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HomeMy WebLinkAboutState of Iowa Retirement Investor's Club-6/14/2010Retirement Investors' Club Service Agreement SERVICE AGREEMENT BETWEEN THE STATE OF IOWA RETIREMENT INVESTORS' CLUB DEPARTMENT OF ADMINISTRATIVE SERVICES AND City of Waterloo, Iowa Retirement Investors' Club Service Agreement RETIREMENT INVESTORS' CLUB SERVICE AGREEMENT This Service Agreement ("Agreement) is between the State of Iowa Retirement Investors' Club, through the Iowa Department of Administrative Services, and City of Waterloo. The parties agree as follows: SECTION 1. IDENTITY OF THE PARTIES 1.1 The State of Iowa Retirement Investors' Club (RIC), through the Department of Administrative Services ("the State"), is authorized to enter into this Agreement. The State's address for purposes of this Agreement is Hoover State Office Building, 1305 E Walnut, Level A., Des Moines, IA 50319. 1.2 City of Waterloo ("the Employer") is authorized to enter into this Agreement. The Employer's address 715 Mulberry St., Waterloo, Iowa 50703. SECTION 2. PURPOSE The parties have entered into this Agreement for the purpose of providing the State's Retirement Investors' Club (RIC) to the Employer's eligible employees. SECTION 3. DURATION OF AGREEMENT The effective date of this Agreement shall be June 1, 2010. The Agreement shall remain in effect until terminated by either party. SECTION 4. DEFINITIONS The following words shall be defined as set forth below: 4.1 Internal Revenue Code, City of Waterloo Code, and IRC shall mean the Internal Revenue Code of 1986, as amended from time to time 4.2 Program shall mean the State of Iowa's Retirement Investors' Club (RIC), the State's deferred compensation program. The Program consists of two plans, an IRC section 457(b) employee contribution plan and an IRC section 401(a) plan. 1 Retirement Investors' Club Service Agreement SECTION 5. STATE SERVICES 5.1 Program. The State shall make its Program available to all of the Employer's eligible employees. The Employer shall define who is eligible for the Program. All current investment providers and products will be made available to the Employer. 5.2 Administration. The State shall administer the Program on behalf of the Employer's employees in the same manner as for State employees. The State shall: 5.2.1 process approved employee requests for transfers, rollovers, and distributions; 5.2.2 maintain records for the participating employees; 5.2.3 determine whether domestic relations orders are acceptable and shall instruct providers regarding processing approved qualified domestic relations orders; 5.2.4 determine whether requests for unforeseeable emergency distributions and cashouts are approved; and 5.2.5 make plan documents, summary plan documents, and forms available to the Employer. 5.3 Optional Services. The Employer may request that the State provide additional services, including customized forms, a customized website, customized educational materials, on-site seminars, and contribution remittance. Requests shall be in writing by an authorized representative of the Employer. All requests for optional services shall be subject to additional fees as determined by the State. Said fees shall be agreed to by the parties prior to the performance of the optional services. SECTION 6. EMPLOYER ACKNOWLEDGEMENTS AND RESPONSIBILITIES 6.1 Acknowledgements. The Employer acknowledges the following: 6.1.1 the State bids the program to providers periodically, so providers and products may change; 6.1.2 the State shall make all final decisions concerning IRC requirements, including unforeseeable emergency requests; 6.1.3 the State does not allow loans from either its 457(b) plan or its 401(a) plan; 6.1.4 the State does not allow unforeseeable emergency distributions from its 401(a) plan; 6.1.5 the State does not allow cashouts from its 401(a) plan; 2 Retirement Investors' Club Service Agreement 6.1.6 the Program may change due to state or federal legislation or regulations; and 6.1.7 the Employer has received or has access to the Program's plan documents, summary plan document, investment policy, and administrative rules prior to the execution of this Agreement. 6.2 Responsibilities. The Employer shall: 6.2.1 ensure that no contributions are made in excess of the annual maximum contribution limits; 6.2.2 remit payment timely to the State for administrative services as agreed to in Attachment 1 or for optional services requested under section 5.3 above; 6.2.3 send required information and forms to the State in a timely manner; 6.2.4 if the Employer submits payroll deductions to the providers, the Employer shall remit the funds in a timely manner; 6.2.5 adhere to the Program's regulations and requirements, including payroll effective dates; 6.2.6 inform new employees of the Program upon hire; 6.2.7 allow the State to review any materials the Employer prepares which mention the Program, including any employee handbooks or marketing materials; and 6.2.8 inform the State of any changes to its eligibility rules or other items that may impact the State's administration of the Program. SECTION 7. TERMS 7.1 Termination. Either party may terminate this Agreement upon 30 day's written notice. Notwithstanding the foregoing, should the Employer terminate this Agreement during the first year, the Employer shall pay to the State a termination fee in the amount of $250. 7.2 Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, such determination shall not affect the validity or enforceability of any other part or provision of this Service Agreement. 7.3 Counterparts. The parties agree that this Agreement has been or may be executed in several counterparts, each of which shall be deemed an original and all such counterparts shall together constitute one and the same instrument. 3 Retirement Investors' Club Service Agreement 7.4 Delay or Impossibility of Performance. Neither party shall be in default under this Agreement if performance is delayed or made impossible by circumstances or causes beyond its reasonable control, including, without limitation, an act of God, flood, fire, governmental action, war, violence, terrorism, failure to cooperate by any third party, or similar events. In each such case, the delay or impossibility must be beyond the reasonable control and without the fault or negligence of the party. SECTION 8. EXECUTION IN WITNESS WHEREOF, in consideration of the mutual covenants set forth above and for other goods and valuable consideration, the receipt, adequacy and legal sufficiency of which are hereby acknowledged, the parties have entered into the above Agreement and have caused their duly authorized representatives to execute this Agreement. State of Iowa Department of Administrative Services City of Waterloo Edward Holland ate Suzy Sch�r�s Risk & Benefits Management Administrator City Clerk 4 - Icy Date Retirement Investors' Club Service Agreement ATTACHMENT 1: FEES 1. The Employer agrees to pay the State fees as described herein: Initial Fee RIC Implementation Fee $ 400.00 Annual Fee RIC Annual Fee $ 500.00 Optional Fees 2. The parties agree that the fees may be renegotiated yearly. 3. Initial fees shall be paid within 30 days of the commencement of the Service Agreement. Annual fees shall be paid quarterly in advance on or about the first business day of the calendar quarter. Fees for any additional services shall be paid within 30 days of receipt of the State's invoice. 4. Fees for any additional requested services shall be agreed to by the parties prior to the provision of the services and shall be based on the State's actual expenses in providing the services. 5. Should the Employer terminate this Service Agreement within the first year, the Employer shall pay to the State an early termination fee of $250. 5 Retirement Investors' Club Service Agreement SERVICE AGREEMENT BETWEEN THE STATE OF IOWA RETIREMENT INVESTORS' CLUB DEPARTMENT OF ADMINISTRATIVE SERVICES AND City of Waterloo, Iowa Retirement Investors' Club Service Agreement <this page left blank> Retirement Investors' Club Service Agreement RETIREMENT INVESTORS' CLUB SERVICE AGREEMENT This Service Agreement ("Agreement) is between the State of Iowa Retirement Investors' Club, through the Iowa Department of Administrative Services, and City of Waterloo. The parties agree as follows: SECTION 1. IDENTITY OF THE PARTIES 1.1 The State of Iowa Retirement Investors' Club (RIC), through the Department of Administrative Services ("the State"), is authorized to enter into this Agreement. The State's address for purposes of this Agreement is Hoover State Office Building, 1305 E Walnut, Level A., Des Moines, IA 50319. 1.2 City of Waterloo ("the Employer") is authorized to enter into this Agreement. The Employer's address 715 Mulberry St., Waterloo, Iowa 50703. SECTION 2. PURPOSE The parties have entered into this Agreement for the purpose of providing the State's Retirement Investors' Club (RIC) to the Employer's eligible employees. SECTION 3. DURATION OF AGREEMENT The effective date of this Agreement shall be June 1, 2010. The Agreement shall remain in effect until terminated by either party. SECTION 4. DEFINITIONS The following words shall be defined as set forth below: 4.1 Internal Revenue Code, City of Waterloo Code, and IRC shall mean the Internal Revenue Code of 1986, as amended from time to time 4.2 Program shall mean the State of Iowa's Retirement Investors' Club (RIC), the State's deferred compensation program. The Program consists of two plans, an IRC section 457(b) employee contribution plan and an IRC section 401(a) plan. 1 Retirement Investors' Club Service Agreement SECTION 5. STATE SERVICES 5.1 Program. The State shall make its Program available to all of the Employer's eligible employees. The Employer shall define who is eligible for the Program. All current investment providers and products will be made available to the Employer. 5.2 Administration. The State shall administer the Program on behalf of the Employer's employees in the same manner as for State employees. The State shall: 5.2.1 process approved employee requests for transfers, rollovers, and distributions; 5.2.2 maintain records for the participating employees; 5.2.3 determine whether domestic relations orders are acceptable and shall instruct providers regarding processing approved qualified domestic relations orders; 5.2.4 determine whether requests for unforeseeable emergency distributions and cashouts are approved; and 5.2.5 make plan documents, summary plan documents, and forms available to the Employer. 5.3 Optional Services. The Employer may request that the State provide additional services, including customized forms, a customized website, customized educational materials, on-site seminars, and contribution remittance. Requests shall be in writing by an authorized representative of the Employer. All requests for optional services shall be subject to additional fees as determined by the State. Said fees shall be agreed to by the parties prior to the performance of the optional services. SECTION 6. EMPLOYER ACKNOWLEDGEMENTS AND RESPONSIBILITIES 6.1 Acknowledgements. The Employer acknowledges the following: 6.1.1 the State bids the program to providers periodically, so providers and products may change; 6.1.2 the State shall make all final decisions concerning IRC requirements, including unforeseeable emergency requests; 6.1.3 the State does not allow loans from either its 457(b) plan or its 401(a) plan; 6.1.4 the State does not allow unforeseeable emergency distributions from its 401(a) plan; 6.1.5 the State does not allow cashouts from its 401(a) plan; 2 Retirement Investors' Club Service Agreement 6.1.6 the Program may change due to state or federal legislation or regulations; and 6.1.7 the Employer has received or has access to the Program's plan documents, summary plan document, investment policy, and administrative rules prior to the execution of this Agreement. 6.2 Responsibilities. The Employer shall: 6.2.1 ensure that no contributions are made in excess of the annual maximum contribution limits; 6.2.2 remit payment timely to the State for administrative services as agreed to in Attachment 1 or for optional services requested under section 5.3 above; 6.2.3 send required information and forms to the State in a timely manner; 6.2.4 if the Employer submits payroll deductions to the providers, the Employer shall remit the funds in a timely manner; 6.2.5 adhere to the Program's regulations and requirements, including payroll effective dates; 6.2.6 inform new employees of the Program upon hire; 6.2.7 allow the State to review any materials the Employer prepares which mention the Program, including any employee handbooks or marketing materials; and 6.2.8 inform the State of any changes to its eligibility rules or other items that may impact the State's administration of the Program. SECTION 7. TERMS 7.1 Termination. Either party may terminate this Agreement upon 30 day's written notice. Notwithstanding the foregoing, should the Employer terminate this Agreement during the first year, the Employer shall pay to the State a termination fee in the amount of $250. 7.2 Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, such determination shall not affect the validity or enforceability of any other part or provision of this Service Agreement. 7.3 Counterparts. The parties agree that this Agreement has been or may be executed in several counterparts, each of which shall be deemed an original and all such counterparts shall together constitute one and the same instrument. 3 Retirement Investors' Club Service Agreement 7.4 Delay or Impossibility of Performance. Neither party shall be in default under this Agreement if performance is delayed or made impossible by circumstances or causes beyond its reasonable control, including, without limitation, an act of God, flood, fire, governmental action, war, violence, terrorism, failure to cooperate by any third party, or similar events. In each such case, the delay or impossibility must be beyond the reasonable control and without the fault or negligence of the party. SECTION 8. EXECUTION IN WITNESS WHEREOF, in consideration of the mutual covenants set forth above and for other goods and valuable consideration, the receipt, adequacy and legal sufficiency of which are hereby acknowledged, the parties have entered into the above Agreement and have caused their duly authorized representatives to execute this Agreement. State of Iowa City of Waterloo Department of Administrative Services C -\ -Iv Edward Holland Date Suzy Sch`brs Date Risk & Benefits Management Administrator City Clerk 4 Retirement Investors' Club Service Agreement ATTACHMENT 1: FEES 1. The Employer agrees to pay the State fees as described herein: Initial Fee RIC Implementation Fee $ 400.00 Annual Fee RIC Annual Fee $ 500.00 Optional Fees 2. The parties agree that the fees may be renegotiated yearly. 3. Initial fees shall be paid within 30 days of the commencement of the Service Agreement. Annual fees shall be paid quarterly in advance on or about the first business day of the calendar quarter. Fees for any additional services shall be paid within 30 days of receipt of the State's invoice. 4. Fees for any additional requested services shall be agreed to by the parties prior to the provision of the services and shall be based on the State's actual expenses in providing the services. 5. Should the Employer terminate this Service Agreement within the first year, the Employer shall pay to the State an early termination fee of $250. 5 V' Mayor BUCK CLARK COUNCIL MEMBERS DAVID JONES Ward 1 CAROLYN COLE Ward 2 HAROLD GETTY Ward 3 QUENTIN M. HART Ward 4 RON WELPER Ward 5 BOB GREENWOOD At -Large STEVE S CHMITT At -Large CITY OF WATERLOO, IOWA CITY CLERK AND FINANCE DEPARTMENT 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4323 Fax (319) 291-4571 SUZY SCHARES • City Clerk MICHELLE WEIDNER, CPA • Chief Financial Officer June 22, 2010 Jennifer Sandusky DAS-HRE Hoover Building Level A 1305 E. Walnut St. Des Moines, IA 50319 RE: City of Waterloo Service Agreement Ms. Sandusky: You will find enclosed two (2) signed service agreements and a council approved resolution. After the agreements have been fully signed please send back one (1) original agreement for our records. If you have any questions, please feel free to contact our office. Sincerely, 1 t Suzy Schares City Clerk Enclosures CITY WEBSITE: www.cityofwaterlooiowa.coin WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer