Valic 401 (a)VALIC
The Variable Annuity Life Insurance Company (V___ALIC)
EMPLOYER/PLAN ADMINISTRATOR RESPONSIBILITIES
The following is a list of Employer/Plan Administrator responsibilities,
This list is not all inclusive and may be subject to changes as applicable
laws change. For a description of the areas in which VALIC will provide
assistance, refer to the Schedule of Services.
1. Establish the Plan with a resolution passed by the organization's
Board of Directors (or appropriate governing body).
2. The following items must be distributed to participants and/or
posted for all employees wiLhin the time frames established by
ERISA and the Internal Revenue Code:
Notice to Interested Parties.
Summary Plan Description (SPD),
· Summary Annual Report (SAR).
· Benefits Statements (including vesting information).
The following items must be signed and forwarded to the
appropriate governmental agency if necessary: Plan Document*
~RS determination letter applications (if needed).
· Form 5500 and applicable schedules.
4. Determine the need for and provide fidelity bond coverage for the
Plan as required by ERISA Section 412,
5. Establish written procedures for administering Policy Loans (if
applicable) and Qualified Domestic Relations Orders (QDROs).
6. Assist in making arrangements to enroll eligible employees.
7. Ensure that any hondiscrimination testing or other testing required
by law is performed and take any actions needed to bring the Plan
into compliance w~th relevant Internal Revenue Code requirements.
8. Send contribution remittance end detailed allocation instructions
to VAUC in "good order." This means that the aliocabon
instructions are sent to VALIC before or concurrent with the
contribution remittance and that they are in balance. Required
information includes (but may be more extensive in order to
support reporting or service work requested) participant name,
SSN, source of the contributions, and doFar amount, VALIC
accepts allocation instructions through several automated methods.
including file transmission via modem, magnetic tape, diskette,
or cartridge,
For Full Service arrangements automated remittance processing is
required. For Partial and Standard Service arrangements automated
remittance processing is strongly encouraged; however, speeia~
arrangements can be made for manual processing, Prior to
sending the first contribution remittance, the method and
format must be reviewed and approved by VALIC'S Premium
Administration department.
Pension Administrative Services
APPROVED,
Contract FORM BY:
For use with all tax-deferred plan types
9, Provide participant address information, when required. If VALIC
receives contributions for a participant who has not yet completed a
contract application, VALIC Will open a temporary "slarter" account
and invest the funds in the Money Market Division of Separate
Account A (Money Market Fund) chosen by the Employer.
In order to open a "starter" account, the participant's current address
is required. If VAUC is unable to obtain the participant's address from
you, we will use your organization's address. The funds will remain in
the Money Market Fund investment for t05 days or until the
participant has completed a contract application, whichever is less.
During that period, VALIC will attempt to contact the participant
through the financial advisor assigned to your organization and by
mail. If a completed application is not received within 105 days of
VAUC receiving the contributions, the contributions and earnings will
be returned to your organization until such time as a completed appli-
cation can be obtained.
10. Review and sign an "Agreement Regarding Capital Transfer °f
Assets" if your organization plans to initiate an employer-
directed transfer of assets to VAUC. This agreement describes
VAUC'S policies end procedures with respect to employer-
directed capital transfers of assets, including where to send
allocation instructions for the transfer, the investment of the funds
prior to VAUC'S receipt and reconciliation of the allocation
instructions (if they are not received concurrently with the funds
or do not reconcile to the remitted amount), and record-keeping
procedures for participants who have not yet completed contract
applications. Signing of the "Agreement Regarding Capital Transfer
of Assets" indicates employer understanding of and agreement to
these policies and procedures. For Full Service arrangements
automated processing is required. For Partial and Standard Service
arrangements automated processing is strongly encouraged;
however, special arrangements can be made for manual processing.
11, Review eech request for a distribution or loan, obtain required
spousal consent (if applicable), and complete the section of each
V^UC distribution form requiring the Plan Administrator's
informatioNappmvaL
12. Inform porticipants of spousal rights to benebts, as prescribed bY
the Retirement Equity Act (REA) of 1984 and applicable regulations,
13. Calculate eligibility, service, vesting, and contributions for all
Employees based on the Plan Bocument provisions and applicable
laws and regulations. Monitor legal limits on Employer and
Employee contributions,
14, Notify VALLE of any cbenges to organizational structure or requested
changes to the Plan.
* NOTE: No work can be performed under VAUC'S Full or partial
Services arrangements until final decisions have been made
regarding all plan provisions.
VALIC
The Variable Annuity Life Insurance Company (VAtlC) ~
I. PENSION ADMINISTRATIVE SERVICES
CONTRACT PROVISIONS
The Variable Annuity Life insurance Company (VAuC) has developed certam
standard (not fee-based), partial, and full administrative and record-keeping
services for its customers who sponsor retirement plans. These services are
in addition to those specified in the VAUC annuity contract(s) purchased by the
employer end/or emp~oyeee. These additional services are intended to assist
~he plan sponsor in complying with the roles imposed by ERISA and/or
subsequent legislation, and the internal Revenue Code. InduCed are the
functions that must be performed at the time the plan is established as well as
those that must be pedormed each plan year, such as annual redor[s to
participants and to government agencies.
FEES FOR SERVICES
VALIC will provide ti
Holder as indicated
remains in force,
document. An additional lee
amendment to.the
additional
fee may be charged
part!
by the Conb'act
as this contract
wilt be the VAlle standard
ged for any customization or /j /
Holder shall pay VALtC for any ~ ·
~moont indicated in this contract, on an ~
)y the Contract Holder, ~
r to cancellation for the p~an
occurred. This contract applies to serwces
,, and not to services provided by any third
CONTRACTHOLDER AGREEMENT
The Contract Holder shell furnish V^U¢ with information required to carry
out its duties hereunder. VALIC, as the entity providing administrative ser-
vices to the Contract Holder, is not the Plan Administrator, as defined under
applicable law. V^UC shall be entitled to rely exclusively upon ~nformeqon
furnished to it by the Rlan Administrator and shall have no duty to look
beyond such information. VALIC is not responsible for the actions or inac-
tions of prior vendors or service providers, or for interaction with govern-
mental agencies regarding issues from plan years prior to the plan years for
which this contract is effective.
CONTRACT PERIOD/TERMINATION
This Contract shell continue in effect from the date it is accepted by VALIC and
from year to year thereaiten Either V^LIC or the Contract Holder may
termmate this Contract by written notification at least 30 days prior to the
date the termination is to be effective. V^LIC reserves the right to
terminate this Contract at any time that another financial institution is allowed
to recmve or hold funds for the Contract Holder's Retirement Plan unless the
inclusion of such other institution is agreed to in writing by VALIC.
This agreement represents the entire agreement between the parties and may
be modified or amended only by wilton agreement of all parties thereto. Any
representation or statement made by any party not expressly set forth in the
Contract shall not be binding on any party, The agreement shal~ be governed
by the laws of the state in which it was adopted.
EMPLOYER RESPONSIBILITY WITH STANDARD SERVICE
iF THE STANDARD SERVICES USTED IN THIS CONTRACT HAVE BEEN
ELECTED, BY ACCEPTANCE OF THIS CONTRACT, THE CONTRACT HOLDER
ACKNOWLEDGES THAT HE OR SHE UNDERSTANDS ALL DUTIES REQUIRED
BY LAW TO BE PERFORMED BY THE PLAN ADMINISTRATOR. HE OR SHE
ALSO UNDERSTANDS THAT PENALTIES MAY BE ASSESSED UNDER FEDERAL
Pension Administrative Services
Contract
For use with all tax.deferred plan types
LAW IF THE PLAN ADMINISTRATOR FALLS TO PERFORM SOME OR ALL
DUTIES REQUIRED. THE FOLLOWING ARE SOME. BUT NOT ALL OF THE
REOUIRED DUTIES, IN ADDITION TO THE SCHEDULE OF STANDARD
SERVICES IN THIS CONTRACT: DISTRIBUTION OF NOTICES TO
INTERESTED PARTIES; COMPLETION AND FILING OF FORM 5500;
PREPARATION AND FILING OF SUMMARY ANNUAL REPORT;
PERFORMING CERTAIN NONDISCRIMINATION TESTS UNDER IRC
SECTIONS 410(b), 401 (a)(4), 401 (k), AND 401 (m); CALCULATION OF
CONTRIBUTIONS AND VESTING,
II. REQUIRED INFORMATION
~MPORTANT NOTE: ALL REQUIRED ITEMS BELOW MUST BE COMPLETED
BEFORE CONTRACT(S) FUNDING THE RETIREMENT PLAN CAN BE SET UP
WITH VALIC,
THESE ITEMS ARE REQUIRED FOR ALL PLANS
1. EMPLOYER SPONSOR~NG PLAN(S): _ City of Carmel ...
2. NAME(S) OF PLAN(S): City of Carmel
NAME, ADDRESS, AND PHONE NUMBER OF PLAN ADMINISTRATOR
(Plan information prepared by VAUC will be sent to this address
unless otherwise indicated. VALIC should be notified of any changes
to this information.):
Name: City of Carmel
Address: One Civic Square
City: Carmel State: IN
Phone Numbor: 317~571-2471
ZIp: 46032 ...
NAME AND ADDRESS OF PAR]Y CURRENTLY
PROVIDING ADMINISTRATIVE SERVICES:
(If different from Plan Administrator named in Item 3. If VAUC is
providing Full Services, comptete for prior service provider):
N/A
5. NAMES OF ANY OTHER PARTIES HOLDING ASSETS OF THE PLAN:
Nationwide, Lincoln, ING
fi,
EFFECTIVE DATE OF PLAN(S):
Original 1]_/01/02
month / day ! year
Re~ed
month ! day ! year
EMPLOYER IDENTIFICATION NUMBER(S):
35-6000972
(If more than one EIN applies)
VALIC
The Variable Annuity Life Insurance Company(VAUC)
THESE ITEMS ARE REQUIRED ONLY IF VALIC IS PROVIDING
FULL SERVICES
8. Is the organization sponsoring the PlanEs) arffliated with, controlled by,
or in eontroI of any other organization(s)?
~ Yes ~ No
(If yes, then an orgamZation chart showing all organizations related !o,
controlled by, affiliated with, or contJ'oJling the organization sponsecmg
this Plan g~ust be attoched before any services can be provided,
gr~ission ol any other oraanizaflon that may oossibiy be associated
~j~ the organization soonenrino this Plan may invalidate some or all
of the plan Document work. nondiscrimination testing, and ether
~ervices nrovided by AIG Valic,~
9. Has the Employer reviewed the Employer Responsibilities and Census
Data sections of this contract, end agreed to supply to VALiC the cen-
sus data on all employees of the organization by either Magnetic Tape
(IBM standard JabeJ) or PC Diskette (IBM compatible) in a format or on
a diskette provided by V^UC?
~ Yes [] No (il no. Fu~l Services cannot be provided.)
III, sCHEDULE OF SERVICES
A. STANDARD SERVICES (Provided at no charge),
1. DOCUMENT SERVICES:
The Preparation of the Plan Document will be done using VALIC 'S
standard 403(b) documentSr ar VAUC 'S eppmved prototype 401(a)
or 40100 dccument and includes future amendments needed to keep
the original document in compliance with changes in the law.
The preparation of a Summary Plan DescripL~on will be for VALIC
standard or protob~pe plans,
Please check if VAUC should prepare a Plen Document and Summary
Plan Description (SPD):
[] Yes ~ No (it no, attach a copy of the Plen Document)
Z. OTHER STANDARD SERVICES; Unless crossed out and iniL~aled
below, all of the following STANDARD SERVICES will be provided by
AIG VAUC (if applicable to the plan).
(a) Technical Support Team by AIG VALIC Financial Advisor, Regional
Service Center, and Home Office.
(b) Enrollment of participents.'
(c) Qua,.terly Confirmation Statements to active participanm'*
(d) Maintenance of beneficiary records-*
(e) Processing el all requested disbursements from participant
accounts as directed by Plan Administrator.
(O Processing of forfeiture money as directed by Plan Administrator
(calculation of amounts is not included).
(g) Acceptence and processing of transfers (within VALIC c°ntrects)
in accordance with directions from Participants' and/or the Plan
Administrator.
(h) Tax withholding, as requested, on distributions to participants.
(i) Preparation el IRS tax forms (Form 1099-R) on distributions to
participants,
Pension Administrative Services
Contract
For use with all tax-deferred plan type__s
(j) Assistance in handling Retirement Equity Act of 1984 (REA)
requirements, including 0ualified Pre-Retirement Survivor
Annuities, Qualified Joint and Survivor Annuities, and Oualified
Domestic RCaIions Orders.
(k) Annual completion of Schedule A Form and notification of due
date of Form 5500 filing for ERISA covered 401(a) or 401(10 plan,
(I) Preparation of required notices to participants who receive
distributions upon separation from service or retirement.
(m) Preparation of Plan amendments as needed,
(n) Preparation of reports necessary to complete the financial
portions of Form 5500,
B, FULL OR PARTIAL SERVICES (Available on a fee basis)'
in addition to the Standard Services elected above, certain Partial or Full
Services are available as indicated in Addendum A.
' Note: Not available for unal[ocated contracts (do not have individual
participant accounts).
IV, SIGNATURES & ELECTION OF SERVICE
A. ELECTION OF SERVICES
1, PLEASE CHECK ONE:
STANDARD SERVICES: Employer elects to have VALIC
provide only those Standard Services applicable to the Plan.
~ PARTIAL SERVICES: Employer elects to have VAuc provide
those Partial Services on a fee basis indicated in the Contract,
including the provisions of Addendum A.
~ FULL SERVICES; Employer elects to have VALIC provide th°se
Furl Services on a fee basis indicated in the Contract, including
the provisions of Addendum A.
FEE FOR SERVICES: If Partial or Full Services are elected complete
Addendum B. Addendum B should also be completed il additional
services are being selected for a SIandard Service client.
B. UNDERWRITING CAVEATS
The acceptance of this contract by VAUC is conditioned on the
following special caveats.
The Employer has read this contract, including applicable addenda, and has identified the
services to be performed or not performed by VALIC. The Employer understands that
the provisions of the Employer Responsibilities section are expressly incorporated herein.
CITY OF CARMEL, INDIANA
By and through its Board of Public Works and Safety
Date
Mary ~Ann~Burke, Board M~nber
L~oar~'Member
Date
ATTEST:
~rer
Sandra M. Jolmson~
Deputy Clerk~o
Date
VALIC SIGN~,TURE
Printed Name: ~/5~ t~, ~_~~ ~
Title:_ /-)/.(~./Z, 6__T_~ ?M~__~C~
Date: ~ /£)./~/~Z~__~