HomeMy WebLinkAboutThe Benefit Marketing Group Inc.
Augusta Richmond GA
DOCUMENT NAME: -r-}-l I::: 1061" e .kt ()'l (\.(Z\t-E"T ,''' d <;'-(>0 <.) p -+ "'c.
DOCUMENT TYPE: A~ R.eE. f"ll:;.o...> '\
YEAR: \ q~Ci
BOX NUMBER: t.p
FILE NUMBER: 'I Y D L{ C(
NUMBER OF PAGES: '7
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AGREEMENT FOR ADMINISTRATIVE SERVICES
~ THIS AGREEMENT, (the "Agreement") shall be effective as of the h'Y"~+ day of
J tit n lit 4 r ,-j . 1999, by and between The Benefit Marketing Group, Inc., d.b.a. Pension
Service Comp~y (hereinafter referred to as "PSC"), and Augusta, Georgia, (hereinafter referred
to as the "COUNTY");
WITNESSETH:
WHEREAS, the COUNTY wishes to contract with PSC to provide the administrative
services specified herein to the COUNTY's Pension Plans; and
WHEREAS, PSC desires to provide said specified services to the COUNTY in accordance
with the terms and conditions set forth in this Agreement;
NOW, THEREFORE, in consideration of the premises and mutual promises and
agreements contained herein, the parties hereto, intending to be legally bound, do hereby agree as
follows:
1. Scope of Service for the Pension Plans: PSC agrees to perform the following services
for the COUNTY Pension Plans (hereinafter referred to as the "Plans") contained in "Exhibit A,"
attached hereto and incorporated herein by reference:
(a) Preparation of actuarial cost calculations related to plan changes.
(b) Presentation of Pension Plan details to group meetings of employees and to the
Board of Commissioners.
(c) Preparation of annual actuarial valuation reports for each Plan, including a statement
of trust assets, required current plan year deposit, participants' accrued and projected
benefits, and deferred vested liabilities. Such actuarial reports shall be signed by an
Enrolled Actuary who is a member of the American Academy of Actuaries and a
Fellow of the Society of Actuaries.
(d) Preparation of an annual accounting of the Plans' assets and allocation to each
Plan of principal and earnings.
(e) Preparation of annual forms or reports, as required by law or regulation, to the
Internal Revenue Service, US Department of Labor, and State Auditor, as well as
other reports necessary for the continued operation of the Plans.
(f) Preparation of annual statements of benefits for participants in the Plans.
(g) Computation and certification of benefits accruing to each participant, upon
retirement, including a breakdown of benefits that are taxable and non-taxable for
the purpose of Form 1 099-R reports and filings.
(h) Preparation of administration manual for county personnel detailing Plan operation
and procedures.
(i) Consultation with county officials relative to Plan operations and benefit
improvements.
U) Preparation and distribution of monthly or bi-monthly benefit checks to retirees.
(k) Preparation of annual letter from an actuary certifying soundness of the Plans and
whether or not the Plans are meeting the retirement funding standards established in
Sections 47-20-1 et seQ. of the Official Code of Georgia Annotated.
(1) Preparation of special reports upon request of the COUNTY.
(m) Preparation of the annual Governmental Accounting Standards Board Report for the
COUNTY's auditors.
(n) Advise County regarding administrative processes, actuarial assumptions, taxation,
accounting procedures, insurance and any other requested advice other than legal.
(0) Preparation and distribution of with holdings from retiree's benefit checks, as
requested by retirees.
(p) Calculate, withhold and file appropriate federal and state taxes for retirees, and
active participants who withdraw from a Plan.
The foregoing activities, returns, reports and statements shall be conducted and prepared solely for
use by the COUNTY or any other party authorized by the COUNTY and from information
supplied by the COUNTY and delivered to PSC, at its address specified in Section 7 hereof. PSC
shall have no responsibilities whatsoever either for the accuracy or completeness of any such data,
information or advice furnished to it, but shall rely on said data as furnished by the COUNTY as
being accurate and correct. PSC shall be responsible for filing with the appropriate governmental
departments and agencies, both federal and state, and for the delivery of said returns, reports and
statements to the applicable Plan participants or beneficiaries, and to the COUNTY as appropriate.
2. Breach. The COUNTY agrees that PSC will be obligated under this Agreement to
perform only those services specified in Section 1 hereof. Failure to perform said services shall
constitute a breach of this Agreement unless a waiver is granted by the COUNTY.
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3. Compensation. The COUNTY agrees to pay PSC the sum of$190,000 for the 1999 Plan Year
as compensation for services rendered hereunder, less $3.00 per payment per retiree for checks
written by the COUNTY during the transition period from the effective date of this Agreement to
the date on which PSC assumes full responsibilities as outlined in this Agreement.
The COUNTY shall pay PSC quarterly, upon invoice, the pro-rata share of the compensation due
PSC for the Plan Year. In subsequent Plan Years, for so long as this Agreement is in effect, the
COUNTY shall pay to PSC as compensation for its services rendered hereunder the sum called for
in the Fee Schedule which is attached to this Agreement as "Exhibit B" and incorporated herein by
reference.
4. Indemnification. PSC shall be responsible for exercising reasonable care at all times in
the performance of each of its obligations hereunder, but shall not be liable for any loss, damage or
liability suffered by any person in connection with the Plan, or Trust related to the Plan, or the
operation or administration hereof, except insofar as such loss, damage or liability may be
administratively or judicially determined to have results from PSC's own negligence or misconduct
in the performance of its obligation under this Agreement. Without limiting the generality of the
foregoing, PSC shall not be liable (a) for any action' taken or services performed, or omitted to be
taken or performed, in reliance upon any data, information or advice furnished by the COUNTY or
its counsel, or other advisors or (b) for any failure to act (i) if such action would have been
practicable only after receipt of data, information or advice from the COUNTY or its advisors or
(ii) if any data, information or advice with respect to such action has been requested in writing by
PSC and not received. PSC agrees to indemnifY and hold the COUNTY harmless against any
losses, claims, damages, costs, expenses (including, without limitation, legal fees and expenses) or
liabilities arising out of or in any way related to the obligations of PSC hereunder except as the
same may be judicially determined to be due to the negligence or misconduct of the COUNTY.
This Indemnification shall survive any termination of the Agreement and continue in full force and
effect without limitation as to time.
5. Term.' This Agreement shall be for a term of three (3) years and shall be renewed for
successive three (3) year terms unless written notice of cancellation by either party is received by
the other party within 180 days prior to the end of one of the stipulated periods but failure to renew
shall not result in the refund of any fee previously earned and as yet unpaid to PSC.
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6. Supplemental Services. If services which are not covered by this Agreement are
requested by the COUNTY or required through no fault ofPSC, PSC may charge an additional fee
related to the cost of such services. Any such supplemental services shall not be performed
without the COUNTY's prior approval or request after disclosure by PSC of the amounts to be
charged for such services.
7. Assignabilitv. PSC shall not assign this Agreement without the prior written consent of
the COUNTY.
8. Notices and Communications. All notices, requests, demands and other
communications hereunder shall be deemed to have been duly given if delivered in person or
mailed in the United States Mail, postage prepaid, and properly addressed as follows:
If to PSC:
1100 Circle 75 Parkway
Suite 320
Atlanta, Georgia 30339
If to the COUNTY:
Charles R. Oliver, Administrator
Room 801 Municipal Building (11)
Augusta, GA 30911
Copy to:
James B. Wall, County Attorney
P.O. Box 2125
Augusta, GA 30903
From time to time either party may designate another person or address for all purposes of this
Agreement by giving to the other party not less than fifteen (15) days' advance written notice of
person or address in accordance with the provisional hereof.
9. Parties Bound; Successors. This Agreement shall insure to the benefit of and be
binding upon the successor of the COUNTY and shall insure to the benefit of and shall be binding
upon the successor and permitted assigns ofPSC.
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10. Governing Law: Severability. This Agreement shall be construed, enforced and
regulated under and by the laws of the State of Georgia. The invalidity or unenforceability of all
or any part of any provision hereof shall in no way affect the validity or enforceability of any other
provision or the remainder of any such provision.
I I. Simultaneous Execution. This Agreement may be executed simultaneously in two or
more parts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.
12. Entire Agreement: Modification. This Agreement embodies the full and complete
understanding of the parties and supersedes any previous agreements, written or oral, and may be
modified only in writing signed by each of the parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written under seal by the duly authorized persons whose
signatures appear below.
cftO
rtIly:
~ Title:
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The Benefit Mar~~: Groups;.b.a. Pension Service Company
By: j(/IJf~
Title: V~ dOJ~
A:\ARCAGR-I.DOC 01/14/1999
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EXHIBIT "A"
The term "County Pension Plan" refers to the following plans:
I) 1945 Plan
2) 1977 Plan
3) General Retirement Plan (" 1949")
4) The following unfunded pension plans:
a) General Pension Plan
b) Policemen's Pension Plan
c) Fireman's Pension Plan
d) City Employees Pension Plan
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EXHIBIT "B"
SCHEDULE OF ADMINISTRATIVE FEES
The COUNTY will pay to PSC for Plan Year 2000 and later an administrative fee on an
annual basis in accordance with the following schedule:
Payroll of Active Participants
in the Plans
Percentage of Payroll
Paid as Fee
First $ 250,000 1.00%
Next $ 250,000 .80%
Next $ 1,500,000 .50%
Next $ 10,000,000 .40%
Balance of Payroll .30%
C:\MSOFFICE\ WINWORD\TEMPLA TE\PSC598.DOC 01/14/1999
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