To: Board of Supervisors
From: Ann Elliott, Human Resources Director
Report Title: Contract with Empower Trust Company, LLC for the Collective Investment Trust for the 457(b) Deferred Compensation Plan & 401(a) Defined Contribution Plan
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the County Administrator, or designee, to execute a contract with Empower Trust Company, LLC for the Collective Investment Trust for the 457(b) Deferred Compensation Plan & 401(a) Defined Contribution Plan to provide the Empower Stable Value Fund as the stable value investment option, for the period January 1, 2025, through December 31, 2027, subject to approval as to form by County Counsel.
FISCAL IMPACT:
The contract is funded by fees charged to participant 457(b) Deferred Compensation Plan & 401(a) Defined Contribution Plan accounts. The annual administrative fee per participant is $12.50. There is no fiscal impact beyond overhead administrative support costs, which are partially offset through the Contra Costa County Deferred Compensation Plan (I.R.C. ? 457) 401(a) Defined Contribution Plan (I.R.C. ? 401(a) ("the Plan").
BACKGROUND:
A Request for Proposals (RFP) for the 457(b) Plan & 401(a) Plan Recordkeeper Services was issued in April 2024. Empower Annuity Insurance Company of America was determined as the best match for the County's requirements. The Participation Agreement appoints Empower as the Trustee for the Empower Trust Company, LLC Stable Value Fund.
The Empower Stable Value Fund is one investment option under the Plan. It is a capital preservation investment in the form of an investment fund. The Stable Value Fund maintained by Empower has two objectives: 1) to seek to provide safety of principal; and 2) consistency of returns with minimal volatility, while maintaining a stable credited rate of interest. Empower has retained one of its affiliates, Empower Capital Management, LLC, as Emp...
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