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McAllen staff proposes 457 investment committee to oversee roughly $30 million in employee assets
Summary
City staff briefed the McAllen City Commission on plans to create a 457 investment committee to strengthen governance and oversight of roughly $30 million in employee retirement assets; a resolution to establish roles and responsibilities is on a future agenda item but no vote occurred in the workshop.
City staff on Monday outlined a plan to create a 457(b) investment committee to oversee approximately $30 million in city employee retirement assets and improve governance and fund performance.
The proposal, presented at a McAllen City Commission workshop, said MissionSquare holds about $23 million of the assets and Nationwide—which serves firefighters’ 457 accounts—holds just over $6 million. Staff said a resolution on the commission’s agenda will establish roles and responsibilities and formally begin implementation of the investment committee.
Staff described six service factors the committee will monitor: fees, fund mix, fund performance, regulatory compliance, support services and education. The presenter said the city has engaged an outside consultant, NFP, to review plan performance and provide ongoing advice. “As a result of establishing that, we can ensure that the city is having improved governance, improved expertise, better risk management, and better compliance, as well as improved plan performance for the members’ accounts,” the presenter said.
Staff outlined the proposed committee membership: the city manager, Jeff Johnston, the presenter, two finance directors and the general manager of public utilities; plus three at-large plan participants, one police officer and one firefighter. Staff said the at-large and first-responder seats are intended to give plan participants a voice in oversight and to help identify duplicate or at-risk funds within plan menus.
No formal vote or committee appointment was recorded during the workshop. Staff said the resolution to establish the committee appears on the meeting agenda for a future action item and that implementation steps will follow after the commission acts.
The presenter said the city has partnered with NFP for a multi-month review and will use that analysis to inform committee work and future changes to plan options and education for employees.
The workshop recessed into executive session and returned before the 457 discussion; staff answered no additional questions about the item during the session.
