1986-07-28 Regular Meeting - Laserfiche WebLink

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e e ~ ... ADMINISTRATION AND CONSULTING CONTRACT THIS ADMINISTRATION AND CONSULTING CONTRACT, made and executed the 24 day of .JlJne , 19~, by and between City of La Porte. Texas hereinafter referred to as "Plan Sponsor," and JAMES BENEFITS, a division of Fred. S. James & Co., hereinafteneferred to as the "Contract Administrator and Consultant." RECITALS The Contract Administrator and Consultant is engaged in the business of performing services as Employee Benefit Consul- tants and Administrators. The Plan Sponsor hereby engages the services of the Contract Administrator and Consultant to provide administrative ser- vices for City nf I a Pnrtp ~mployee Men; ('.:11 FlJnd , hereinafter referred to as "Plan." For and in consideration of the mutual covenants and the monetary consideration herein recited, it is mutuaUy agreed as follows: 1. Services to be Performed. The Contract Administrator and Consultant shall perform for the Plan Sponsor administrative and consulting services in conjunction with the administration and operation of the Plan. The administrative services to be performed by the Contract Administrator and Consultant are set forth in Exhibit A, attached hereto and by reference made a part hereof for all purposes. The consulting services to be performed by the Contract Administrator and Consultant are set forth in Exhibit B, attached hereto and by reference made a part hereof for all purposes. (a) As a part of the services to be performed by the Contract Administrator and Consultant, the Contract Adminis- trator and Consultant shall maintain and operate an administrative office for such purposes and pay au normal costs and expenses for such maintenance and operation (except as herein set forth). (b) The Contract Administrator and Consultant shall employ a sufficient staff of employees or others to provide the administrative and consulting services to be performed by the Contract Administrator and Consultant hereunder. However, the Contract Administrator and Consultant will not provide nor be responsible for the expense and cost of legal counsel, actuaries, consulting physicians or dentists, certified public accountants, investment counselors, in- vestment analysts or similar type services performed for the Plan Sponsor; the Contract Administrator and Consul- tant shall not be authorized to engage such services or incur any expense or cost therefore without the written consent of the Plan Sponsor. In the event that the Contract Administrator and Consultant engages such services at the request of the Plan Sponsor, the Plan Sponsor shall be responsible for such services and the cost and expense thereof. (c) The services to be performed by the Contract Administrator and Consultant shall be ministerial in nature and shall be performed within the framework of policies, interpretations, rules, practices and procedures made or established by the Plan Sponsor. The Contract Administrator and Consultant shall have neither discretionary authority nor discre- tiQnary controls respecting management of the plan's funds; and, shall not have authority to nor exercise any control respecting management or disposition of the assets of such funds; and, shall not render investment advice with respect to any money or other property of such funds; and therefore, shall not be considered a fiduciary of the Plan as defined in the Employee Retirement and Income Security Act of 1974. 2. Service Fee. The Plan Sponsor agrees to pay to the Contract Administrator and Consultant for the services to be per- formed hereunder the following fees: (a) An initial onetime fee of $ - 0 - payable on or before ~I A . (b) A Monthly fee of $ ~pr PITIp10ype (,p-.n- Admin.. $1.63 - Cn"C::1I1 t;"9) ~ 7. rrf? d#t/'"1/gr, G.... 25 &1i.;,117.N~ The monthly fee stated in this agreemcmr'ls 6aS'ed upon a maximu~;~fily expected claims utilization (claims submitted per 100 employees per month) of N/ A . Should claim utilization exceed this figure, the Plan Sponsor shall pay an additional fee of $ N:! A per claim. Actual utilization figures will be reviewed periodically, and mutually agreeable adjustments may be made. The Contract Administrator and Consultant shall provide a statement of the above f,~s and deduct the amount from the Plan account on or before the 10th of each month, based on enrollment the first of the month. If the Plan Sponsor so requests in writing, the Contract Administrator or Consultant shall provide a statement of the above fees to the Plan Sponsor who . shall then make payment to the Contract Administrator and Consultant, on or before the 10th of each month. In the event that insufficient funds are available in the account, or if the Plan Sponsor does not submit to the Contract Administrator and Consultant the information to deduct or charge for the fees, interest will be charged on the fees due the Contract ACC 7/85 1 .....