RECOMMENDATION(S): (CONT'D)
FISCAL IMPACT:
The contract is funded by an $18 administration fee charged to participant 457 Deferred Compensation Plan accounts. There is no fiscal impact beyond overhead administrative support costs, which are offset through the Contra Costa County Deferred Compensation Plan (I.R.C. § 457) (“the Plan”).
BACKGROUND:
In July of 2019, the County approved a contract with Great-West Life & Annuity Insurance Company, d/b/a Empower Retirement, with regards to the Contra Costa County Deferred Compensation Plan (I.R.C. § 457) ("the Plan").
Empower provides specific administrative and recordkeeping services in connection with the Plan. Empower provides enrollment support to the County and its employees. Empower also provides for initial and ongoing education for new hires and those who choose to participate in the Plan ("Participants"), including face-to-face group sessions and on-on-one consultations. Participants are provided access to a participant website that is customized to their needs and will provide Plan Participants with powerful tools that they can use 24/7. Among other options, Participants are able to do the following on the participant website:
make beneficiary designations;
calculate estimated health care expenses based on individualized information;
calculate estimated monthly retirement income and goals based on Participant's financial data;
access information about investment options, such as prospectuses.
Participants are able to contact Empower through various means:
- Through the participant website. Participants can access real time conversations with customer service representatives using Live Chat.
- By phone. Participants are able to contact Empower service representatives through the toll-free number 833-457-2626. Empower's toll free customer service hours include evenings and Saturdays.
- By a toll-free automated voice response system, Participants are able to inquire or make account changes from a touch-tone telephone. Inquiry services available from the automated voice response system will use share prices, unit values and account balances that are as of the last calculated unit value/share price.
Empower's customer service representatives and field onsite representatives are required to hold Financial Industry Regulatory Authority Series 6 and 63 licenses, meaning that, when authorized, they have the capacity to provide professional financial advice to Plan Participants.
Empower provides educational and communication materials to Participants regarding financial investing, retirement options, and planning tools pursuant to the Plan. In addition, Empower makes quarterly benefit statements available to Participants, including on the participant website, and circulates Plan notices.
Empower offers fully automated loan administration, making it easy for Participants to monitor as well as apply for loans. They also administer distributions to Participants, process Participant rollover contributions and provide Participants with transaction and investment statements.
Empower provides annual reports to the County concerning the services it has provided, as well as other information such as investment-related and benefit payment information. The County, as the Plan Sponsor, has access to Empower’s online recordkeeping system which allows for communication regarding inquiries or changes.
The agreement with Empower contains modified indemnification language. Following the expiration of this extension, an additional option to renew the contract for one more year will remain under the parties’ contract.
CONSEQUENCE OF NEGATIVE ACTION:
Without the contract amendment, the County will not have a contract in place for the performance of necessary recordkeeping and administrative services in connection with its 457 Plan.