County Administrator Cal Marquardt on Tuesday credited Jefferson County Commission Chairman Jimmie Stevens with helping county officials get favorable terms for the investment funds.
“Employees have the option of what’s called a 457 plan, which allows them to put additional funds into a pre-tax account,” Marquardt said.
The county previously had five companies managing these funds, and a trust financial advisor was hired to analyze the management of these funds and recommend improvements.
The county administrator said negotiations have reduced the number of companies managing the fund from four to one.
“I recommend using Nationwide exclusively as your provider,” he said, “and I think it’s a lot more efficient if you do that. We’ve been able to reduce our fees by almost 50%.”
Markert said Stevens played a key role in the process.
“I also want to thank Commissioner Stevens, who has a master’s degree in finance,” Marquardt said. “He’s been invaluable.”
Stevens said discussions about changing how the fund is managed date back to before Marquardt became county administrator.
“These negotiations began when (Tony) Peteros was still here,” Stevens said. “Most of the money was in a fixed account with Nationwide. In 2018, maybe 2019, they wanted to change that and reduce the amount of guaranteed income that was coming out of the fixed account, which had been 3.5% for a number of years.
“This is a sequestered percentage that means that no matter what happens, you get 3.5% as you approach retirement,” the chairman said. “This is what you’re counting on, and management, and I (to a lesser extent) are committed to helping you maintain that percentage.”
Commissioners placed on the agenda for Thursday’s meeting a resolution that, if passed, would designate Nationwide Financial as the sole provider of deferred benefits for county employees.
The commission will also consider a request to split sales taxes with Red Mountain Retail, which does business as Ashley Furniture. Owner Woody Marks, whose grandfather founded Marks Fitzgerald Furniture Stores, is searching for a location for a new distribution center to replace its current center in Bessemer.
The incentive plan would rebate 40% of the county taxes the company pays to encourage it to continue operating in Jefferson County.
