Committee reviews move to Empower Retirement for county deferred compensation plans; no committee vote recorded

New Castle County’s Administrative Finance Committee on Sept. 9 discussed Resolution 25-155, which would authorize the county executive to execute a master services agreement with Empower Retirement LLC to serve as third-party administrator for the county’s 457(b) deferred compensation plan and the 401(a) defined-contribution portion of the county 2011 plan. The committee did not record a committee vote on the resolution during the session.

The measure, introduced by Councilman John Cartier, was presented as a replacement for the county’s current administrator, MetLife. Council members and staff focused on the transition process, expected administrative fee savings and continuity of service for plan participants. “We will be transferring, like for like, from fund to fund,” Dave Del Grande, New Castle County chief financial officer, said. Del Grande said MetLife’s current fee was 43 basis points and the county would move to a 26.5 basis-point schedule under Empower.

Councilman Sheldon asked whether participants would be “automatically be rolled into, like, the S and P 500 or an index fund,” and Del Grande responded that the county plans to transfer participants “like for like” and make adjustments only where exact matches are unavailable. He said two funds lacked direct matches; one — described in the meeting as the “strategic value annuity fund” — would be liquidated and participants moved to a similar option. Del Grande said participants affected by that conversion would be “made whole by Empower” and that a one-year charge described in the meeting as “six and a half percent basis points” would apply to users in that transition fund.

Del Grande outlined timing for the switch: the last payroll deduction under MetLife would be Oct. 10 and a short “blackout period” was planned for Oct. 15 to complete the transition. He said employees would be notified of the change and that two current administrators would transfer from MetLife to Empower; the transcript names Lisa Radzinski as one of those administrators.

Councilman Street expressed concern about frequent provider changes, saying the transition process “is a painful employee” experience and that he hoped for continuity. Cartier and other council members said the change had been reviewed and recommended by the county’s deferred compensation committee and the pension board of trustees for the defined-contribution portion of the plan. Those committees’ reviews were cited in the resolution’s supporting materials but the committee did not take a formal vote on the resolution during the meeting.

No public comment was recorded on the resolution during the committee meeting.

The administration and council said plan holders would receive written materials and outreach; Del Grande said the county would coordinate communications, including a presence at an upcoming health fair to assist employees with any online resets or questions.