HomeMy WebLinkAboutResolution - 2025-R0016 - Contract 18415, Retirement Plan Advisors - 01/14/2025Resolution No. 2025-R0016
Item No. 5.27
January 14, 2025
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute
for and on behalf of the City of Lubbock, an Agreement per RFP 25-18415-KM, by and
between the City of Lubbock and Retirement Plan Advisors, LLC (RPA) for 457(b) Plan
Investment Advisory Services, and related documents. Said Agreement is attached hereto and
incorporated in this resolution as if fully set forth herein and shall be included in the minutes of
the City Council.
Passed by the City Council on January 14, 2025
�—
ARK W. MCBRAYER, MAYOR
ATTEST:
az,�ty Secretary
APPROVED
City Attorney
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December 20, 2024
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Resolution No. 2025-R0016
Contract 18415
City of Lubbock, TX
457(b) Plan Investment Advisory Services
Agreement
This Service Agreement (this "Agreement") is entered into as of thet4thday of January 2025
("Effective Date") by and between Retirement Plan Advisors (the Contractor), and the City of Lubbock (the
"City").
RECITALS
WHEREAS, the City has issued a Request for Proposals 25-18415-KM, 457(b) Plan Investment
Advisory Services and
WF�EREAS, the proposal submitted by the Contractor has been selected as the proposal which best
meets the needs of the City for this service; and
WHEREAS, Contractor desires to perform as an independent contractor to provide457(b) Plan
Investment Advisory Services, upon terms and conditions maintained in this Agreement; and
NOW THEREFORE, for and in consideration of the mutual promises contained herein, the City and
Contractor agree as follows:
City and Contractor acknowledge the Agreement consists of the following exhibits which are
attached hereto and incorporated herein by reference, listed in their order of priority in the event of
inconsistent or contradictory provisions:
1. This Agreement
2. Exhibit A— General Requirements
3. Exhibit B— Best and Final Offer
4. Exhibit C— Insurance Requirements
Scope of Work
Contractor shall provide the services that are specified in Exhibit A. The Contractor shall execute services
as the named provider. The Contractor shall comply with all the applicable requirements set forth in Exhibit
B and Exhibit C attached hereto.
Article 1
1.1 The contract shall be for a term of one (1) year, with the option of four (4), one-year
extensions, said date of term beginning upon formal approval. This Contract will renew
automatically for the additional terms, unless either Party gives 90-day written notice to
terminate the Contract. Actual usage may be more or less. Order quantities will be determined
by actual need. The City of Lubbock does not guarantee any specific amount of
compensation, volume, minimum, or maximum amount of services under this bid and
resulting contract. The Contractor must maintain the insurance coverage required during the
term of this contract including any extensions. It is the responsibility of the Contractor to
ensure that valid insurance is on file with the Purchasing and Contract Management
Department as required by contract or contract may be terminated for non-compliance.
1.2 Prices quoted shall be guaranteed for a period for six (6) months upon City approval. The
rate may be adjusted at the City's discretion for the effective change in Consumer Price Index
(CPI) or Product Price Index (PPI) as appropriate. Further, if the Contractor can provide
documentation for actual charges for material, labor, etc. that demonstrates that the change
in CPI or PPI is not sufficient, the Contractor shall provide such documentation to the City,
and at the City's sole discretion, the contractual rate may be further adjusted. [f agreement
regarding a new rate cannot be reached, the City shall terminate at the end of the current
contract period. If an adjustment to pricing is granted under this section, the Contractor must
provide the Director of Purchasing and Contract Management written, quarterly
documentation to justify the ongoing adjustment. If no such documentation is timely
received, the rate will automatically revert to the initial, awarded rate.
1.3 The Contractor shall not assign any interest in this Agreement and shall not transfer any
interest in the Agreement, whatsoever, without prior consent of the City.
1.4 All funds for payment by the City under this Agreement are subject to the availability of an
annual appropriation for this purpose by the City. In the event of non-appropriation of funds
by the City Council of the City of Lubbock for the goods or services provided under the
Agreement, the City will terminate the Agreement, without termination charge or other
liability, on the last day of the then-current fiscal year or when the appropriation made for
the then-current year for the goods or services covered by this Agreement is spent, whichever
event occurs first. If at any time funds are not appropriated for the continuance of this
Agreement, cancellation shall be accepted by the contractor on 30 days prior written notice,
but failure to give such notice shall be of no effect and the City shall not be obligated under
this Agreement beyond the date of termination.
1.5 This contract shall remain in effect until the first of the following occurs: (1) the expiration
date, (2) performance of services ordered, or (3) termination of by either party with a 30 day
written notice. The City of Lubbock reserves the right to award the canceled contract to the
next lowest and best bidder as it deems to be in the best interest of the city.
Article 2 Miscellaneous.
2.1 This Agreement is made in the State of Texas and shall for all purposes be construed in
accordance with the laws of said State, without reference to choice of law provisions.
2.2 This Agreement is performable in, and venue of any action related or pertaining to this
Agreement shall lie in, Lubbock, Texas.
2.3 This Agreement and its Exhibits contains the entire agreement between the City and
Contractor and supersedes any and all previous agreements, written or oral, between the
parties relating to the subject matter hereof. No amendment or modification of the terms of
this Agreement shall be binding upon the parties unless reduced to writing and signed by
both parties.
2.4 This Agreement may be executed in counterparts, each of which shall be deemed an original.
2.5 In the event any provision of this Agreement is held illegal or invalid, the remaining
provisions of this Agreement shall not be affected thereby.
2.6 The waiver of a breach of any provision of this Agreement by any parties or the failure of
any parties otherwise to insist upon strict performance of any provision hereof shall not
constitute a waiver of any subsequent breach or of any subsequent failure to perform.
2.7 This Agreement shall be binding upon and inure to the benefit of the parties and their
respective heirs, representatives and successors and may be assigned by Contractor or the
City to any successor only on the written approval of the other party.
2.8 All claims, disputes, and other matters in question between the Parties arising out of or
relating to this Agreement or the breach thereof, shall be formally discussed and negotiated
between the Parties for resolution. In the event that the Parties are unable to resolve the
claims, disputes, or other matters in question within 30 days of written notification from the
aggrieved Party to the other Party, the aggrieved Party shall be free to pursue all remedies
available at law or in equity.
2.9 At any time during the term of the contract, or thereafter, the City, or a duly authorized audit
representative of the City or the State of Texas, at its expense and at reasonable times,
reserves the right to audit Contractor's records and books relevant to all services provided to
the City under this Contract. In the event such an audit by the City reveals any errors or
overpayments by the City, Contractor shall refund the City the full amount of such
overpayments within 30 days of such audit findings, or the City, at its option, reserves the
right to deduct such amounts owing the City from any payments due Contractor.
2.10 The City reserves the right to exercise any right or remedy to it by law, contract, equity, or
otherwise, including without limitation, the right to seek any and all forms of relief in a court
of competent jurisdiction. Further, the City shall not be subject to any arbitration process
prior to exercising its unrestricted right to seek judicial remedy. The remedies set forth herein
are cumulative and not exclusive, and may be exercised concurrently. To the extent of any
conflict between this provision and another provision in, or related to, this do.
2.11 The contractor shall not assign or sublet the contract, or any portion of the contract, without
written consent from the Director of Purchasing and Contract Management. Should consent
be given, the Contractor shall insure the Subcontractor or shall provide proof of insurance
from the Subcontractor that complies with all contract Insurance requirements document, this
provision shall control.
2.12 Contractor acknowledges by supplying any Goods or Services that the Contractor has read,
fully understands, and will be in full compliance with all terms and conditions and the
descriptive material contained herein and any additional associated documents and
Amendments. The City disclaims any terms and conditions provided by the Contractor unless
agreed upon in writing by the parties. In the event of conflict between these terms and
conditions and any terms and conditions provided by the Contractor, the terms and conditions
provided herein shall prevail. The terms and conditions provided herein are the final terms
agreed upon by the parties, and any prior conflicting terms shall be of no force or effect.
2.14 Contracts with Companies Engaged in Business with Iran, Sudan, or Foreign Terrorist
Organization Prohibited. Pursuant to Section 2252.152 of the Texas Government Code,
prohibits the City from entering into a contract with a vendor that is identified by The
Comptroller as a company known to have contracts with or provide supplies or service with
Iran, Sudan or a foreign terrorist organization.
2.15 Texas Public Information Act. The requirements of Subchapter J, Chapter 552, Government
Code, may apply to this contract and the contractor or vendor agrees that the contract can be
terminated if the contractor or vendor knowingly or intentionally fails to comply with a
requirement of that subchapter. To the extent Subchapter J, Chapter 552, Government Code
applies to this agreement, Contractor agrees to: (1) preserve all contracting information
related to the contract as provided by the records retention requirements applicable to the
governmental body for the duration of the contract; (2) promptly provide to the governmental
body any contracting information related to the contract that is in the custody or possession
of the entity on request of the governmental body; and (3) on completion of the contract,
either: (A) provide at no cost to the governmental body all contracting information related to
the contract that is in the custody or possession of the entity; or (B) preserve the contracting
information related to the contract as provided by the records retention requirements
applicable to the governmental body.
2.16 No Boycott of Israel. Pursuant to Section 2271.002 of the Texas Govemment Code, a) This
section applies only to a contract that: (1) is between a governmental entity and a company
with 10 or more full-time employees; and (2) has a value of $100,000 or more that is to be
paid wholly or partly from public funds of the governmental entity. (b) A governmental entity
may not enter into a contract with a company for goods or services unless the contract
contains a written verification from the company that it: (1) does not boycott Israel; and (2)
will not boycott Israel during the term of the contract.
2.17 Contractor represents and warrants that: (1) it does not, and will not for the duration of the
contract, boycott energy companies or (2) the verification required by Section 2274.002 of
the Texas Government Code does not apply to the contract. If Contractor is a company with
10 or more full-time employees and if this Agreement has a value of at least $100,000 or
more, Contractor verifies that, pursuant to Texas Government Code Chapter 2274, it does
not boycott energy companies; and will not boycott energy companies during the term of the
Agreement. This verification is not required for an agreement where a governmental entity
deter►nines that these requirements are inconsistent with the governmental entity's
constitutional or statutory duties related to the issuance, incurrence, or management of debt
obligations or the deposit, custody, management, borrowing, or investment of funds.
2.18 Texas Government Code 2274. By entering into this Agreement, Contractor verifies that: (1)
it does not, and will not for the duration of the contract, have a practice, policy, guidance,
or directive that discriminates against a firearm entity or firearm trade association or (2)
the verification required by Section 2274.002 of the Texas Government Code does not apply
to the contract. If Contractor is a company with 10 or more full-time employees and if this
Agreement has a value of at least $100,000 or more, Contractor verifies that, pursuant to
Texas Government Code Chapter 2274, it does not have a practice, policy, guidance, or
directive that discriminates against a firearm entity or firearm trade association; and will not
discriminate during the term of the contract against a firearm entity or firearm trade
association.
2.19 Confidentiality. The Contractor shall retain all information received from or concerning the
City and the City's business in strictest confidence and shall not reveal such information to
third parties without prior written consent of the City, unless otherwise required by law.
2.20 Indemnify. The Contractor shall indemnify and save harmless the city of Lubbock and its
elected officials, officers, agents, and employees from all suits, actions, losses, damages,
claims, or liability of any kind, character, type, or description, including without limiting the
generality of the foregoing, all expenses of litigation, court costs, and attorney's fees, for
injury or death to any person, or injury to any property, received or sustained by any person
or persons or property, to the extent arising out of, related to or occasioned by, the negligent
acts of the Contractor, its agents, employees, and/or subcontractors, related to the
performance, operations or omissions under this agreement and/or the use or occupation of
city owned property. The indemnity obligation provided herein shall survive the expiration
or termination of this agreement.
-----INTENTIONALLY LEFT BLANK-----
IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed the
day and year first above written. Executed in triplicate.
CITY OF LUBBOCK CONTRACTOR
�—� BY: `�
Mar McBrayer, Mayor Authorized Representative
ATTEST:
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urtn � az, y Secretary
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Print Name
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Address
APPROVED AS TO CONTENT:
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Elizabeth Lara, Director of Human Resources
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City, State, Zip Code
Mitch Sa
Attorney
Exhibit A
City of Lubbock, TX
RFP 25-18415-KM
457(b) PLAN INVESTMENT ADVISORY SERVICES
GENERAL REQUIREMENTS
1. INTENT
1.1. The City of Lubbock seeks proposals from highly qualified investment advisory firms to provide
comprehensive investment advisory services for its 457(b) Deferred Compensation Plan. The
selected firm wi(I serve as a fiduciary advisor, working closely with the City's Oversight Committee
to ensure the prudent management of Plan assets while complying with all applicable local, state,
and federal laws, including those specific to the Texas State Securities Board, the Securities and
Exchange Commission (SEC), the Department of Labor, and the Internal Revenue Service (IRS).
The services provided must align with the goals of maintaining a robust, compliant, and participant-
focused Plan.
2. SCOPE OF WORK
2.1. The firm must be a Registered Investment Advisor with the SEC and registered with the Texas State
Securities Board. It must either be completely independent of any financial institution or securities
brokerage firm or disclose any such relationships, including any commissions or bonuses that may
result from relationships with the City. The advisor will provide non-discretionary management of
the City's 457(b) Plan investments, acting solely in an advisory capacity. The firm shall advise on
investment selections, including risk models, target-date funds, and stable value funds, to meet the
needs of Plan participants.
2.2. The selected firm will work with the Plan's Oversight Committee to establish, review, and modify
an Investment Policy Statement, ensuring alignment with Plan goals and compliance with local
ordinances and regulations. The firm will be responsible for reviewing existing Plan Sponsor
management practices and recommending any necessary improvements, as well as preparing and
presenting any proposed changes to the City Council or other stakeholders as needed. The
investment advisor shall serve as a fiduciary on all funds under advisement, ensuring investments
meet the best interests of Plan participants. The selected firm shall provide education on fiduciary
responsibilities and industry trends to the Oversight Committee and support the Plan Sponsor during
audits, including regulatory and IRS audits.
2.3. Advisors must meet with City staff on a quarterly basis, providing timely assessments of market
conditions and recommendations for action. These meetings will include a full investment
performance review, along with reports covering market commentary, full portfolio analysis with
fund grades based on performance criteria, a Watch List for underperforming funds and
recommendations for replacement, fee benchmarking, cash flow statements, and consolidated
performance reporting across three recordkeepers. See Exhibits A, B, and C for recordkeeper
documents. The firm will also provide guidance on best practices in fiduciary oversight and
investment selection, ensuring the City's 457(b) Plan adheres to its stated goals of participant
security and long-term growth.
2.4. The investment advisor will not provide security safekeeping services under this solicitation. The
term of the contract will be for a one-year term, with an option to renew for up to four additional
one-year periods. Each renewal will require both parties' agreement and will be contingent upon the
l4
firm's performance and the City's needs. Either party may terminate the contract with 30 days'
written notice.
2.5. The proposal must include a maximum not-to-exceed flat fee, charged on a quarterly basis, to cover
all advisory services rendered. The City of Lubbock values transparency and cost efficiency, and
the fee structure should reflect these principles while delivering high-quality advisory services.
3. EVALUATION CRITERIA
3.1. The following criteria will be used to evaluate and rank submittals:
3.1.1. Firm Background and Experience —10 Points
Experience with municipalities, 457(b) plans, public entities, registration with SEC and
Texas State Securities Board, and firm structure. A description of the methodology to be used
to provide investment advisory services to include, but not be limited to, how
recommendations will be formulated and commitment of adequate appropriate resources to
the City's account.
3.1.1.1. Describe the ownership structure of your firm and its registration with the SEC
and Texas State Securities Board.
3.1.1.2. How many years has your firm provided investment advisory services to
municipalities and other public entities? Include specific experience with 457(b)
plans.
3.1.1.3. Describe any relationships with financial institutions or brokerage firms, and
disclose any commissions or bonuses received as a result of those relationships.
3.1.1.4. Offeror's specific expertise in areas pertinent to the City's 457(b) Plan to include
a listing and brief description of similar client contracts completed or in progress
(with the dates of inception and/or completion) and a list of references by name,
address, and telephone number for each client listed. This list of clients shall
include a brief description of how their retirement plan, plan management, and
participant outcomes have improved because of your investment advisory services.
3.1.1.5. A brochure of past work, with emphasis on comparable client accounts.
3.1.2. Fiduciary Responsibilities —15 Points
Commitment to acting as an ERISA 3(21) fiduciary, understanding of fiduciary duties, and
examples of municipal fiduciary guidance.
3.1.2.1. Describe your fiduciary process and how you ensure adherence to the Investment
Policy Statement (IPS).
3.1.2.2. Provide examples of how your firm has guided municipal clients in fiduciary
• decision-making.
3.1.3. Advisory Team —15 Points
Qualifications, certifications (AIF, CPFA, etc.), and relevant experience of team members
who will directly manage the City's 457(b) Plan.
3.1.3.1. List of principal(s) of the Proposer and amount of time that principal(s) will be
involved on the City's account.
3.1.3.2. Provide the qualifications and experience of the primary team members who will
be assigned to the City's account. Include certifications such as AIF, CPFA, or
other relevant credentials.
15
3.1.3.3. The organizational structure of the employees who will be assigned to this
project along with resumes of those individuals. If a joint venture is expected,
then provide the organizational structure of the sub-contractor and resumes of
those persons who will be involved in the project.
3.1.3.4. Describe the team's experience managing 457(b) or other similar retirement
plans for public entities.
3.1.3.5. List of other professionals to be used, if applicable, with a record of experience
in projects of this nature. Identification of principal(s) and percentage of time the
principal(s) will be involved with the City's account.
3.1.4. Investment Management Approach —15 Points
Approach to developing and managing investment strategies, underperforming fund
recommendations, and Watch List process.
3.1.4.1. Explain how your firm develops and manages investment strategies that prioritize
the long-term growth of Participant accounts in line with the Plan's objectives.
3.1.4.2. Describe your process for recommending changes to the investment lineup,
especially for funds that are underperforming. Include an explanation of your
Watch List process.
3.1.5. ReporNng and Technology — 10 Points
Quality of reporting, sample reports, technology platforms for monitoring performance, and
accessibility of data.
3.1.5.1. Describe the reports you provide to clients, including examples of quarterly
performance reports and market analyses. How do you tailor these reports to
public sector clients?
3.1.5.2. Provide samples of all quarterly meeting materials.
3.1.5.3. What technology platforms do you use to monitor and report on Plan
performance?
3.1.6. Compliance and Regulatory Oversight — 10 Points
Experience with audits (IRS, Department of Labor), ensuring regulatory compliance, and
staying updated with regulatory changes.
3.1.6.1. Explain your experience working with municipalities to ensure compliance with
local, state, and federal regulations, including the Department of Labor and IRS
audits.
3.1.6.2. Describe how your firm stays current with regulatory changes and implements
best practices.
3.1.6.3. The Proposer must assure the City that helshe will to the best of hislher
knowledge, information and belief, be cognizant of, comply with, and enforce,
where applicable and to the extent required, all applicable federal or state statutes
and local ordinances.
3.1.6.4. Describe the Offeror's methodology for handling errors and omissions.
3.1.7. Participant Services — 5 Points
Examples of improved participant outcomes.
16
3.1.7.1. Provide examples of how your firm has improved participant outcomes in other
retirement plans.
3.1.8. Conflicts of Interest — 5 Points
Transparency in conflict of interest policy, disclosure of potential conflicts, and mitigation
strategies.
3.1.8.1. Provide details of your firm's conflict of interest policy. How does your firm
handle potential conflicts in managing municipa( retirement plans?
3.1.8.2. Disclosure of any obligations posing a potential conflict of interest, including
service on City boards and/or commissions and any current contracts with the
City of Lubbock. This would apply to the Proposer as well as consultants
subcontracted by the Proposer.
3.1.8.3. Disclose any potential conflicts of interest related to this engagement and how
they will be mitigated.
3.1.9. Fees —15 Points
Detailed fee structure, transparency in pricing, and overall cost-effectiveness of services
provided.
3.1.9.1. Provide a detailed breakdown of the proposed fee structure, including the
maximum not-to-exceed quarterly flat fee for the services outlined.
3.1.9.2. Explain any additional fees that may apply, and how your firm ensures cost
transparency for its municipal clients.
4. PROPOSAL FORMAT
4.1. Proposals should provide a straightforward, concise description of the Offeror's capabilities to
satisfy the requirements of the RFP. Emphasis should be on completeness, clarity of content, and
conveyance of the information requested by the City.
4.2. The proposal should be bound in a single volume if submitting a hardcopy. All documentation
submitted with the proposal should be bound in that single volume.
4.3. If the proposal includes any comment over and above the specific information requested in the RFP,
it is to be included as a separate appendix to the proposal.
4.4. If submitting a hard copy of your proposal, the proposal must submitted in an indexed binder.
Proposal must be organized into the following response item sections and submitted in an indexed
binder.
4.4.1. Cover letter addressed to the Honorable Mayor and City Council that states the Offeror's
understanding of the services to be provided. Include any additional information believed
necessary that is not requested elsewhere in the RFP.
4.4.2
4.4.3
Firm Background and Experience.
Fiduciary Responsibilities.
4.4.4. Advisory Team.
4.4.5. Investment Management Approach.
4.4.6
4.4.7
Reporting and Technology.
Compliance and Regulatory Oversight.
t7
4.4.8. Participant Services.
4.4.9. Conflicts of Interest.
4.4.10. Fees.
4.4.11. Any material which the proponent wishes to submit and which is not specifically requested
in the above categories.
4.4.12. Offerors are strongly encouraged to explore and implement methods for the utilization of
local resources, and to outline how they would address outreach issues in their proposal.
18
EXHIBIT A
VOYA FINANCIAL
ADOPTION AGREEMENT AND BASIC PLAN DOCUMENT
Vo a Financialo
Y
Specimen Adoption Agreement for
Deferred Compensation Plan for
Governmental Employers
Voya Financial�
SPECiMEN ADOPTION AGREEMENT FOR
457(b) DEFERRED COMPENSATION PLAN
FOR GOVERNMENTAI EMPLOYERS
The undersigned Employer adopts the 457(b} Deferred Compensation Plan for Govemmental Employers
for those Empbyees who will quality as Participants nereunder, to be known as the:
The City of l.ubbock 457{b) Deferred Compensation Plan
It will be effective as of the date spedfied below. The Empbyer hereby selects the folbwing Plan
spec'dications:
EMPLOYER IN�ORMATION (Plan Section 1.13)
Name of Employer: Clty of LubboCk
Address: 1314 Avenue K
Lubbock, TX 79401
Telephone Number. �gpg� 775-2303
Employer ldentiNcation Number. 75-6000590
Locatlon of Employer.
The Plan wlll be govemed in accordance with retirement plan Jaws of the State of TeX1S
Employer Fiscal Year:
The 12-consecuGve month period commencing on OCtober 1
and ending on September 30
This spedmen plan is intended to assist you and your counsel in adopNng a 457 deferred compensation
plan. Modiiiwtions may be required to meet your plan's particular objectives. (3(t/2t)
,
PIAM F tNVE37 1 PROTECT
va �o
FINANCtAI
PLAN I(dFORMATION
Effective Date:
This Adoption Agreemen! of the 457(b) Defened Compensatwn P/an for Govemmental Employers wlll.•
� Establish a new Plan effective as of
DConstitute an amendment and restatement in its entirety of a previously established 457(b}
Plan of the Employer which was effective 06/08/1978
Exoept as spedflcally provided in the Plan, the effedive date of this amendment and
restatement is 01 /01/2022
Plan Year (Plan Sectlon 1.27):
The 12-consecutive month period beginning on: January 1
and ending on: December 31
Name of Administrator (Plan Section 1.1y:
� Employer (use Employer address)
� Name(s):
Address:
Telephone:
Eli ibflity (Plan Section 2.1
Eligible Individuals for Purposes of Participant Deferral Contributions:
� All Employees
� All Employees other than the following group or groups of Employees elected below:
�Non-resident aliens with no U.S, source of income
�Collecdvely bargained employees
�Part-time Employees
�Other (specify):
This specimen plan is intended to asslst you and your counsel in adopting a 4S7 deferred compensation
plan. Modifications may be required to meet your ptan's pa�tkular obJed(ves. (31�Jz�)
2
PIAN i INVEST 1 PROTECT
va ��
FINANCIAL
NOTE: The group(s) specfied must oo�espond to a group of the same designabion that is deflned in
statutes, ordinances, rules, regulatlons. personnel manuals or other authority for the state or local
jurisdiction of the Employer.
Age and Service Requirement for Participant Deferral Cor�tributions:
Emp/oyaes that have satisBed fhe servlce and age requfrements spec�ed below:
Service Requirement:
� ysars of service with the Employer (specify number of years of service)
❑✓ WA — there is no service requirement for Pa�tiapant Oeferral Contributions
� Age Requirement
� Attained age (specify minimum attained age required)
❑✓ N/A — there is no age requirement for Participant Deferral Contributions
Effective Date of Plan Partictpation for Participant Defenal Corn�ibutions:
For purposes of Participant Defena! Contribufions, an Eligible /ndivfdua/ who has satisfied the Plan's
eligibllity requlrements w!1! beoome a Particlpant as of.•
�Immediate upon the satisfactian of the eligibility requirements
a'I"he flrst day of the month
❑Semi-annuai. The first day of the first month and the seventh month of the Plan Year
�he first day of the Plan Year
❑Other (speciTy):
Elfgible Individuals for Purposes of Employer Nonelective Contributions:
�
�
Ail Employees
All Empbyees other than the following group or groups of Employees elected below:
�Von-resident aliens with no U.S. source of income
�Collectively ba�gained employees
�art time empioyees
�Other:
7his specimen plan is intended to assist you and your counsel in adopting a q57 defeRed compensation
plan. Modificatio�s may be required to meet your plan's particular objedives. (3hJ2t)
PIAN I INV�5T I PROTECT
VCa �1�
PIkANC1AL
N4TE: 7he group(s) specNied must correspond to a group of the same designatlon that is de8ned in
statutes, ordinanoes, n�les, regulations, personne! manuals or other authority for the state or local
jurisdiction of the Employer.
As�e and Senrice Requirement for Emalover No�elective Cont�ibutions:
Emp/oyees that have satis�red the service and age requlremants specliled be/ow.•
Service Reauirement
�
�
Yea�s of service with the Employer (Specity number of Years of service)
N/A — there is no service requirement for Employer NonelecUve Contributions
�e Reauirement
� Attained age (Specily mfnimum attained age required)
� N/A — there is no age requirement for Employer Nonelective Coniributions
Effective Date of Plan Participation for Empbyer Nonelective Contributions:
For purposes of Employer Nonelective ConMbuUons, en Ellgl6le lndividual who has satisfied the Plan's
ellgJbllity requlrements wlll become a PaRlclpant as of.•
�Immediate upon the satisfacdon of the eifgibility requirements
�7he first day of the month
�Semi-annual. The first day of the first month and the seventh month of 1he Plan Year
�The first day of the Plan Year
�Other (specify):
7hts specimen plan is Intended to assist you and your counsel in adopting a 457 deferred compensation
pfan. Modffications may be required to meet your plan's particular objectives. (31t�2t)
PIAN � INVEST I PROTECT
�� � F
FIItANC1A1,
Eligible Individuals for Purposes of Empbye� Matching CoMributEons:
�
�
Ail Empbyees
All Employees other than the following group or groups of Employees elected below:
Non-resfdent aliens with no U.S. source of income
Collectively bargained employees
Part-time employees
Other:
❑
a
❑
❑
NOTE: The group(s) specifled must corcespond to a group of the same designation that is deflned in
statutes, ordinances, rules, regulations, personnel manuals or other authoriry for the state or local
jurisdiction of the Employer.
Age and Service Requirement for Employer Matching ContNbutions:
Employees thaf have satisfred the service and age requirements speclf'ied below:
Service Requirement
� Years oi service with the Employer (specify number of Years of service)
� N!A — there is no service requirement for Employer Matching Contributions
As�e Reauirement
� Attained age (specify minimum attained age required)
� N/A — there is no age requirement for Employer Matching Contributions
Eifective Date of Plan Pa�ttclpation for Empioyer Matching Cont�ibutions:
For purpases of Employer Matching Contributions, an EJigible Individua! who has safistled the P/an's
eliglbiliry requiremenfs will become a Pa►ficipanf as of
�mmediate upon the sadsfaction of the eligibility requirements
❑The first day of the month
�emi-annual, 7he first day of the first month and the seventh month of the Plan Yea�
❑The first day of the Plan Year
❑Othe� (specify):
'ihis spedmen plan ls irrtended to assist you and your counsel in adopting a 457 deferred compensation
plan. Modtflcations may be requtred to meet your plan's particular objectives. (31t1z�)
S
PIAN i INVEST I PROtBCT
�� � ■
FINANCIAL
Empbyer Matching Contributions will match a Pa�ticipant's:
�lective DefeRals
�oth 457(b) ConVibutions
Independent Contractors (Plan Section 1.8)
For pu�poses of this sectlon. the term Eligible Individual:
�INILL NOT include Independent Contractors
�WILL include all Independent Contractors
nWILL include all Independent Contractors other than as specifled below:
Automatic Enroliment (Plan Section 2.8)
Automatic Enrollment under the Pla�:
�Applies
❑✓ Does not apply
If Automatic Enrallment applies, choose type of automatic enrollment feature:
�4CA Automatic Enroliment
aEACA AutomaUc En�ollment
This spedmen plan is intended to assist you and your counsel in adopt(ng a 457 deferred compensation
p1an. Modffications may be requfred to meet your plan's particular objectives. (3���z�)
6
PLAN I INVE8T � PROTECT
va �.
FINANCIAL
ACA Automatic Enrollment
Applicable PaRidpants:
� All Participants, regardless oi any prior Participation Ag�eernent. unless and untl) a Participant
makes an elecUon not to defer any Compensation or to defer more or fess than the ACA
percentage after the effecave date of the ACA.
❑ All Participants, except those who, on the effective of the ACA, are defer�ing an amount which is at
least equal to the ACA percentage.
� All Participants, except those who have in effect a Participation Agreement on the effective date of
the ACA regardless of the Elective Defemal amount under the Participatlon Agreement.
� Other:
Amount of ACA:
� � from each Paficipant's Compensa�on unless the Participant elects a different
percentage (including zero) under his/her Participatlon Agreement.
� Other:
7ype of ACA Defenal:
�iective Deferral
�toth 457(b) ConWbution
ACA Escatation Deferral Percentage:
�Scheduled increases. This ini6al percentage will increase annually by % of Compensation
per year up to a maximum of °k of Compensation.
�No scheduled increases
NOTE: Under an ACA, Participants are not permitted to request a withdrawal of default contribudons
once the contribuHons are made to the Plan.
This spectmen plan is intended to assist you and your counsel in adopting a 457 deferred compensation
plan. Modif'icatfons may be requfred to meet your plan's particular objectives. (3/�h�)
7 �� � a
PIAN i INVE5T 1 PROTECT FINANCIAI
EACA Automatic Enrollment
Applicable Participants:
� All Participants, regardless of any prior Participa�on Agreement, unless and un�l a Participant
makes an election not to defer any Compensation or to defer more or less than the EACA
percentage after the effecave date of the EACA.
� All Participants, except those who, on the effective of the EACA, are defemng an amount which is
at least equal to the EACA percentage.
� Ali Particlpants, except those who have in effect a Participation qgreement on the effecGve date of
the EACA regardless of the Elective Defemal amount under the Participation Agreement.
� Other:
Amount of EACA:
� °� from each PaRicipanYs Compensation unless the Participant elects a different
percentage (including zero) under his/her Parbiapabon Agreement.
� Other.
Type of EACA Deferral:
�Elective Deferral
�Roth 457(b) Contribution
EACA Escalation Deferral Percentage:
�Scheduled increases. This initial percentage will increase annualiy by % of Compensatlon
pe� year up to a maximum of % of Compensation.
�No scheduled increases
NOTE: Under an EACA, Participants are permitted to request a withdrawal of default contributions no
earifer than 3d days and no later than 90 days after the first default contribudon is made. My matching
contributlons attributable to withdraw automatic contributions must be forfeited.
This specimen plan is intended to assist you and your counse) in adopting a 457 deferred compensation
plan. Modifications may be required to meet your plan's particular ob�ectives. (3J�/a�)
8 �� � ■
pLAN 1 INVEST I PROTEC7 PINANC�AL
NOT�: The employer (together with its legal counsel, as wa�anted) is responsible for detennining
whether an automaac enrollment feature and/or escalatlon feature is permitted in accordanoe with its
state/local laws.
COMPENSATION (Plan Section 1.7)
Base Definition (Choose one of the following}:
aUVages, tips and other compensatlon on Form W-2. [Gross wages subject to income tax which are
reportable on Fonn W-2, Wage and Tax Statement.J
�Code §3401(a) wages (wages for withholding purposes). (Wages subject to income tax
withholding. This opHon exc(udes certain taxable f�inge benefits provided by the Employer that
are not subject to withholding.]
�415 safe harbor compensa�on. [Wages, salaries, fees for professlonal service and other amounts
reoeived (without regard to whether or not an amount is paid in cash) and exdudes certain taxable
fringe benefits and nonqualified unfunded deferred oompensadon.]
N07�: The Plan provides that the base deflnition of Compensation includes amounts that are not
induded in income due to Code §§401(k), 125,132(�(4), 403(b), SEP, 414(h}(2), & 457.
Compensation for an Independent Contractor means the amou�ts the Employer pays to the
Indepandent Cantractor for serviCes, except as the Empiayer othervvise spec'�fies below.
aModificatlons to Compensetion defini�on.The Employer elects to modify the Compensation
definitfon as follows:
allo modfications.The Plan makes no modfica�ons to the deflnitlon.
� Modiflcadons:
� Fringe benefits.The Plan excludes all reimbursements or ather expense
allowances, fringe benefits (cash and noncash}, moving expenses, defened
compensadon and welfare benents.
� ElecUve Contributions. The Plan excludes a Participant's Elective Contributions.
� Bonuses. The Plan excludes bonuses.
� Overtime. The Plan excludes overtime.
'I'hfs spedmen plan is fntended to assist you and your counsel in adopting a 457 deferred compensation
plan. Modifications may be required to meet your plan's particula� objedives. (3�tJz�)
9
PIAN � INVESt I PROTECT
V� ��
fINANCIAI
POST-SEVERANCE COMPENSATION
Compensation includes the foilowing types of post-severance Compensatfon for purpases of Plan Section
3.1(c) paid within any applicable time period as may be required:
✓�Ione.The Plan does not take into account post-severance compensatlon as to any contribution
iype except as required under the Plan.
❑Adjustments. The following Compensadon adjustments apply:
� Regular pay
� Leave cash-outs
� Salary continuatfon for disabled participants
� Differential wage payments (mil'itary continuation payments)
� Describe altemative post-severance Compensation: .
This spedmen plan is intended to assist you and your counsel in adopti»g a 457 deferred compensation
plan. Modfflwtions may be requtred to meet your plan's partfcutar objecttves. (3Jih�)
10
PLAN I INVEST I PROTECT
�� � r
FIMANCIAL
CONTRIBUTIONS AND ALLOCATIONS
Employer Nonelective Contributions (Plan Section 1.15)
�WIlL be permitted under the Plan.
�VYILL NOT be permitted under the Plan.
For each Plan Yea�, the Employer Nonelective Co�tribution will be:
�
�
,■
% of each Paficipant's Compensatlon
a
An amount, deteRnined uniformy with respect to each Employee classifica6on within the
applicable collective bargaining agreement
NOTE: If Employer Nonelective Contributions are availabfe to collec�vey bargained employees, such
Employer contributions formula must also reflect the terms of the oollecttve bargaining agreement.
Employer Matching Contributions (Plan Section 1.14)
� WILL be pennitted under the Plan.
a WILL NOT be permitted under the Plan.
For each Plan Year, the Employer Matching ConMbuHon wi8 be:
� A matching contribution equal to
� A matching contribudon equal to $
% of each Particlpant's contributlon to the Plan.
of each ParticipanYs contribution to the Plan.
� A matching contribution equal to a percentage of each PartidpanYs contribuNon to the Plan in an amount to be
determined each Plan Year by the Employer or the applicable coilective bargaining agreement.
NOTE: If Matching Contributions are available to collec�tively bargained employees, such Matching
Contributions formula must also reflect the terms of the collective bargaining agreement.
Employe� Matching Contributions will match a ParticipanYs:
❑Elective Deferrels
�2oth 457(b) ConMbutions
1'his spedmen plan ts intended to assist you and your counsel in adopting a 457 deferred compensation
plan. Modifications may be requ[red to meet your plan's particular objettfves. (3Jt�2t)
�i
PLAN � INVEST i PROTECT
�� � 3
FINANCIAI
Vesting (Plan Sections 1.34 and 3.12)
Vesting of PardcipanYs Interest in Employer Nonelective and Employer Matching Contributions.
The vesting schedule for Empbyer Cont�butions, based on numbe� of Years of Service, will be as
follows:
Mark
� 100% Fufl and Immediate
❑ 0-4 Years of Servtce: 0°6
5 Years of Service: 100%
0-2 Years ot Serv(ce: 096
3 Years of Service: 20°�
� 4 Years of Servioe 40g6
5 Years of Service 60%
6 Years vf Service 809�0
7 Years of Service 100%
Q Years of Servioe: 96
Years of Service: 96
Years of Service: °�6
Years of Service: °�
Contributions
(check tf inciuded)
❑
❑
❑
❑
Contributbns
heck if include
�
�
❑
NOTE: Deferral and Rollover Contribudons are always 100°� vested.
This specimen plan is irrtended to assist you and your counsel in adopting a 457 deferred compensation
plan. Modiffcations may be required to rneet your plan's particular objectives. (3jt�2t)
12 �� � s
PLAN 1 INVEST 1 PROTfiCT FINANCIAL
Allocatlon of Forfeftures
Employer Employer
Nonelective ANatching
Contributions ConMbutions
Mark (check if (check if
Choice s: Forfeitucs Allocation included included
� Reduce Employsr Nonelec�tive ConVibutions � �
� Reduce Employer Matching Contributlons � �
� Reallocate among remaining Pardcipants � �
❑ �r ❑ ❑
N07E: The Employer is responsible for maintaining any Forfeitu�e account under the Plan in
accordance with the GASB financial and accounting statements.
Roth 457{b) Contributions (Plan Sections 1.30 a�d 3.1{a))
�� WILL be permitted under the Plan.
❑WILL NOT be permitted under the Plan.
In-Plan Roth Rollovers (Plan Sactfon 1.20)
aWILL be permitted under the I'lan.
�WILL NOT be permitted unde� the Plan.
In-Plsn Roth Converstans (Plan Section 1.19�
�INILL be permitted under the Plan.
�WILL NOT be permitted under the Plan.
Age 50 Plus Catch-Up Contributions (Plan Sections 1.4 and 3.3):
�WILL be permitted under the Plan.
DWILL NOT be permilted under the Plan.
This specimen plan (s intended to assist you and your counsel in adopting a 457 deferred compensaUon
plan. Modiftcations may be �equlred to rneet your plan's particutar objectives. (3(�/z�)
�3
PLAN 1 INVEST I PROTECT
V� �1:
FINANC�AL
Special 457(b) Catch-up Contributions (Pfan Secttona 1.32 and 3.2):
�IYILL be permitted under the Plan.
�VILL NOT be permitted under the Plan.
Rollove� Contributions (Plan Sections 7.29 and 3.90):
✓❑WILL be permitted under the Plan.
�VYILL NOT be permitted under the Plan.
T�ansfers IMo the Plan (Plan Sectbn 3.9):
�WILL be permitted under the Plan.
�WILL N�T be permitted under the Plan.
Defemal of Accumulated Sick Pay, Accumulated Vacatton Pay and Back Pay (Plan Section 3.1(b)}:
Participant may elect to defer (chedc all that are applicable) to the Plan:
� accumulated sidc pay
�✓ accumulated vacaaon pay
❑�/ badc pay
NOTE: My amounts deferred under Section 3.1(b) of the Plan must be consistent with applicable state
and local law, induding. but not limited to, the terms of any collective bargaining agreements.
Recognition of Approved Domestic Relations Orde�s (Plan Section 7.4):
�MLL be petmitted under the Plan.
�iVILL NOT be permitted under the Plan.
NOTE: Recognition of domestic relations orders must be consistent with applicable state and local law.
This specimen plan is intended to assist you and your counse) in adopting a 457 deferred compensaHon
plan. ModificaHons may be �equired to meet your plan's particular objectives. (3f �12�)
�4
PIAN I iNVE5t I PROTECi
va �z
FINAItC1Al
Normal Retirement Age for Purposes of the Speciai Section 45T Catch-up (Plan
Section 1.22):
NOTE: The Employer, together with any related employe�^s, is not permitted to have more l�an one
Nonnal Retirement Age for each Partiapant under a[I of the plans under Section 457(b} of the Code that it
sponsors.
For purposes af the Special 457 Catch-Up Deferral Election under Section 3.2, Normal Retirement Age
will be:
� Age 65
� Age 70'/:
� Other stated age between 65 and 70'/z :
� The Nomnal Rstirement Age as elected bv the Particiaa�t that is between:
➢ the earlier of the ea�llest retirement age under the Employer's pension plan at which the
Participant immediately could receive unreduced reti�ement benefits; and
➢ Age 70'/z.
� The Normal Retlrement Age as elected bv the Partici� that is between:
➢ 65; and
➢ I�e 70'/z.
This spectmen plan Is intended to assist you and your counsel in adopt(ng a 457 deferred compensation
plan. Mod�cations may be required to meet your plan's particular objectives. (�:�2�)
,5
PIAN 1 INVEST I PROTECT
V� �.
pINANC1Al
Normal Retirement As�e for Police or Fireflsthters (Plan Section 1.221
For purposes of the Special 457 Catch-Up Defe��al Election under Section 3.2, Normal Re�rement Age
will be:
� the earliest retlrement age at which an individual could receive unreduced beneflts under the
Employer's pension plan
� Age 40
� Age 55
Age 65
Age 70'/:
� Other:
NOTE: Age specified for this opGon generally may not be less than age 40 or more than age 70 '/�.
� the Normal Retirement Age as elected bv the Particluant that is between:
➢ the eahier of the earliest retirement age under the Employer's pension plan at which the
Partiapant immediately coufd receive unreduced red�ement benefits; and
➢ Age 70'/z.
� the Normal Retirement Age as elected by the Participant that is beiween:
➢ Age 40; and
➢ Age 70'/:.
DISTRIBUTIONS
Distribution Options (Pian Section 4.3(c)):
a
�
�
a
❑
Lump sum
Immediate o� deferred annuity (induding life annuities and installment payment
annuities)
Systematic distribuaon option
Under any distributlon method permitted under the lnvestment Product
Other.
This spedmen plan Is irrtended to assist you and your counsel tn adopting a 4g7 defeRed comperuallon
plan. Modificatioru may be required to meet your plan's particular object(ves. (31 t/Zt)
�6
PIAN I INVEST ! PROTECT
va ��
FINANGIAL
Death Benefits Payable to BenefiCiary (Plan Section 4.4(d)):
Amounts payable to the Beneflcfary may be elected by the Beneflciary in the folbwing forms of benefit
payment
� Same dlstributlon optlons as available to the Participant
� Other:
NOTE: Distribution options selected are available to the extent permitted by applicable Jaw and the terms
of the Investment Product.
Rollovers and In-Plan Roth Rollovers (Pian Section 4.1(b)):
Amounts attributable to Rollovers and In-Plan Roth Rollovers will be paid to a Participant:
� Upon attainment of an event as described in Seotion 4.1(a)
� Upon the request of a Participant
� ou,e�:
This specimen plan is intended to assist you and your counsel in adopting a 457 deferred compensation
plan. Modffications may be required to meet your plan's particular objectives. (3/��zti)
,�
PLAN � INVEST I PROTECT
V� � i
�iNANCfAL
Unforeseeable Emergency Wtthdrawals (Plan Sections 1.33 and 4.6):
�VlLL be permitted under Ehe Plan.
�IN1LL NOT be permitted under the Plan.
If Unforeseeable Emergency withdrawals are allowed by the Plan, amounts eligible for such withdrawals
witl be in accordance with the Investment Praduc�
A Participant:
�Illay take an Unforeseeable Emergency Withdrawal resutting from the illness or accident of a
phmary Beneficiary designated by the Participant.
�Vllay not take an Unforeseeable Emergency Withdrawal resul�ng nom the illness or accident of a
primary Beneficiary designated by the Participant.
Small Balance Distribution (Plan Section 4.7):
�IYILL be permitted under the Plan.
✓�IMLL NOT be permitted under the Pian.
Transfer of Amounts for Purchase of Service Credits in Governmental Retirement
Systems (Plan Section 4.9}
�WILL be permitted under the Plan.
✓�INILL NOT be permitted under the Plan.
Transfers to the Othe� Plans (Plan Section 4.10):
�� WILL be permitted under the Plan.
�NILL NOT be permitted under the Plan.
Loans to Participants (Plan Section 4.11):
�IIIIILL be permitted under the Plan.
��WILL NOT be permitted under the Plan.
This specimen plan is intended to assist you and your counsel in adopting a 457 deferred compernatfon
p1an. Modifications may be required to meet your pfan's particular objectives. (3J�Jzt)
t8
PLAN I INVEST 1 PROTECT
V� � s
FlflANCIAI
Distributions for Health Insurance and Long Term Care Premiums (Plan Section
4.12):
❑WILL be permitted under the Pian.
�YVILL NOT be permitted under the Plan.
Mandatory Distributions (Plan Section 4.13)
�WILL be permitted under the Plan.
�VYILL NOT be permitted under the Plan.
if mandatory distributions are permitted under the Plan, the dollar amount of a mandatory distributfon
under the Plan is $5,000.00 (not to exceed $5,000).
Rollovers
a✓ VYILL be induded in determining the Mandatory DisMbutlon amount.
�WILL NOT be Included in determining the Mandatory DisWbution amount.
This spedmen plan is intended to assist you and your counsel in adopting a 457 deferred comperuation
pta�. Modtfications may be required to meet your plan's particular objectives. (3/t/zt)
�9
PIAN I INVEST � PROTECT
V� �Ie
FINANCIAI
No Text