Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pension Investments topic
No spam. Unsubscribe anytime.
San Joaquin County deferred-comp plans grow to about $634 million in second-quarter review
Summary
Nationwide reported second-quarter growth across San Joaquin County’s 457 and 401(a) plans, highlighted by asset growth of about $40 million, rising participant counts and increased online engagement; routine metrics and operational items were reviewed at the Sept. 2 Deferred Compensation Advisory Committee meeting.
Nationwide representatives reported that San Joaquin County’s deferred-compensation plans grew by about $40,000,000 during the April–June quarter and ended the quarter with combined assets near $634,000,000.
The quarterly report, presented by John Stegall of Nationwide, laid out participation and flows across both the 457 and 401(a) plans. "You can see that gainloss number was $40,000,000 and so that's what the plan grew by in that 3 month period. Your plans, both of them ended the quarter at $634,000,000," Stegall said.
The presentation summarized participant and account statistics. At quarter end the 457 plan had 7,641 participants and an average account balance of about $78,000, Stegall said. Participation behavior showed nearly 52% of plan assets were held by current county employees and about 46% by terminated participants. Roth balances totaled about $12,000,000, with 1,353 participants using the Roth option.
Nationwide’s report included inflows and outflows. New salary deferrals in the quarter were roughly $6.3 million, while rollovers and transfers out totaled about $6,000,000. Loan activity showed $3,200,000 in active loan balances, 360 active loans on the books, 41 new loans issued in the quarter and 21 loans closed, with an average loan amount of about $9,000, the report said.
Brenda, a Nationwide field representative who gave the local update, said outreach is steady: “last quarter, we had 171 people from the County participate” in education events, and she described presentations to retirees and hospital staff to explain retirement planning features and product options.
The committee also reviewed engagement metrics for the 457 plan: about 73% of eligible participants have elected e-delivery, 67% have online accounts, and roughly one-third of distributions are completed online. Nationwide reported almost 3,000 participants have used the plan’s retirement-planning software since implementation.
On investments and governance topics, the report noted plan-level changes in product structure: the committee expects T. Rowe Price target-date vintages to move to a collective investment trust structure soon, which the report said will reduce average expense from about 41 basis points to 37 basis points and is estimated to save roughly $75,000 annually across both plans. The report also put the Vanguard International Value fund on the watch list and recommended replacing it; that recommendation was discussed later in the meeting and moved to a vote.
Committee members asked clarifying questions about specific line items and operational matters; Nationwide staff said they would provide additional documentation where requested. No changes to plan design were approved at this point beyond the investment-item motion later in the meeting.
The committee approved the minutes from the May 29 quarterly meeting with an amendment noting that a prior motion on the investment-policy history had been amended and would be revisited at a later meeting. The amended-minutes motion carried unanimously.
