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HomeMy WebLinkAboutBPW 02-01-17-03/McCready and Keene, Inc/6,000/Report of Retiree BenefitsRESOLUTION NO. BPW 02-01-17-03 RESOLUTION OF THE CITY OF CARMEL BOARD OF PUBLIC WORKS AND SAFETY ACKNOWLEDGING RECEIPT OF CONTRACT WHEREAS, pursuant to Indiana Code 36-1-4-7, the City of Carmel, Indiana ("City"), is authorized to enter into contracts; and WHEREAS, pursuant to Indiana Code 36-4-5-3, the City's mayor may enter into contracts on behalf of the City; and WHEREAS, pursuant to his authority under Indiana law, the City's mayor, the Honorable James C. Brainard, has caused to be signed the City contract attached hereto as Exhibit A (the "Contract"); and WHEREAS, Mayor Brainard now wishes to present the contract to the City's Board of Public Works and Safety for it to be publicly acknowledged, filed in the Clerk -Treasurer's Office, and made available to the public for review. NOW, THEREFORE, BE IT RESOLVED by the City of Carmel Board of Public Works and Safety as follows: 1. The foregoing Recitals are incorporated herein by this reference. 2. The receipt of the Contract is hereby acknowledged. 3. The Contract shall be promptly filed in the office of the Clerk -Treasurer and thereafter made available to the public for review. SO RESOLVED this day of , 2017. CITY OF CARMEL, INDIANA By and through its Board of Public Works and Safety BY: _ _,7 Brainard, Presiding C —/ e1 p Mary A/n Burk Meber Date: _ 7" Lori S. Wf atson, Nnbe Date: I ATTEST: C7 Christine auley> Cler reasu Date: �/ �!� S:\E Bass\My Documents\BPW-Resolutions\2017\Acknowledge McCready and Keene Inc. Agreement.docxl/24/2017 11:51 AM SERVICE AGREEMENT OD and BUSINESS ASSOCIATE AGREEMENT This Agreement is made and entered into effective the 1st day of January, 2017, between the City of Carmel, Carmel, Indiana (hereinafter referred to as "Employer") and McCready and Keene, Inc. (a OneAmerica Financial Partners, Inc. company), Indianapolis, Indiana (hereinafter referred to as "McCready"), for report services with regard to Calculation Services (as defined in Section 2.1(c) herein). This Agreement will also include disclosures under the Health Insurance Portability and Accountability Act of 1996 and serve as a Business Associate Agreement under that Act. The parties hereto agree as follows: 1. Services by McCready McCready expressly agrees that it shall review the benefit plans as they pertain to Calculation Services and provide actuarial services in accordance with the Actuarial Standards of Practice, the Actuarial Code of Professional Conduct, and the applicable accounting rules with regard to Calculation Services. McCready will complete the necessary calculations and will then create an actuarial valuation (hereinafter referred to as "Report") with regard to Employer's pension benefits associated with both the City of Carmel Municipal Police Officers' Fund (not administered by PERF) and the City of Carmel Municipal Firefighters' Fund (not administered by PERF). The Report will review information regarding active and terminated participants who are potentially eligible for these benefits and retirees currently receiving pension benefits from Employer. The Report will include the required disclosure information and the annual expense for each fiscal year as outlined in the Report. McCready's services will include the appropriate review, calculations, a written Report, and one on-site visit to discuss the results of the Report. 2. HIPAA Compliance The Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191 ("HIPAA"), and its implementing regulations, the Standards for Privacy of Individually Identifiable Health Information (the "Privacy Rule") and the Security Standards for Protection of Electronic Health Information (the "Security Rule"), require McCready to protect the privacy rights of persons covered under Plans for which Calculation Services are completed by McCready for Employer (also referred to as "Covered Entity"). Under HIPAA, McCready is considered a Business Associate of Covered Entity because it has undertaken to complete Calculation Services, and HIPAA requires McCready and Covered Entity to enter into a Business Associate Agreement in order to permit the appropriate exchange of Protected Health Information and Electronic Health Information (collectively "PHI") between Covered Entity and McCready. McCready has also adopted a Privacy Policy (a copy of which is attached) that reflects its privacy practices and procedures. C528 2.1 Definition's The following definitions are included in this Agreement to comply with requirements of the Privacy Rule and the Security Rule under HIPAA: a. "Agreement" means this Agreement between McCready and Employer, on behalf of the Covered Entity. b. 'Business Associate" means McCready. c. "Calculation Service" or "Calculation Services" means actuarial valuation services for pension benefits (sometimes referred to as "FASB ASC 715-20, FAS 87/88, or GASB 67/68) with regard to employer liability and disclosure for these benefits. d. "Covered Entity" means any health care plan of Employer for which Calculation Services apply. e. "Designated Record Set" means any item, collection or grouping of information that includes PHI and is maintained, collected, used or disseminated by or for a Covered Entity. f. "Electronic Health Information" or "BPHI" means Protected Health Information that is transmitted or maintained by or in electronic media, as defined by 45 CFR Section 160.103. g. "HITECH" shall mean the Health Information Technology for Economic and Clinical Health Act of 2009, as amended. h. "Individual' means a person who is the subject of PHI and shall include a person who qualifies as a personal representative in accordance with the Privacy Rule. i. "Privacy Rule" means the Standards for Privacy of Individually Identifiable Health Information at 45 CFR part 160 and part 164, subparts A and E, as amended or modified by HITECH or other applicable laws or regulations. j. "Protected Health Information" or "PHI" means all individually identifiable health information transmitted or maintained by a Covered Entity. For purposes of this Agreement, PHI is limited to information created or received by the Business Associate from or on behalf of a Covered Entity for the purpose of completing Calculation Services. k. "Required By Law" means a mandate contained in law that compels a Covered Entity to make a use or disclosure of PHI and that is enforceable in a court of law. 1. "Secre " means the Secretary of the U.S. Department of Health and Human Services or his or her designee. 2 C528 in. "Securi , Rule" shall mean the Security Standards for Protecting Electronic Health Information at 45 CFR parts 160 and 164, as amended or modified by HITECH or other applicable laws or regulations. Any definitions of terms used, but not otherwise defined in this Agreement, shall have the same meaning as those terms in the Privacy Rule of HIPAA. 2.2 Obligations and Activities a. McCready agrees to not use or disclose PHI or EPHI other than as permitted or required by this Agreement or as Required By Law. b. McCready agrees to use appropriate safeguards to prevent use or disclosure of the PHI other than as provided for by this Agreement. c. McCready agrees to mitigate, to the extent practicable, any harmful effect that is known to McCready of a use or disclosure of PHI by McCready in violation of the requirements of this Agreement, the Privacy Rule, or the Security Rule. d. McCready agrees to report to Covered Entity any use or disclosure of PHI or EPHI not provided for by this Agreement of which it becomes aware. e. McCready agrees to ensure that any agent, including a subcontractor, to whom it provides PHI received from or created or received by McCready on behalf of Employer agrees to the same restrictions and conditions that apply through this Agreement to McCready with respect to such information. f. McCready agrees to provide access, at the request of Employer, to PHI in a Designated Record Set to an Individual in order to meet the requirements under 45 CFR § 164.524 and in accordance with the Privacy Policy. McCready may charge a reasonable fee for any information provided to the same extent as could be charged pursuant to 45 CFR § I64.524(c)(4). g. McCready agrees to make any amendment(s) to PHI in a Designated Record Set if requested pursuant to 45 CFR § 164.526 at the request of Employer, a Covered Entity, or an Individual. h. McCready agrees to make internal practices, books, and records, including policies, procedures and PHI, relating to the use and disclosure of PHI received from, or created or received by McCready on behalf of Employer available to the Secretary or his designee for purposes of the Secretary determining compliance with the Privacy Rule or the Security Rule. i. McCready agrees to document such disclosures of PHI and information related to such disclosures as would be required to respond to a request by an Individual for an accounting of disclosures of PHI in accordance with 45 CFR §164.528. C528 McCready agrees to provide to Employer, a Covered Entity, or to an Individual information collected in accordance with the Agreement to permit McCready or Employer to respond to a request by an Individual for an accounting of disclosures of PHI in accordance with 45 CFR § 164.528. 2.3 Permitted Uses and Disclosures Except as otherwise limited in this Agreement: a. McCready may use or disclose PHI to perform functions, activities, or services for or on behalf of Employer, provided that such use or disclosure would not violate the Privacy Rule if done by either party or would not exceed the minimum necessary policies and procedures of HIPAA. b. McCready may use PHI for its proper management and administration or to carry out its legal responsibilities and disclose it for those purposes but only if the disclosures are Required By Law or if McCready obtains reasonable assurances from the person to whom the information is disclosed that it will remain confidential and used or further disclosed only as Required By Law or for the purpose for which it was disclosed to the person, and the person notifies McCready of any instances of which it is aware in which the confidentiality of the information has been breached. c. McCready may use PHI to provide Data Aggregation services as permitted by 45 CFR § 164.504(e)(2)(i)(B). d. McCready may de -identify PHI that it receives from or on behalf of Employer or PHI that it creates for Employer and use and disclose the de -identified data in any manner permitted by law. e. McCready may use or disclose PHI in any other manner permitted by law. 2.4 Obligations a. McCready shall not use or disclose PHI except as permitted or required by this Agreement or as Required by Law. b. McCready will provide Employer with a copy of its Privacy Policy, including any amendment thereto. McCready shall notify Employer of any limitation(s) in its privacy practices in accordance with 45 CFR §164.520, to the extent that such limitation may affect Employer use or disclosure of PHI. c. Each party shall notify the other party of any -changes in, or revocation of, permission by an Individual to use or disclose PHI, to the extent that such changes may affect the use or disclosure of PHI by either party. 4 C528 d.. Each party shall notify the other of any restriction to the use or disclosure of PHI that has been agreed to in accordance with 45 CFR §164.522, to the extent that such restriction may affect the use or disclosure of PHI. If Employer agrees to any restriction that materially increases McCready's cost of performing its Calculation Services (other than a restriction required by 45 CFR § 164.522(b)(ii)), Employer shall pay an additional fee, as needed, to defray the additional cost. McCready represents and warrants that it and all of its officers, employees, agents, contractors and subcontractors shall comply with all laws of the United States, the State of Indiana and City prohibiting discrimination against any employee, applicant for employment or other person in the provision of any Goods and Services provided by this Agreement with respect to their hire, tenure, terms, conditions and privileges of employment and any other matter related to their employment or subcontracting, because of race, religion, color, sex, handicap, national origin, ancestry, age, disabled veteran status and/or Vietnam era veteran status. f. Pursuant to I.C. § 5-22-16.5, McCready shall certify that, in signing this document, it does not engage in investment activities within the Country of Iran 2.5 Permissible Requests a. Except as otherwise limited in this Agreement, McCready may use PHI to complete Calculation Services required for Employer based on information provided by Employer and/or the Covered Entity. b. McCready shall not request to use or disclose PHI in any manner that would not be permissible under the Privacy Rule or the Privacy Policy. However, this will not be deemed to prevent McCready from using or disclosing PHI for Data Aggregation or management to the extent required by this Agreement or administrative activities. c. McCready shall not request Employer or a Covered Entity to disclose to it PHI in excess of the minimum necessary to satisfy the need that underlies any such request. 3. Not an Agreement to Audit Data This Agreement does not contemplate nor shall it provide a service designed to audit data, discover errors, omissions, misrepresentations, fraud, illegal acts, or other misuses of assets. However, McCready will inform Employer of such matters if they are observed. 4. Obligations of Emnlover Employer expressly agrees that it shall perform the obligations set out in this Agreement, and shall use its best efforts in completing its obligations timely, accurately, and professionally. Such obligations may be amended from time to time upon the agreement of both parties. 5 C528 a. Employer agrees to furnish the data required by McCready to perform the contracted services for the Report, and such data shall be delivered to the offices of McCready in the form specified. The fees stated in this Agreement assume that data is transmitted to McCready electronically in the format requested by McCready. Failure to provide data in such form will result in higher fees based upon any additional time incurred for processing. All reports generated by McCready will be based on the data provided by Employer. b. Employer also authorizes McCready to contact the Plan's accountant, attorney, broker, insurance agent, or other financial advisor, including any financial institution, as needed, for information necessary to perform services. Employer will notify any individual or organization holding information to provide such information to McCready if it is needed to complete the Report. McCready shall assume all data provided to it is accurate as received and bears no responsibility to verify the accuracy of such data or to audit such information. 5. Assignment McCready may not assign this Agreement or its rights and responsibilities outside its mutual insurance holding company (OneAmerica Financial Partners, Inc.) without prior written consent from Employer, which shall not be unreasonably delayed or withheld. McCready reserves the right to subcontract work covered by this agreement to affiliates within its mutual insurance holding company or to subcontract work to a third -party health actuary. McCready will not request prior written consent in connection with a name change, corporate reorganization, merger, or the sale of substantially all of its business or assets. Any purported assignment or transfer in violation of this provision shall be void and without effect. 6. Term and Termination The term of this Agreement shall continue from year to year, or until it is terminated by either party. Except as otherwise provided herein, either party shall have the right to terminate this Agreement with or without cause, at any time, by giving ninety (90) days written notice of the termination to the other party. In the event of termination, Employer will pay for all work completed by McCready through the end of the notification period. After this Agreement is terminated for any reason, including the completion of any Reports which Employer has requested McCready complete, the following will apply with regard to the Privacy Rule: a. All of the PHI provided to McCready by Employer or a Covered Entity, or created or received under this Agreement, will be destroyed or returned. If for some reason it is not feasible to return or destroy PHI, McCready shall extend the protections of this Agreement to such PHI and limit further uses and disclosures of such PHI to those purposes that make the return or destruction infeasible as long as McCready holds and maintains such PHI. This provision shall also apply to PHI that is in the possession of subcontractors or agents of McCready. 6 0528 b. Upon one party's knowledge of a material breach by the other party, the parry with the knowledge shall give written notice detailing the nature of the breach to the other party. The offending party shall be given an opportunity to cure the breach or end the violation. If the offending party fails to substantially cure the breach within 30 days after receiving notice from the other party, this Agreement may terminate. However, if termination is not feasible, the aggrieved party will report the violation to the Secretary. 7. Compensation Employer hereby agrees to pay McCready $3,950 (_ $1,975 for the Police Officers' Fund and $1,975 for the Firefighters' Fund) for the work needed to prepare the requested Pension Benefit Calculations Reports pursuant to GASB 67 and 68. If after receipt of a Report, alternative calculations using different assumptions and/or plan provisions are requested, those calculations will be prepared for a fee based on an hourly rate of one hundred fifty dollars ($150) to three hundred fifty dollars ($350), depending upon the personnel needed to complete the calculations. McCready reserves the right to choose who among its staff is needed to prepare such calculations. Payment is expected within thirty (30) days of receipt of an invoice. Interest will be charged at a rate of one percent (1%) per month on any balance due that exceeds thirty (30) days. McCready retains the right to withhold additional services in the event that bills are not paid timely and completely. 8. Privacy and Records McCready shall maintain procedural, physical, electronic, and contractual safeguards to secure the confidentiality of all information pertaining to Employer. McCready shall restrict access to such information to those that have a legitimate business need to know but only after prior written approval by Employer. McCready shall not discuss, disclose, or reveal information except as required by federal or state law, subpoena, court order, or regulatory agency examiners, provided that prior written notice of such disclosure is furnished to Employer as soon as practicable to afford Employer an opportunity to seek a protective order or other appropriate remedy to protect confidential information. Employer is the owner of the reports prepared in conjunction with this Agreement along with any information provided by Employer for the preparation of the Report. In the event Employer provides to McCready data of a confidential nature that McCready does not need to complete its duties, McCready shall return such information immediately. 9. Destruction of Records McCready shall maintain file copies of the Report delivered to Employer along with the supporting information used to develop those reports for a minimum of six (6) years. McCready may destroy original documents as McCready deems appropriate, at any time McCready retains imaged or similarly reproduced records which are clear reproductions of original documents. 10. Miscellaneous a. Any reference in this Agreement to a section in the Privacy Rule means that rule or section as in effect or as amended. 7 0528 b. The parties agree to take such action as is necessary to amend this Agreement from time to time as necessary for the Plan to comply with the requirements of the Privacy Rule and Security Rule. c. The respective rights and obligations of each party under Section 6 of this Agreement shall survive the termination of this Agreement. d. If there is any ambiguity in this Agreement, it shall be resolved to comply with the Privacy Rule and/or the Security Rule, as applicable. 11. Severability The parties intend each and every provision of this Agreement to be severable. In the event that any provision of this Agreement is determined to be invalid or unenforceable, such invalidity or unenforceability shall not in any way affect the validity or enforceability of the remaining provisions. 12. Notices All notices under this Agreement shall be in writing and shall be deemed given when personally delivered, when sent by facsimile transmission with proof of receipt by the recipient, or three days after being mailed postage prepaid by certified.U.S. mail to the address of the party as set forth below or such other address which a party provides to the other by written notice. Each party to this Agreement shall notify the other parties of any change in its address. Such notification shall be provided as follows: If to Employ Barbara A. Lamb Director of Human Resources City of Carmel One Civic Square Carmel, IN 46032 Phone: (317) 571-2471 Fax: (317) 571-2409 E-mail: blamb o,carmel.in. ov If to McCready: John C. Benge Senior Consulting Principal McCready and Keene, Inc. P.O. Box 6094 Indianapolis, IN 46206 Phone: (317) 285-6502 Fax: (317) 285-6466 E -Mail: john.benaegoneamerica.com C528 13. Governine Law and Attornev's Fees The validity of this Agreement, the construction and enforcement of its terms, and the interpretation of the rights and duties of the parties shall be governed by the laws of the State of Indiana. In the event of any arbitration or other legal proceedings between the parties, each party will be responsible for their own attorney's fees and all costs. The parties agree that all arbitration or other legal proceedings under this Agreement shall be brought in the courts of the State of Indiana. 14. Indemnification The parties shall indemnify to the extent identified by Indiana law and hold harmless each other from all demands, claims, actions,_ assessments, losses, damages, and reasonable attorney's fees and costs as a result of any liability arising from any action or failure to act resulting from compliance with instructions received from the other party, except to the extent it is. determined such action or failure to act is directly attributable to gross negligence, willful misconduct, or violation of applicable law- by the offending party. Notwithstanding the preceding, McCready's liability shall be limited to the maximum compensation indicated in Section 7 of the Agreement. 15. Force Maieure McCready is not responsible or liable for any failure or delay in the performance of its obligation under this Agreement arising from or caused directly or indirectly by circumstances beyond its control, including acts of God, earthquakes, fires, floods, wars, civil or military disturbances, sabotage, epidemics, riots, loss or malfunction of utilities or communication services, acts of civil or military authority, or governmental action. 16. E -Verify Program McCready is required to enroll in and certify the work eligibility status through the E -Verify program of all newly hired employees who are given responsibility to perform services for the Employer as provided in item 1. Should the E -Verify program cease to exist, this requirement will no longer exist. By execution of this Agreement, McCready certifies that, based solely on the use of the E -Verify program, McCready believes that, to the best of its knowledge, no unauthorized alien is an employee of McCready who would be given responsibilities to perform services for the Employer. 17. Entire Amement This Agreement and its Exhibits constitute the entire understanding of the parties, superseding all prior agreements, understandings, negotiations, and discussions between them whether written or oral, and there are no other understandings, representations, warranties, or commitments with respect thereto. 0 0528 18. Acceptance This agreement may either be signed by Employer and a copy returned to McCready, or, in lieu of written acceptance of this Agreement, the Employer's acceptance of services and/or payment of fees under this Agreement will constitute acceptance of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as follows. The City of Carmel BIy.L1�1�,'�'Lri Signature Printed Title Date 10 C528 McCready and eene, I C. By: Signature Andrew V. Wilkinson Printed Sr. Vice President & Managing Principal Title December 23, 2016 Date PENSION BENEFIT INFORMATION REQUIREMENTS FOR BENEFITS PAYABLE TO CITY OF CARMEL MUNICIPAL POLICE OFFICERS' AND FIREFIGHTERS' FUND (NOT ADMINISTERED BY PERF) The following is a list of the information that is required for the preparation of a Pension Benefit disclosure report. This is a comprehensive list and some of this information you may have already provided. Some of the requested information may not be applicable or available. Please provide as much of this information as is practical, but please do not provide the Social Security Numbers of participants. 1. Plan Documentation describing the substantive plan, such as: a. Legal documents (plan document, amendments, board resolutions, etc.) b. Booklets C. Summary Plan Descriptions d. Letters, memorandums, agreements, or other communication materials 2. Any differences between the written plan and the manner in which the plan is administered. 3. A history of benefit changes during the past ten years along with any benefit changes currently being considered. 4. Census information for all active, terminated vested, and retired employees, and their beneficiaries including: a. Status (active, retired, surviving spouse, etc.) b. Employee number or unique identifier (Please do not use Social Security #'s) c. Sex d. Date of Birth e. Date of Hire f. 5 -year history of total plan compensation earned and received (for current actives only) g. 5 -year history of total hours worked (for current actives only) h. Date of Termination (for current terminated vested participants only) i. Monthly accrued benefit (for current terminated vested participants only) j. Date of Benefit Commencement (for current retirees and beneficiaries in payment status) k. Monthly annuity benefit amount (for current retirees and beneficiaries in payment status) 1. Annuity payment form (for current retirees and beneficiaries in payment status) in. Date of birth and sex of spouse (for current retirees in payment status with covered spouse) A copy of the most recent actuarial valuation report prepared for this plan. Is there an established Trust with assets? Are assets segregated to fund retiree benefits only? If assets are segregated for retirees, please provide the Market Value of the Trust as of the measurement date. 7. Do you disclose as a public or nonpublic employer? 11 McCready and Keene, Inc. Privacy Policy In the course of providing actuarial, record keeping, and other administrative services for our clients and their retirement and other employee benefit plans, we receive participant information and related financial data from employees and financial institutions in connection with such plans. This Privacy Policy establishes the following guidelines for how our McCready and Keene, Inc. and its employees are to deal with any such information: 1. The use of information is specifically limited to those activities for which we have been employed. Such information will be used to compile reports and other materials, including the processing of plan benefits, as appropriate, in connection with our services to the plan(s) and the participants to which such information relates. 2. Computer files and hard copies containing such information are maintained as deemed appropriate for providing ongoing services to the plans involved in a manner reasonably designed to preserve their confidentiality. 3. The Company has a shredding policy and a contract with a vendor providing shredding and certified disposal services for all materials containing client information. This policy is designed to prevent inadvertent disclosure of client information contained on discarded materials. 4. If the Company learns that any client or participant information is disclosed to a third party without the client's permission, the Company will notify the client of such breach and comply with rules and regulations related to this matter. 5. Our records retention policy generally involves the retention of materials for ongoing clients as long as they are deemed pertinent to those services. Some older records are transferred from time to time to an off-site storage facility maintained by a third party in that business. From time to time, we direct the disposal of certain stored information that is no longer needed in connection with our services. The storage facility has contracted to dispose of such materials in a manner designed to protect the confidentiality of any client information contained in the materials. The storage facility's security procedures also ensure that such stored materials can only be delivered to one of our authorized employees. When a client terminates our services, we will retain records for six years, and then such records will be disposed of in due course in a manner designed to protect client and participant confidentiality. 6. The names of representative clients may be used with their permission from time to time as references in connection with our efforts to obtain new business, but specific financial information on clients and their plans and participating employees is not used for any purpose other than providing the agreed services to individual clients and is not disclosed to anyone outside the Company, except as required in connection with providing our agreed services or as required by law. 7. Our Employee Manual emphasizes the importance of using client information only in connection with providing our professional services. Employees are prohibited from disclosing client information to anyone outside the Company, except as required in connection with our agreed services. 8. We also will comply with any legal process that might require the disclosure of certain client information. However, it is generally the Company's policy to notify the client before complying with any request for production of documents pursuant to subpoena or in any other legal proceeding. 9. We maintain internal security procedures with regard to our premises and our computer systems to restrict access to any information provided to us so that we can provide services for our clients, including their employees and plan participants. Our policy applies to both active and former clients. 12