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Committee approves revised governance for city deferred‑compensation plans, adds participant seats
Summary
The Finance Committee approved revised rules to restructure the deferred compensation committee, add plan‑participant representatives, and set quarterly oversight to review plan performance and options.
The Aurora Finance Committee on Aug. 28 approved revised rules for administering the city’s deferred compensation plans that restructure the oversight committee and add participant representation.
Dan Ferguson, accounting manager, said the committee was first established in February 2003 and that the market for deferred compensation has changed substantially since then. Under the revised rules the voting committee will continue to include the chief financial officer/city treasurer and the chief human resources officer, but the corporation counsel role will shift to an advisory capacity. The third voting seat will be designated for a mayoral office representative (the mayor’s chief of staff or another designee).
Ferguson said the committee will add two plan participants: one active employee who currently participates in a plan and one retired participant, to provide participant perspectives. He told the committee there are currently seven deferred‑compensation plans/record keepers available to employees; three plans are open to new participants and the others remain administratively maintained for legacy participants. Ferguson and aldermen said multiple record keepers create administrative inefficiencies and potential fee savings; any consolidation or changes in offerings would be an outcome for the newly structured committee to consider.
Committee members asked whether the participant seats were required or discretionary; Ferguson clarified the language and confirmed the seats are to be filled by current participants. The committee approved the revised rules 5‑0. Motion: Alderman (motion name inconsistent in transcript) to adopt; second: Edward J. Bugg. Outcome: approved 5‑0.
Ferguson said the new committee is expected to meet quarterly to review investment performance, fees and record‑keeper responsibilities; substantive decisions — such as reducing the number of record keepers or consolidating plan options — would come back to the committee for formal consideration.
