SUBJECT: ICMA-RC Agreement Amendment

March 19, 2013

GREENSBORO

TO: Denise Turner Roth, City Manager
FROM: Connie Hammond, Human Resources Director
SUBJECT: ICMA-RC Agreement Amendment

ICMA-RC selected as the third-party administrator of the City 457 Deferred Compensation Plan,
assisted with the transfer of assets in 2008 to our current 457 Plan. They advanced funds to pay
for transfer fees associated with the move and quarterly participant administration fees were put
in place to repay that commitment. We are pleased to inform you that the City 457 Deferred
Compensation Plan will cease charging participants a quarterly administration fee of $7 .00 as of
April 1, 2013.

Staff requested ICMA-RC to conduct a review of our status and consider alternatives to the
participant fees. They responded with an alternative repayment plan, which would eliminate the
quarterly participant fees in exchange for extending the administrative services agreement for
three more years through 2018. There is no cost to the City for this arrangement and the
extension would provide sufficient time for normal earnings from investment houses and mutual
funds to cover the remaining commitment.

This is a positive arrangement for City employees.

Please let me know if you have questions.

CH

cc: Jim Westmoreland, Deputy City Manager
Rick Lusk, Finance Director

http://www.greensboro-nc.gov/modules/showdocument.aspx?documentid=19236
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"ICMA-RC's identified fund line-up is a commitment to administer these funds for the plan, not advice to the plan sponsor on the composition of the plan's fund line-up. ICMA-RC provides plan sponsors fund information to assist them in meeting their fiduciary responsibility in managing the plan. The plan sponsor retains the obligation to prudently select and monitor the investment funds it offers to plan participants. ICMA-RC may adjust fees commensurate with changes in revenue from alternative funds selected by the plan sponsor from ICMA-RC's mutual fund platform."