1986-07-28 Regular Meeting - Laserfiche WebLink

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e e ...-::: ... Administrator and Consultant at the rate of one and one-half percent (l V2OJo) per month or the maximum rate aUowed by law, whichever is less. 3. Term. The term of this Administration and Consulting Contract shall be for one year, beginning July 1. 19Afi and ending l]un~ 30. 19A7 At the end of the contract year, if neither party requests a change, the contract shall be automatically renewed. The fees stated in paragraph two (2) are subject to negotiation on the anniversary date of the contract, or on any monthly due date after the initial one year period, providing the Contract Administrator and Consultant has given timely-notice of intent to adjust the fees. The new fees and contract will continue in force for one year from the effective date. Either party shall have the right to terminate or renegotiate the contract after the initial one year period by giving to the other party written notice of such termination or renegotiation of the terms of the contract at least thirty (30) days in advance. In the event timely notice of intent to renegotiate the terms of the contract is given by either party the contract shall continue until such renegotiated terms are agreed to in writing. In the event that such renegetiated terms are not agreed to in writing by both parties within thirty (30) days following the expiration date of the then current contract year, this contract shall terminate upon thirty (30) days notice. The Contract Ad- ministrator and Consultant will have no further responsibility or obligation hereunder upon termination of this contract. In the event of termination of this contract, if claims are to be processed after the termination date, the fees for services shall be either the specified percentage of claims or dollars per claim, or based on the average of fees during the last two months of the contract, as follows: 100% of the average fees during the first month after termination, 75% the second month, 50% the third month, and 25% thereafter until no further claims are processed, or services required. 4. Records and Files. The Contract Administrator and Consultant shall maintain all records in conjunction with the ad- ministrative services to be performed hereunder. The confidentiality of such records shall be maintained by the Contract Ad- ministrator and Consultant and the information therein shall not be divulged or disclosed or made available to persons other than the Plan Sponsor without the prior written approval of the Plan Sponsor or a court of competent jurisdiction. In the event of the termination of this contract, the Contract Administrator and Consultant shall deliver to the Plan Sponsor, upon written request, within a time period mutually agreeable, but not to exceed six months from date of termination, the informa- tion on all claim histories for the past two years. If the claim history is requested, the Plan Sponsor will pay all costs incurred by the Contract Administrator and Consultant in providing the history, including the cost of programming, computer charges, mailing costs, etc. This information will be provided on a magnetic tape with industry standard labels, and will be in the stan- dard format of the James Benefits database. If additional information is requested by the Plan Sponsor subsequent to the termination of this Contract, the Plan Sponsor will pay all costs incurred by the Contract Administrator and Consultant in providing such information, including the cost of programming, computer charges, mailing costs, etc. The Contract Administrator and Consultant shall be entitled to retain copies of any such records at his own expense. 5. Liabilities and Obligations. The Contract Administrator and Consultant shall have no responsibility, risk, liability or obligation for the funding of the Plan. The responsibility and obligation for funding of the Plan shall reside solely and totally with the Plan Sponsor, entities, and/or participants as provided in the Plan while the Plan is effective and for all extended liabilities or the Plan whether necessary because of Plan termination or because of change to fully or partially insured funding methods. (a) It is further understood and agreed that the Contract Administrator and Consultant shall have neither responsibil- ity nor obligation to take action, legal or otherwise, against any employer or employees or other person to enforce provisions of the Plan. In the event that the Plan Sponsor desires to engage the services of the Contract Administrator and Consultant for such purposes, such services shall be engaged and rendered only pursuant to a separate written agreement between the parties. (b) It is further understood and agreed that the Confract Administrator and Consultant shall not be responsible or obligated for the investment of any assets or funds of the Plan. However, the Contract Administrator and Consultant agrees to prepare and maintain records of the investment of the assets of funds of the Plan if the Plan Sponsor re- quests the Contract Administrator and Consultant to do so and provides the information and documents necessary to prepare and maintain s'uch record. (c) The Contract Administrator and Consultant will process and pay benefits in accordance with the plan(s) or policy(ies) adopted by the Plan Sponsor. It is agreed that the Contract Administrator and Consultant will incorporate sound business practices and be responsible for reasonable internal audits. When or where an error exists the Contract Ad- ministrator and Consultant shall use reasonable efforts for recovery of any loss resulting therefrom, but will not be required to initiate legal process for any such recovery. ACC 7/85 2 ..