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In addition, Nationwide will extend the 3.5% guaranteed rate on the NW Fixed Account an additional <br />12 months for a total of 24 months; after which the rate could be adjusted quarterly. It is important to <br />note that the new fixed account would have a minimum rate of 1.00% (meaning the 3.5% can go no <br />lower than 1%). Currently the fixed account cannot go below 3.5%. There are currently 35 participants <br />solely invested in the Nationwide Fixed Account and 62 additional participants with some portion of <br />assets invested in the Nationwide Fixed Account. <br />The committee will discuss the above two Nationwide options, selection of new funds, and the mapping <br />of existing funds to the new funds after approval by the Board of County Commissioners of a single <br />deferred compensation provider. <br />The committee's investment goals are: <br />• Select 10-20 core investments <br />• Select Target Date funds (TDFs) <br />• Continue with Nationwide Fixed Account <br />• Reduce recording keeping fees <br />The RFP process has resulted in a substantial reduction in fees under a consolidated deferred <br />compensation program. If the Board elects to contract with Nationwide and the committee agrees to <br />continue with the Nationwide fixed fee account, the savings to employees is estimated to be over <br />$195,000 annually in recordkeeping fees ($231,000 previous fees less $35,580 new fee). The new fee <br />calculation is $29.65M x 0.12% = $35,580. There will also be additional investment related savings for <br />participants once the new fund lineup is in place. <br />RECOMMENDATION <br />Staff recommends: <br />1. Awarding the deferred compensation contract to Nationwide with a term of five years with two <br />optional 2 -year extensions. <br />2. Approval to revise Section 104.5 Deferred Compensation of the Indian River County Code of <br />Ordinances. <br />Upon the Board's approval of staff's recommendation, staff will work with the County Attorney's office <br />and bring back the contract for approval by the Board as well as revise Section 104.5 of the Indian River <br />County Code of Ordinances. <br />P55 <br />