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Financial adviser recommends switching Pryor retirement recordkeeper to Empower to cut costs
Summary
Edward Jones adviser Joshua Lee told the Pryor City Council that benchmarking shows switching the city's retirement recordkeeper from Principal to Empower could reduce combined annual plan expenses from about $60,000 to roughly $26,000 and improve participant services; he asked for authorization to pursue due diligence and to serve as adviser of record if needed.
Joshua Lee, a financial adviser with Edward Jones, presented a benchmarking review of the City of Pryor's two retirement plans and recommended the council permit staff to pursue a recordkeeper change to Empower or authorize Lee to serve as adviser of record for further due diligence. Lee said the city currently pays about $60,000 a year in combined plan expenses and estimated that the Empower proposal could lower that total to roughly $26,000 annually, "reducing those costs by over $30,000 a year" while offering expanded participant education and weekend phone support.
Lee walked the council through the benchmarking process, explaining the roles of the recordkeeper, the third-party administrator (TPA), and the adviser. He told the council he contacted five recordkeeping providers and that Empower offered "such significant cost reductions and an attractive offer" including reduced basis points on recordkeeping fees, transition-fee assistance and enhanced participant education. Lee added that Paylocity, the city's payroll provider, may supply TPA services that could reduce fees further.
The mayor and councilmembers asked clarifying questions about participation and matching. The mayor noted not all employees participate and urged outreach to increase enrollment; Lee said the city currently matches 10% for participants and that auto-enrollment could be considered though the city's plans are grandfathered under Secure Act 2.0. Lee asked the council to "authorize the mayor, the city clerk, and any other appropriate city staff and I to go into these conversations, finalize pricing, service terms, as well as investment fund lineups" and said a transfer/transition process could take up to 120 days with a 60-day blackout period.
No formal action was taken at the presentation item (the agenda listed it as presentation-only). Councilmembers agreed the topic should be scheduled for full council consideration so members could vote after receiving final pricing and terms.
