2023/11/29 Council Agenda Packet

© Peak One Administration 2016 13 paid for such taxes or assessments. Client understands that it is Client’s responsibility to pay any tax, fee, penalty or assessments of a similar nature charged by the Internal Revenue Service, the Department of Labor, or other federal and/or state governmental agency arising from or relating to the Client or Benefit Plans. 2. Establishment and Operation of the Benefit Plans. Client has the sole responsibility and authority for establishment and operation of any employee benefit plans for which, pursuant to this Agreement, PSP is retained to perform administrative services. Client will have the sole discretionary authority and responsibility for designing, administering, construing and interpreting the provisions of employee benefit plans and deciding all questions of fact arising under the Benefit Plans. It is Client’s sole responsibility and duty to ensure that the Benefit Plans comply in design and operation with all applicable laws and regulations, and PSP’s provision of services under this Agreement does not relieve the Client of this obligation. Client will maintain the official records for the Benefit Pan consistent with applicable law. In the event that it is finally determined by a taxing authority or a court that premium taxes, or other taxes or assessments are due and payable by the Benefit Plans or Client, with respect to the Benefit Plans, the Client will be responsible for the payment of such taxes. PSP will have no responsibility under this Agreement to pay such taxes or assessments and Client will not be entitled to any reimbursement for amounts paid for such taxes or assessments. Client understands that it is Client’s responsibility to pay any tax, fee, penalty or assessments of a similar nature charged by the Internal Revenue Service, the Department of Labor, or other federal and/or state governmental agency arising from or relating to the Benefit Plans. 3. Regulatory Compliance. Client will: (a) ensure that the VEBA, in design and operation, complies with all applicable laws and regulations; (b) calculate and pay any governmental or regulatory charges, assessments, fees and/or taxes due or payable by the Client or the Benefit Plans with respect to the establishment or operation of the Benefit Plans; (c) maintain the records of the Benefit Plans; and (d) respond to any state or federal governmental agency request for information or audit. 4. Engagement of Custodian. Client will select and engage a custodian for the assets of Client. Client will establish a deposit account for participating employer and participant accounts and implement the procedures required by the custodian to authorize PSP to deposit remittances received from participating employers and participants into such account.