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City manager pitches adding ASRS and PSPRS 457 deferred‑comp plans to lower fees for employees
Summary
City staff and a Nationwide Retirement Solutions representative briefed the council on adding Arizona State Retirement System (ASRS) 457 and Public Safety Personnel Retirement System (PSPRS) 457 deferred‑comp plans to reduce fees for employee retirement accounts and increase savings options.
Clark Crowder of Nationwide Retirement Solutions presented to the Nogales City Council on Aug. 6 on proposed additions to the city’s supplemental deferred compensation offerings: ASRS 457 and a PSPRS 457 plan for public‑safety employees. City Manager Joel Kramer said about 20% of employees currently participate in a supplemental plan and the city is working to improve participation.
Crowder said Nationwide currently administers the city’s deferred compensation program but that joining the ASRS/PSPRS 457 options could reduce explicit asset fees for participants. ‘‘Our explicit asset fee is 0.06 [percent] in the ASRS plan and 0.05 in the public safety plan,’’ Crowder said, contrasting that with a 0.85 percent asset fee on the city’s current small‑asset plan. He said lower fees mean more money stays invested for employees’ retirement.
Crowder and Kramer told the council the change would also shift certain fiduciary responsibilities to the plan administrators (ASRS/PSPRS and Nationwide), which managers said would relieve some oversight duties from the city. Kramer said the city has roughly 40 employees enrolled in the current plan with about $850,000 in assets and that transferring to a larger plan could reduce fees for employees.
Council members had no objection to staff pursuing the addition of the ASRS and PSPRS deferred‑comp options and asked staff to continue outreach to employees as part of onboarding and benefits communications.
Ending: Staff will pursue next steps with Nationwide and HR to add the new plan options to onboarding materials and communicate choices to employees.
