Fort Worth approves $180,000 tax incentive for PennyMac
11/19/2013 11:24 AM
11/19/2013 11:25 AM
The City Council voted Tuesday to approve a 10-year, $180,000 tax incentive for PennyMac Financial Services, which is considering an expansion at its Fort Worth office.
The expansion would increase employment to 600 full-time workers by the end of 2015. The company, based in California, services and originates home loans and has about 75 employees at CentrePort.
The council also voted to merge the city’s two supplemental retirement programs into one account and switch management companies. The merger will result in fewer fees and a better return on investments, Assistant City Manager Susan Alanis said.
The city’s first 457 retirement plan, a nonqualified tax-advantage deferred-compensation plan, was created in 1981 with ICMA-RC and has 505 employees participating with $27 million in assets. The second plan, created in 1982 with Nationwide Retirement Solutions, has 2,231 employees participating and $134 million in assets.
A task force of city employees was created in 2011 to analyze the benefits of a merger and recommended Tuesday that the council combine the accounts and switch to TIAA-CREF, based in New York, with offices in Dallas. The company has the highest possible ratings from A.M. Best, Fitch, Moody’s Investors Service and Standard & Poor’s.
There is no risk for employees in the switch, Alanis said.
The task force sent out requests for proposals in April. After months of analyzing the results, it said TIAA-CREF offers the best customer service, stability, investment options and fees.
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