REPORT TO COUNCIL
SUBJECT
Title
Approve Amendment 1 to the Pension Trust Agreement with PFM Asset Management, LLC for the Sunnyvale Post-Employment Pension and Retiree Healthcare Benefits Program and Consent to the Assignment from PFM Asset Management LLC to U.S. Bancorp Asset Management Inc. for the Pension Trust Agreement for the Sunnyvale Post-Employment Pension and Retiree Healthcare Benefits Program
Report
REPORT IN BRIEF
Approval is requested to execute the amendment to the existing Pension Trust Agreement with PFM Asset management for a lower fee schedule to manage City's Post-Employment Pension and Retiree healthcare Benefits program. Additionally, approval is requested to accept the assignment to transfer the trust agreement from PFM Asset Management LLC to U.S. Bancorp Asset Management Inc as the City's investment advisor.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, Council approval is required for the procurement of goods and/or services greater than $250,000 in any one transaction.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" within the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15378 (b) (4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
BACKGROUND AND DISCUSSION
On May 8, 2018, the City Council approved for the City to execute a Post-Employment Benefits Trust Agreement (Attachment 4) with PFM Asset Management, LLC (PFMAM) for the Sunnyvale Post-Employment Pension and Retiree Healthcare Benefits Programs. In Section VI(e) of the 2018 agreement, City agreed to pay for the Trust Administration Fees as follows:
Investment Advisory Fee Schedule
First $50 million in net assets
0.28%
Over $50,000,000
0.20%
In January 2021, PFMAM offered a lower fee structure to the City due to the longstanding partnership....
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