DATE: July 14, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russ Truell, Assistant City Administrator/CFO
SUBJECT:
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Consideration of Resolution 2016-43, A Resolution Authorizing The City Administrator Or Mayor To Execute A Participation Agreement With Vantage Trust Company LLC On Behalf Of The City 401 Retirement Plan (COF Contract 2016-0240). (08/09/16 WS)
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning an updated participation agreement, Contract 2016-0240, for the investment of participant funds in the City 401 retirement health savings plan account.
Background
Due to changes in money market account rules, a revised participation agreement is required to comply with federal law. This participation agreement incorporates changes to a collective investment trust format of available funds and makes the City of Franklin plan fully compliant. It also changes the method in which fees are applied to individual accounts.
Financial Impact
The fees charged to participants for money market accounts is slightly lower than for previous investment funds.
Recommendation
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Staff recommends approval of Resolution 2016-43, authorizing the City Administrator or Mayor to execute a Participation Agreement with Vantage Trust Company LLC on behalf of the City 401 retirement plan (COF Contract 2016-0240).