Agenda

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C. 39

To:	Board of Supervisors
From:	Dianne Dinsmore, Human Resources Director
Date:	December 13, 2016

Contra

Costa

County

Subject:

APPROVE and AUTHORIZE the Director of Human Resources, or designee, to execute a contract amendment with Massachusetts Mutual Life Insurance Company

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 12/13/2016

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	Ann Elliott, (925) 335-1747
cc:	Ann Elliott Lisa Lopez Nancy Zandonella

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: December 13, 2016
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Director of Human Resources, or designee, to execute a contract amendment effective December 1, 2016 with Massachusetts Mutual Life Insurance Company (MassMutual) to clarify the distribution process for the Reimbursement Budget Account (RBA) associated with the County 457 Deferred Compensation Plan.

FISCAL IMPACT:

This contract amendment will allow the County to request an annual disbursement from the Reimbursement Budget Account (RBA) for allowable administrative fees and distribute the excess funds to plan participants. (No Fiscal Impact)

BACKGROUND:

MassMutual and the County have agreed upon a Target Net Annual Revenue for administrative services with respect to the plan of 0.10% of plan assets, or 0.025% per calendar Quarter. In the event that MassMutual’s calculated net revenue for administrative services for any Quarterly period exceeds the Quarterly per Participant charge payable to MassMutual, they will credit the difference to the RBA for the plan. The plan consistently exceeds this threshold and

BACKGROUND: (CONT'D)

the resulting funds cannot be allowed to accumulate without a plan for distribution. The original contract with MassMutual, implemented in 2014, left the distribution of the RBA and processing of administrative fees unresolved and marked that section of the contract with the place holder of “TBD”. With this amendment, once the County has requested a reimbursement for administrative fees, the balance of the RBA will be distributed pro-rata per participant in compliance with the contract provisions.

CONSEQUENCE OF NEGATIVE ACTION:

If the contract is not amended, the County will not be able to claim reimbursement for administrative fees and the 457 Deferred Compensation Plan will not be able to properly distribute the Reimbursement Budget Account to plan participants in compliance with Department of Labor guidelines.