Finance Committee - 11/15/2018 Page 6
From: Dan Kooken, Purchasing Manager
Re: Contract for Board of Public Works Pension Administration Services (Value: $49,000)
MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON BOARD
OF ALDERMEN APPROVAL, AWARD THE CONTRACT TO HOOKER AND HOLCOMBE IN THE
AMOUNT OF $49,000. SOURCE OF FUNDING IS VARIOUS DPW ADMINISTRATION PENSION
ACCOUNTS
ON THE QUESTION
Alderman O’Brien
Thank you Mr. Mayor. | wonder if | could invite my colleagues up if | may at this particular time. | would like to
introduce Mr. Fredette and Mr. Danielson. Mr. Mayor if | may | would just like to give a very brief background
of basically what is happening here. The DPW pension is separate from the State, it is very unique. The
municipality, the City of Nashua, we run it; we have been running it since about 1947 and | am very happy to
say as the liaison and one of the trustees, the pension system is 86.6% funded. It is one of the lowest
pensions that is very well run by the City.
The problem at hand that is coming up on the horizon, currently the software that the City owns that kind of
runs this, the admin, is being phased out. And with it being phased out, we are going to need either to get
brand new software or look at another venue. If we were to get out own particular software, this could be a
cost to the City of around about $100,000.00 annually it would probably even cost us even more to have
people to run it and maintain it within that time. Ve currently have a contract with Hooker & Holcombe, they
manage it right now, part of the program and they would be working with this particular delivery.
There is a lot of good things about this. Right now, with having a third party running this particular type of
thing, it seems to fall in line with other municipalities, they do have that equally as well as compared to us. The
other thing with this, it would reduce City staff costs to the City, there are currently people running this. Again it
frees up the question with the admin program and yet we are not giving away any authority even though it will
be run by the third party. We do have oversight over Hooker & Holcombe. Our benefits and more important to
our employees that we have responsibility to, they will be able to access their accounts better in the future with
Hooker & Holcombe than they can today.
In other words, we are going to change the format, they are going to be paid monthly instead of weekly, but
any employee, even if you are not retired, will be able to access the computer program and go on and get up to
the minute information. It seems a lot better and it provides a better customer service to the people that
depend upon us to run this particular program. And even though we are spending $49,000.00 on this
particular program, again the cost savings is in the City’s maintenance of this. This comes, and | am proud to
say, this comes with the full recommendation of the Board of Trustees. It will be a five year contract and |
guess five years contracts will have to be brought before the Full Board and voted by the Full Board. As one of
the liaisons and trustees to the Pension Board, | think this is a very good deal and if | may say comes with full
recommendation from the Board of Trustees of the Pension System. If there are any questions; | yield my time
to Mr. Danielson, who could be available for any questions.
Alderman Caron
When is this monthly stipend going to come out and have the employees been notified of this change?
Derek Danielson, Assistant Treasurer
Derek Danielson, Assistant Treasurer, we are anticipating getting the monthly payments in July and the
employees will be notified in advance. We are waiting to get this contract approved before we notify the
employees. However, in the Annual Report that the Board of Trustees just issued, we did mention that this
was something that was coming down the pike.
