Several months ago I asked if any other cities/counties had pooled with
other agencies to get better Deferred Comp plans---lower charges and more
investment choices (including self-directed investments). Several
through-out the State were thinking about it, but none had taken the next
step.
So, we got seven agencies in the Bay Area together to explore the idea.
We've talked to three plan providers, and each one has told us we could get
substantially better plans by pooling our assets under one RFP. There is no
co-mingling of plan assets, we still get jurisdiction-specific statements;
we just exercise the strength of our combined buying power. Once awarded,
each agency would offer the new plan provider to their employees, along with
the current plans. (No one would be forced to change providers.)
We're developing the RFP now. The RFP will have, as an appendix, a list of
the cities participating, and how much money their employees have in their
Deferred Comp plans. We need more cities (more assets under Deferred Comp
plans) in order to get competitive responses to the RFP. Once established,
the program will be open to all local agencies (Counties, Cities, JPA,
Districts, etc.) in the State. But, right now we need critical mass.
If you're interested in participating at the front end, and helping us get
the most attention (i.e. best and most competitive bids), please add your
agency's name and the requested info to the attached profile. The plan data
is available on your year-end plan provider statement(s), and should only
take a minute to complete.
Please respond back to me by next Friday, March 17. We are hoping to get
the RFP out within 3 weeks. And have the new plan available by July 1,
2000. <<Plan Sponsor Profiles.xls>>
Richard Averett, Finance Director, City of San Carlos (CA)
(650) 802.4205 fax (650) 802-4106 [EMAIL PROTECTED]
Plan Sponsor Profiles.xls
