Office of the Superintendent of Schools MONTGOMERY COUNTY PUBLIC SCHOOLS Rockville, Maryland. March 10, 2015

Transcription

1 ACTION Office of the Superintendent of Schools MONTGOMERY COUNTY PUBLIC SCHOOLS Rockville, Maryland March 10, 2015 MEMORANDUM To: From: Subject: Members of the Board of Education Larry A. Bowers, Interim Superintendent of Schools Defined Contribution 403(b)/457(b) Administrative Services Provider Recommendation The Board of Education sponsors and maintains two separate defined contribution plans that allow employees to voluntarily save amounts for retirement on a pre-tax basis: the Montgomery County Public Schools Tax-Sheltered Savings Plan, a 403(b) plan, and the Montgomery County Public Schools Tax-Sheltered Savings Plan, a 457(b) plan. Montgomery County Public Schools staff recently completed a detailed and comprehensive request for proposals process and has made a recommendation to the Board of Education Fiscal Management Committee at its February 23, 2015, meeting that the Board of Education select Fidelity Investments as the administrative services provider for the 403(b)/457(b) plans. The process leading to that recommendation is detailed in the attached memorandum of February 23, 2015, from Dr. Andrew M. Zuckerman, acting chief operating officer, to members of the Board of Education Fiscal Management Committee. I am recommending that a contract to administer the 403(b)/457(b) plans be awarded to Fidelity Investments and propose the following resolutions for the Board of Education s approval: WHEREAS, The Board of Education sponsors and maintains the Montgomery County Public Schools Tax-Sheltered Savings Plan, a 403(b) plan, and the Montgomery County Public Schools Tax-Sheltered Savings Plan, a 457(b) plan, which are defined contribution retirement savings plans for eligible employees (together, the Plans ); and WHEREAS, The Plans authorize the Board of Education to appoint a third party as the administrator and recordkeeper for the Plans and to enter into a contract with the recordkeeper or another third party to provide investment education and/or advice to participants in the Plans; and WHEREAS, The Board of Education has periodically authorized bids from third parties to provide various services and investment products for the Plans; and

2 Members of the Board of Education 2 March 10, 2015 WHEREAS, Having been duly advertised under Request for Proposal No , administrative services firms were asked to submit proposals for consideration for providing administration, recordkeeping and investment education and/or advice services to the Plans; and WHEREAS, Montgomery County Public Schools engaged the services of an investment consultant, Aon Hewitt (formerly known as Hewitt EnnisKnupp) to assist in the evaluation of proposed responses; and WHEREAS, Two of the six vendors that submitted proposals were selected for finalist interviews and were asked to commit to best and final pricing, performance guarantees, and specific contractual commitments; and WHEREAS, The Fidelity Investments evaluation has identified that it best meets the needs of the Plans and their participants; and WHEREAS, The Board of Education Fiscal Management Committee has reviewed the recommendation of Montgomery County Public Schools staff in the memorandum of February 23, 2015, from Dr. Andrew M. Zuckerman, acting chief operating officer, to the Board of Education Fiscal Management Committee and has determined that it is advisable and in the best interests of the Board to adopt that recommendation; now therefore be it Resolved, That a contract for providing administration and recordkeeping services to each of the Plans be awarded to Fidelity Investments; and be it further Resolved, That a contract for providing investment education and/or advice to participants in the Plans be awarded to Fidelity Investments: and be it further Resolved, That the interim superintendent of schools is hereby authorized and directed to take such actions and negotiate and execute such documents as are necessary and appropriate to carry out the foregoing resolutions. LAB:AMZ:SGD:mg Attachment

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