AGENDA MEMORANDUM

 

 

Meeting Date:           July 26, 2010

 

From:                          Jay M. Evans, City Manager               

 

Subject:                      Ordinance amending the City of Leesburg Retirement Plan for General Employees

 

 

Staff Recommendation:

Staff recommends adoption of the proposed ordinance amending the City of Leesburg Retirement Plan for General Employees.

 

Analysis:

The Board of Trustees for the Retirement Plan for General Employees have recommended the attached ordinance be adopted amending Section 4, Finances and Management, subsection 6.C., to eliminate the word “independent” in reference to the consultant that is hired to review the performance of the plan’s investment managers.  The Board recognizes that there are situations where a consultant could be precluded from assisting the Board in investment manager evaluation due to a de minimis and ancillary relationship with one of the managers.  The Board believes that some situations may represent a very remote potential for conflict of interest, and that a greater benefit is derived from engaging these consultants.

 

The proposed language would eliminate the word “independent”, and would add a requirement that “The Board and the consultant shall make reasonable efforts to eliminate or minimize any potential or actual conflicts of interest that any such consultant retained by this Board may have”.

 

The ordinance was drafted and is approved by the Plan Attorney.

 

Options:

1.  Approve the Ordinance amending the Retirement Plan for General Employees; or

2.  Such alternative action as the Commission may deem appropriate

 

 

Fiscal Impact

The plan’s actuarial firm, Foster and Foster, has reviewed the proposed change and indicate there is no financial impact to the plan.

 

 

Submission Date and Time:    7/22/2010 10:41 AM____

 

Department: ______________________

Prepared by:  ______________________                     

Attachments:         Yes____   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________