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Meeting Date:
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1/12/2010 - 7:30 PM
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Category:
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Consent Agenda
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Type:
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Action
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Subject:
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9.16 (Item 16) Change in Third Party Administrator and Common Remitter for IRC Section 403(b) and 457 plans.
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LCAP (Local Control Accountability Plan) Goal:
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Enclosure
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File Attachment:
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Summary:
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For the past three years, Tax Deferred Services, Inc. has served as third party administrator and for the past year and a half as common remitter for the District's Section 403(b) and 457 plans.
Recently, district employees have experienced significant issues in customer service by TDS.
Additionally, TDS informed the District that it would begin charging a fee for plan compliance services that were previously included at no additional cost to either the District or its employees. The fee structure was such that the 403(b) vendors would be billed and they in turn could bill the employees. If the district declined to allow the employees to be billed, TDS required the vendors be dropped or the District would be assessed an additional fee. This substantially changed the agreement the District entered when the plan was started.
The Contra Costa County Office of Education issued a Request for Proposals for these services in the fall in which the District participated. Ten Firms responded, and the top three of which were interviewed. Reference checks have been completed and we now recommend that the team from Great American Plan Administrators, utilizing Zuk Financial for the employee education piece of the program be contracted for these services beginning in the 2010 tax year.
Great American has waived fees, if their 403(b) plan is an approved vendor of the District. Great American was already on the District's 403(b) vendor list so no changes to the list are necessary.
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Funding:
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N/A
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Fiscal Impact
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None.
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Recommendation:
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Approval as presented is recommended.
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Approvals:
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Recommended By:
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Signed By:
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Bryan Richards - Chief Financial Officer
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Signed By:
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Richard Nicoll - Interim Sup
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