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APPROVE A MOTION AUTHORIZING AGREEMENT WITH GLOBAL RETIREMENT PARTNERS, LLC d/b/a SHUSTER ADVISORY GROUP, A HUB INTERNATIONAL COMPANY FOR INVESTMENT AND RECORDKEEPING ADMINISTRATIVE SERVICES TO SUPPORT THE CITY’S DEFERRED COMPENSATION PLANS
recommended action
RECOMMENDATION
It is recommended that City Council approve a motion to:
1. Authorize the City Manager, or designee, to execute a three (3) year Memorandum of Understanding (MOU) with an option to extend for two (2) additional one (1) year terms between the City of Stockton (City) and Global Retirement Partners, LLC d/b/a Shuster Advisory Group, for administrative services to support the City’s 457(b), 457(b) Part-time, Temporary, Seasonal, and 401(a) Deferred Compensation Plans, not to exceed $48,000 per year paid directly from the Deferred Compensation Plan with no cost to the City; and
2. Approve findings which support and justify an exception to the competitive bidding process pursuant to the Stockton Municipal Code Section 3.68.070(A)(3) where the City held a competitive Request for Proposals.
It is further recommended that the City Manager is hereby authorized to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The City of Stockton offers employee-funded supplemental retirement savings plans to all full-time and part-time employees. In May 2026, the City conducted a Request for Proposals (RFP) for Deferred Compensation Consulting Services through Bid PUR 26-031. On July 1, 2026, the RFP committee reviewed the proposals and scored each based on experience, professional qualifications, and performance. The Procurement department scored each proposal on overall cost. After all scores were combined, the Procurement Department determined that Shuster Advisory Group LLC received the highest score.
DISCUSSION
Background
In October 1972, Council adopted Resolution 30,047, which directed the offering of a 457 Deferred Compensation Plan to employees. The Plan's primary purpose was to attract and retain key personnel by allowing them to defer a portion of compensation they would otherwise receive and invest those funds in an appropriate defined contribution plan. The Deferred Compensation plan (457) allows employees to deposit payroll dollars into a 457 plan for long-term investment.
The City contracted with SST Benefits Consulting as the deferred compensation plan consultant for over ten (10) years. The deferred compensation plan consultant works with the City and the Recordkeeper (currently known as the Empower Retirement, LLC), to oversee the investments, ensuring the quality of the investments meets with the City’s portfolio standards. After 10 years with the same deferred compensation consultant and Recordkeeper, the City elected to request proposals from other deferred compensation consultants to compare consulting services/fees and select a consultant who will bring more value to the City’s deferred compensation program.
Present Situation
The City entered into an agreement with Shuster Advisory Group, LLC in October 2023 to provide investment and recordkeeping administrative services for the term of one (1) year with option to renew two (2) times for one (1) year term. Current contract is set to expire on October 30, 2026. In May of 2026 a Request for Proposals (RFP) for Deferred Compensation Consulting Services was conducted through Bid PUR 26-031. On July 1, 2026, the RFP committee reviewed the proposals and scored each based on experience, professional qualifications, and performance. The Procurement Department scored each proposal on overall cost. After all scores were combined, the Procurement Department determined that Shuster Advisory Group LLC received the highest score.
Council is being asked to approve a three (3) year MOU with the option to renew up to two (2) times for one (1) year, for investment and recordkeeping administrative services to support the City’s Deferred Compensation Plans with Shuster Advisory Group, LLC. The maximum not to exceed amount is $48,000 per year and it will be paid directly from the Deferred Compensation Plan, with no cost to the City. (Attachment A)
Findings
Pursuant to SMC section 3.68.070(A)(3), Council may approve findings that support an exception to the competitive bidding process. These findings include:
• Use of RFP is appropriate for this MOU because it relies on the evaluation of professional qualifications, experience, and performance as the basis of the selection.
• Use of fiduciary advisors is important in risk mitigation, advanced knowledge of laws and regulations, managing investments and costs, which is outside City’s scope of duties.
FINANCIAL SUMMARY
The annual fee of $48,000.00 for the service will be deducted from the Plan(s) assets and paid to Shuster Advisory Group, LLC by the Plan(s) record keeper (Empower). The City will not incur any General Fund cost.
Attachment A - Agreement Shuster Advisory Group, LLC