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Elk River <br /> ' Municipal Utilities <br /> 13069 Orono Parkway phone: 763.441.2020 <br /> Elk River,MN 55330 Fax:763 9918099 <br /> December 5, 2005 <br /> To: Elk River Municipal Utilities commission <br /> Jerry Takle <br /> ' Jim Tralle <br /> John Dietz <br /> From: Theresa Slominski <br /> Subject: 2nd 457 plan <br /> ' As I mentioned at the last commission meeting in my staff update, I was investigating <br /> another 457 plan to offer our employees to participate in. This would be an alternative <br /> ' plan for the employees, not a plan in addition to the current plan in terms of matching <br /> dollars. Employees could opt to participate in one or both plans and ERMU, as an <br /> • employer, would not be contributing anything more, only providing our current match in <br /> whichever plan(s) they participate in. In other words,just as there is no cost to the <br /> current plan besides the matching, there would be no cost to ERMU for this plan besides <br /> the matching. <br /> Currently, we participate in a 457 plan with Minnesota Deferred Compensation (MNDC). <br /> Back in June I was approached by Wenzel and Associates, at the request of a few of our <br /> ' employees, about offering an alternative 457 plan through them. There are two major <br /> influencing differences between the plans. One is that MNDC is a not for profit company <br /> ' that employs salaried representatives, where Wenzel and Associates is a private sector <br /> business that employs commissioned representatives who are licensed financial <br /> consultants. As such, Wenzel and Associates provides a personal financial planning and <br /> ' advice component that they can offer as licensed financial planners, which is the <br /> component the employees were wanting, however, it comes at a cost of slightly higher <br /> fees. The second difference is that MNDC is not owned or affiliated with any particular <br /> financial or insurance company and so they represent a very broad investing base. <br /> Wenzel and Associates are affiliated with ING and so they represent ING's products for <br /> investment. <br /> ' I did some research on the firm (contacting their current customers, comparing rates, and <br /> conducting some peer inquiries) and they appear to be a viable, honest firm. They do a <br /> lot of business with other cities and counties in Minnesota and I have attached a list for <br /> your information. I also contacted the city to see if they have a second plan or not. They <br />