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Home My WebLink About05-260 Resolution No. 05-260 RESOLUTION AUTHORIZING EXECUTION OF AN ADMINISTRATIVE SERVICES AGREEMENT WITH THE INTERNATIONAL CITY MANAGEMENT ASSOCIATION RETIREMENT CORPORATION ("ICMA-RC") BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Dolonna Mecum,City Clerk,be and are hereby authorized and directed to execute an Administrative Services Agreement with the International City Management Association Retirement Corporation ("ICMA") on behalf of the City of Elgin, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock,Mayor Presented: August 24, 2005 Adopted: August 24, 2005 Vote: Yeas: 7 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk I ADMINISTRATIVE SERVICES AGREEMENT Type: VantageCare RHS Account Number: 801087 • Plan # 801087 ADMINISTRATIVE SERVICES AGREEMENT This Agreement, made as of the 2 day of fl u o u s� , 2005 (herein referred to as the "Inception 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 Elgin, Illinois ("Employer") a local govenmental instrumentality organized and existing under the laws of the State of Illinois with an office at 150 Dexter Court, 2nd Floor, Elgin, Illinois, 60120. 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; - 2 - • Plan # 801087 (b) maintenance of individual accounts for participants reflecting amounts contributed, 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 employment status of participants,and participant ages,addresses, beneficiaries and other identifying information (including tax identification numbers). 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, dependent, or beneficiary that is furnished by such participant, dependent, or beneficiary, and ICMA-RC shall not be responsible for any error arising from its reliance on such information. ICMA- RC will provide account information in reports, statements or accountings. 3. Certain 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 National Association of Securities Dealers, Inc. Employer represents and warrants to ICMA-RC that: (c) 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 - 3 - • Plan # 801087 parties. (b) The parties agree that an adjustment to compensation or administrative and operational services under this Agreement may only 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 hereunder shall operate as a waiver of such right, remedy, power or privilege. 10. Notices 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. 11. 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. 12. Governing Law This agreement shall be governed by and construed in accordance with the laws of the State of Illinois, applicable to contracts made in that jurisdiction without reference to its conflicts of laws provisions. - 6 - . Plan # 801087 In Witness Whereof, the parties hereto have executed this Agreement as of the Inception Date first above written. by: ". .....\.. � Signature/Da )Q \ Name and Title (Please Print) INTERNATIONAL CITY MANAGEMENT ASSOCIATION RETIREMENT CORPORATION • by: Paul Gallagher Corporate Secretary - 7 - {oFf4 C> 'c�ti Agenda Item No. CD—ko 1; — City of Elgin .. E L frft G August 19, 2005 1 N ,. TO: Mayor and Members of the City Council FINANCIALLY K IfN STABLE EFARCE VEPNMEN7 EFi'K If NT SF.FNK:FS. AND QUALITY INFMS RL/CTORE FROM: Olufemi Folarin, City Manager Gail Cohen, Human Resources d Purchasing Director SUBJECT: ICMA Post Retirement Health Benefit Plan PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to enter into an agreement with ICMA for a Post Retirement Health Benefit Plan for police officers. RECOMMENDATION It is recommended that the Mayor and members of the City Council approve the agreement with ICMA for a Post Retirement Health Benefit Plan for police officers. BACKGROUND In its contract for the period January 1, 2004 through December 31, 2006, the Policemen's Benevolent and Protective Association, Unit #54 (PBPA) and the City agreed to implement a Post Retirement Health Benefit Plan (PEHB) for police officers. This plan will allow officers to convert unused sick leave and vacation time into a dollar equivalent at time of retirement to be placed into a health benefit plan that will permit retired officers to use the funds for health related expenses. A PEHB is similar to the flexible spending accounts the City has initiated. Contributions are considered pre-tax, grow tax-deferred, and are used for qualified medical expenses. ICMA, one of the City's deferred compensation providers, can provide a PEHB that meets the contractual requirements. Conversion of sick time into a PEHB contribution is predicated on leaving the City's employment in good standing and requires an accumulation of sick leave of over 90 accrued sick days which is the equivalent of 720 hours of sick leave. Such conversion is limited to a maximum of 20 days or 160 hours upon separation. The remaining balance of unused sick leave may not total less than the required base accumulation of 90 days. 1 Post Retirement Health Benefit Plan August 19, 2005 Page 2 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. ► ,FINANCIAL IMPACT f / There is no cost to the City as a result of implementing the PEHB plan. Any police officer who �/ otherwise would qualify for vacation pay or the accumulated sick leave benefit at time of retirement is eligible to participate in the PEHB plan. The ICMA RC administers the plan and any associated fees are borne by participants in the plan. VLF,,+RAL IMPACT " None. ALTERNATIVES 1. Enter into the agreement as recommended. 1" 2. Enter into an agreement with another organization. Respectfully submitted for Council consideration. GAC