REPORT TO DEFERRED COMPENSATION COMMITTEE
SUBJECT
Title
Discussion of, and Potential Action on, Report from Nationwide Regarding Self-Directed Options Trading
Report
DISCUSSION
In response to a request from the Committee, Nationwide will provide an informational report describing self-directed options trading, along with the effects (if any) of such trading on the Plan, and the procedural steps necessary to add that opportunity for the participants selecting self-directed accounts. If the Committee wishes to allow options trading for such accounts, the Committee would have to vote to allow it, and to make a recommendation to the Plan Sponsor signatory (City Manager) to execute all necessary plan-related documents.
RECOMMENDATION
Recommendation
If the Committee wishes to allow options trading, staff recommends the following:
1. Approve the addition of options trading to self-directed accounts (also known as Personal Choice Retirement Accounts), and
2. Recommend to the Plan Sponsor signatory (City Manager) to execute all necessary plan-related documents to implement the options trading function for self-directed accounts
ATTACHMENTS
1. Nationwide - PCRA Options Slide
2. Nationwide - Schwab.com Options Research Page
3. Nationwide - PCRA Implementation Form (City of Santa Clara)
4. Nationwide - Options Participant and Third Party Form
5. Nationwide - 2020 Trading Menu Change Form