HomeMy Public PortalAboutr 96:141 No. 96-141 Date of Adoption_ HAY 16~ 1996
BOROUGH OF CARTERET, STATE OF NEW JERSEY
DEFERRED COMPENSATION PLAN - VALIC
WHEREAS, the Borough of Carteret desires to attract and retain qualified
employees to the Borough of Carteret and as a means thereof to make available to
these employees the accrual of tax benefits of a Section 457 Deferred Compensation
Plan; and
WHEREAS, VALIC has been found to possess the necessary administrative,
enrollment and servicing capabilities for a Section 457 Deferred Compensation Plan;
and
WHEREAS, VALIC, as Plan Administrator agrees to hold harmless and indemnif~
the Borough of Carteret, its officers, elected officials and participating employees
from any loss resulting from VAL1C or its agents failure to perform its duties and
services to the VALIC Program; and
NOW, THEREFORE, BE IT RESOLVED that the Borough of Carteret is
adopting a Deferred Compensation Plan prepared by VAL1C and assigned by the
Director of the Division of Local Government Services the Plan Identifier: 03 :PD-
VALIC-022295.
BE IT FURTHER RESOLVED that the Borough of Carteret does hereby authorize
the implementation of the Borough of Carteret 457 Deferred Compensation Plan.
BE IT FURTHER RESOLVED that the Borough of Carteret is adopting a Deferred
Compensation Plan substantially similar to one which a favorable Private Letter
Ruling has been previously obtained from the Internal Revenue Service. The use of
the Ruling is for guidance only and the Borough acknowledges that for Internal
Revenue Service purposes, the Ruling of another employer is not to be considered
precedent.
BE IT FURTHER RESOLVED that the Plan Administrator, Borough Treasurer,
_ shall be designated as the official representative of the Borough with regard to the
implementation and administration of the Plan. The Plan Administrator, Borough
Treasurer, shall be authorized to execute such agreements and contracts as are
necessary to implement and administer the Plan~
BE IT FURTHER RESOLVED that:
(1) Solicit Proposals: A request for proposals for a Deferred Compensation Plan
and Services Agreement was prepared and made available to providers
of deferred compensation services.
(2) Responding Vendors: The vendors responding to the request were:
Equitable Life, Mutual of Omaha, PEBSCO, MetlLife, N.P.C. (National
Plan Coordinators).
(3) Selection Rationale: The successful vendor is VAL1C. The Borough
reviewed all of the proposals submitted and met with the representatives
of the responding companies. VAL1C was selected because VALIC has
been found to possess the necessary administration, enrollment and
servicing capabilities for the Borough of Carteret. Other reasons for the
selection were local representation, impressive professional presentation,
plus the above mentioned qualifications and proven performance.
PAGE_ 2
NO. 96-141
- BE IT FURTHER RESOLVED that VALIC shall be retained by the Borough of
Carteret as the contractor under the Deferred Compensation Plan and VALIC shall
educate all Borough employees regarding the Deferred Compensation Plan and shall
enroll and service these employees who elect to voluntarily participate in the Plan.
As enrolling agent, VALIC shall be the alternate Agent for funding options to be
offered under the Plan.
BE IT FURTHER RESOLVED that there has been no collusion or evidence or
appearance of collusion, between any local official and a representative of the
contractor for the administration ora Service Agreement pursuant to NJ.A.C. 5:37-
5.7.
BE IT FURTHER RESOLVED that the Mayor and Borough Clerk are hereby
authorized to execute a Service Agreement with VALIC and that such Service
Agreement has been assigned by the Director of the Division of Local Government
Services the following identifier: 03-SA-VALIC-022295 and to submit all necessary
documents to the Director of Local Government Services in the State Department of
Community Affairs.
BE IT FURTHER RESOLVED that a certified copy of this Resolution be
forwarded to the Borough of Carteret Plan Administrator.
BE IT FURTHER RESOLVED that this resolution is passed in conjunction with
Resolution #96-140 and is not intended to delete, replace or substitute for said
Resolution.
Adopted this 16th day of May, 1996
and certified as a true copy of the
original on May 17, 1996
KATHLEEN M. BARNEY,
Municipal Clerk
SUSAN E. JACKLIN,
Assistant Municipal Clerk
RECORD OF COUNCIL VOTE
~AIIACE X __ _ (/BRII~ ~
s x [vEsEY ....
X - Indicate Vote AB - Absent NV - Not Voting XOR - lndk'atcs Vote Io Overrule Veto S:
Adopted at a meeting of the Municipal Cotmcil NAY 16, 1_996