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CONSENT <br />INDIAN RIVER COUNTY <br />MEMORANDUM <br />TO: Jason Brown <br />County Administrator <br />FROM: Suzanne Boyll <br />Human Resources Director <br />DATE: October 4, 2022 <br />SUBJECT: Authorization of a Side by Side Recordkeeping Agreement with Nationwide <br />Retirement Solutions Inc for Recordkeeping Services for Assets in the <br />Nationwide Fixed Account, the Termination of the ProAccount, and the <br />Application for Group Flexible Purchase Payment Deferred Fixed Annuity <br />Contract <br />BACKGROUND: <br />At its May 3, 2022 meeting, the Board of County Commissioners awarded RFP 2022040 to Lincoln <br />Financial Services and authorized the County to enter into an agreement for recordkeeping <br />services with Lincoln Financial Services for the County's 457 (b) Deferred Compensation Plan. <br />During the plan transition, it was identified that assets in the Nationwide (NW) Fixed Account <br />would be subject to either a Market Value Adjustment (MVA) payment or a 5 Year Put. Under the <br />MVA, the cost in August 2022 was estimated to be $1.2M to transfer all funds to Lincoln. Under <br />the 5 Year Put, the assets in the Nationwide (NW) Fixed Account would transfer to Lincoln at 20% <br />each year over a five year period. During the five year put period, the funds that remained with <br />Nationwide in the fixed account would not be included in the Lincoln recordkeeping agreement <br />because the propriety NW Fixed Account is not on the National Securities Clearing Corporation <br />(NSCC). In order to provide recordkeeping services on the propriety funds' remaining with <br />Nationwide, Nationwide provided the County with a recordkeeping services proposal (attached). <br />Under the terms of the recordkeeping services agreement, Nationwide would continue to provide <br />a quarterly credit rating which will not fall below 1% for the life of the contract and is established <br />at 2.5% for 4C.2022. The recordkeeping fee is .25 bps. <br />Under this agreement, participants in the NW Fixed Account will be provided the following <br />options: <br />1) Participants can choose between 60 monthly payment or 20% of account balance annually <br />to transfer to the Lincoln <br />2) Participants can choose to stay with NW Fixed Account under the terms of the amended <br />recordkeeping agreement and not transition to Lincoln <br />3) Balances under $1,000 can move over in full to Lincoln <br />123 <br />