HomeMy WebLinkAboutR-2005-088 ICMA administration - deferred compensation plan amendmentRESOLUTION NO. R-2005- 88
A RESOLUTION authorizing and ratifying the action of the City Manager of the City of
Yakima to execute an amendment to the administrative services
agreement with the International City Management Association
Retirement Corporation for administrative and investment services for
the deferred compensation plan of the City of Yakima.
WHEREAS, the City of Yakima provides a deferred compensation plan for various
groups of employees; and
WHEREAS, the City requires administrative and investment services regarding the
deferred compensation plan and the assets thereof; and
WHEREAS, the International City Management Association Retirement Corporation
("ICMA") has provided these services to the City in a satisfactory manner for many years;
and
WHEREAS, ICMA requested an amendment to the current administrative services
agreement that would reduce the administrative fee to zero in exchange for additional time
commitment from the City to use ICMA as its exclusive administrative services' agent for
the deferred compensation plan;
WHEREAS, ICMA required that the amendment be executed by June 1 in order for
the City to realize the costs savings (several thousand dollars) for the financial quarter
starting July 1; and
WHEREAS, in order to obtain the financial cost savings of the administrative
services amendment for the financial quarter starting July 1, the amendment was executed
by the City Manager; and
WHEREAS, the City Council deems it to be in the best interest of the City of Yakima
to authorize and ratify the execution of the attached amendment of the administrative
services agreement with ICMA for administrative and investment services regarding the
City's deferred compensation plan; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The execution of the attached and incorporated amendment to the administrative
services agreement with the International City Management Association Retirement
Corporation for administrative and investment services for the deferred compensation plan
(1k)res/finance icma contr may 03/.pm
of the City of Yakima is hereby authorized and ratified.
ADOPTED BY THE CITY COUNCIL this 7th day of June, 2005.
ATTEST:
City Clerk
(1k)res/finance icma contr may 03/.pm
Paul P. George, Mayor
AMENDMENT
TO THE
Administrative Services Agreements
for Plan Numbers 300356, 108586
This Amendment to the Administrative Services Agreements ("Agreements") for Plan numbers
300356, 108586 (the "Plan") is entered by and between City of Yakima ("Employer") and ICMA
Retirement Corporation ("RC"), effective as of the date of execution by the Employer below
("Execution Date").
WHEREAS, the Employer sponsors the Plans on behalf of its eligible employees and retirees;
and
WHEREAS, the Employer entered the Agreements to engage RC to provide administrative
services and investments for the Plans under the terms specified in the Agreements; and
WHEREAS, the parties wish to amend the Agreements to provide for the elimination of the Plan
Administration fee and the Mutual Funds Fee under the Agreements contingent upon RC acting
as the exclusive provider of administrative and investment services for the Plans over the term of
the Agreements and contingent upon the Employer's use of EZLink for enrollment and
contribution processing over the term of the Agreements; and
WHEREAS, Section 10(a) of the Agreement provides that the Agreements may be amended
pursuant to a written instrument signed by the parties;
NOW, THEREFORE, the Agreements are hereby amended as follows:
FIRST
The following is added as a new section 3 to the Agreements, and the current provisions
of the Agreements are re -numbered accordingly:
Employer agrees that for the initial or succeeding term of this Agreement
specified in Section 10, so long as RC continues to perform in all material
respects the services to be performed by it under this Agreement, Employer shall
not obtain plan administration and investment advisory services from anyone
other than RC. Employer acknowledges that RC has agreed to the compensation
to be paid to RC under this Agreement in the expectation that RC will be able to
offset costs allocable to performing this Agreement with revenues arising from
Employer's exclusive use of RC at the rates provided herein throughout the initial
or succeeding term.
2
SECOND
Re -numbered section 7 of the Agreements, titled "Compensation and Payment" is
amended by replacing subsections (a) and (d) with the following:
(a) Plan Administration Fee. The amount to be paid for plan administration
services under this Agreement shall be 0.0% of the amount of Plan assets
invested in the Trust.
Such fee shall be computed based on average daily net Plan assets in the Trust.
(d) Mutual Fund Services Fee. There is an annual charge of 0.0% assessed
against average daily net Plan assets invested in the Trust's Mutual Fund Series.
The compensation and payment set forth in this section 7 is contingent upon Employer's
continued use of EZLink for contribution processing (for both the 457 & 401 plan) and
the City working toward enrollment processing utilizing EZLink or other electronic
source approved by ICMA-RC for all plans over the term of this Agreement.
THIRD
Re -numbered section 10 of the Agreements, titled "Term" is amended to provide as
follows:
This Agreement shall be in effect for an initial term beginning on the Execution
Date and ending 3 years after the Execution Date with two automatic one year
renewals. This Agreement will be renewed automatically for each succeeding
year unless written notice of termination is provided by either party to the other
no less than 60 days before the end of such Agreement year.
The fee amendment specified in section 7 of the Agreements will take effect in
the calendar quarter following the Retirement Corporation's receipt of one fully -
executed copy of this Amendment based upon the following schedule:
Received by February 20:
Received by May 31:
Received by August 20:
Received by November 20:
Effective April
Effective July
Effective October
Effective January
In all other respects, the Agreements are hereby ratified and affirmed.
3
IN WITNESS WHEREOF, Employer has caused this Amendment to be executed by its duly
authorized officer thisday of \\.\
, 2005.
CITY OF YAKIMA
Print Name:
Title: ;t.o,
ICMA RETIREMENT CORPORATION
by:
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Paul Gallagher
Corporate Secretary
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City Clerk
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 1`{
For Meeting Of: June 7, 2005
ITEM TITLE: A Resolution ratifying the execution of an Administrative Services agreement
with the International City Management Association Retirement Corporation
(ICMA-RC) for the administration of the City of Yakima's deferred
compensation plan.
SUBMITTED BY: Human Resources Division
Finance Department�fQ —
Legal Department
CONTACT PERSON/TELEPHONE: Archie Sutton, Human Resources Manager
Tim Jensen, Treasury Services Officer
SUMMARY EXPLANATION: Adoption of the attached resolution will ratify the amended
contract (also attached) for investment and administrative services with ICMA-RC. The contract
was executed by the City Manager and faxed to ICMA-RC on May 31, 2005 in order to take
advantage of the new terms effective July 1, 2005. (Note: per ICMA-RC regulations, changes in the
contract may take effect orily on the first of a calendar quarter and require 30 days advance notice to
ICMA.)
The only changes in the terms of the amended contract from the current contract terms are the
reduction of the administrative fee from 29 to 0 (zero) basis points and the extension of the
contract for three years with two automatic one-year extensions. The elimination of the
administrative fee should result in a savings to the plan of approximately $60,000 annually.
Resolution X Ordinance Other (Specify)
Contract ICMA-RC Deferred Comp. Admin. Services
Mail to (name and address): Greg Settle, Vice President NW Territory; ICMA-RC Services, 2405
Evergreen Park Dr. SW, Ste. B-4, Olympia, Wa. 98502-6000 Phone: #360 – 357-7577
Funding Source: N/A
APPROVED FOR SUBMITTAL:�:_ C City Manager
STAFF RECOMMENDATION: Adopt Resolution
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION:
Resolution adopted. RESOLUTION NO. R-2005-88