Title
Award of Retiree Health Plan & the Disability Pension Plan Investment Performance Consultant Contract (NB)
Explanation
The City recently amended its investment ordinance to provide for a change in the manner in which assets of the Retiree Health Plan and the Disability Pension Plan trust funds are invested. The objective is to convert the investment process for the assets of these trust funds to the process utilized for the City's other two (2) defined benefit pension plans. An important part of this process is utilizing a performance consultant to assist management in selecting investment managers, determining the proper asset allocation mix for the funds, and monitoring and reporting on the performance of the investment managers.
A Request For Proposals for performance consultant services was distributed to 178 firms and 9 responses were received. Based on the evaluation of these responses, staff recommends award of the contract to Smith Barney Consulting Group.
Fiscal Note
The proposed change to the permitted investment instruments in the Retiree Health Plan Trust Fund and the Disability Pension Plan Trust Fund should enhance the return on investments in the two funds over time, and other factors held equal, work to reduce the plan sponsor's required contributions to these funds. Monies are available in the trust funds to cover the expense associated with the consultant contract.
Recommendation
The City Commission authorize the Interim City Manager or designee to negotiate and execute a contract for performance consultant services with Smith Barney Consulting.