HomeMy WebLinkAboutContract 46143 my SECRETARY
CONTRACT N0. ---
ADMINISTRATIVE SERVICES AGREEMENT
Between
ICMA Retirement Corporation
and
City of Fort Worth
Type: VantageCare RHS
Account Number: 803075
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH,TX RECEIVED Nov, 2 2gg
Plan # 803075
ADMINISTRATIVE SERVICES AGREEMENT
This Agreement, made as of thej�_day of Nfij(jMjU V , 20 (herein referred to as
the "Effective Date"), between The International City Management Association Retirement
Corporation ("ICMA-RC"), a nonprofit corporation organized and existing under the laws of the
State of Delaware; and the City of Fort Worth ("Employer") a local governmental instrumentality
organized and existing under the laws of the State of Texas with an office at 1000 Throckmorton,
Fort Worth, Texas 76102.
RECITALS
Employer acts as a public plan sponsor for a retiree health plan with responsibility to obtain
investment alternatives and services for employees participating in that plan;
Employer desires to make the VantageCare Retirement Health Savings Plan ("RHS Plan" or
"Plan") provided by ICMA-RC available to its employees;
ICMA-RC makes available The Vantagepoint Funds, a no-load, diversified mutual fund, for
investment of public employer plan assets, including RHS Plan assets;
ICMA-RC provides a complete offering of services to public employers for the operation of
employee retirement and retiree health savings 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.
AGREEMENTS
1. Acceptance of RHS Plan
Employer agrees to make the RHS Plan provided by ICMA-RC available to its employees. The
details of the RHS Plan shall be as mutually agreed between the Employer and ICMA-RC, and in
general shall be as set forth in the RHS Plan materials developed by ICMA-RC and provided to
Employer. The RHS Plan materials are hereby incorporated by reference and made a part of this
Agreement, except that Employer and ICMA-RC may from time to time mutually agree in
writing to terms that vary from the RHS Plan materials. RHS plan materials shall include the
VantageCare RHS Employer Manual, available electronically through the EZ Link System upon
plan adoption.
The functions to be performed by ICMA-RC and its agents include:
(a) allocation in accordance with participant direction of individual accounts to investment
funds ("Funds") made available to Plan participants;
(b) maintenance of individual accounts for participants reflecting amounts contributed,
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Plan # 803075
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;
(e) disbursement of benefits as agent for the Employer in accordance with terms of the Plan;
and
(f) performance of tax withholding and reporting in conjunction with the Employer for each
RHS account.
2. Employer Duty to Furnish Information
Employer agrees to furnish to ICMA-RC on a timely basis such information as is necessary for
ICMA-RC to carry out its responsibilities with respect to the Plan, including information needed
to allocate individual participant accounts to Funds, and information as to the benefit eligibility
and employment status of participants, and participants' ages, addresses, dependents, spouses
and other identifying information (including tax identification numbers). Employer also agrees
that it will notify ICMA-RC in a timely manner regarding changes in staff as it relates to various
roles. This is to be completed through the online EZLink employer contact options. ICMA-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,
spouse or dependent that is furnished by such participant, spouse or dependent, and ICMA-RC
shall not be responsible for any error arising from its reliance on such information. ICMA-RC
will provide reports, statements and account information to the Employer through EZLink, the
online plan administrative tool.
3. ICMA-RC Representations and Warranties
ICMA-RC represents and warrants to Employer that:
(a) ICMA-RC is a non-profit corporation with full power and authority to enter into this
Agreement and to perform its obligations under this Agreement.
(b) ICMA-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, LLC (a wholly owned subsidiary of ICMA-RC) is registered as a broker-dealer
with the Securities and Exchange Commission (SEC) and is a member in good standing
of the Financial Industry Regulatory Authority (FINRA).
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Plan # 803075
4. Employer Representations and Warranties
Employer represents and warrants to ICMA-RC that:
(a) 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.
(b) Information required to be retained by the Employer shall be set forth in the RHS plan
materials developed by ICMA-RC and provided to the Employer.
(c) Employer is responsible for determining that there are no state or local laws that would
prohibit it from establishing ICMA-RC's VantageCare RHS program. Employer is also
responsible for determining that the investments selected for the RHS plan fall within
state or local requirements. ICMA-RC shall not be responsible for monitoring state or
local law affecting retiree health savings plans or for administering the Plan in
compliance with local or state requirements affecting retiree health savings plans unless
Employer notifies ICMA-RC of any such local or state requirements.
(d) Employer acknowledges that the RHS plan may be treated as a "health plan" for Health
Insurance Portability and Accountability Act ("HIPAA") purposes and therefore may be
subject to HIPAA privacy rules. If it is determined that the RHS plan is considered a
"health plan", an employer sponsoring RHS would be responsible for complying with the
HIPAA privacy and security rules regarding protected health information of RHS plan
participants. ICMA-RC, or its claims processing agent, has procedures in place to
safeguard the protected health information of RHS plan participants.
(e) Employer acknowledges that certain such services to be performed by ICMA-RC under
this Agreement may be performed by an affiliate or agent of ICMA-RC pursuant to one
or more other contractual arrangements or relationships, and that ICMA-RC reserves the
right to change vendors with which it has contracted to provide services in connection
with this Agreement without prior notice to Employer. Notwithstanding anything in this
Agreement to the contrary, ICMA-RC shall retain ultimate responsibility for the
provision of all services under this Agreement, whether provided by ICMA-RC or by and
affiliate or agent.
(f) Employer acknowledges and agrees that ICMA-RC does not assume any responsibility
with respect to the selection or retention of the Plan's investment options. Employer
shall have exclusive responsibility for the selection and retention of the Plan's investment
options, including the selection of the applicable mutual fund share class.
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Plan # 803075
5. Participation in Certain Proceedings
The Employer hereby authorizes ICMA-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 a medical child support order. Unless Employer notifies
ICMA-RC otherwise, Employer authorizes ICMA-RC to determine whether disbursement of
benefits to a spouse or child pursuant to a medical child support order is appropriate.
6. Compensation and Payment
(a) Absent an explicit agreement to the contrary between ICMA-RC and Employer,
participant fees and expenses ("Account Administration Fees") shall be payable from
RHS assets, in accordance with the requirements of the RHS Plan as set forth below.
(i) Employer with ICMA-RC §401 and §457 retirement plan average participant
account balances of$25,000 or more:
An annual asset fee of 0.30% (30 basis points) will be charged on a quarterly
basis, based on the balance in the account on the last day of the previous quarter.
In addition to the annual asset fee, a $25 annual account administration fee will be
charged quarterly to each Accountholder's account.
(ii) Employer with ICMA-RC §401 and §457 retirement plan average participant
account balances of less than $25,000, or Employer who does not currently have a
retirement plan with ICMA-RC:
An annual asset fee of 0.40% (40 basis points) will be charged on a quarterly
basis, based on the balance in the account on the last day of the previous quarter.
When the average participant account balance of the Employer's §401 and §457
retirement plans with ICMA-RC totals $25,000 or more (based on the balances in
the Employer's retirement plans on the last day of the previous quarter), the
pricing detailed in paragraph 6(a)(i). shall apply beginning in the subsequent
quarter.
In addition to the annual asset fee, a$25 annual account administration fee will be
charged quarterly to each Accountholder's account.
(iii) Annual Account Administration Fees are subject to change with appropriate prior
notification.
(b) Compensation for Advisory and other Services to The Vantagepoint Funds.
Employer acknowledges that certain wholly-owned subsidiaries of ICMA-RC receive
compensation from The Vantagepoint Funds for advisory and other services furnished to
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Plan # 803075
The Vantagepoint Funds. The fees referred to in this subsection are disclosed in The
Vantagepoint Funds Prospectus and Statement of Additional Information.
7. Contribution Remittance
Employer understands that amounts contributed to the RHS plan are to be remitted directly to
Vantagepoint Transfer Agents in accordance with instructions provided to Employer in the RHS
plan materials and are not to be remitted to the ICMA Retirement Trust or ICMA-RC. In the
event that any check or wire transfer is incorrectly labeled or transferred, ICMA-RC will return it
to Employer with proper instructions.
8. Responsibility
(a) ICMA-RC shall not be responsible for any acts or omissions of any person with respect
to the Plan, or related Trust, other than ICMA-RC, or its agents or affiliates, in
connection with the administration or operation of the Plan or related Trust.
(b) The Employer understands that, as a general matter, the Internal Revenue Service ("IRS")
may decline to rule on certain design features or provisions that the Employer may
request to have added to the RHS plan materials. The Employer agrees, to the extent
allowed by law, to hold ICMA-RC harmless in connection with the addition and
administration of any RHS plan feature or provision requested by the Employer for which
the IRS will not provide express interpretive guidance.
9. Term
This Agreement shall be in effect for an initial term beginning August 29, 2014 and ending
August 28, 2019. This Agreement may be renewed for each succeeding year by signed, written
mutual agreement of the parties.
10. Amendments and Adjustments
(a) This Agreement may be amended by written instrument signed by the parties.
(b) The parties agree that only an adjustment to compensation or administrative and
operational services under this Agreement may be implemented by ICMA-RC through a
proposal to the Employer via correspondence or the Employer Bulletin. The Employer
will be given at least 60 days to review the proposal before the effective date of the
adjustment. Such adjustment shall become effective unless, within the 60 day period
before the effective date, the Employer notifies ICMA-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, power or privilege
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Plan # 803075
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
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 ICMA-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.
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Plan # 803075
In Witness Whereof, the parties hereto have executed this Agreement as of the Effective Date
first above written.
CITY OF FQRT WORTH
By:
APPPOvan AS TO Print NL� 3usqvl A IA y< 1'J
Title:
ASSIS I iv rf ITY ATTORNEY
P\AC "'D INTERNATIONAL CITY MANAGEMENT
ASSOCIATION RETIREMENT CORPORATION
{�,�� By C
A "J� Angela C. M tez
cN� Assistant Corporate Secretary
tad P, Goff leaf AARL City Seft*W
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OFFICIAL RECORD
CITY SECRETARY
- 8 - FT. WORTHS TX