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Employer Participation Agreement
for the Post Employment Health Plan
for Public Employees
This Participation Agreement("Agreement"), effective as of the 21 day of December 20 10
(the`Effective Date'), by and between the undersigned employer(the'Employer"), and Nationwide
Retirement Solutions(NRS), as the administrator(the"Administrator")of the Post Employment Wealth Plan
for Public Employees(the"Plan").
WITNESSETH:
WHEREAS, the Employer is a State or a political subdivision thereof, or an agency or instrumentality of
any of the foregoing; and
WHEREAS, the Plan provides post-retirement reimbursement of qualifying medical care expenses for the
benefit of govemment employees and their dependents and,
WHEREAS, pursuant to this Agreement, the Employer has agreed to make contributions pursuant to and
in compliance with the Plan and subject to the Intemal Revenue Code ("Code") and its accompanying
regulations for work performed by its employees("Contributions"); and
WHEREAS, the Contributions will be held in trust by the Trustee, or its successor, designated under the
Trust for the Post Employment Health Plan for Public Employees (the"Trust") for the exclusive benefit of
plan participants and their qualified dependents;
WHEREAS, the Plan gives authority to the Administrator to accept on behalf of the Plan an Employer for
participation in the Plan;and
WHEREAS, the Administrator is willing to accept the Employer as an Employer under the Plan upon the
terms and conditions set forth in the Plan, the Trust and herein;
NOW, THEREFORE, for and in consideration of the premises and the mutual covenants herein contained,
the Employer and the Administrator hereby agree as follows:
1. By execution of this Participation Agreement, the Employer adopts and agrees to be bound by all of the
terms and provisions of the Plan and the Agreement and Declaration of Trust for the Plan assets(the
"Trust Agreement"a copy of which the Employer acknowledges receipt thereof and attached hereto as
Exhibit A)and such subsequent amendments which are adopted as provided in the Trust Agreement
The Employer agrees to be bound by all actions taken by the Administrate and the Trustee pursuant to
the powers granted them by the Plan and Trust Agreement. The Employer further acknowledges that
under the terms of the Plan, the Administrator's resolution regarding questions relating to administration
of the Plan is final and binding upon participating employers and its employees.
2. By execution of this Participation Agreement with the Employer, the Administrator accepts the Employer
for participation in the Plan. The Trust Agreement and the Plan adopted by the Employer(and other
participating employers)as in effect from time to time, shall fully apply to the Employer and its
employees accepted for participation in the Plan.
3. This Participation Agreement shall authorise the Administrator or Trustee to enforce any rights which are
provided as a matter of law in favor of the Plan, its participants and beneficiaries or the Trustee. This
provision notwithstanding, if, in the opinion of the Administrate, terms of the Employer's participation in
the Plan conflict or come to conflict with the Code and accompanying regulations, the Administrator
may refuse Contributions until such time as the conflict is cured.
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Changes to the terms of the Employees participation must be submitted to the Administrator for
acceptance prior to its becoming effective and binding on the Administrator. Such acceptance shall not
be unreasonably withheld.
4. This Participation Agreement shall cover only those categories of employment for which the Employer
agree to make Contributions to the Plan. Any other categories of employment shall require specific
acceptance by the Administrator to be covered under the Plan.
5. Subject to section 8 of this Agreement, this Agreement shall remain in effect until such time as the
Employer withdraws from the Plan pursuant to the withdrawal provision of the Plan document(Section
11.6), The Employer acknowledges that withdrawal from the Plan will no longer entitle Employer's
representative or its Employees' representative to participation in the advisory committee created under
terms of the Trust. The Administrator, however, reserves the right to terminate the Employees
participation in the Plan:
(a)should the Employer fail to make Contributions to the,Plan;
(b)if at any time the Employees terms of participation in the Plan are modified in a manner which
affects the operation or administration of the Plan in a manner which is unacceptable to the
Administrator or Trustee;
(c)if at any time the Employees terms of participation in the Plan are modified in a manner which, in
the opinion of the Administrator,jeopardizes the tax qualification of the Trust or the regulatory approval
of the Plan; or
(d)as otherwise provided in the Plan or Trust Agreement.
6. The commencement and continuation of the Employees participation in the Plan is contingent upon
such commencement or continuation of participation not impairing the attainment, or retention, of the
tax exempt status of the Trust under section 501(c)(9)of the Internal Revenue Code of 1986, as
amended.
7. The commencement and continuation of the Employees participation in the Plan is contingent upon
such commencement or continuation of participation not violating the terms of any revenue ruling the
Plan receives or has received from the Internal Revenue Service(the"IRS")and any ruling or guidance
published by the IRS applicable to the Plan. The Employer acknowledges that failure to comply
with the terms of the Plan and Trust may subject it and its Employees to adverse tax
consequences.
8. The Employer shall pay Contributions in accordance with the terms of this Agreement, from time to time,
for each employee in a category for whom a Contribution is required pursuant to this Agreement. All
Contributions shall be due and payable to the Trustee or such other lockbox designated by the
Administrator from time to time and maintained by the Trustee.
With each Contribution to the Plan, the Employer will provide the Administrator with a Contribution
Summary Sheet(or similar Report)which shall list the employees for whom contributions are made,
their Social Security numbers, names and whether the contributions are for health care premiums
(a.k.a. 06 sub-account contributions)or unreimbursed health care expenses(a.k.a. 05 sub-account
contributions)and the amounts to be allocated on behalf of each such employee. The Administrator or
its des"shall record the Contribution and reconcile the Employees Contribution Summary Sheet of
other Report.
The Administrator may reject Contributions that do not comply with the requirements of the Plan, the
Trust and the Code. If the Administrator rejects any Contributions, the Contributions and the
Contribution Summary Sheet will be returned to the Employer for cure, The Administrator shall instruct
the Trustee to transfer the Contributions in good order from the to to the Trust investment account
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upon completion of such recording and reconciliation. Contributions shall not accrue income or share in
investment gains or losses while they are in the lockbox prior to the transfer to the Trust investment
account and during which time Contributions were returned to the Employer for cure.
The Employer understands that failure to make payments in a timely manner may result in sanctions
permitted by law, as well as the termination of its participation in the Plan, as provided in rules
established from time to time by the Administrator.
9. The Employer hereby appoints, and approves of, NRS to provide claims payment services and to act as
the Administrator for the Plan. The Employer further agrees that the Adminletratoes
compensation for Its services shall be an annual charge per participant of$30.00. The Employer
has advised its covered employees of such fees. Such charge shall be assessed to each participants
account on the anniversary date, which is one year after the date the initial contribution to the Plan was
made, and each succeeding anniversary of such date, The Administrator's fee shall remain fixed for at
least one year unless the Employer and Administrator, upon mutual agreement adjust the
Administrator's fees, in writing, during the year. The Administrator may adjust its fee on any
anniversary of this Agreement by giving 60 days advance notice to the Employer.
10. The Employer hereby appoints, and approves of Bank of America to act as Trustee of the Plan and
Trust, and hereby ratify the terms of the Trust Agreement entered into between employees'
representatives(i,e. the National Association of Police Organizations)and the Trustee, a copy of which
has been provided to the Employer.
11- The Employer(and its covered employees through its Advisory Committee Representative)hereby
appoint and approve of Nationwide Advisory Services, Inc. to act as investment manager for the Trust's
assets and the authorization of a group variable annuity for investment of the Employer's contributions,
12. The Employer acknowledges that it has received and reviewed the informational brochure for the
annuity(attached hereto as Exhibit B). It is understood and agreed that part of the arrangement
between NRS as Administrator and product provider Nationwide Life Insurance Company includes fees.
The Employer acknowledges that,in addition to the annual charge described In Section 9,an
actuarial risk fee equaling an annual rate of 0.50%of the daily net asset value will be assessed
on every participant's fund balance In the Variable Annuity Investment In the Fixed Annuity
Investment,this fee is included In the net crediting rate.
13. The Employer hereby acknowledges it has received the"Disclosure and Acknowledge Form"(the
"Form,"which is incorporated into this Agreement as Exhibit C, and further agrees to be bound by the
Form.
14. No waiver of any default in performance on the part of the Administrator or the Employer or any breach
or series of breaches of any of the terms of this Agreement shall constitute a waiver of any subsequent
breach. Resort to any remedies referred to herein shall not be construed as a waiver or any other rights
and remedies to which the Administrator is entitled under this Agreement or otherwise.
15. Should any part of this Agreernent for any reason be declared invalid, such decision shall not affect the
validity of any remaining portion,which remaining portion shall remain in force and effect as if this
Agreement had been executed without the invalid portion.
16. The Employer shall indemnify and hold the Administrator harmless for and against all loss",
damages, liabilities or expenses(including, but not limited to, reasonable attorney`s fees and litigation
expenses)which the Administrator may incur as a result of claims based upon any breach by the
Employer, its affiliates, agents or employees of any provisions of this Agreement, the Plan document or
related items that are within their reasonable control,
17, The Administrator shall indemnify and hold the Employer harmless for and against all losses,
damages, liabilities or expenses(including, but not limited to reasonable attorney's fees and litigation
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expenses)which the Employer may incur as a result of claims based upon any breach by the
Administrator, its affiliates, agents or employees of any provisions of this Agreement, the Plan
Document or related items that are within their reasonable control.
18, This Agreement shall be interpreted, and the rights and liabilities of the parties determined, in
accordance with the laws of the State of Ohio. The parties consent to the jurisdiction of any Local, State
or Federal Court located within Ohio.
19, This Agreement contains the entire agreement between the Employer and the Administrator with
respect to the respective rights and obligations contemplated herein, and no representation, promise,
inducement,or statement of intention relating to the respective rights and obligations contemplated by
this agreement has been made by either party which is not set forth herein. This Agreement
supersedes in all respects all prior agreements among the parties any may not be modified or
amended, except by a duly executed instrument in writing.
IN WffNESS WHEREOF, the Employer has caused this Agreement to be executed on its behalf by a
duly authorized officer, and a duly authorized representative of NRS executed this Agreement on behalf
of the Administrator.
City of Redlands
(Entity Name)
December 21 20� 10 By: UA j" -
Entity Signature -Mayor Aguilar
20__ By: Officer of Nationwide Retirement Solutions, Inc,
("NRS"as Administrator)
ATTEST TO MAYOR AGUILAR'S SIGNATURE
_Sam Irwin, City C k
OC-2885-1208(Publk EmPkYm)