Defined Contributions Plan Committee unanimously recommends Fiduciary Consulting Group for investment consulting

At a Jan. 14 special meeting in Sacramento, the Defined Contributions Plan Committee voted unanimously to recommend the city award a contract to Fiduciary Consulting Group (FCG) to provide investment consulting services.

Committee members said they reviewed multiple proposals but generally favored retaining the incumbent firm; Member Colville moved to recommend the award to FCG and Member Kang seconded. The clerk conducted a vocal roll call and the motion passed unanimously.

Why it matters: The committee’s consultant advises on investment options, record-keeper fees and fund lineups for the city’s defined contribution plans. Members said the consultant’s advice has had material financial impact in past years and flagged a need for clearer, more direct access to consultant expertise.

Discussion and position: Several members praised the history and results of using outside investment consultants, with one member saying the decision to hire outside expertise “ended up saving our participants more than $1,000,000 every year.” That member also voiced frustration that committee members cannot always communicate directly with the consultant and described staff as a gatekeeper: “You can't talk to him. He can't talk to you. You can't ask him to do something,” the member said, arguing the committee “deserves the ability to have a more complete relationship with our investment consultant.” Staff and other members said governance and union processes have shaped how communications are routed and reminded the group that contracting authority rests with the city.

A newer committee member said a proposal from Retirement Plan Advisors’ Josh to adjust the glide path in target-date funds (citing Alameda County experience) was interesting and worth exploring with the incumbent rather than switching firms immediately, arguing that maintaining continuity while piloting policy changes could add value.

Contract and vote details: The motion was moved by Member Colville and seconded by Member Kang. The committee’s vocal roll call recorded affirmative votes from Member Regani, Member Colville, Member Kang, Member Tunson, Member Gardella, Vice Chair Levison and Chair Hoekstra; the clerk announced the motion passed unanimously. The motion language clarified the committee’s action was a recommendation that the city award the contract to Fiduciary Consulting Group.

What was not decided: Members raised governance and communication issues—how the committee and city staff coordinate with consultants and the committee’s formal authority over agenda-setting—but no formal changes to committee structure or communications procedures were adopted at the meeting.

Next steps: The committee’s recommendation will be forwarded to city staff for contracting; members said they expect to continue discussions about committee roles and to follow up on specific technical proposals (such as glide-path adjustments) with the incumbent consultant.