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McKinney committee recommends Voya as sole 457 deferred-compensation provider, cites large fee savings
Summary
A city committee recommended consolidating McKinney’s 457 deferred-compensation plans with Voya after an RFP and consultant review found substantially lower fees and improved participant tools; the city manager will forward the recommendation to council, which is scheduled to consider it Sept. 2.
A committee advising the City of McKinney recommended selecting Voya as the city’s sole 457 deferred-compensation plan provider, citing lower fees and improved participant tools, HR Director Jim Parrish said during an employee meeting.
The recommendation follows a consultant-led review and a February request for proposals that compared fees, fund performance and participant technology across multiple vendors. Parrish and committee members said the review found current fees charged through the two incumbent providers — MissionSquare and Nationwide — were substantially higher than competing offers.
The committee’s report and presentations, provided to city staff, estimated current combined fees of about $225,000 a year under the two-provider arrangement and projected annual fees near $12,000 if the program is consolidated with a single provider. “We go from $225,000 to $12,000 per year in savings,” said Jim Parrish, HR director. Parrish said those savings are paid from employee contributions and therefore would increase participants’ net…
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