AgdaPkt 2010-03-08 - Laserfiche WebLink

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6.3C may withdraw funds from the trust, as needed, to pay retiree medical benefits. Also, if Page 2 the City were ever able to completely extinguish its retiree medical liability, any funds remaining in the trust would be returned to the City. Trustee Selection Process Staff developed a request for proposal (RFP) for trustee services and sent this to the following organizations, each of which submitted a proposal: - Public Agency Retirement System (PARS) - California Public Employees Retirement System (PERS) - Wells Fargo Bank - US Bank - International City Management Association (leMA) Staff narrowed this group of proposers from five to two based upon our experience with PARS and PERS and based upon fees. The following table summarizes the key elements of the proposals from PERS and PARS: PERS Number of Clients 216 Assets under Management $1.13 Billion Fees ($M = millions) 07M08 - 0.020/0 08-09 - 0.060/0 < 0.20 010 Period Commitment 3 year lock unless early withdrawal approved by PERS 120 days written notice PARS 51 $126 Million < $5M M 0.600/0 $5MM $10M - 0.500/0 $10M - $15M - 0.400/0 $15M - $50M - 0.15% >$50M - 0.10010 As more funds accumulate in the trust, the cost difference between PARS and PERS widens as can be seen by the projections in the following table: Projected Average Cash Ending Fund Balance PARS PERS Difference Balance $ $ $ $ $ 6/30/2009 2,100,000 6/30/2010 3,900,000 3,000,000 18,000 1 ,800 -16,200 6/30/2011 5,700,000 4,800,000 28,800 2,880 -25,920 6/30/2012 7,500,000 6,600,000 33,000 3,960 -29,040 6/30/2013 9,300,000 8,400,000 42,000 5,040 -36,960 6/30/2014 11,100,000 10,200,000 51,000 6, 120 -44,880