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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 ~ ex-- 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: