Title
Deferred Compensation Plan 457(b) Plan
History
The village currently offers 457(b) deferred compensation plans through the following providers, ICMA-RC, Nationwide, and MassMutual (formerly The Hartford). Retirement Plan Advisors (RPA) serves as the authorized provider of investment advisory services for the MassMutual plan. Staff proposes to add AXA as a fourth deferred compensation plan option. This addition will provide employees an additional choice in deciding where to invest their retirement dollars.
AXA Equitable with a heritage of over 150 years, AXA Equitable stands among the nation's premier providers of life insurance and annuity products with 75 years of retirement plan expertise. AXA consistently earned high marks from A.M. Best Co., Fitch, Moody’s, Standard & Poor’s ranging from Aa3 to A+.
AXA will be able to provide expertise to manage all aspects of the Village’s 457 program including administration, fiduciary responsibilities, investment selection, and employee education.
On October 7, 2013, this item was reviewed by the Finance Committee, recommended for approval and referred to the Village Board of Trustees for consideration.
Financial Impact
There is no direct budget impact associated with adding AXA Equitable as the 4th deferred compensation plan provider to the Village’s current offerings. The weighted average expense to plan participants would be approximately 1.4%.
Recommended Action/Motion
I move to approve authorizing the addition of AXA Advisors as a deferred compensation plan provider.