*Authorize Chief Human Resources Officer to enter into a five-year contract with Voya Financial for retirement plan administration, investment services, and deferred compensation record keeping services on behalf of the Bureau of Human Resources Benefits Office beginning September 1, 2023
The City of Portland ordains:
Section 1. The Council finds:
- This Ordinance supports the City of Portland’s Core Values of Anti-Racism, Equity, Transparency, Communication, Collaboration and Fiscal Responsibility.
- The City currently maintains a governmental 457(b) Deferred Compensation Plan (Plan) pursuant to Section 457 of the Internal Revenue Code (IRC).
- A contract with a retirement plan and deferred compensation record keeping administrator ensures the City has a specialized group to manage deferred compensation 457(b) benefits on behalf of City participants. Voya Financial is responsible for plan administration, investment services, record keeping, and protecting the City’s deferred compensation plan in a fiscally responsible way.
- The contract with Voya Financial was chosen through a competitive request for proposal process utilizing the special procurement rules for benefit contracts as defined by the City’s Procurement rules. A Selection Committee comprised of City employees, labor representatives, and an outside deferred compensation consultant reviewed the proposals received and selected the most advantageous proposal.
- The provider contract will begin September 1, 2023.
- The Deferred Compensation Budget within the General Fund has sufficient appropriation in support of the benefit listed above.
NOW, THEREFORE, the Council directs:
- The Chief Human Resources Officer is authorized to enter into a vendor contract with Voya Financial in a form substantially similar to that attached as Exhibit A providing retirement plan administration and deferred compensation record keeping services on behalf of the Bureau of Human Resources, Benefits Office. This contract will have an effective date of September 1, 2023.
Section 2. The Council declares that an emergency exists in order to execute the contract and continue retirement plan administration and deferred compensation record keeping services; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.
Official Record (Efiles)
An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved
in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)
Passed by Council
Auditor of the City of Portland
Simone Rede
Impact Statement
Purpose of Proposed Legislation and Background Information
The purpose of this legislation is to authorize the Chief Human Resources Officer to enter into a contract with Voya Financial providing retirement plan administration, investment services, and deferred compensation record keeping services on behalf of the Bureau of Human Resources, Benefits Office beginning September 1, 2023.
Financial and Budgetary Impacts
Deferred Compensation is a voluntary benefit and all contributions are deducted through an employee’s paycheck. There is no City match or contribution towards Deferred Compensation. The Deferred Compensation Budget within the General Fund for FY 2023-24 has sufficient appropriation in support of the benefit.
Community Impacts and Community Involvement
This action is largely internal to City government processes.
100% Renewable Goal
Not applicable.
Financial and Budget Analysis
Analysis provided by City Budget Office
Deferred compensation is a voluntary benefit with contributions deducted through an employee's paycheck. There is no additional expense on the City’s behalf to manage the program. HR has a program called Deferred Comp ($381k budget) to support this program.