HomeMy WebLinkAbout2019-09-10 Meeting AgendaFinance Committee Meeting Commission Chamber- 9/10/2019- 1:20 PM
FINANCE
1.Motion to approve the minutes of the Finance Committee held on
August 27, 2019.Attachments
2.Motion to approve Option 2 concerning the Guaranteed
Minimum Interest Rate (GMIR) for the fixed annuity investment
option in the Nationwide Fixed Annuity offered in the 457(b)
Deferred Compensation Plan.
Attachments
www.augustaga.gov
Finance Committee Meeting
9/10/2019 1:20 PM
Minutes
Department:
Presenter:
Caption:Motion to approve the minutes of the Finance Committee held
on August 27, 2019.
Background:
Analysis:
Financial Impact:
Alternatives:
Recommendation:
Funds are
Available in the
Following
Accounts:
REVIEWED AND APPROVED BY:
Cover Memo
Item # 1
Finance Committee Meeting Commission Chamber
ATTENDANCE:
Present: Hons. Hardie Davis, Jr., Mayor; Fennoy, Chairman; D.
Williams, Vice Chairman; M. Williams and Frantom, members.
FINANCE
1. Motion to approve the minutes of the Finance Committee held on August Item13,2019. Action:
Rescheduled
Motions
fr'J:" Motion rext
Motion to refer this
item to the full Commissioner Commissioner
-fr
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- 812712019
Defer Commission with no Marion
recommendation. Williams
Motion Passes 4-0.
Made By Seconded By
Dennis
Williams
www.augustaga.qov
Motion
Result
Passes
Attachment number 1 \nPage 1 of 1
Item # 1
Finance Committee Meeting
9/10/2019 1:20 PM
Nationwide 457(b) Fixed Annuity Interest Rate Change
Department:Finance and Human Resources
Presenter:
Caption:Motion to approve Option 2 concerning the Guaranteed
Minimum Interest Rate (GMIR) for the fixed annuity investment
option in the Nationwide Fixed Annuity offered in the 457(b)
Deferred Compensation Plan.
Background:One of the investment options for Augusta's employees who
participate in the voluntary 457(b) plan is a fixed annuity with a
guaranteed minimum interest rate. In the climate of declining
interest rates, Nationwide has not adjusted the rate downward
until now. Augusta must choose an option prior to September
30.
Analysis:Both options have the same schedule of interest rates but Option
Two allows the employee to transfers a larger percentage
annually out of the fixed annuity to other investment plans,
allowing more flexibility in their investment strategy.
Financial Impact:There is no cost to Augusta and no cost to the employee.
Alternatives:1) choose Option One which allows less flexibility to the
employee 2) do not choose an option, which will result in the
loss of the fixed annuity option for the employee. Neither of
these alternatives are preferred to Option Two
Recommendation:Select Option Two
Funds are
Available in the
Following
Accounts:
N/A
Cover Memo
Item # 2
REVIEWED AND APPROVED BY:
Finance.
Law.
Administrator.
Clerk of Commission
Cover Memo
Item # 2
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