Deferred Compensation Plans


The City has used the services of ICMA Retirement Corporation ("ICMA-RC") since 1998 for the administration and recordkeeping of the General Employees 401a Defined Contribution Plan and the 457b Deferred Compensation Plan. The existing Administrative Services Agreement with ICMA-RC contains a five-year renewal option that is subject to the prior approval of the City Council. The five-year renewal would normally occur on November 1, 2015. ICMA-RC has submitted a proposal to exercise the five-year renewal early. As part of this early renewal, ICMA-RC will reduce the fees that participants pay for investment management services.

The attached Administrative Services Agreement incorporates the new pricing terms and extends the agreement through October 31, 2020. Thereafter, the Agreement will be automatically renewed for additional one-year terms unless prior written notice of non-renewal is provided at least 60 days in advance of the renewal date. City staff has been satisfied with the services provided by ICMA-RC and recommends that the City Council approve the attached Agreement.

Fiscal & Efficiency Data:

There is no cost to the City for ICMA-RC's services. Defined Contribution Plan and Deferred Compensation Plan participants pay an asset management fee that is specific to each investment option that the participant chooses to invest in. By accepting ICMA-RC’s proposal to extend the Agreement early, the asset management fees for the proprietary ICMA-RC investment products will be lower than they are currently. Other than the underlying investment management fees, there are no other administrative or account management fees charged to our participants.

Recommended Action:

Authorize the five-year renewal of the Administrative Services Agreement with ICMA-RC and authorize the Chief Procurement Officer to enter into an agreement with ICMA-RC substantially in the form attached, subject to review by the City Attorney's Office.

Agenda Item attachment(s) on file in the City Clerks Office.

Note: All agenda items must be in the City Clerk's office by Noon Friday, six(6) business days prior to the regular Monday City Council meeting.

Contact: Christopher P. McCullion, City Treasurer
Approved By:

Department Date and Time
Budget Outside Routing Approval 5/22/2014 10:44 AM
City Clerk 5/22/2014 10:54 AM

Name: Description: Type:
ICMA-RC_Admin_Svcs_Agmt_05-22-2014_FINAL.pdf ICMA-RC Admin Svcs Agreement Backup Material
21323_Orlando_Renewal_Proposal_(S)_FINAL.pdf ICMA-RC Proposal 2014 Backup Material

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