Title:
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Approve recommended changes to the Seminole County, Florida Section 457(b) Government Employees’ Deferred Compensation Plan Investment Products. Countywide (Lorie Bailey Brown, CFO/Administrative Services Director)
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Division:
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Administrative Services
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Authorized By:
Stephen Koontz, Assistant County Manager
Contact/Phone Number:
Lorie Bailey Brown/407-665-7176
Background:
The Seminole County 457(b) Government Deferred Compensation Plan (DCP) is a participant directed investment program, authorized by Section 112.215, Florida Statutes permitting counties to offer investment products including mutual funds, annuities, fixed accounts, target date funds and other vehicles approved for use in governmental deferred compensation plans.
The Deferred Compensation Plan Review Committee with Gallagher Fiduciary Advisors, an independent deferred compensation consultant, recommend changes to the Investment Products based on Expense and Fee Benchmarking of the DCP administered by Nationwide Financial.
The Expense and Fee Benchmarking process begins with building a customized benchmark group for comparison followed by an examination of value including investment costs, compliance with the investment policy and optimized indirect compensation. The review determined that (8) certain investment options should be replaced with existing or new options to improve performance consistency, reduce costs and strengthen long-term participant outcomes. Additionally, a recommendation to add a Large Cap Growth Index Fund which has consistently outperformed Large Cap Growth funds over the last few years.
A detailed Proposed Enhancement report summarizing each recommendation, performance finding, and proposed fund mapping is included with this item. The Fiduciary communicated to Nationwide the recommendations, and Nationwide is prepared to effect the changes.
Requested Action:
Staff requests the Board approve the recommended changes to the Seminole County, Florida Section 457(b) Government Employees’ Deferred Compensation Plan Investment Products.