Title
Record Keeper Services for Deferred Compensation, Defined Contribution and Post Employment Health Plans (Ordinance S-52225) - Citywide
Description
Request to authorize the City Manager, or his designee, to extend Contract 153227 (“Contract”) with Nationwide Retirement Solutions, Inc. to continue providing plan administration and record keeper services for the City’s Deferred Compensation 457(b) Plan, Defined Contribution 401 (a) Plan, and Post-Employment Health Plan (PEHP) (collectively “Plans”) for a five-year period. No disbursement from the General Fund is necessary for this contract.
Report
Summary
This Contract provides administration, enrollment, participant communication and education, investment management and record keeper services for the Plans. There are approximately 20,000 participant accounts and this Contract ensures accurate accounting of the assets in each participant account and provides efficient and prudent management of the Plans.
Procurement Information
In 2020, a formal procurement process was completed which resulted in awarding the Contract to Nationwide Retirement Solutions, Inc. The initial Contract was for a period of three years, with two, one-year extensions.
Due to recent changes within this business sector, recent legislative changes and investment market conditions, the City of Phoenix Employees' Deferred Compensation/Post Employment Health Plan Board of Trustees directed staff to research the cost of extending the current agreement.
Staff and Nationwide were able to come to agreement to extend the existing agreement for five additional years at a reduced cost. The reduced cost lowers fees by almost 30 percent and places Phoenix’ fees lower than 80 percent of similar sized plans across United States. A determination for special procurement without competition was approved on July 29, 2025.
Contract Term
The five-year contract extension will begin on or about November 20, 2025.
Financial Impact
No disbursement from the General Fund is necessary for this Contract. The administrative costs for the Contract are paid through plan asset fees by plan participants.
Concurrence/Previous Council Action
This item was recommended for approval by the City of Phoenix Employees' Deferred Compensation/Post Employment Health Plan Boards at their May 8, 2025 meeting.
Department
Responsible Department
This item is submitted by Deputy City Manager David Mathews and the Retirement Office.