1988 AGN JAN 05 I07 - Laserfiche WebLink

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�. CITY OF COLTON ,moi AGENDA REPORT For Council Meeting of Jan, uarY 5 19 8 8 TO: Honorable IMayor and City Council FROM: Leslie A. Keane, Assistant Cit y Manager SUBJECT: ADOPTION OF RESOLUTION NO.R-3-88 EXISTING DEFERRED COMPENSATION PLANMANDFADDINGU TH. ICMA RETIREMENT December 30, 1987 CORPORATION AS ALTERNATIVE PLAN AE DMIN13 As a part of its employee Ployee compensation plan, the City contributes 2.147° of the base salary of all non -sworn employees to a defer_ compensation plan, All employees red contribute additional monies to (including sworn) may also years, the City has utilized a numberofbanks and financial . During the last t insti- tutions to administer_ its deferred compensation plan, administrators and investment options have been added, old Options As new have not always been phased out. Employees currently h ons following investment options: y have the 1• Keystone Discount Bond Fund 2• Three Seligman Mutual, Funds 3. Union Mutual Guaranteed Anuity Fund 4• Numerous Prudential-Bache Stock and Bond Funds BacheThe administration of the overall program is handled b Bache, a broker and money management firm, o Prudential- , 'compensation program administrators and have lit They are not professional over the institutions and funds not directly little control organization (#1, 2 and 3 above). The o related ss their responsibility for the: continued legality do not assume the employees' contributions or y of the City,s program, its further_ complicated by the lackofagreements signed b th This situation is any of the institutions offering investment options. The Cit�t not currently),y and nor has it ever, had in- y does required to manage a multi -option deferred compensation program. house staff with the expertise During the last eyar, we have experienced increasing difficulties with Prudential-Bache's administration of our deferre program. Deposits are not alwa s d compensation employees' monies have been postedptoincoorrecti .ilnely basis vesttment accountand some .Since Prudential-Bache is :not a administrator professional deferred compensation s. there have been numerous questions raised about the City's ability to meet the legal requirements imposed b Revenue Service .for the continuation of our as noted bm. n the Internal Y our independent financial auditopsogna_lastln addition, Management Letter, we do not receive reports from the investment institutions necessary to reconcile the status financial transactions on a timelyvarious basis, s of our Attachments: ( 4 ) Page 1 of_____3_ Item No.