By Katie Logisz
January 16, 2006

Two of Nationwide Retirement Solutions municipal plan sponsors were honored with Leadership Recognition Awards by the National Association of Government Deferred Compensation Administrators (NAGDCA) at the organization’s annual meeting in Miami. The cities of San Bernardino and Milwaukee were each recognized for innovative initiatives utilized in their respective deferred compensation plans. San Bernardino received the award for its “Investment Performance and Evaluation” initiative, while Milwaukee was noted for “Tools to Assist You.”

The San Bernardino Deferred Compensation Plan, along with plan administrator Nationwide, conducted an annual investment review in 2004. This review established an objective procedure to evaluate San Bernardino’s investment menu and assists the city’s plan in providing a well-diversified list of investment options that meet the retirement planning needs of public employee participants. The review’s objective was to provide a simple but thorough evaluation of the current investment options and to provide recommendations for closing funds that fail to meet performance benchmarks. Additional qualified funds may be added to the plan. By continuing to revise the investment menu periodically, San Bernardino’s plan enables participants to adequately diversify their portfolio risk. Participants in the plan have access to asset classes that assets class categories that meet the plan’s preset criteria.

Milwaukee’s “Tools to Assist You” initiative allows plan participants to have an additional advantage, bringing them clearer pictures of their investment portfolios. The program utilizes the city’s existing fund base to show participates how rebalancing portfolios can maximize their money. A simple test allows participants to determine their tolerance to risk. Information available online and through a newsletter informs participants how reallocation depending on risk tolerance can change their investment landscapes. The program is able to achieve this utilizing the funds already in place, thus saving costs.

NAGDCA first distributed its Leadership Recognition Awards in 2000 to recognize outstanding achievements in effective communication or plan design and administration in defined contribution/deferred compensation. Last year, three NRS plans were honored. This year, six NRS plans in total received the award.

“This year’s NAGDCA honorees obviously view financial preparation over a lifetime as a crucial matter,” said NRS President Matt Riebel. “We applaud their efforts to enable participants to practice sound investment habits, make good investments decisions and ultimately maximize their working years to build their retirement funds. It’s gratifying to have partners that share in the understanding that effective planning takes place throughout participants’ lifetimes; before, during and after retirement. We look forward to continuing these partnerships and to working together to put more Americans on solid financial footing as they prepare for and live out retirement.”

The USCM/NRS deferred compensation program is currently at work in over 4,000 cities, benefiting over 300,000 public employees. San Bernardino and Milwaukee are just two examples of how this program brings the best in retirement education and planning to city employees. For more information about how the USCM/NRS deferred compensation program can benefit your city’s employees, contact Katie Logisz with the Conference of Mayors at 202-861-6739 or send e-mail to klogisz@usmayors.org. Information is also available on the web at www.usmayors.org or www.nrsforu.com.