M&C Review


COUNCIL ACTION:  Approved on 5/16/2017 

DATE: 5/16/2017 REFERENCE NO.: **C-28238 LOG NAME: 14ACTUARIAL AND CONSULTING SERVICES
CODE: C TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:  

Authorize Execution of an Agreement in the Amount of $285,106.00 with PFM Group Consulting LLC, PFM Financial Advisors LLC, and PFM Asset Management LLC for Actuarial and Consulting Services Related to the City's Retiree Benefits (ALL COUNCIL DISTRICTS)


RECOMMENDATION:

It is recommended that the City Council authorize the City Manager to execute an Agreement with PFM Group Consulting LLC, PFM Financial Advisors LLC, and PFM Asset Management LLC for actuarial and consulting services for the City's retiree benefits with a total compensation of $285,106.00.

 
DISCUSSION:

The purpose of this Mayor and Council Communication (M&C) is to seek authorization to engage PFM Group Consulting LLC, PFM Financial Management Advisors LLC, and PFM Asset Management LLC (collectively PFM) to provide benefit modeling and actuarial services necessary to evaluate benefit and funding options for City consideration.

The City currently offers a defined-benefit retirement plan for employees with the plan being administered by the Fort Worth Employees' Retirement Fund (the Fund).  Ongoing rate-of-return and funding concerns necessitate that the City revisit how it offers and funds retiree benefits to balance the goals of offering a competitive retirement benefit that helps attract and retain a well qualified workforce and having a financially stable and sustainable offering that does not overburden Fort Worth tax payers.

This M&C would authorize engagement of PFM to assist in evaluating a variety of retirement benefit options and to provide actuarial analysis of how various options would impact the Fund and the City's current and future operating budgets.

TERM AND RENEWAL — The initial term of the Agreement will be for one year with four renewal options of one-year each. Renewal of the Agreement will not require additional specific City Council approval as long as the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term.

M/WBE OFFICE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Department and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services from source(s) where subcontracting or supplier opportunities exist are negligible.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that funds are available in the current operating budget, as appropriated in the Human Resources Department within the General Fund.




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FROM
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Submitted for City Manager's Office by:
Susan Alanis (8180)
Originating Department Head:
Brian Dickerson (7783)
Additional Information Contact:
Brian Dickerson (7783)

 
 
ATTACHMENTS
  1295.pdf