Item Description:
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Negotiate Agreement with Nationwide to administer a 457(b) Deferred Compensation Plan on behalf of Hennepin County, rescinding BAR 25-0144 and BAR 25-0145 dated April 29, 2025
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Resolution:
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BE IT RESOLVED, that the Hennepin County Board of Commissioners authorizes the County Administrator to negotiate an agreement with Nationwide to serve as the recordkeeper of the county's 457(b) Deferred Compensation Plan.
BE IT FURTHER RESOLVED, that BARs 25-0144 and 25-0145, dated April 29, 2025, be rescinded.
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Background:
Hennepin County's current deferred compensation options include 457(b) plans through Voya, Fidelity, and MSRS. MSRS has recently retained Voya to serve as its recordkeeper. For many years, the county has offered employees 457(b) plans through these vendors, each of which administer the county's plan but have slightly different investment offerings and fees. In May, the Board authorized negotiation of new agreements to continue services with both Voya and Fidelity, but those agreements have not yet been finalized. In July, the county learned that National Association of Counties (NACo) partners with Nationwide for its 457(b) recordkeeping services and as a result Nationwide has unique experience providing services to counties.
Nationwide provided the county with a very competitive proposal with investment fees well below the rates charged by the current service providers. Nationwide's proposal will save county employees an estimated $370,000 per year in recordkeeping fees. Additionally, county employees will earn an estimated additional $800,000 in interest per year in stable value funds.
The county's Deferred Compensation Committee met twice to discuss this proposal, along with the county's long-time investment consultant. The Committee and investment advisor met with a representative of Nationwide to ask a number of questions regarding Nationwide's proposal. The Committee then recommended the County Administra...
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