Agenda 04/14/2009 Item #16E 1
Agenda Item No. 16E1
April 14, 2009
Page 1 of 3
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners recognize the receipt of a check
for $11.89 from Nationwide Retirement Solutions. In addition, authorize the Human
Resources Department to accept similar settlement checks in the future and to add the
funds to its operating budget, when accompanied by the appropriate budget amendment.
OBJECTIVES: To accept a check from Nationwide Retirement Solutions in the amount of $11.89
following a settlement of an administrative proceeding by the Securities and Exchange Commission
(SEC). To authorize the Human Resources Department to accept similar future settlement checks
and to add such funds to its operating budget, when accompanied by the appropriate budget
amendment.
CONSIDERATIONS: The County offers employees the opportunity to save for their retirement
through the deferred compensation program. Employees may elect to participate in programs
offered by Nationwide Retirement Solutions and ICMA-RC.
On August 2, 2004, the financial services firm, Franklin Advisors, Inc., settled an administrative
proceeding with the SEC regarding certain practices in connection with the sale of certain Franklin
Advisors, Inc. funds. These funds are part of the investmcnt choices provided to the County's
participants in the deferred compensation program offered by Nationwide Retirement Solutions. A
- Settlement Fund was established as a result of the SEC administrative proceeding to compensate
investors determined to be harmed by late trading and other harmful market activity from April 3,
2000 through October 18, 200 I.
With the approval of the SEC, a distribution plan was developed by an independent consultant to
determine how payments would be made from the Settlement Fund. The final distribution plan
recognizes that, in trying to identify and distribute recovery amounts to individual participants of the
Plan, plan sponsors such as the County might incur expenses far greater than the recovery amount
($11.89) itself.
Therefore, the distribution plan contains a "safe harbor" method of distribution that permits plan
sponsors to apply the recovery dollars against the general expenses of the plan.
This is the second settlement check that has been provided to the County in the last four (4) months.
It is anticipated that future administrative settlements will be reached by the SEC with financial
services companies and additional settlement checks will be provided to the County with the "safe
harbor" method of distribution as described above. In the future, it is recommended that Human
Resources be authorized to receive and add to its budget, when accompanied by the appropriate
budget amendment, any future such similar settlements.
LEGAL CONSIDERATIONS: This item is not quasi-judicial, and as such ex parte disclosure is
not required. This item requires majority vote only. This item is legally sufficient for Board action.
-CMG
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Agenda Item No. 16E1
April 14, 2009
Page 2 of 3
FISCAL IMP ACT: $11.89 will be received by the Hwnan Resources Department; however, any
and all changes to the budget will be brought to the BCC with a separate budget amendment.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with
this Executive Summary.
RECOMMENDA nON: That the Board of Commissioners recognize the receipt of $11.89 from
Nationwide Retirement Solutions. That the Board of County Commissioners also authorize Human
Resources to receive and add to its budget any future such similar settlements, subject to the
appropriate budget amendment.
PREPARED BY: Donald B. Albonesi, Manager - Compensation, Human Resources Department
Page] of I
Agenda Item No. 16E 1
April 14, 2009
Page 3 of 3
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
16E1
Recommendation that the Bee recognize the receipt of $11.89 from Nationwide Retirement
Solutions and authorize the Human Resources Department to accept future similar
settlement checks.
Meeting Date:
4/14/20099:0000 AM
Prepared By
Donald Albonesi
Compensation Manager
Date
Administrative Services
Human Resources
312012009 1 :24:49 PM
Approved By
Donald Albonesi
Compensation Manager
Date
Administrative Services
Human Resources
312012009 1 :24 PM
Approved By
Amy Lyberg
Employment Operations Manager
Date
Administrative Services
Human Resources
31231200912:25 PM
Approved By
Len Golden Price
Administrative Services Administrator
Date
Administrative Services
Administrative Services Admin.
3124120092:27 PM
Approved By
OMS Coordinator
OMS Coordinator
Date
County Manager's Office
Office of Management & Budget
3130/2009 8:55 AM
Approved By
Laura Davisson
Management & Budget Analyst
Date
County Manager's Office
Office of Management & Budget
41612009 8:54 AM
Approved By
Leo E. Ochs, Jr.
Deputy County Manager
Date
Board of County
Commissioners
County Manager's Office
41612009 5:58 PM