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HomeMy WebLinkAboutING 457 Insurance Plan/HR APF'ItOVED, A$~JO ING 457 PLAN FO~t~ BY: SERVICES AGREEMENT / ~ THIS AGREEMENT is made and entered into this {/ ~day of /-t/~'°TbP(2002, by and between the City of Carmel or its authorized representative ("Plan Sponsor") and ING Life Insurance and Annuity Company, a corporation organized and existing under the laws of the State of Connecticut ("ILIAC") (ILIAC and any of its successors, affiliates, and subsidiaries are hereinafter collectively referred to as "Provider"). This Agreement is separate and apart from any other contract issued to the Plan, including any group annuity contract issued to the Plan Sponsor by ILIAC. RECITALS WHEREAS, the Plan Sponsor has established an "eligible deferred compensation plan" (the "Plan") pursuant to Section 457 of the Internal Revenue Code ("IRC"); and WHEREAS, the Plan Sponsor wishes to make the Plan available to its employees; and WHEREAS, the Plan Sponsor has selected certain investment products offered or otherwise made available by or through ILIAC for the investment of Plan assets (the "Program"); and WHEREAS, the Plan Sponsor wishes to engage ILIAC or its appropriate corporate affiliate, as necessary, to facilitate the administration of the Plan by providing services that shall include, without limitation, accounting for deferrals, disbursement of funds, withholding of taxes, investment of assets in the appropriate Plan investment options and proper recordkeeping of participant accounts; and WHEREAS, Provider wishes to provide administrative services to the Plan Sponsor in connection with the Plan. NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties do hereby agree as follows: Section 1. Responsibilities 1.01 Allocation of Responsibilities: ILIAC shall service or perform all marketing communications, enrollment and securities transactions settlement and processing functions and all other functions assigned to Provider, including participant and Plan recordkeeping. 457 1.02 Meetings: The Plan Sponsor shall provide Provider with timetables, procedures and facilities for group employee meetings for distributing information about the Program, including investment options thereunder; counseling and enrollment of individual employees and completion of enrollment materials. 1.03 Payroll Reduction: The Plan Sponsor shall provide payroll reduction procedures and facilities and agrees to remit all deferred amounts electronically to Provider in a timely manner. 1.04 Provision of Certain Information: The Plan Sponsor shall transmit the information relating to each eligible employee participating in the Plan ("participant") and agrees to remit such information electronically to Provider in a timely manner, including deferral amounts and any changes thereto. The Plan Sponsor shall provide other necessary information requested by Provider on a timely basis and use its best efforts to assure the accuracy and completeness of all information provided. 1.05 Enrollment Services by Provider. Provider shall participate in and conduct group and individual meetings to provide information on 457 deferred compensation plans and the Program. Provider shall be responsible for enrolling participants in the Program. Provider agrees to abide by all marketing guidelines established by the Plan Sponsor. 1.06 Marketing Materials: Provider shall create and distribute communication and promotional materials that describe the Program. The Plan Sponsor shall approve any such Plan specific marketing materials customized for the Plan Sponsor prior to distribution to employees. In addition, prior to distribution, Provider shall review and approve any materials created by the Plan Sponsor that relate to the Program. 1.07 Collection of Investment Contributions.: Provider agrees to accept all payments received in good order for deposit into the Program and allocate such contributions in accordance with the Participant's investment selections as directed by Plan Sponsor. 1.08 Disbursements.: The Plan Sponsor shall notify Provider in writing of all disbursements (including such in-service withdrawals and transfers as may be permitted under the Plan) to be made to participants or beneficiaries under the terms of the Plan. The Plan Sponsor shall determine if a disbursement or account segregation request may be made under the Plan. Provider will process disbursements from a participant's or alternate payee's account if authorized to do so by Plan Sponsor and in accordance with the terms of the Program. 457 2 1.09 Tax Reporting:. Provider shall compute and withhold federal and state income taxes, as required by law, for disbursements paid directly to participants, alternate payees or beneficiaries from the Program. Provider will forward, within the applicable time limit, the appropriate report reflecting the amount of the disbursement and taxes withheld to the appropriate taxing authority and to the participants or beneficiaries. 1.10 Licenses: Provider represents that its personnel involved in performing services under this Agreement with respect to its Program are appropriately licensed as required by law. 1.11 Non-Discriminatior~: Provider agrees to conduct itself in such a manner so as to comply with all applicable Federal and State laws regarding discrimination in its employment or investment policies and practices. Section 2.01 2.02 2.03 2. Participant Information Participant Records: The Plan Sponsor agrees to furnish Provider sufficient information to enable Provider to maintain and update participant level records including, but not limited to, name and address; social security number', contribution amount and allocation of the contribution to one or more funding media; and other pertinent data reasonably necessary for the efficient administratmn of the participant account. The Provider agrees to keep such information confidential as required by law. Over the term of this Agreement, the Plan Sponsor will notify Provider of changes in employment status and, to the extent the Plan Sponsor has knowledge of the death of any Participant, the Plan Sponsor will notify the Provider of such death. The Provider shall maintain Participant beneficiary designations. The Provider shall maintain the Participant Agreements that participants will complete upon enrollment into the Plan. Re orts to Plan S onsor: Provider shall furnish to the Plan Sponsor a quarterly report or statement that shows Participant account activity. Re orts to Partici ants: Provider will provide Participants with quarterly statements of their accounts. Statements will reflect Participant account activity since the prior statement date. 457 3 Section 3. Fees · Provider's services under the Agreement are rendered 3.01 Provider's Compensation: in connection w~th the Plan s select~o of certain investment products offered by or through Provider. Such revenues, if any, as accrue to Provider by virtue of the operation of such investment products shall constitute a source of compensation for the services rendered under this Agreement. 3.02 Fee and Commission Disclosure: Provider shall disclose to Participants the amount of annual recordkeeping charges assessed and the fact that the Provider and its sales personnel may be directly compensated by the investment products utilized under the Program, and make such other disclosures as are required by law. Section 4.01 4.02 4.03 4.04 4. General Term and Amendment:. This Agreement shall remain in effect for a period of one year from the date of execution, unless the Plan is earlier terminated. It shall be automatically renewed for additional one (1) year terms thereafter unless terminated by either party upon thirty (30) days written notice. This Agreement may be amended in writing if agreed to by both parties. Circumstances Excusing Performance.: Neither the Plan Sponsor nor Provider shall be liable to the other for any delays or damages or any failure to act due, occasioned, or caused by reason of restrictions imposed by any government or government agency, acts of God, or unforeseeable causes beyond the reasonable control of the parties affected thereby. O~wnership of Records.: The Plan Sponsor agrees that all computer tapes, discs, programs and any records generated by Provider under this Agreement shall be the property of the Provider. ~: All information supplied to, and all work processed or completed by Provider with respect to this Agreement will be held to be confidential and shall not be disclosed to anyone other than the Plan Sponsor without the Plan Sponsor's written permission except as may be required for a Plan audit, in response to such routine credit inquiries as may be authorized by Participants, to comply with any applicable federal or state law or to obey court orders. 457 4.05 4.06 4.07 4.08 4.09 Parties Bound: This Agreement and the provisions thereof shall be binding upon the respective parties and is binding upon the parties, successors, and assigns. ~: This Agreement shall be construed in accordance with the laws of the State of Indiana. Provider and the Plan Sponsor shall comply with all state and federal laws and regulations applicable to the services to be performed. Severabilit~: If any provision of this Agreement shall be found to be illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of this Agreement and the remainder of this Agreement shall be construed and enforced as if said illegal or invalid provision had never been inserted herein. Neither party shall be required to perform any services under this Agreement which would violate any law, regulation or ruling. ~Acknowledgment: In connection with our services, Plan Sponsor acknowledges that: (a) Provider is performing non-discretionary, mmisterial administrative services at the direction of the Plan and Plan Sponsor; (b) the Plan Sponsor has sole authority for making all eligibility or other benefit determinations; (c) the Provider does not provide any investment advice to the Plan Sponsor with respect to Plan assets; (d) the Provider will not be responsible for coordinating participant deferrals among the Plan and other tax favored plans which participants may be eligible to participant in; (e) in performing its services under this Agreement, Provider is entitled to rely on any information the Plan Sponsor provides through its duly authorized representatives. Provider is not obligated to inquire into and is not responsible for the authenticity or accuracy of such information or the actual authority of such person to provide it. Hold Harmless: Provider agrees to indemnify and hold the Plan Sponsor, its officers, employees and agents harmless from any loss, liability, claim, suit or judgment resulting from work or acts done or omitted by Provider's officers, employees or agents in carrying out Provider responsibilities as set forth in this Agreement to the proportionate extent that it results from the negligence or wrongdoing of Provider or any of its officers, employees or agents. Provider' s agreements to indemnify shall not extend to any injury or damage which results from Provider's reliance on information transmitted by the Plan Sponsor. 457 5 The Plan Sponsor agrees to indemnify and hold Provider, its officers, employees and agents harmless from any loss, liability, claim, suit or judgment resulting from ... ~ ,_ ,L_ mn~ S,,onsor's officers, employees or agents work or acts done or omlttect Dy mc rrm, v in carrying out the Plan Sponsor's responsibilities as set forth in this Agreement to the proportionate extent that it results from the negligence or wrongdoing of the Plan Sponsor or any of its officers, employees or agents. Plan Sponsor's agreements to indemnify shall not extend to any injury or damage which results from Plan Sponsor's reliance on information transmitted by the Provider. 4.10 '~'otice: Each party will promptly provide the other with notice and copy of any attempts to levy or attach amounts held under the Plan and/or any litigation affecting the Plan of which it becomes aware and/or any notices or demands to be given under this Agreement. All such notices, demands or other communications hereunder shall be in writing and duly provided if sent certified mail, return receipt requested, addressed to the party to be notified or upon whom a demand is being made, at the addresses set forth in this Agreement or such other place as either party shall from time to time designate in writing. The date of service of a notice or demand shall be the receipt date on any certified mail receipt. Notices to Provider shall be sent to: Allan Baker, Senior Vice- President ING Life Insurance and Annuity Company 151 Farmington Avenue Hartford, Connecticut 06156 Notices to the Plan Sponsor shall be sent to: City of Carmel One Civic Square Carmel, IN 46032 ATTN: Director, Human Resources 4.11 ~: This Agreement may be executed in any number of counterpart copies, each of which when fully executed shall be considered as an original. 4.12 Headings: Headings are for convenience of reference only. Headings do not limit or expand the scope of the text and are not intended to emphasize any portion thereof. 457 6 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized as of the day and year first above written. CITY OF CARMEL, INDIANA By and through its Board of Public Works and Safety rainard, Presiding Office Date Date Date ATTEST: ' ~urer Dat lNG LIFE INSUR/AN~C~C?E AND ANNUITY COMPANY By:__ BRIAN K. HAENDIGES vICE PRESIDENT Title: Date: 10/30/02 457 7