04-10-85 Personnel & Finance - Laserfiche WebLink

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Page 2. a ten day "free look". They also provide a life insurance option called "Unimaster". Following questions by the Committee the Council then heard the presentation from Prudential. PRUDENTIAL Mark Schmidt, Jim Houghton, and Lynn Dnyager were the presenters and gave a slide presentation highlighting their deferred compensation program. They offer three investment options : 1. Fixed Dollar Annuity Accounts 2 . Money Markets 3. Common Stock They noted that they have been in business for over 100 years and were the largest insurance company in the United States. They emphasized that they offer a program that is diversified and flexible. The minimum contribution allowable would be $10.00 per week in a maximum dollar.: amount on an annual basis of $7,500.00 . They charge an annual administration charge of $12 .00 per account and would send quarterly statements to the City. They would hold group meetings to explain the program. They are hoping to add new investment programs in 1986 which would include bond accounts, agressive common stock account, and index accounts . Invidivuals could call locally or the corporate office collect. They predicted a participation rate of 20-257 which could grow to 45-50%. Upon questioning from the Committee they stated that confirmation of contributions "could be worked out". USCM/PEBSCO Mr. Tom Taylor gave the next presentation. He noted that the US Conference of Mayors began the program in 1978 when the Federal law was passed. The plan was submitted to 100 of the largest insurance companies with Nationwide of Columbus, Ohio being the successful underwriter/banker. The conference joined with the National Association of Counties and desired a third party administrator which is now PEBSCO (Public Employees Benefit Services Corporation) . Currently PEBSCO administers 11 state programs and over 1, 300 local goverment programs .with 23 being in the State of Indiana. They are currently serving 200,000 public employees and oversee over $1 billion dollars in assets. They believe in having a broad based approach and nationally have a 30% participation rate. Deferred compensation is the only program offered. They offer 11 investment options with one being fixed and 10 variables all of which are regulated securities . including money market, two bond funds , and seven mutual common stock funds. Splitting is permitted and a person may change as often as he wants . Minimum contributions are $5.00 per week with maximum contributions being $7 ,500 annually.