Submitted By: Todd Swanson
presenter
Presentation By: Todd Swanson
end
Department: Human Resources and Risk Management
FORMAL TITLE:
title
Administrative Services Agreement between the City of Ocala and MissionSquare Retirement for administration and record keeping services for the City’s Section 401(a) and Section 457(b) Retirement Plans for an initial five-year term
end
OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Engaged Workforce
PROOF OF PUBLICATION:
N/A
body
BACKGROUND:
The City of Ocala sponsors a Section 401(a) defined contribution plan and a Section 457(b) deferred compensation plan for eligible employees. These plans are a key component of the City’s total compensation program and serve as the primary retirement savings vehicles for many employees.
MissionSquare Retirement (formerly ICMA-RC) provides financial services to public employers for the operation of employee retirement plans including, but not limited to, communications concerning investment alternatives, account maintenance, account recordkeeping, investment and tax reporting, transaction processing, and benefit disbursement. The proposed Administrative Services Agreement formalizes the continued administration of:
• Section 457(b) Plan - Account No. 303080
• Section 401(a) Plan - Account Nos. 107737 and 107411
Under the Agreement, MissionSquare Retirement will perform nondiscretionary administrative and recordkeeping functions, including:
• Participant enrollment and account maintenance
• Contribution processing
• Investment allocation and reporting
• Loan administration (if adopted by the Employer)
• Distribution processing
• Participant communications and online account access
• Plan sponsor reporting and website access
MissionSquare Retirement will continue to administer the 457(b) Plan in accordance with Section 457 of the Internal Revenue Code and the 401(a) Plan in accordance with Section 401 of the Internal Revenue Code, as outlined in the Administrative Services Agreement. The Agreement term is five years from the effective date, with automatic annual renewals thereafter, unless terminated by either party with appropriate notice, in accordance with Section 10 of the Agreement.
FINDINGS AND CONCLUSIONS:
Approval of this Agreement ensures continuity of retirement plan administration and recordkeeping services for City employees and retirees. MissionSquare Retirement specializes in public-sector retirement plan administration and maintains the infrastructure to support plan compliance, participant services, and investment reporting.
The Agreement provides:
• Asset-based participant fee structure (currently 0.08 percent) as outlined in Section 8
• Establishment and maintenance of an Administrative Allowance Account for plan-level expenses, if applicable
• Compliance with Florida public records requirements and E-Verify provisions
Continuation of these services supports operational efficiency, fiduciary oversight, and employee retirement readiness. Staff recommends approval.
FISCAL IMPACT:
Recordkeeping and administrative fees are assessed as an asset-based participant fee (currently 0.08 percent of plan assets). They are paid from plan assets, not from the City’s General Fund, as outlined in Section 8 of the Agreement. No General Fund appropriation or budget amendment is required.
PROCUREMENT REVIEW:
The underlying services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
The Administrative Services Agreement has been reviewed and approved as to form and legality by City Attorney William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny