Loading...
HomeMy WebLinkAboutICMA Retirement Corp. 1992 ICMA RETIREMENT CORPORATION ADMINISTRATIVE SERVICES AGREEMENT Type: 457 Account Number: 3237 ICMA RETIREMENT CORPORATION Plan # 3237 ADMINISTRATIVE SERVICES AGREEMENT This Agreement made as of the 17aB,day of 'Dec-Q-mbex, IR42. 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 Cape Canaveral ( `Employer ) a(n) City organized and existing under the laws of the State of Florida with an office at 105 Polk Avenue Cape Canaveral Florida 32920 Recitals Employer acts as a public plan sponsor for a retirement plan ( Plan ) with responsibility to obtain the best possible investment alternatives and services ffor 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 principal 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 ICMA RETIREMENT CORPORATION Plan # 3237 Agreements Appointment of RC 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 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 ICMA 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 identrfication numbers) RC shall 6e 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 3 ICMA RETIREMENT CORPORATION Plan # 3237 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 report 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 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 Employers plan document Employer represents and warrants to RC that (d) Employer is organized in the form and manner recited in the opernng 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 partiapants in the manner contemplated 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 0 ICMA RETIREMENT CORPORATION Plan # 3237 pursuant to the divorce or separation of participants in the Employer Plan The Employer consents to the disbursement by RC of benefits that have been ggarnished 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 person other than RC in connection with the administration or operation of the 9 Term This Agreement may be terminated without penalty by either party 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 # 3237 (b) The pparties agree that 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 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 by reggistered or certified mail postage preppaid return receipt requested to (i) RC at 777 North Capitol Street N E Suite 600 Washington D C 20002 4240 (u) 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 Florida applicable to contracts made in that jurisdiction without reference to its conflicts of laws provisions (J ICMA RETIREMENT CORPORATION Plan # 3237 In Witness Whereof the parties hereto have executed this Agreement as of the inception Date first above written CITY OF CAPE CANAVERAL bQa (�r ii t LAP i alt4jeiva Joy C Salamone, Mayor ame and I itle ease P rin t) INTERNATIONAL CITY MANAGEMENT ASSOCIATION RETIREMENT p CORPORATION � by � OJ 20 2- btepn W in or o a e Corporate Secretary 7 ICMA RETIREMENT CORPORATION October 20 1992 Leo C Nicholas City of Cape Canaveral 105 Polk Avenue Cape Canaveral Florida 32920 RE 3237 Dear Leo C Nicholas 5, /tes s J0 �{ At the beginning of our relationship the ICMA Retirement Corporation ( RC ) and the City of Cape Canaveral entered into an agreement entitled Trust Agreement with the ICMA Retirement Corporation That agreement only refers in a very general way to the administrative services to be provided by RC and the fees to be paid for those services and it does not provide an accurate portrayal of our current relationship To illustrate the ICMA Retirement Trust currently consists of $2 4 billion in total assets and that figure represents the pooled monies of approximately 145 000 local government employees This is a significant increase over the $459 000 managed by RC for 285 participants in 1972 With the growth of the Retirement Trust the services RC provides for administration of your deferred compensation plan have also grown The administrative services we now provide include • Educating and enrolling participants • Maintaining employer accounts and employee subaccounts and associated records • Crediting employer contributions to employee accounts • Reporting investment activity and account information to the employers and employees on a quarterly basis • Providing information about various features of deferred compensation plans on a regular basis • Paying benefits and handling related tax reporting Consequently the 'Trust Agreement" we initially entered into does not describe the services RC provides in sufficient detail As a result we have prepared a new Administrative Services Agreement two copies of which have been signed by RC and enclosed We believe the Administrative Services Agreement provides a more accurate and up to date description of the existing relationship between you and RC We propose that the City of Cape Canaveral and RC enter into the Administrative Services Agreement to replace the "Trust Agreement with the ICMA Retirement Corporationo Upon your acceptance of the Administrative Services Agreement that substitution will occur ICMA RETIREMENT CORPORATION The Administrative Services Agreement is not intended to affect in any way the investments of your deferred compensation plan or the benefits payable under the plan Nor is it intended to change in any waY the services actually provided by RC or the fees actually charged by FiC with respect to the administration of the plan Please sign each of the enclosed copies of the Agreement Return one copy to RC using the enclosed return envelope and keep one copy for your records If RC does not receive a signed Agreement within 90 calendar days of your receipt of this letter and the Trust continues to receive plan contributions RC will interpret those actions as acceptance of the terms stated in the Agreement after the expiration of the 90 day period If you have any questions regarding the Administrative Services Agreement please call Chris Baker of our Client Services division at (202) 962 8076 or call me at (202) 962 8096 Sincerely Michael Schaefer Assistant Corpor to Counsel Enclosures Administrative Services Agreement (2 copies) Return Envelope