2011/05/11 Council Agenda Packet

(ii) as of the effective date of any changes in applicable federal and state laws that would expand the scope of the services that HMA has agreed to provide hereunder. (iii) notwithstanding the fees in effect under this Agreement, should there be a change in any law or regulation that results in increased costs to HMA, HMA shall increase its fees to cover such increased costs. (iv) As a result of Plan Amendments, HMA shall have the right to change its fees upon written notice to the Plan Sponsor in the event any amendment to the Plan changes the amount or type of processing, services or responsibilities undertaken by HMA, effective as of the effective date of the amendment. If HMA elects to change any fees charged to the PCan Sponsor hereunder, HMA shall give prior written notice of such change to the Plan Sponsor and the Plan Sponsor may, if it does not want to retain HMA based on the new fee schedule, terminate this Agreement by sending written notice of termination to HMA. 5. Funding of Benefit Payments. (a) Responsibility for Funding Benefits. The City shall retain the responsibility for all Plan benefit claims. The City shall be responsible for: (i) All expenses incident to the Plan, including, without limitation, all premium taxes, or any other tax, including any penalties and interest payable with respect thereto,assessed against the City. (ii) The consequence to any person not a Party to this Agreement of any acts or omissions of City occurring during the operation of this Agreement that are alleged to be a breach of fiduciary duty or a breach of duty or trust, or other contractual duty, regardless of the source of law serving as a basis for such allegation; and (iii) Subject to Section 9 of this Agreement, any amounts that HMA may become liable for which arise from any legal action or proceeding related to the-recovery of benefits under the Plan or the administration of the Plan; and (iv) City is responsible for providing accurate and timely eligibility information and timely review and approval of the SPD, Plan Summaries and Amendments within a timely manner of the City's receipt of said documents in accordance with the City's normal administrative review practices. HMA shall have no liability for claims processed according to approved plan documents and instructions from the Plan Sponsor, or resulting from inaccurate information provided by the City. (v) Funding for benefits by the Plan Sponsor will occur within ten (10) business days, commencing on the date written notification is sent by HMA, unless otherwise agreed upon in writing. (vi) In no event shall HMA have the responsibility to provide funding for the payment of benefits to Plan Participants, for payment of premiums for excess loss insurance or for expenses of the Plan. HMA,Inc.TPA Agreement Page 4 8910-02191C 15