HomeMy WebLinkAboutC. Minimum RequirementsThe City of San Luis Obispo
C. Minimum Requirements
1. Respondents must have a minimum of ten (10) years of experience administering
governmental Section 457 deferred compensation plans and must currently provide sole-
provider administration to a minimum of twenty (20) Section 457 deferred compensation
retirement plans with average assets of at least $50 million each.
Confirmed. Empower has more than 10 years of experience administering governmental Section 457
deferred compensation plans and currently provides sole-provider administration for more than 2,550
governmental Section 457 deferred compensation retirement plans with average assets of more than
$50 million each. Empower supports government and large-plan clients through a scaled service
model, broad recordkeeping capabilities, and experienced plan administration resources. As of March
31, 2026, Empower serves over 20.1 million individuals, 93,000 plans, and $1.9 trillion in assets.
Specific to our 457(b) deferred compensation plans, we provide recordkeeping services for
approximately 4,425 plans, totaling $162.7 billion in assets while representing approximately 2.2
million participants 1.
2. Any contract or service agreement must stipulate that there will be no front-end charges
and/or no back-end charges. In addition, there will be no restrictions or penalties associated
with any Plan- or participant-initiated transfers or withdrawals (including contract
termination), with the exception of capital preservation (stable value and/or Fixed or General
Account) equity wash and/or put provisions.
Additionally, proposals are required to “buy-out” any MVA that exists (see the plan chart
above). Your proposal must clearly describe the product and process used to “buy-out” the
MVA as well as any recovery periods or other product provisions required as part of the “buy-
out”, and the initial net rate must be clearly provided. Also note that the Fixed Account for
457(b) Record Keeper #3 will require 6 payments over 5-years and Record Keeper #1’s 12-
month Put for all plans was initiated 4/13/2026.
Confirmed.
3. The Proposing Firm must accurately and fully disclose all fund expense and revenue sharing
arrangements associated with all funds being offered within the Plans. Fixed or General
Account products will not be excluded from this requirement. Proposing Firms offering such
products must provide an accurate assessment of product expenses and revenue remitted to
the Proposing Firm.
Confirmed.
4. The Proposing Firm must accurately and fully disclose all expenses and revenue associated
with any service made available under the Plans. This includes services such as managed
accounts, investment advice, financial planning, and/or self-directed brokerage accounts.
Confirmed.
1 As of December 31, 2025. Information refers to all retirement business of Empower Annuity Insurance
Company of America (EAICA) and its subsidiaries, including Empower Retirement, LLC; Empower Life &
Annuity Insurance Company of New York (ELAINY); and Empower Annuity Insurance Company (EAIC),
marketed under the Empower brand. EAICA’s consolidated total assets under administration (AUA) were
$1,922.5B. AUA is a non-GAAP measure and does not reflect the financial stability or strength of a
company. EAICA’s statutory assets total $70.79B and liabilities total $66.46B. ELAINY’s statutory assets
total $5.82B and liabilities total $5.28B. EAIC’s statutory assets total $132.83B and liabilities total
$131.81B.
The City of San Luis Obispo
5. The Proposing Firm must agree, under contract, not to sell and/or promote products not
directly affiliated with the Plan(s) unless given specific, written authorization by the City to do
so.
Empower representatives will only discuss or make available products or services as detailed under
the services agreement between Empower and the City. Information regarding other Empower
products or services is provided to a participant only if the participant requests the information.
Participant data will not be sold or used for non-plan purposes (e.g., cross-selling) except to the
extent specifically authorized by the agreement or by the employer.
6. Respondents must commit to providing at least four (4) full days annually of virtual one-on-
one sessions, with the ability to provide additional virtual one-on-one sessions upon plan
sponsor request. Respondent must also commit to two (2) on-site education days at time of
the plan conversion/consolidation.
Confirmed. Empower will commit to providing at least four full days annually of virtual one-on-one
sessions, with the ability to provide additional virtual sessions upon plan sponsor request. Empower
will also commit to providing two on-site education days at the time of the plan
conversion/consolidation. Although not requested in this RFP, should the sponsor request on-site
quarterly one-on-one or group meetings, Empower can accommodate.
7. Upon award of the contract, the selected Proposing Firm must be duly qualified to do
business in the State of California.
Confirmed. Empower is licensed to do business in the State of California.
8. The Proposing Firm must be able to transition and continue administration of existing Plan
loans and must commit to not charge set up fees on transferred loans.
Confirmed. Empower can transition and continue administration of existing plan loans and will commit
to not charge setup fees on transferred loans. Empower’s implementation model includes specialized
data analysts for loans and related data, along with payroll conversion resources, data load
specialists, and implementation analysts who support transition activity.
9. The Proposing Firm must be able to transition and continue administration of existing
systematic distributions to participants and must commit to not charge set-up fees (if
applicable) on transferred directives.
Confirmed. Empower can transition and continue administration of existing systematic distributions,
provided this information is included in the incumbent’s final files, to participants and will commit to
not charge setup fees, if applicable, on transferred directives.
10. The organization must be able to offer a self-directed brokerage option.
Confirmed. Empower can offer a self-directed brokerage option 2.
11. The Proposing Firm must be able to accommodate the joint administration of the Plans as
applicable and must be able to facilitate appropriate payroll processing, applicable account
transfers, and separate recordkeeping for each of the Plans.
Confirmed. Empower can accommodate joint administration of the plans, as applicable, and can
facilitate appropriate payroll processing, account transfers, and separate recordkeeping for each plan.
12. The Proposing Firm must be willing to have representatives attend Committee meetings one
time per year virtually.
Confirmed. Empower’s relationship manager attends Committee meetings virtually one-time per year.
2 The self-directed brokerage account is intended for knowledgeable investors who understand the risks associated
with the self-directed brokerage account.
The City of San Luis Obispo
13. The Proposing Firm must have knowledge of and comply with all applicable County, State of
California and federal regulations regarding governmental retirement plans and investment
options. All applicable laws of the City and the State of California, whether substantive or
procedural, shall apply to this contract, and all statutory, charter, and ordinance provisions
that are applicable to City contracts shall be followed with respect to this contract.
It is assumed that, by submitting a response to this RFP, your organization will conform to the
Minimum Qualifications and specifications (unless specifically adjusted/waived per written
addendum). Proposing Firms must clearly indicate any requests for additions, modifications,
or deletions as part of this process. The City will respond to such submittals but does not
guarantee any waiving of these minimum requirements.
Empower Addendum San Luis Obispo