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HomeMy WebLinkAbout1992.11.16 RESO 1992-0033t RESOLUTION 1992 - 33 RESOLUTION AUTHORIZING EXECUTION OF DEFERRED COMPENSATION PLAN ADMINISTRATIVE SERVICES AGREEMENT BE IT RESOLVED BY THE CITY OF HUGO, WASHINGTON COUNTY, MINNESOTA, That the Administrative Services Agreement between the City of Hugo and the ICMA Retirement Corporation as attached hereto is hereby adopted. BE IT FURTHER RESOLVED that the City Clerk is hereby authorized to execute said agreement on behalf of the City of Hugo. Upon roll call the following Council Members voted AYE: Barnes, Leroux, Brunotte, Miron & Stoltzman. Upon roll call the following Council Members voted NAY: NONE. Whereupon said resolution was declared passed and adopted this 16th day of November, 1992. ATTEST: /A-t-t-cl-p 4-�' -�------ Mary Creager, y Clerk Walter Stoltzman, Mayor ICMA RETIREMENT CORPORATION ADMINISTRATIVE SERVICES AGREEMENT Type: 457 Account Number: 3157 ICMA RETIREMENT CORPORATION Plan # 3157 ADMINISTRATIVE SERVICES AGREEMENT This Agreement, made as of the day of 1992, (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 Hugo ("Employer"), a(n) City organized and existing under the laws of the State of Minnesota with an office at 5524 Upper 146tH Street, Hugo, Minnesota, 55038. Recitals Employer acts as a public plan sponsor for a retirement plan ("Plan") with responsibility to obtain the best possible 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 Trustprincipal disclosure document, "Making Sound Investment Decisions: A Retirement Investment Guide" The Funds are available only to public employers and only through the Trust. 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, account maintenance, account record- keeping, investment and tax reporting, form processing, benefit disbursement and asset management. -2- Plan # 3157 Agreements 1. Appointment of RC ICMA RETIREMENT CORPORATION 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. 2. Replacement of Employer Trust RC and Employer are parties to a Trust Agreement entitled "Trust Agreement with the ICMA Retirement Corporation" (the "Employer Trust") for the administration of the Plan. The Employer hereby terminates the Employer Trust (not the Declaration of Trust of ICMA Retirement Trust) intending that this Administrative Services Agreement evidence the understandings between RC and the Employer with respect to the matters covered by it. Employer continues to be a party to the Declaration of Trust of the INA Retirement Trust and 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. 3. Employer Duty to Furnish Information 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 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 i individual participant or beneficiary that s furnished by such participant or -3- ICMA RETIREMENT CORPORATION Plan # 3157 beneficiary, and RC shall not be responsible for any error arising from its reliance on such information. If within ninety (90) days after the mailing of any report, statement or accounting to the Employer or a participant, the Employer or participant has not notified RC in writing of any error or objection, such re ort, statement, or accounting shall be deemed to have been accepted by the Employer and the participants. 4. Certain Representations, Warranties, and Covenants RC represents and warrants to Employer that: (a) RC is a non-profit corporation with full powerand authority to enter into this Agreement and to perform its obligations under this Agreement. The abilityof 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 ExchangeCommission (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 pa ragraph of this Agreement with full power and authority to enter into and pertorm 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. 5. Participation in Certain Proceedings 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 -4- ICMA RETIREMENT CORPORATION Plan # 3157 pursuant to the divorce or separation of participants in the Employer Plan. he Employer consents to the disbursement by RC of benefits that have been Samished or transferred to a former spouse, spouse or child pursuant to a domestic relations order. 6. Compensation and Payment (a) Plan Administration Fee. The amount to be paid for plan administration services under this Agreement shall be 0.9% per annum of the amount of Plan assets invested in the Trust. Such fee shall be computed and paid at the end of each month on plan assets in the Trust at that time. (b) Account Maintenance Fee. There shall be an annual account maintenance fee of 18.00. 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. (c) Compensation for Advisory Services to the Trust. Employer acknowledges that In addition to amounts payable under this Agreement, RC receives fees from the Trust for investment advisory services furnished to the Trust. (d) 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 labelled or transferred to RC, RC is authorized, acting on behalf of the transferor, to transfer such check or wire transfer to the Trust. 8. Responsibility RC shall not be responsible. for any acts or omissions of any parson other than RC in connection with the administration or operation of the Plan. 9. Tenn This Agreement may be terminated without penalty by either parry on sixty days advance notice in writing to the other. 10. Amendments and Adjustments (a) This Agreement may not be amended except by written instrument signed by the parties. -5- ICMA RETIREMENT CORPORATION Plan # 3157 (b) Theparties agree that administrative and operational arrangements may gee 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 RC shall be under no obligation to provide services under this Agreement. (c) No failure to exercise and no delay in exercising any right, remedy, power or privilege hereunder shall operate as a waiver of such right, remedy, power or privilege. 11. Notices All notices required to be delivered under this Agreement shall be delivered personally or byre registered or certified mail, postage prepaid, return receipt requested, to Q) at 777 North Capitol Street, N.E , uite 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 Minnesota applicable to contracts made in that jurisdiction without reference to its conflicts of laws provisions. J ' • ' ' ICMA RETIREMENT CORPORATION Plan # 3157 In Witness Whereof, the parties hereto have executed this Agreement as of the inception Date first above written. CITY OF HUGO by: igna ure a e ame ana I itle easePrint) INTERNATIONAL CITY MANAGEMENT ASSOCIATION RETIREMENT CORPORATION by: 1 "=PO 92 ep a m. r o Corporate Secretary -7-