|
Title:
|
City’s Retirement Plan Observations - George Hartzman
|
|
Minutes note:
|
George Hartzman provided a handout to Council; spoke to lowering fees; leaving more money in retirement to spend in the community; outlined the thrift savings plans (TSP); spoke to the cost to the City of Greensboro; expense liability; referenced S & P Dow Jones analyzes; outlined TSP’s five funds; spoke to active portfolios benchmark expectations; high investment costs; and compared asset based fees and flat fees.
Discussion ensued regarding whether or not staff agreed with Mr. Hartzman; an ICMA representative being at the meeting; and staff receiving information for the first time from Mr. Hartzman.
Councilmember Wilkins left the meeting at 3:20 p.m. and returned at 3:21 p.m.
Mr. Hartzman continued by stating IMCA was a shell company for Sungard; spoke to flat fees per person; provided figures that other cities paid for record keeping; and spoke to the City being overcharged.
Mayor Vaughan stated when the City started with ICMA over eight years ago, that there was a per participant fee; that at this time the City was not paying a per participant fee; that employees chose what they wanted to invest in; and that what employees invested in had different fees.
Discussion took place regarding comparing the City of Greensboro to other cities.
Councilmember Matheny entered the meeting at 3:30 p.m.
Mr. Hartzman spoke to the low cost index fund; potential savings; stated the City was the plan fiduciary and sponsor; and that the City could choose to change the fund line up.
Councilmember Fox left the meeting at 3:33 p.m. and returned at 3:35 p.m.
Mr. Hartzman stated ICMA-RC was paying ICMA a flat fee for record keeping.
Councilmember Hightower asked who would manage the fund.
Mr. Hartzman responded that Sungard Omni would manage; spoke to architecture retirement plan platforms; and to ICMA-RC selling fee-based managed account services.
Councilmember Wilkins voiced concern with whether or not staff agreed with Mr. Hartzman; the City paying ICMA when they did not need to; spoke to ICMA holding small groups sessions; and asked whose decision it had been to not have ICMA at the meeting today.
Assistant City Manager Mary Vigue stated the City did not have control over the fund line; that the plan had been reviewed; and that staff continued to look at it.
City Manager Westmoreland spoke to the City going through the RFP process; and stated staff could share Mr. Hartzman’s information with ICMA.
Mayor Vaughan stated that Council had never talked about having ICMA present at the work session.
Mr. Hartzman stated he was a whistle blower; spoke to sharing information others would not tell; that ICMA was not expecting someone to come in and lay out what all the fees were; referenced his previous work history with Councilmember Matheny; spoke to changing fees within the contract by changing out the funds in the plan; and referenced teaching ethics to CPA’s.
Councilmember Abuzuaiter asked how long the City would be under a contract with ICMA.
City Manager Westmoreland responded the current contract was until 2018; and that staff looked at the plan quarterly.
|