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HomeMy WebLinkAboutResolution - 6601 - Contract - ICMA Retirement Corporation - Deferred Compensation Plan - 11/04/1999Resolution No. 6601 Nov. 4, 1999 Item No. 25 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a contract for Deferred Compensation Plan, by and between the City of Lubbock and International City Management Association (ICMA) Retirement Corporation of Washington, DC and related documents. Said contract 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 this 4th day of November , 1999 4-, < -�, 17 � W1 �ffiY TO OR ATTEST: Ka a arnell, City Secretary y APPROVED AS TO CONTENT: Victor KihnanPurchasing Manager APPROVED AS TO FORM: William de Haas Competition and Contracts Manager/Attorney gs:ccdocs/Deferred Compensation Plan.res September 14, 1999 Resolution No. 6601 Nov. 4, 1999 Item No. 25 ADMINISTRATIVE SERVICES AGREEMENT Type: 457 Account Number: 5000 Plan # 5000 Resolution No. 6601 Nov. 4, 1999 ADMINISTRATIVE SERVICES AGREEMENT Item No. 25 This Agreement, made as of the 4th day of November 199 , (herein referred to as the "Inception Date"), between The International City Management Association Retirement Corporation ("RC"), a nonprofit corporation organized and existing under the laws of the State of Delaware; and the City of Lubbock ("Employer") a City organized and existing under the laws of the State of Texas with an office at 1625 13th Street, Lubbock, Texas 79401. Recitals Employer acts as a public plan sponsor for a retirement plan ("Plan") with responsibility to obtain investment alternatives and services for employees participating in that Plan; The ICMA Retirement Trust (the "Trust") is a common law trust governed by an elected Board of Trustees for the commingled investment of retirement funds held by state and local governmental units for their employees; RC acts as investment adviser to the Trust; RC has designed, and the Trust offers, a series of separate funds (the "Funds") for the investment of plan assets as referenced in the Trust's principal disclosure document, "Making Sound Investment Decisions: A Retirement Investment Guide." The Funds are available only to public employers and only through the Trust and RC. In addition to serving as investment adviser to the Trust, RC provides a complete offering of services to public employers for the operation of employee retirement plans including, but not limited to, communications concerning investment alternatives, accountmaintenance, account record-keeping, investment and tax reporting, form processing, benefit disbursement and asset management. I Plan # 5000 Agreements Employer hereby designates RC as Administrator of the Plan to perform all non -discretionary functions necessary for the administration of the Plan with respect to assets in the Plan deposited with the Trust. The functions to be performed by RC include: (a) allocation in accordance with participant direction of individual accounts to investment Funds offered by the Trust; (b) maintenance of individual accounts for participants reflecting amounts deferred, income, gain, or loss credited, and amounts disbursed as benefits; (c) provision of periodic reports to the Employer and participants of the status of Plan investments and individual accounts; (d) communication to participants of information regarding their rights and elections under the Plan; and (e) disbursement of benefits as agent for the Employer in accordance with terms of the Plan. �•.• •iirelm Employer has adopted the Declaration of Trust of the ICMA Retirement Trust and agrees to the commingled investment of assets of the Plan within the Trust. Employer agrees that operation of the Plan and investment, management and disbursement of amounts deposited in the Trust shall be subject to the Declaration of Trust, as it may be amended from time to time and shall also be subject to terms and conditions set forth in disclosure documents (such as the Retirement Investment Guide or Employer Bulletins) as those terms and conditions may be adjusted from time to time. It is understood that the term "Employer Trust" as it is used in the Declaration of Trust shall mean this Administrative Services ;Agreement. 3. Employer Duty to Furnish Inform .. - ., Employer agrees to furnish to RC on a timely basis such information as is necessary for RC to carry out its 'responsibilities as Administrator of the Plan, including information needed to allocate individual participant accounts to Funds in the Trust, and information as to the employment status of participants, and participant ages, addresses and other identifying information (including tax identification Plan # 5000 numbers). RC shall be entitled to rely upon the accuracy of any information that is furnished to it by a responsible official of the Employer or any information relating to an individual participant or beneficiary that is furnished by such participant or beneficiary, and RC shall not be responsible for any error arising from its reliance on such information. RC will provide account information in reports, statements or accountings. 4. Certain Representations. Warranties. and Covenants RC represents and warrants to Employer that: (a) RC is a non-profit corporation with full power and authority to enter into this Agreement and to perform its obligations under this Agreement. The ability of RC to serve as investment adviser to the Trust is dependent upon the continued willingness of the Trust for RC to serve in that capacity. (b) RC is an investment adviser registered as such with the Securities and Exchange Commission under the Investment Advisers Act of 1940, as amended. ICMA-RC Services, Inc. (a wholly owned subsidiary of RC) is registered as a broker- dealer with the Securities and Exchange Commission (SEC) and is a member in good standing of the National Association of Securities Dealers, Inc. RC covenants with employer that: (c) RC shall maintain and administer the Plan in compliance with the requirements for eligible deferred compensation plans under Section 457 of the Internal Revenue Code; provided, however, RC shall not be responsible for the eligible status of the Plan in the event that the Employer directs RC to administer the Plan or disburse assets in a manner inconsistent with the requirements of Section 457 or otherwise causes the Plan not to be carried out in accordance with its terms; provided, further, that if the plan document used by the ;Employer contains terms that differ from the terms of RC's standardized plan document, RC shall not be responsible for the eligible status of the Plan to the extent affected by the differing terms in the Employer's plan document. Employer represents and warrants to RC that: (d) Employer is organized in the form and manner recited in the opening paragraph of this Agreement with full power and authority to enter into and perform its obligations under this Agreement and to act for the Plan and participants in the manner contemplated in this Agreement. Execution, delivery, and performance of this Agreement will not conflict with any law, rule, regulation or contract by which the Employer is bound or to which it is a party. F_,Oe r7g, ���fflqlq I ' Plan # 5000 ---I. 1 ' . -• The Employer hereby authorizes RC to act as agent, to appear on its behalf, and to join the Employer as a necessary party in all legal proceedings involving the garnishment of benefits or the transfer of benefits pursuant to the divorce or separation of participants in the Employer Plan. Unless Employer notifies RC otherwise, Employer consents to the disbursement by RC of benefits that have been garnished or transferred to a former spouse, spouse or child pursuant to a domestic relations order. (a) Plan Administration Fee. The amount to be paid for plan administration services under this Agreement shall be 0.55% per annum of the amount of Plan assets invested in the Trust. Such fee shall be computed based on average daily net Plan assets in the Trust. (b) Account Maintenance Fee. (1) There shall be an annual account maintenance fee of $0.00. The account maintenance fee is payable in full on January 1 of each year on each account in existence on that date. For accounts established AFTER January 1, the fee is payable on the first day of the calendar quarter following establishment and is prorated by reference to the number of calendar quarters remaining on the day of payment. (ii) The account maintenance fee will be waived beginning in the year following the year in which total Plan assets exceed $4 million. (c) Compensation for Management Services to the Trust and Advisory and other 'Services to the Vantagepoint Funds. Employer acknowledges that in addition to amounts payable under this Agreement, RC receives fees from the Trust for investment management services furnished to the Trust. Employer further acknowledges that certain wholly-owned subsidiaries of RC receive compensation for advisory and other services furnished to the Vantagepoint Funds, which serve as the underlying portfolios of a number of Funds offered through the Trust. The fees referred to in this subsection are disclosed in the Retirement Investment Guide. These fees are not assessed against assets invested in the Trust's Mutual Fund Series. (d) Mutual Fund Services Fee. There is an annual charge of 0.40% assessed against average daily net Plan assets invested in the Trust's Mutual Fund Series. (e) Model Portfolio Fund Fee. There is an annual charge of 0.10% assessed against daily average net Plan assets invested in the Trust's Model Portfolio Plan # 5000 Funds. (f) Payment Procedures. All payments to RC pursuant to this Section 6 shall be paid out of the Plan assets held by the Trust and shall be paid by the Trust. The amount of Plan assets held in the Trust shall be adjusted by the Trust as required to reflect such payments. 7. Custody Employer understands that amounts invested in the Trust are to be remitted directly to the Trust in accordance with instructions provided to Employer by RC and are not to be remitted to RC. In the event that any check or wire transfer is incorrectly labeled or transferred to RC, RC will return it to Employer with proper instructions. 8. 9,esDonsibility RC shall not be responsible for any acts or omissions of any person other than RC in connection with the administration or operation of the Plan. This Agreement may be terminated without penalty by either party on sixty days advance notice in writing to the other. Gi -�•i - - • 1, • iVi - (a) This Agreement may not be amended except by written instrument signed by the parties. (b) The parties agree that compensation for services under this Agreement and administrative and operational arrangements may be adjusted as follows: RC may propose an adjustment by written notice to the Employer given at least 60 days before the effective date of the adjustment and the notice may appear in disclosure documents such as Employer Bulletins and the Retirement Investment Guide. Such adjustment shall become effective unless, within the 60 day period before the effective date the Employer notifies RC in writing that it does not accept such adjustment, in which event the parties will negotiate with respect to the adjustment. (c) No failure to exercise and no delay in exercising any right, remedy, Plan # 5000 power or privilege hereunder shall operate as a waiver of such right, remedy, power or privilege. ►1-1SM All notices required to be delivered under Section 10 of this Agreement shall be delivered personally or by registered or certified mail, postage prepaid, return receipt requested, to (i) Legal Department, ICMA Retirement Corporation, 777 North Capitol Street, N.E., Suite 600, Washington, D.C, 20002-4240; (ii) Employer at the office set forth in the first paragraph hereof, or to any other address designated by the party to receive the same by written notice similarly given. 12. Complete Agreement This Agreement shall constitute the sole agreement between RC and Employer relating to the object of this Agreement and correctly sets forth the complete rights, duties and obligations of each party to the other as of its date. Any prior agreements, promises, negotiations or representations, verbal or otherwise, not expressly set forth in this Agreement are of no force and effect. 13. Governing Law This agreement shall be governed by and construed in accordance with the laws of the State of Texas applicable to contracts made in that jurisdiction without reference to its conflicts of laws provisions. Plan # 5000 In Witness Whereof, the parties hereto have executed this Agreement as of the Inception Date first above written. Attest: Approved as to content: Windy Sittnn, Maynr Name and Title (Please Print) INTERNATIONAL CITY MANAGEMENT ASSOCIATION RETII 1EMENT CORPORATIOK1 —) � 7� I (� /"� by: Mary An ws, Managing Director of Human Resources Approved as to form: William de Haas, Competition and Contracts Manager Paul Gallagher/pa e Corporate Secr ry RESOLUTION FOR A LEGISLATIVE BODY RELATING TO A DEFERRED COMPENSATION PLAN Name of Employer. CITY OF LUBBOCK State: TEXAS Title of Program Coordinator. DIRECTOR OF HUMAN RESOURCES (see definition below for duties of Program Coordinator) Resolution of the above namedEmployer ('Employer') WHEREAS, the Employer has employees rendering valuable services; and WHEREAS, the establishment of a deferred compensation plan for such employees serves the interests of the Employer by enabling it to provide reasonable retirement security for its employees, by providing increased flexibility in its personnel management system, and by assisting In the attraction and retention of competent personnel; and WHEREAS, the Employer has determined thatthe establishment of a deferred compensation plan to be administered by the ICMA Retirement Corporation serves the above objectives; and WHEREAS, the Employer desires that its deferred compensation plan be administered by the ICMA Retirement Corporation, and that some or all of the funds held under such plan be invested in the ICMA Retirement Trust, a trust established by public employers for the collective investment of funds held under their retirement and deferred compensation plans; NOW THEREFORE BE IT RESOLVED that the Employer hereby adoptsthe deferred compensation plan (the "Plan') in the form of. (Select one) 13 The ICMA Retirement Corporation Deferred Compensation Plan and Trust, referred to as Appendix A Q The plan provided by the Employer (executed copy attached hereto). BE rr FURTHER RESOLVEDthatthe Employer hereby executes the Declaration of Trust of the ICMA RetimmentTrust, attached hereto as Appendix B, intending this execution to be operative with respectto any retirement or deferred compensation plan subsequently established by the Employer, If the assets of the plan are to be invested in the ICMA Retirement Trusk BE IT FURTHER RESOLVED that the assets of the Plan shall be hold In trust, with the Employer serving as trustee, for the exclusive benefit of the Plan participants and their beneficiaries, and the assets shall not be diverted to any other purpose. BE IT FURTHER RESOLVED that the Plan: (Select one) a Will permit loans ❑ Will not permit loans BE IT FURTHER RESOLVED that the Employer hereby agrees to serve as trustee under the Plan. BE iT FURTHER RESOLVED that the DIRECTOR OF HUMAN RESOURCES (use title of official, not name) shall be the coordinator for this program; shall receive necessary reports, notices, etc. from the ICMA Retirement Corporation or the ICMA Retirement Trust; shall cast, on behalf of the Employer, any required votes under the ICMA Retirement Trust: Administrative duties to carry out the plan may be assigned to the appropriate departments, and is authorized to execute all necessary agreements with ICMA Retirement Corporation incidental to the administration of the Pion. 1, B`�`'i Gar6lark.of the ICi ,County, etc.) of L 66 c c �� , do hereby certify that the foregoing resolution, proposed by Ch., ,:! - in-fFe-WagnsiMember. Trustee, etc.) of _1(/4199 was duly passed and adopted in the (Council. Board, etc.) of the (City, County, etc.) of Ljoloc(.lcat regular meeting thereof assembled this hday of ov bar 19 q� - by the following vote: AYES: NAYS: oo✓✓,� ABSENT: 9S - perkM the (City, county, _f