Title
Contract Amendment for Investment Consulting Services for 401(A)/457 Plans and Post Employment Health Plans (PEHP) - Hyas Group (Ordinance S-52109) - Citywide
Description
This report requests City Council approve the extension of Contract 149752 with Hyas Group, LLC from June 30, 2025 to October 31, 2025. Further request authorization for the City Controller to disburse all funds related to this extension.
Report
Summary
Hyas Group was awarded a contract to provide consulting services to the 401(A)/457 ("Deferred Compensation Plan", "DCP") and PEHP Plans following a competitive procurement in 2019. The original three-year agreement included two, one-year options to extend, which have been exercised, with a total contract value of an amount not to exceed $600,000. The Contract was previously extended through February 28, 2025 with an additional payment authority of $120,000. A short contract extension was granted through June 30, 2025. An additional extension is requested through October 31, 2025, to allow for continuing investment and plan consulting services to allow Hyas Group to continue providing consulting services and implementation of the 2024 provisions of the federal regulations included in the SECURE 2.0 (Setting Every Community Up for Retirement Enhancement) legislation. An additional $60,000 in payment authority is requested to cover the extension of the Agreement. Funds to be paid from the Deferred Compensation Program Trust. No General Funds are used for this request.
Contract Term
The initial contract term was for three years, covering February 27, 2019 through February 27, 2022. The City Council approved previous extensions for an updated end date to June 30, 2025.
Financial Impact
The extension of the Agreement will cost $60,000. The consulting service fees are paid from the City of Phoenix Employees' Deferred Compensation Program Trust. The Trust's funding source is retained revenue from the DCP investment earnings and are restricted.
Concurrence/Previous Council Action
The City Council previously reviewed and approved the following:
- Contract 149752 on April 3, 2019;
- Ordinance S-50504 extending the contract term to February 28, 2025; and
- Ordinance S-51816 extending the contract term to June 30, 2025.
Department
Responsible Department
This item is submitted by Deputy City Manager David Mathews and the Retirement Office.