CITY COUNCIL AGENDA ITEM
Memo Date: May 5, 2021
Agenda Date: May 11, 2021
Prepared By: Rebecca Bowman, MBA, CGFO, CGFM/Finance Director
Through: Stockton Whitten, City Manager
Requested Action:
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Approval of the Retirement Plans Investment Policy and Committee Charter for the City's 401(a) and 457(b) plans.
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BACKGROUND:
The City of Cocoa offers a 401(a) defined contribution plan and a 457(b) deferred compensation plan as a voluntary employee election. The City has traditionally used only the investment selections that are presented by the investment custodians. In being more fiduciarily responsible and transparent to the City employees, the Staff has worked with the City's Investment Plan advisor, Sageview, to develop an investment policy that will establish the guidelines and policies for the for the 401(a) defined contribution plan and a 457(b) deferred compensation plan. The Investment Policy is intended to assist the Retirement Plan Committee (the "Committee") in effectively selecting, monitoring and evaluating investment alternatives made available to participants under the Plan. It outlines and prescribes a prudent and acceptable investment philosophy and sets out the investment management procedures Highlights of the Investment Plan are as follows:
* Establishes a Retirement Plan Committee as Plan fiduciaries that supervise the investment of the assets of the Plan, and make decisions concerning investment alternatives available under the Plan.
* The Plan intends to provide a broad range of investment alternatives. This includes having, at a minimum, three diversified investment alternatives that are sufficient in permitting the participants to materially affect the potential return and degree of risk on their accounts, and to minimize the risk of large losses.
* Evaluation of investment alternatives on an ongoing basis using several measures that quantify the expenses, returns and risk-adjusted performance of each investment alter...
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