To: Martin L. Cousineau, Finance Committee Chairperson
From: Chrystal Simpson, Chief Financial Officer
title
RE: Approval of an agreement between Genesee County and Nationwide to provide for Genesee County's 457(b) and 401(a) plans
recommendation
BOARD ACTION REQUESTED:
Requesting approval of amendments to the adoption agreements and a three-year Administrative Services Agreement amendment.
BACKGROUND:
The County has been with Nationwide since 2020 for the 457(b) and 401(a) plans. The County previously administered the plans with ICMA-RC but transitioned to Nationwide for lower cost and better transparency to the participants.
DISCUSSION:
The attached Nationwide agreements include:
401(a) Plan Adoption Agreement - restatement to move to Nationwide's new prototype documents,capture the changes that were implemented due to the original SECURE Act and the CARES Act, and updating in-service age from 70.5 to 59.5.
457(b) Plan Adoption Agreement -restatement to move to Nationwide's new prototype documents and capture the original SECURE Act and the CARES Act, but also implements the in-plan Roth conversion feature, and updating in-service age from 70.5 to 59.5.
Administrative Services Agreement - Pricing concessions as follows:
1) Reduction of the current 0.03% Nationwide explicit asset fee to 0.025%. This would result in savings to participants of $15,236 annually based on 9/30/2025 plan assets.
2) Reduction of the current Nationwide ProAccount program fee by 0.05% across all tiers, with the highest tier being reduced from 0.60% to 0.55% annually. This would result in savings to participants enrolled in ProAccount of $29,637 annually, again based on 9/30/2025 ProAccount assets.
3) An increase in the crediting yield for the Nationwide Fixed Account, with a guarantee to remain at or above 2.05% for the first year of the extension. After the first year, the crediting yield will be adjusted according to market conditions. This 0.20% increase over the curre...
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