2023/11/29 Council Agenda Packet

© Peak One Administration 2016 17 B. Responsibilities of Client 1. 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 Plan 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. 2. Plan Documentation. Client is responsible for reviewing draft plan documentation with its selected counsel to ensure that such documents comply with applicable law and that revisions made to such document by PSP on Client’s instructions are complete and accurate. Client is responsible for making all other changes to the document(s) that it deems necessary. Client will notify PSP of all such changes made by Client as soon as possible but no later than the effective date of the changes. Client will provide PSP with a copy of the completed and properly executed plan document for each Benefit Plan. Client will provide PSP a copy of each amendment to a Benefit Plan by the earlier of: (a) fifteen (15) business days prior to the effective date of the amendment; (b) the date Client adopts the amendment; or (c) as soon as administratively feasible. PSP is responsible for providing services related to an amendment only upon its written consent to such amendment. PSP may condition its consent upon client’s agreement to pay increased service fees. 3. Distribution of Plan Information, Reimbursements and Participant Statements. Client will distribute to employees, participants and beneficiaries the SPD and any other documents necessary to comply with the participant disclosure requirements under ERISA and/or other applicable laws. Client is also responsible for distributing checks, Explanation of Benefits (EOBs), and participant statements of account to employees. 4. Enrollment and Salary Reduction Elections. Client will provide eligible employees with enrollment, salary reduction and change of election forms provided by PSP. Client will collect and submit the completed enrollment forms, election forms and/or change of election forms to PSP as soon as possible after receipt of such forms, but at least five (5) business days prior to the first billing cycle for which any enrollment, elections, or change of elections is effective. Client is responsible for determining who is eligible to participate in the respective Benefit Plans and who has satisfied the requirements to become a participant in the Plan. Client will report all participant additions, terminations, and changes to PSP and all such changes will be effective two (2) weeks after receipt. In addition, the Client is ultimately responsible for determining whether a requested change in election is permitted.