HomeMy Public PortalAboutr 09:208
2Rt}3olufhm of f4t ~or01lg4 of QIurftrd, ~~ W~
No.
Og-)08
~_------,-,- _ : _ ___, _ _ _ ___~ Date of Adoptioll O:::tol:er 8~ 2ffJ)
RESOLutION FOR ADOPTING A DEFERRED
COiYlPENSATION PLAN AND PROTOTYPICAL
SERVICE AGREEMENT
WHEREAS, the Borough of earteeet has established a Deferred Compensation Plan in
order to attract and retain qualified employees, which is available to all eligible
employees, elected officials, and independent contractors pursuant to Section 457 of the
Federal Internal Revenue Code; and, there is no cost to the local governmental unit to
adopt and implement a Deferred Compensation Plan; and, the implementation of a
Deferred Compensation Plan will serve the interests of the local governmental unit by
enabling it to provide enhanced retirement security to its eligible employees.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Borough
ofCarteret as follows:
The Borough. of Carteret hereby adopts a Deferred Compensation Plan provided by A:<a
Equitable in ;:;ccordance with NJ.A.C. 5:37-5.2, Plan Adoption, and
The Borough of Carteret is adopting a Prototypical Plan in compliance with (N.l.A.C.
5:37-3.5) which is substantially similar to one on which a satisfactory Internal Revenue
Service private letter ruling has been obtained. The use of the Ruling is for guidance only
and the _ realization that for Internal Revenue Service purposes, the Ruling of another
employer is not to be considered precedeu.t.
The Borough of Carteret is adopting a Deferred Compensation Plan substantially
similar to one on which a favorable Private Letter Ruling has been previously obtame4
from the federal Internal Revenue Service except for provisions added by reason of the
Small Business Job Protection Act of 1996 (United States Public Law No. 104-138) and
the Economic Growth and Tax Relief Reconciliation Act of 2001 (United States Public
Law No. 107-16) and all such provisions are stated in the plan in terms substantially
similar to the text of those provisions in the Internal Revenue Code Section 457. The use
of the Ruling is for guidance only and acknowledges that for mternal Revenue Service
purposes, the Ruling of another employer is not to be considered precedenl
The Mayor and the CFO are hereby designated as the Local Plan Administrator for the
administration of the Plan in accordance with N.l.A.C. 5;37-5.4 titled Local Plan
Administrator.
A request for proposals for a Deferred Compensation Plan and Service Agreement was
prepared and made available to Axa Equitable at their request. The governing body
reviewed the proposal submitted and Administration met \vi.th representatives of Ax a
Equitable.
The A.u Equitable was selected because of their superior products and exceUent staff.
There was no collusion, or evidence or appearance of collusion, betw"een any local
official and a representative of the contractor in the selection of a contractor for the
administmtion ofa Service Agreement pursuant to N.J.A.C. 5:37-5.7.
TIle Mayor and CFO are authorized to execute a Service Agreement with Au
Equitable and to submit all necessary documents to the Director of the Division of Local
Government Services within the State Department of Community Affairs for approvaL
Adopted this 8th day of October, i009
and certified as a true copy of the
original on October 9, 2009.
!IAJlI(..EJ;N M. ~, OC
RECORD OF COUNCIL VOTE
COUNCILMAN YES NO NY A.B. COUNCIL~1AN YES NO NY A.B.
v TlDfM' - X
rrlnT y 1'WlES X
f\TA7 y j\
X-lndicateVote AB~Absent NV - Not Voting XOR-Indicates Vote to Overrule Veto
Adopted at a meeting of the Municipal Council yctd:er 8,2fm .
..~JilJJ~-~v
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RESOLUTION FOR ADOPTING A
PROTOTYPICAL DEFERRED
COMPENSATION PLAN AND SERVICE
AGREEMENT
WHEREAS, the Borough of Carteret has established a Deferred Compensation Plan in
order to attract and retain qualified employees, which is available to all eligible
employees, elected officials, and independent contractors pursuant to Section 457 ofthe
Federal Internal Revenue Code; and, there is no cost to the local governmental unit to adopt and
implement a Deferred Compensation Plan; and, the implementation of a Deferred Compensation
Plan will serve the interests of the local governmental unit by enabling it to provide enhanced
retirement security to its eligible employees.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Borough of
Catteret as follows:
The Borough of Carteret hereby adopts a Deferred Compensation Plan provided by Axa
Equitable in accordance with N.J.A.C. 5:37-5.2, Plan Adoption, and
The Borough ofCal1eret is adopting a Prototypical Plan in compliance with (NJ.A.C. 5:37-3.5)
which is substantially similar to one on which a satisfactory Internal Revenue Service private
letter ruling has been obtained. The use of the Ruling is for guidance only and the realization that
for Internal Revenue Service purposes, the Ruling of another employer is not to be considered
precedent.
The Borough of Carteret is adopting a Deferred Compensation Plan substantially similar to one
on which a favorable Private Letter Ruling has been previously obtained from the federal Internal
Revenue Service except for provisions added by reason of the Small Business Job Protection Act
of 1996 (United States Public Law No. 104-188) and the Economic Growth and Tax Relief
Reconciliation Act of2001 (United States Public Law No. 107-16) and all such provisions are
stated in the plan in terms substantially similar to the text of those provisions in the Internal
Revenue Code Section 457. The use of the Ruling is for guidance only and acknowledges that for
Internal Revenue Service purposes, the Ruling of another employer is not to be considered
precedent.
The Mayor and the CFO are hereby designated as the Local Plan Administrator for the
administration ofthe Plan in accordance with NJ.A.C. 5:37-5.4 titled Local Plan Administrator.
A request for proposals for a Deferred Compensation Plan and Service Agreement was prepared
and made available to Axa Equitable at their request. The governing body reviewed the proposal
submitted and Administration met with representatives of Ax a Equitable.
The Axa Equitable was selected because of their superior products and excellent staff.
There was no collusion, or evidence or appearance of collusion, between any local official and a
representative of the contractor in the selection of a contractor for the administration of a Service
Agreement pursuant to NJ.A.C. 5:37-5.7.
The Mayor and CFO are authorized to execute a Service Agreement with Axa Equitable and to
submit all necessary documents to the Director of the Division of Local Government Services
within the State Depmtment of Community Affairs for approval.
I Kathleen M. Barney, Registered Municipal Clerk, do solemnly swear that this is a true copy of
a resolution duly passed by the Council of the Borough of CaI'teI'et at a meeting held on
October 8, 2009.
NEW JERSEY EDC OR 457 GOVERNMENTAL PLAN
SERVICE AGREEMENT
This Agreement is made and entered into by and between Borough of Catieret and Axa Equitable.
Stock life insurance company authorized by the Commissioner ofInsurance to do business in the
State of New Jersey Axa Equitable is a wholly owned subsidiaty of Ax a Equitable.
The intent of this Agreement is for Axa Equitable to provide services with respect to the
Employer's Plan, as hereinafter defined. The Plan shall be administered in accordance with the
provisions of Section 457 of the Internal Revenue Code of 1986, as amended ("Code").
Section 1. Definitions
Unless this Agreement expressly provides otherwise, the following definitions shall apply herein.
A. "Patiicipant" means an employee of the Employer electing to participate in the Plan.
B. "Plan" means the employer's DefelTed Compensation Plan.
C. All other words and phrases used in the Agreement shall, except where otherwise noted,
have the same meanings as such words and phrases have wherever they appear in
NJ.A.C. 5:37-1 et. Seq., Municipal County and Authority Employees Defened
Compensation Plans Rule, promulgated by the Division of Local Government Services of
the State of New Jersey (referred to as "Defen-ed Compensation Rules"), the Employer's
Plan (copy attached hereto), and applicable provisions of the Code and regulations
promulgated there under.
Section 2. Scope of Service
Axa Equitable shall perform the services described below in connection with the
contract certificates issued to the Employer with respect to Participants.
Section 3. Tenn
This Agreement shall become effective inmlediately upon execution by both paliies and shall
remain in force until terminated by either party as provided herein.
Section 4. Relationship to the Parties
Axa Equitable shall perform its obligations hereunder as an Agent for the Employer.
The Employer may administer this Agreement and monitor Axa Equitable compliance
with its obligations hereunder. The Employer shall not supervise or direct Axa Equitable
other than as expressly provided in this Agreement.
Section 5. Services to be Performed
Axa Equitable shall:
i. provide advice concerning categories of investments available to
Participants under the "Axa Equitable" contract.
ii. explain investment guidelines and any restrictions under the Plan;
iii. provide individual consultation on Plan matters to Participants;
iv. maintain records of any written correspondence in connection with (a
through c) above for six years, and furnish on request, copies of such
records to the Employer; and
v. credit contributions if received 011 a business day as of the date received
up to 4:00 PM, at its Processing Office, or the next business day, if later.
(The Employer shall send all contributions, which are subject to this
agreement, received by it to Axa Equitable within 72 hours of
receipt.)
Axa Equitable
a. an Axa Equitable contract certificate for each P311icipant
setting forth the contract features and guarantees;
b. a confirmation for each payment or transaction plus annual and semi31mual
notices as required under the Securities Exchange Act of 1934
and applicable insurance laws and qU311erly reports;
c. a monthly premium notice in order to make the administration of the
Plan as simple as possible;
d. a current prospectus or prospectus supplement for each Participant,
which describes the Axa Equitable contract certificate being
offered under the Plan.
Axa Equtitable shall do all such acts as are required to be perfonned by a private
contractor as set forth in N.J.A.C. 5:37-10.3 ofthe Deferred Compensation Rules relating to the
review of the Plan.
Section 6. Records Maintenance
A. Axa Equitable will be responsible for the administration and maintenance of
individual account records.
B. Upon prior request and dnring normal business hours, Axa Equitable shall allow
the Employer full and complete access to all records retained by Axa Equitable
pursuant to paragraph A above. The Employer shall have the right upon reasonable
notice, exercised directly or through its attorneys or independent auditors, to examine and
audit such records and accounts to detennine Axa Equitable compliance with
the terms and conditions hereof. The provisions ofthis subsection B are not intended to
limit the provisions of Section 5 of this agreement.
Section 7. Hold Harmless
Axa Equitable hereby agrees and hold harmless the Employer Borough of Carteret with regard to all
losses, damages, penalties, claims and expenses as a result of any cause of action
brought against it as a result of negligent acts or omissions of Ax a Equitable arising out
of our in connection with the administration of the contracts Axa Equitable at its own
expense and risk, and by its own counsel shall defend any legal proceeding which may be brought
against the Indemnitee with respect to any such failure and shall satisfy any judgment which may
be rendered against the Indemnitee as a result of any such proceeding, provided that the
Indemnitee notifies it in writing within a reasonable period ofthe commencement of such
proceeding or any threat of such proceeding in order that appropriate and timely action may be
take by Axa Equitable.
Notice shall be addressed to Axa Equitable Failure to do notify Axa Equitable to cooperate with Axa
Equitable in the defense of such proceeding shall relieve
Axa Equitable of any and all liability assumed under this agreement with respect to such
proceeding or any other proceeding in which a claim is based in whole or in p311 on the
proceeding with respect to which the failure of notice occurred.
Section 8. Non-discrimination
Axa Equitable represents that it does not discriminate in its employment or investment
policies and practices.
Section 9. Non-waiver
The failure of the Employer of Ax a Equitable at any time to enforce a provision of this
Agreement shall in no way constitute a waiver ofthe provision, or in any way affect the validity
of this Agreement or any part hereof, or the right of the Employer or Axa Equitable to
enforce each and every provision hereof.
Section 10. Assignments
Any assignment or attempted assignment ofthis Agreement or any part hereof withont the written
consent of (lAx a Equitable in the case of the Employer, or (2) the Division of Local
Government Services, in the case of A x a Equitable shall be void, except that any
assignment or attempted assignment by Axa Equitable to a subsidiary or affiliate does
not require the written consent ofthe Division of Local Government Services.
Section II. Amendment
This Agreement may not be modified or altered except by a written instrument duly executed by
both pmties.
Section 12. Notices
Any Notice provided for herein (other thau the Notice described in Section 7) shall be in writing
and shall be deemed to have been given when received by personal delivery or United States mail
addressed as follows:
1fto Employer: Borough ofCarteret 20 Cooke Ave CarteretN.J. 07008
If to Axa Equitable InseIt 2399 Highway 34 Suite C-2 Manasquan N.J. 08736
or to such other persons or addresses which the Employer or Axa Equitable may from
time to time designate in writing.
Section 13. Jurisdiction/Choice of Law
The laws of the State of New Jersey shall govern the rights and obligations of the palties under
this Agreement.
This Agreement is subject to the Deferred Compensation Rules which are hereby made a palt of
this Agreement.
Section 14. Integration
This instrument and any written appendices and amendments hereto and the contract and
celtificates embody the entire agreement of the parties. There are no promises, terms, conditions,
or obligations other than those contained herein and this Agreement shall supersede all previous
communications, representations or agreements, either oral or written, between the patties hereto
with respect to this Agreement.
Section 15. Expenses
The services rendered by Axa Equitable uuder Section 5 and Section 6(A) hereof shall be
performed at no cost to the Employer. The cost of any audit shall be borne by the Employer.
Section 16. Termination
A. This Agreement may be terminated without any fmther liability of either pmty for
any obligation maturing subsequent to the date of such termination.
1. By either pMy, sixty (60) days following the giving of written notice
to the other party ofthe intent to terminate.
2. By the Employer, thirty (30) days following the giving of written
Axa Equitable if the Employer learns of Ax a Equitable
violation of an Federal, State or local law, ordinance or
regulation that governs activities related to Axa Equitable
performance of this Agreement.
B. Upon termination, Axa Equitable shall:
I. Deliver to the Employer copies of all records and things required by .
law or reasonably required for administrative ease.
2. Deliver within thirty (30) days after the date of termination ofthis
Agreement, all investment, financial, performance and any other rep0l1s
required to comply with applicable law.
IN WITNESS WHEREOF, the pa11ies hereto have caused this agreement to be signed as ofthe
date shown below:
By: Borough of Ca11eret
Date:
By: Axa Equitable
Date: