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City advised to consolidate deferred-compensation plans; consultant estimates $300,000 annual savings
Summary
An investment adviser recommended Fort Myers consolidate two deferred-compensation platforms to lower recordkeeping and fund fees, simplify investment options and add low-cost index funds; consultant Paul Murray estimated nearly $300,000 in annual savings for participants.
Paul Murray of Mariner Institutional updated the council on a review of the city’s deferred compensation arrangements and recommended consolidating the two existing platforms. Murray said the city’s employees hold about $30 million on the Nationwide platform and roughly $10 million on MissionSquare, and that combining them onto a single, lower-cost lineup would substantially reduce administrative expenses.
"We estimate that the total savings for employees in the plan, they pay the expenses, almost $300,000 a year," Murray said. He described mapping current funds into a smaller, 18-option core lineup, adding low-cost index options and a self-directed brokerage account for participants who prefer alternatives. Staff said no council vote is required today; the oversight committee approved the consolidation recommendation and staff will provide printed materials and follow-up communications to participants and to NationWide/MissionSquare as appropriate.
