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Mono County supervisors deadlock on hiring Morgan Stanley fiduciary; motion fails
Summary
After a lengthy presentation and debate, the board voted on a proposal to hire a fiduciary consulting firm affiliated with Morgan Stanley for the county’s 457 and 401(a) plans; the motion failed (reported tally: 4 yes, 2 no, 1 abstention). Supporters said the consultant would help form a governance committee and investment policy documents; opponents cited process and cost concerns.
HR Director Steve Rose and Vincent Galindo of Fiduciary Consulting Group (partnered with Morgan Stanley) presented a proposal for an independent fiduciary to serve Mono County’s 457 and 401(a) retirement plans at a $25,000 annual retainer (first year to be funded by a county appropriation transfer request; subsequent years to be paid from an existing 8 basis‑point participant fee).
Galindo described the consultant’s role as a co‑fiduciary whose legal duty is to act in participants’ best interests, to create governance documents (charter, investment policy statement) and to advise a retirement plan committee. “We work on behalf of the participants,” Vincent Galindo said, adding the firm’s public‑sector experience in California counties.
Supporters said the contract would fund formation of a committee, formal fiduciary education and improved transparency. “The committee is like the fuel to this whole moving forward thing,” Supervisor Peters said, urging approval and quick formation of governing documents. Opponents questioned prior vendor performance, the change in cost from current arrangements, and whether the board had sufficient oversight and communication in prior transitions.
After extended discussion the board moved to approve the recommended action and associated ATR to fund the first year; the chair called the vote and reported 4 yes, 2 no and 1 abstention. The chair announced the motion did not pass.
Board members directed staff to continue work on a governance structure and to bring committee membership and charter proposals back to the board for review.
