HomeMy Public PortalAboutPhase II Sytems (PARS Trust Administrator), Retirment Plan Part-TimeJune 27, 1996
Lawrence G. Olsen
City Administrator
City of Carson
P.O. Box 6234
Carson, CA 90745
Subject: PARS Alternate Retirement System (ARS) retirement plan for Part-time,
Seasonal, and Temporary Employees dated January 1, 1992
Dear Mr. Olsen:
We are pleased to have the opportunity to serve as your consultants. We are committed
to providing efficient and responsive services to our client agencies in a professional relationship
based on mutual trust, confidentiality, and prompt and candid communication. In that spirit, this letter
sets forth our agreement with you regarding the services we will provide and our billing practices
under this engagement.
We will provide the services necessary for the installation and administration of the subject plan.
installation
In the installation phase, the necessary services include:
1. Meeting with appropriate City personnel to discuss plan provisions, implementation timelines,
benefit communication strategies and data reporting and contribution requirements;
2. Providing the necessary analysis and advisory services to finalize these elements of the plan;
3. Providing for review by City legal counsel the documentation needed to establish the plan;
and
4. Upon your authorization, preparing and submitting application to the Internal Revenue Service for
a determination that the plan is qualified (the application fee for which shall be paid by the City).
Admil3istration '
In the administration phase, the necessary services include:
1. Monitoring the receipt by the trustee of plan contributions remitted by the City;
350 East Seventeenth Street • Suite 212 a Costa Mesa, California 92627
(714) 631-6369 * FAX (714) 631-2063.1-800-540-6369 (outside 714 Area Code)
Lawrence G. Olsen
City of Carson
June 27, 1996
Page 2 of 4
2. Coordinating distribution payments to participants (which shall be made by the trustee at the
direction of the City), including the provision of required tax filings in regard to these
payments, and acting as on-going liaison (via toll-free telephone) between the participant and
the City in regard to these distribution payments;
3. Performing periodic accounting of contributions, distributions, expenses and investment
earnings;
4. Preparing and submitting periodic reports of non-contributing participants to the City;
5. Preparing and submitting an annual report to the City;
6. Preparing and submitting the annual report to the State Controllers Office including the required
certified trust -wide audit; and
7. Advising the City of on-going compliance and qualification requirements.
Phase II Systems. is not licensed to provide and does not offer tax, accounting, legal or actuarial advice.
In providing the services specified above, we will retain qualified professional service providers at our
cost as we deem necessary if the service lies outside our area of expertise.
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Our fees for the services specified above will be as follows:
1. Setup Fee (one-time)
$750.00
2. Consulting Fee
2% of contributions
3. Monthly Base Charge
$50:00
4. Monthly Service Fee
per Contributing Participant
0-49
$4.00
50-99
$3.33
100-149
$2.50
150-199
$2.00
200-249
$1.83
250-349
$1.67
`
350-499
$1.50
500-749
$1.42
750-1499
$1.33
1500-1999
$1.25
2000-4999
$1.00
5000 plus
negotiable
5. Termination Fee (per terminated participant) $6.00
' For total account balances of less than $50.00, the fee shall be the lesser of $6.00 or total
account balance minus the employee contribution account.
For purposes of this agreement, a participant of the subject plan shall not be considered a
"Contributing Participant" for a given month unless contributions have been credited to his or her
account at some time within the twelve-month period ending with that month.
Lawrence G. Olsen
City of Carson
June 27, 1996
Page 3 of 4
Fees shall be billed to the City on a monthly basis, and it will be the responsibility of the City to pay these
fees. Fees are due and payable upon receipt of billing. Fees not paid within thirty (30) days of billing shall
bear interest at the rate of 1.5% per month.
The fees specified above represent all customary and usual expenses relating to the operation of the
subject plan, with the exception of fees charged by the trustee and the Investment Manager.
Trustee fees are currently 0.12% of contributions and are guaranteed through June 30, 1997.
In e Event of Suspension of Contributions
Our fees are determined on the understanding that the City will make continuous contributions to the
plan on a regular basis no less frequently than annually. In the event annual contributions are suspended,
either temporarily or permanently, prior to the complete discharge of all obligations to provide payments
to participants in the subject plan, we reserve the right to bill the District for our services at the rates
indicated in our standard fee schedule in effect at the time the services are provided. It shall be the
responsibility of the District to pay such billings upon receipt. Fees not paid within thirty (30) days of
billing shall bear interest at the rate of 1.5% per month. Before any such services are performed, we
will provide the District with written notice of the services to be rendered and an estimate of the fees
we will charge.
c . , .&. .. c
Charges for services beyond those specified in this letter will be billed to the District at the rates
indicated in our standard fee schedule in effect at the time the services are provided. It shall be the
responsibility of the District to pay such billings upon receipt. l=ees not paid within thirty (30) days of
billing shall bear interest at the rate of 1.5°% per month. Before any such services are performed, we
will provide the District with written notice of the services to be rendered and an estimate of the fees
we will charge.
lnfonmation Furnished to Phase11 Syot@ms
It shall be the responsibility of the City to certify the accuracy and completeness of the periodic
information required by us in the course of providing our services under this agreement, and we may
rely on such information without further audit.
It shall further be the responsibility of the City to deliver the required periodic information to us in such
a manner that we have a reasonable amount of time to perform the services provided for in this agreement.
Lawrence G. Olsen
City of Carson
June 27, 1996
Page 4 of 4
In the event that the City fails to provide the required periodic information in a complete, accurate
and timely manner, we reserve the right, notwithstanding the further provisions of this agreement, to
terminate this agreement upon written notice of thirty (30) days.
Confidentiality
Because of the proprietary nature of the services provided, it is our policy that the City and its
employees and representatives not disclose any information relating to the subject pian to individuals
who are not employed by the City without the prior written consent of Phase It Systems. This
restriction is made a part of this agreement.
This agreement shall remain in effect for a one-year period beginning July 1. 1996 and ending June 30,
1997. This agreement will continue unchanged for successive twelve month periods beginning on July 1,
1997 unless either party gives written notice to the other party of the intent to terminate prior to April 1 of
the year in which the agreement is to terminate.
Our billing practices reflect our commitment to deal fairly with our client agencies in this as in all other
aspects of our relationship. We are pleased to be retained as your consultants, and we look forward
to providing our services to you on a basis that is mutually satisfactory.
Sincerely you
Kent Hammeras, CEBS
President, Phase II Systems
PARS Trust Administrator
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PUBLIC - AGENCY - RETIREMENT - SYSTEM
June 27, 1996
Ramona Lopez
Personnel Manager
City of Carson
P.O. Box 6234
Carson, CA 90745
Subject: PARS Alternate Retirement System (ARS) retirement pian for Part -lime,
Seasonal, and Temporary Employees dated January 1, 1992
Dear Ms. Lopez:
The attached provisions regarding the subject plan become effective July 1, 1996.
Background
The provisions of our agreement with the City are unchanged, with two exceptions:
Monthhr Service Fees:
Monthly Service Fees remain at their original levels, but will now be
charged only on "Contributing Participants" as defined in the agreement.
2. Termination Fees:
A one-time Termination Fee of $6.00 will be charged to the City for each
terminating participant.
These changes in fees are offsetting and designed to be approximately revenue neutral.
Actionoa Your
Please retain this agreement with the other documents relating to the subject plan. No other
action is required on your part at this time.
Please call me at (800) 540-6369 x 131 if your have any questions.
Sincerely yours,
Karen Zfaty, MBA
Senior Vice President, Retirement Programs
Phase II Systems, PARS Trust Administrator
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350 East Seventeenth Street - Suite 212 - Costa Mesa, California 92627 - (714) 6316369 -,(714) 6312063 FAX
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Austin, TX June 5, 2006
Dublin, OH
Yuko Dunham
Acting Finance Officer
City of Carson
P.O. Box 6234
Carson, CA 90745
Subject: PARS Alternate Retirement System (ARS) Retirement Plan
Fee Structure Simplification
Dear Ms. Dunham:
We appreciate serving your City since 1992. We are committed to providing the
highest quality of trust administrative services to you and your part-time employees.
Since 1996 we have not adjusted our fees for the services rendered to you and your
employees. In order to continue providing the highest quality service, we now need
to adjust our current fee arrangements.
Our existing fee arrangement includes a Consulting Fee, Monthly Base Fee, and a
Monthly Service Fee, the latter of which is based on the number of actively
contributing participants. We are replacing this complicated fee structure in Its
entirety, and simplifying It by charging our fee based on the assets in the plan at the
end of each month. An asset-based fee is a more common fee structure in the trust
administration industry and this fee structure has been used on all new PARS ARS
plans since 2001. Your new fee structure is on the enclosed Attachment. All the
other provisions of our current agreement with the City remain unchanged with the
exception of the Attachment, which replaces the section In our current agreement
regarding Fees. Our fees in 2005 were $14,261 it is projected that in 2007, under
this new simplified arrangement, our fees will be $15,040.
The new fee arrangement becomes effective July 1, 2006. Currently, all our fees are
paid directly by the City. However, we recommend that you modify this
arrangement as permitted In the PARS Trust, so that our fees are taken from plan
assets since your plan assets have grown substantially over the past ten years. If
you elect to change how the fees are paid, you will no longer be invoiced monthly for
our services. This is how the majority of the PARS member agencies pay their
administrative fees. If you wish to make this change, please contact us at your
convenience.
If you have questions please don't hesitate to contact me at 800.540.6369 ext. 128
or Mitch Barker ext. 116. We greatly appreciate your business!
Sincerely,
K*nurpyhy
Senior Vice -President
Public Agency Retirement Services (PARS)
5141 California Ave., Ste. 150
Irvine, CA 92617-3069
800,540.6369
fax 949.823.9900
www.persinfo.org
City of Carson
PARS Alternate Retirement System (ARS) Retirement Plan
June 5, 2006
Fees
Phase II System's, dba Public Agency Retirement Services ("PARS"), effective July 1, 2006,
fees for the services will be as follows:
1. An annual asset fee paid by the City based on the following schedule ("Asset
Fee") :
For Plan Assets from: Annual Rate:
$1 to $15,000,000 0.75%
$15,000,001 to $20,000,000 0.50%
$20,000,001 and above 0.30%
Annual rates are prorated and paid monthly. The annual Asset Fee shall be
calculated by the following formula [Annual Rate divided by 12 (months of the
year) multiplied by the Plan asset balance at the end of the month]. Asset Fees
are subject to a $300.00 monthly minimum. The total asset fees due in a given
month shall be allocated proportionately among participants of the City's plan In
that month, based on account balance. PARS fees are exclusive of Trustee and
Investment Management Fees.
2. A distribution fee equal to $6.00 per Participant ("Distribution Fee") which shall
be paid by the City, when taking a distribution from the plan.
3. A fee equal to the out of pocket costs charged to PARS by an outside contractor
for formatting contribution data on a suitable magnetic media, charged only If the
contribution data received by PARS from the City is not on readable magnetic
media ("Data Processing Fee").
4. Our fees will be invoiced monthly to the City and It will be the responsibility of
the City to pay the fees.