Valic - 457 (b)VALIC
APPROVED, AS TO
FO M BY:
ADMINISTRATIVE SERVICES AGREEMENT
This Agreement is made and entered into by and between City o f Carme 1 (Thc "Employer") and The
Variable Annuity Life Insurance Company ("VALIC"), a Texas corporation, on this } co day of O ~ ~ ,200 2-~.
ARTICLE I - PURPOSE
The Employer maintains a deferred compensation plan (the "Plan"). In the interest of economy and effiaienoy, the
Employer deems it desirable to contract for edminish'afivc services pertaining to accounting for deferrals, disbursements of
funds, proper reporting to participants and the Intcmnl Revenue Service, and withholding of taxes, if applicable. Therefore,
thc Employer dcalgnatas VALIC its agent to perform thc services outlined in this Agreement and deposit income tax amounts
as required by law. VALIC's undertaking to provide administrative services hereunder is limited to those amounts of deferred
~omponsafion under thc Plan that the Employer has Invested in annuily contracts issued by VALIC.
ARTICLE II - DEFINITIONS
As used in this Agreement, the following definitions shall apply unless the contex~ indicates otherwise:
2.1 Agent - The Variable Annuity Life Insurance Company CVALIC").
2.2 Annuity Contract - The group or individual annuity contxact(s) bc~een the Employer or Plan Participants and VALIC.
2.3 Employer- 'City o£ Carmel
Employer Nan~
One Civic Square, Carmel, Indiana 46032
Employer Address
2.4 Pa~icipant - An employee or independent contractor of the Employer electing to participate in thc Plan.
2.5Plan-The City of Carmel D~fortedCompansafionPlon.
Name of Plan
(ohoak one bo|ow):
a. X a 457(b) or "eligible" d~fm'red compensation plan described under va~tion 457 of the Internal
Revenue C0dc of 1986, as amended.
-- a 457(0 or "ineligible" deferred compansafion plan sponsored by a tax-exempt or
governmental organization. (Sections 3.4 and 4.5 DO NOT apply)
-- a non-qualified (top hat) deferred oompcnsaHon plan sponsor0d by a for-profit organization. (Section 4.5
DOES NOT apply)
ARTICLE III - RESPONSIBILITIES OF EMPLOYER
3.1 The Employer shall complete and sign all forms neeessary fix VALIC's appointment as its agent with the Internal
Revenue Service, or where applicable, those forms that release VALIC of said appointment.
3.2 The Employer shall notify VALIC ia writing of all Participant information requested by VALIC, including, but not
limited to, age, Social Security number and b~aefieissy information.
3.3 The Employer shah direct VALIC to make benefit payn~nts under the Plan in accordance with tho annuity option
Specified by the Employer and shall supply VALIC with the amount of the account to be distributed.
3.4 The Employer shah be responsible for approval of all reqansts fur u~fforeseeable emergency withdrawals under the
1
Plan and direct VALIC to make approved dlsbor~ments in amounts speoified by the Employer. Unforeseeable
Emergency Withdrawal requests shall be processed as follows (check one below):
-- Employer has reviewed VALIC'S Unforeseeable Emergency Withdrawal procedures and, having
determined such procedures to be consi~att with the terms of the Plan, hereby adopts such procedures
and delegates the determination function to VALIC. By signature on this Agreement, Employer approves
all unforeseeable emergency withdrawal requests made and processed in accordance with VALIC'S
procedures adopted by Employer for the Plan.
b, X
__ Employer will review ali requests for and make all determinations regarding unforeseeable emergency
withdrawals and will indicate distribution approval by signature on all Unforeseeable Emergency
Withdrawal request forms.
ARTICLE IV - VALIC RESPONSIBILITIES
4.1
VALIC shall famish quarterly confirmation statements of accounts showing activity for the period and the total value of
each Participanfs aeenunt(s) to (check one below):
X participants; or
b. the Employer.
4.2 VALiC shall compute end deduct in~ome taxes required by law to be withheld for all distributinns (check one below).
a. X Yes. This option applies if you checked 2.5(a)
b. No. This option applies if you checked 2.,5(o) or 2, 5(c). Proceed to Article VI.
4.3 VALIC shall issue the disbursements in accordance with the provisions of the Annuity Contract and the Plan at the
direction of and in mounts specified by the Employer. Such disbursements shall be made payable and mailed to pattinipants.
(This doe~ not apply ff4.2(b) was checked.)
4.4 Disbursements shall be mede flora the account maintained by VALIC on behalf of the Employ~ in accordance with the
terms of the Annuity Contract and the Plan; provided, however, that ffthe Employer terminates the Annuity Contract, VALIC
shall ha obligated to make disbursements only to the extent that funds are still available in the account of thc Employer.
4.5 VALIC shall compute and deduct income taxes r~quired by law to be withheld ~om distributions from the Plan, for
distributions prior to 1/1/2002 such determination shall be mede under the wage bracket method for all distributions, for
Federal income tax purposes and as may be specified below for State inenmo tax purposes. A report of such withheld taxes
~ be forwarded by VALIC to the Internal Revenue Service within the time prescribed by law. Th~ only ~pp~es if you
ehedted Z S(a).
State income tax withholding (Specify one only):
wage bracket method for all distributions.
X current percentage rate specified by state law for all distributions.
Employer agrees to furnish VALIC a properly completed Withholding Mlowanee Certificate (Form W-4) for each Partlaipant
receiving a disbursement. VALIC will not withhold Federalincome tax for any employee who claims an exemption from
withholding on Form W-4 by indicating no tax liability for the p~'eseding year and none expected for the current year.
4.6 VALIC shall furnish to each Participant tax reporting form(s) required by the applicable taxing authority, including a
statement of gross amounts paid to the Participant and the amount of Federal, state and loenl income tax vAthheld by VALIC,
if any.
4.7 VALIC shall furnish to the Employer. if applicable, annual and semi-annual reports for The Variable Annuity Life
Insurance Company Separate Account(s) for distribution to Participants.
4.8 VALIC shall astablish and maintain roc. a~de o f notific, ations from Employer concerning participants who are to receive
disbursements, gross payments under the Agrenment, amounts of Federal, state and local income withheld by VALIC on
2
behalf of the Employer and reports of such income and deposits filed with the appropriate govemmcntai agencies by VALIC
on behalf of the Employer.
ARTICLE V - MISCELLANEOUS
5.1 Term. This Agreement shail become effective immediataly upon execution and shall re~lll$~in in force until terminated bY
either party as provided below. ~ t~'~
5.2 Termination. This Agreement may be terminated by either party upon sixty~Y~ days' written notice to the other party
of the intent to terminata. Upon any such termination, Agent shall deliver to the Employer all records and reports required by
this Agreement.
5.3 Information. VALIC relies on the information provided ta it by the Employer and Plan Participants and benefiaiafios, and
VAL1C will not be responsible for claims resulting from the use by VALIC of any incorrect or misleading information
provided to it by the Employer or Plan Participant or beneficimy.
5.4 Assimament. This Agreement may not be assigned without the written consent of the other party.
5.5 Amendmmat. The parties may amend this Agreement only in writing. Any such amendment must be approved by the
President or a Vice President of Agent and a person authorized to act on behalf of Employer.
5.6 Notice. Any notice provided for herein shall be in writing and shall be deemed to have been given when received by
personal delivery or United States mail addressed to tho Employer at tho address given in section 2.3 or to VALIC at the
address bdow:
Customer Service
Tho Variable Annuity Life Insurance Company
2929 Allen Parkway
Houston, TX 77019
Indiana
5.7 Governing Law. The laws of tho state/commonwealth of __ shall govern the rights and obligations of the
parties under this Agreement.
5.8 Entire A4~roement. This Agreement and any wfittan amendments hereto conslitate the entire agreement of the parties.
This Agreement shall supersede all previous communications, representations or agreements, either oral or written,
between the parties.
5.9 No Cost to Employer. The services rendered by VALIC pursuant to this Agreement shall be performed without
additional cost to the Employer~cr :I.-. _/~h,5.ohoti,~ ,,~d ~L~ J~a:g:.c. ~rz:'[~:~_ for tn *h° P--~n'-"-'~' r,~..,._.,
1N 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
J~es Brainard, Presiding Officer
Date
n, J~'oard Member
ATTEST:
a~'~/] ) 8an~aM. Jonson,
~ ~ Deput~ Clerk for
y, IA(VIC, Clerk-Treasurer
Date
D~te
Date
APPROVED,
ADDENDUM TO VALIC 457/401 (a)
ADMINISTRATIVE SERVICES AGREEMENTS
This addendum modifies anWor extends the provisions of the VALIC Administrative
Services Agreement and the Pension Administrative Services Contract. Where there is
conflict between the terms of the Agreement/Contract and the terms of this Addendum,
the terms most favorable to the City of Carmel or plan participants shall control.
VALIC hereby affirms that it has received opinion of counsel that the 457 plan and the
401(a) matching plan offered to City of Carmel employees meet all necessary criteria for
approval by all federal and state regulatory authorities governing such programs,
including, but not limited to, the Lntemal Revenue Service.
VALIC further affirms that standard services (as outlined below and in the
Administrative Services Agreement) provided by itself and its representatives in
association with the 457 plan and the 401(a) matching plan shall be provided at no cost to
the City of Carmel other than incidental expenses related to payroll deduction.
Additional services may be requested by the City, with the fee for such services to be
agreed upon in writing by both parties.
FORM BY:_~___.~
City of Carmel Responsibilities:
Develop and administer payroll procedures to defer employee contributions and
assess City matching contributions, and to remit such contributions to VALIC in a
timely manner.
Disseminate from time to time communication/promotional material provided by
VALIC for employee distribution.
Arrange for representatives of VALIC to conduct initial enrollment meetings with
City employees and periodic meetings for ongoing service to employees, as deemed
necessary by the City.
Furnish VALIC with sufficient information to initiate and maintain participant
records, including name and address, birth date, social security number, deferral
amount and other pertinent data necessary for the efficient administration of the
participant's account.
Promptly forward all information it receives from employees pertaining to enrollment
and account maintenance, and notify VALIC in writing of all disbursements that
require the authorization of the City.
Act as plan administrator, through the Board of Public Works and Safety, to manage
all material matters relating to the activities of the 457 and 401(a) plans.
n Assist VALIC, as necessary, in the development and maintenance of investment and
service specifications.
n Develop and maintain the plan document, amending it as necessary from time to time
to comply with regulatory provisions and the requirements of the City.
VALIC Responsibilities,:
Establish and maintain the 457 and 401(a) plans, funding options and administrative
operations so as to comply with all applicable regulations, including Internal Revenue
Code, state statutes and other regulatory authorities and requirements.
Provide the City with as much technical support and assistance as is necessary to
implement the 457 and 401(a) plans in accordance with the needs and objectives of
the City.
Provide a comprehensive administrative service system to facilitate disbursement of
employee deferrals and City matching contributions, maintain individual and City
account records, provide quarterly participant statements, coordinate participant
distributions and ensure proper tax withholding and reporting systems.
Periodically review the administrative, operational and financial arrangements and
take such as actions as are necessary to ensure that the City and its employees receive
the best possible combination of costs, benefits and services.
Provide such accounting and audit systems as are necessary to ensure the fiscal
integrity of the plans and provide the City with reports and work papers as are
reasonable necessary to meet the City's financial reporting requirements.
Provide such reports to the City as may be necessary to monitor and evaluate plan
activity.
Employ or contract with representatives who have the appropriate training,
credentials, licensing and expertise to assist employees with their retirement plarming
and to work within the guidelines of the plan and the regulatory environment.
Provide for an initial and continuous employee educational program to allow all
interested employees to understand the advantages and restrictive provisions of the
plans.
Be available on City premises, as deemed necessary by the City, to provide plan
information and guidance, answer questions and facilitate individual enrollment and
maintenance.
Provide such communication/promotional materials and other forms, documents and
agreements as are necessary to administer the plans and the individual employee
accounts.
Maintain all forms pertaining to enrollment, beneficiary designation, investment
direction and other participant elections.
Allow employee access to account information, maintenance services and customer
service representatives through a web site and toll-free telephone number.
Adhere to all such standards of conduct and ethical guidelines as have been or may be
promulgated for your industry.
n Cooperate fully with the City's other 457/401(a) providers, and do nothing to impede
their ability to meet with employees, enroll employees, service employee accounts
and expeditiously transfer funds from one plan to another, as allowed by the City and
by regulatory authorities.
= Keep employee and plan information confidential, as required by law.
CITY OF CARMEL, INDIANA
By and through its Board of Public Works and Safety
~mes Brainard, Presiding Officer Date
Mary~ember
Ivan, l~oard Member
Date
Date
ATTEST:
ff ~ _ -- 'N Sandra M. Johnson,
~)~~ Deputy Clerk for
Diana Cordray, I~AMC, Clerk-Treasurer
YALIC S~/G~TURE
Printed Name: