HomeMy WebLinkAbout20082829.tiff RESOLUTION
RE: APPOINTMENT OF PRINCIPAL LIFE INSURANCE COMPANY TO ADMINISTER THE
DEFERRED COMPENSATION PLAN OF THE COUNTY OF WELD, STATE OF
COLORADO
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, the Board of Weld County Commissioners has been presented with a
recommendation by staff to change the administrator of the Deferred Compensation Plan of the
County of Weld, State of Colorado ("Weld 457 Plan"), from Great-West Retirement Services to
Principal Life Insurance Company("Great-West"), and
WHEREAS, in comparing the two companies staff has determined that Principal Life
Insurance Company ("Principal") provides superior service and at a lower cost to the county and
the participants, and
WHEREAS, Principal currently administers Weld County's 401k Program and certain
economies will be gained by Weld County in having the same company administer both plans,
and employees in both plans will receive enhanced services from the combination of the
services with one plan administrator, and
WHEREAS, the key provisions of The Principal Financial Group 457(b) Plan Document
are detailed in the attached letter, dated October 13, 2008, from Marsha Blong of the Principal
Financial Group, and
WHEREAS, transition of administration of the Weld 457 Plan from Great-West to
Principal will take place mainly as described in the attached documents entitled, "Transition and
Investment of the Plan's Retirement Funds," and "Record Keeping of the Retirement Plan,"
and
WHEREAS, it is also recommended to change the Plan Sponsor's plan administrator
representative from Donald D. Warden, Director of Finance and Administration, to Monica Mika,
Director of Administrative Services, concurrent with the change to Principal, and
WHEREAS, after reviewing staffs recommendations, the Board deems it advisable to
approve the administration of the Weld 457 Plan from Great-West to Principal, and for the
appointment of Monica Mika, Director of Administrative Services, as the Weld 457 Plan
administrator representative.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that that Principal Life Insurance Company, a member company of the
Principal Financial Group is hereby appointed as a provider of ministerial services and group
annuity contracts for the funding of the Deferred Compensation Plan of the County of Weld,
State of Colorado (Plan) and is authorized to accept retirement funds of the Plan within the
terms of the Flexible Investment Annuity Group Contract entered into between Principal Life
Insurance Company and the County of Weld effective December 1, 2008.
2008-2829
PE0025
00 '. PC min to-023-08
BE IT FURTHER RESOLVED by the Board that that Monica Mika, Director of
Administrative Services, be and hereby is appointed the Plan Sponsor's plan administrator
representative, and is authorized and directed, in the name of Weld County, to take such
actions as she may deem necessary or appropriate to carry out the intent of the foregoing, all
that previous actions taken by Weld County officials or employees for the same purpose, be and
hereby are, ratified, confirmed, and approved.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 22nd day of October, A.D., 2008.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: LS %, EL®;William H. Jerke, Chair
Weld County Clerk to the ar
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David E. Long
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Date of signature:
2008-2829
PE0025
Principal
Financial
Group
October 13, 2008
Monica Daniels
County of Weld
915 10`h Street
PO Box 758
Greeley, CO 80632-0758
Re: 4-55782 Deferred Compensation Plan of the County of Weld, State of Colorado -Revised
Dear Ms. Daniels:
Thank you for choosing Principal Life Insurance Company (The Principal®) as the service provider for
your retirement program. Your retirement program was created with specific goals in mind. Your plan
is the main tool for meeting those goals—and we're here to help. To make this transition as smooth as
possible, we need to confirm the plan provisions you have selected for your plan. To make sure we help
you meet your goals, just follow the steps listed below.
Step Action
Answer the questions listed in the General Questions & Information.
2 Review Key Plan Provisions and note any changes that are needed to meet the goals of your
retirement program.
3 Participate in a conference call with me, and other interested parties, to go over your answers
and address any concerns you may have regarding the review of your plan. After all issues are
addressed, the plan and trust agreement will be prepared for your final review and signature.
A review of the plan document you provided has been completed and we have listed the key provisions
for your perusal
Plan Reviewed: • 457(6) Adoption Agreement
Effective 01/01/02 (signed)
• 457(b) Plan Document
Page I
Thank you for your help with the review of your plan. We'll do everything we can to make this as easy
as possible for you. I will call you to determine the best time to establish a conference call. I look
forward to working with you throughout the process. Thanks again for selecting us to provide your
retirement plan services.
Sincerely
Marsha Blong
RIS—Client Transition Services
Phone: (800)-258-9041
Fax: (866)-704-3594
Enclosures
Page 2
Step 1: General Questions & Information
1. Your plan document is unclear on whether you include rollover contributions in the calculation of
small amounts force outs (SAFO). Please specify below how small amounts force outs should be
calculated in your ongoing plan:
✓ if Agree SAFO
X Yes, we do wish to include rollover contributions in our calculation of SAFO.
No, we do not wish to include rollover contributions in our calculation of SAFO.
Page 3
Step 2: Rey Plan Provisions
This is a list of your key plan provisions. These provisions reflect how your plan will operate effective
12/01/08. Please review all items and note any changes that are needed to meet the goals of your
retirement program at the end of this table.
Plan Provision The Principal Financial Group
457(b) Plan Document
Plan Sponsor Legal Name County of Weld, State of Colorado
Plan Name Deferred Compensation Plan of the County of Weld, State of
Colorado
Plan Year January 1 to December 31
Original Plan Effective Date January 23, 1985
Plan Administrator Director of Administrative Services of Weld County
Eligible Employee - An eligible Any employee of the Employer, except the following:
employee is any employee who is • Bargaining employees, unless covered by a collective
eligible to make a contribution or to bargaining agreement which provides for participation
receive a contribution. in the plan.
• Independent Contractors.
Eligibility Requirements • No service or age requirements.
• Entry date is the date.
Definition of Compensation • Wages, Tips and Other Compensation box on Form W-
2.
• Includes elective contributions in pay.
• Compensation year is the plan year.
Salary Deferral Contributions • Eligible employees can defer up to 100%of the
Employees includible compensation subject to the plan
year limitation as described in Code Section 457(b).
• Catch-up deferrals are allowed for participants age 50
and over.
• 100% vested.
Matching Contributions Not allowed.
Discretionary Contributions Not allowed.
Page4
Plan Provision The Principal Financial Group II
457(b) Plan Document IIII
Rollover Contributions Allows an employee to make a Rollover Contribution to the
plan prior to becoming eligible to enter the plan as an active
plan participant.
Rollover contributions are allowed from the following plan
types:
• Qualified 401(a) and 403(a) plans, including after-tax
employee contributions.
• An annuity contract described in Code Section 403(b)
including after-tax employee contributions.
• An eligible plan under Code Section 457(b), which is
maintained by a state, political subdivision of a state, or
any agency or instrumentality of a state political
subdivision of a state.
• Distribution from an individual retirement account
(IRA) that is described in Code Section 408(a) or(b).
Rollover Contributions will be included when determining the
value of a participants account balance for any involuntary
distributions.
Voluntary Contributions Not allowed.
Vesting - The right acquired by a 100% immediate vesting.
participant to the employer funds in
his or her retirement plan
Investment Direction Participant directed for all contributions.
Loans Not allowed.
Withdrawal Options - Unforeseeable Emergency — allowed.
Withdrawals allowed from the plan
while still employed. In-Service Elective Withdrawal—Allowed if the total vested
account balance does not exceed $5000, no amount has been
deferred under the plan for 2 years, and no prior in-service
distributions have been taken.
Rollover Withdrawal— allowed. A participant can take a
rollover withdrawal at any time.
Page 5
Plan Provision The Principal Financial Group
457(b) Plan Document
Qualified Domestic Relations Immediate distributions for alternate payees.
Orders (QDRO)
Early Retirement Age None
Normal Retirement Age Normal retirement age(NRA) means age 70 'A, unless the
participant has elected an alternate age. For participants who
arc eligible to receive benefits under the employer's basic
defined benefit pension plan or money purchase pension plan,
their NRA may not be earlier than the earliest date he has the
right to retire under such plan. If a participant is not eligible to
receive benefits under a basic defined benefit pension plan or
money purchase pension plan, their NRA may not be earlier
than age 65 nor later than age 70 ''/2. Any qualified police or
firefighter who is participating in the plan may choose a NRA
that is not earlier than age 40 nor later than age 70 %.
Automatic Rollover of Small Small amounts limit is $1,000. If participant terminates
Amounts Payment employment with an account balance below $1,000 and does
not respond to notification of distribution options, the
distribution will be paid to the participant as a lump sum.
Distribution Upon Reaching a Upon termination of employment, death, or retirement,
Benefit Event benefits shall be distributed immediately following the date in
which a distribution is requested.
Forms of Distribution • Annuities
• Lump sum payouts
• Installment payments
• Distributions made in cash only.
Adopting Employer - A subsidiary None
or affiliated business which adopts
the plan of the parent or affiliated
business.
Page 6
✓ if Agree ✓ if Disagree Item
The Key Plan Provisions, which are effective 12/01/08, meet
the goals of my retirement program and are satisfactory as
stated above.
If you checked disagree, please list any needed changes to the Key Plan Provisions:
While this communication may he used to promote or market a transaction or an idea that is discussed in the
publication, it is intended to provide general information about the subject matter covered and is provided with
the understanding that The Principal')Is not rendering legal, accounting, or tax advice. It is not a marketed
opinion and may not he used to avoid penalties under the Internal Revenue Code. You should consult with
appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and
requirements.
The above lists your key plan provisions
As the plan sponsor, I have reviewed each of the plan provisions outlined above and agree that the
above provisions reflect how our plan should be operated.
g-�onso IC-21-DR
Plan pnsor signature Date
Page 7
Transition and Investment of the Plan's Retirement Funds
Amy Navratil,a representative of Principal Life Insurance Company(Principal Life),has contacted Great
West to discuss the transition of your Plan's administrative services to Principal Life.
The following describes our understanding of the transition and how it will occur.
Sarbanes-Oxlev Plan Participant Notification
As the retirement plan services are transferred to Principal Life, it is necessary to briefly stop services
such as the ability to direct or diversify the retirement funds in the plan accounts. A short blackout period
will begin on December 1, 2008, and will end when Principal Life has received all transfer retirement
funds and allocated them to participant retirement accounts. If all information is received in a timely
manner we expect the blackout period to end the week of December 28, 2008.
During this blackout period,plan participants will not have access to their retirement information. This
will allow for the smooth transfer of retirement plan retirement funds and data from your current service
provider(s)to Principal Life. The Sarbanes-Oxley Act of 2002 requires that all retirement plan
participants must receive notice a minimum of 30 days prior to the beginning of a blackout period but not
more than 60 days in advance of this blackout period start date. If the blackout period changes, all plan
participants must be re-notified in writing. During the blackout period retirement plan participants will be
unable to transfer existing retirement account balances to other investment options, and they will be
unable to request a loan,withdrawal, or other type of distribution.
We have included a sample notice that can be given to all retirement plan participants, including anyone
with a retirement account balance,whether actively employed, terminated, or retired, as well as any
beneficiaries included under the plan. If an individual will become eligible during the blackout period,
they should also receive a copy of this notice.This notice should be provided to each individual
retirement plan participant in writing.If this notification is not given,the Department of Labor(DOL)
could assess substantial civil penalties.
In the notice, you are required to list the Plan Administrator's name,address and phone number so that
participants can go to the person with questions, or list a contact person within the Plan Administrator's
office. We have listed the primary contact's data under Step 1 within the notice to be this contact. If you
want questions directed to another individual in your company,please revise the notice before
distribution. If you prefer to list a department rather than a person(e.g.,HR Department) as a contact, this
is acceptable. An address and phone number will still need to be included for the department.
If you have further questions regarding these requirements please discuss with your legal counsel.
Submission of new contributions
Payroll deductions should continue during the transition to Principal Life. We will notify you when
your contract records have been established and you can begin submitting contributions electronically
through our Principal Sponsor Service Centers'". Please continue sending contributions to your current
service provider until we contact you.
DOL regulations require that payroll deductions be submitted to a funding institution as soon as they
can be segregated from company assets but not to exceed the 15th business day of the month following
withholding.
Transition Option
During the transition you have elected to invest your plan's retirement funds into the Money Market
Separate Account. The retirement funds will be wired to Wells Fargo Bank,N.A.. Principal Life will
place the retirement funds in a holding account and invest them in the Money Market Separate Account.
The wire must be received by 3:00 pm Central Time(CT). Retirement funds received prior to
establishment of your contract and participant level records may be returned to the prior service provider.
Retirement funds will remain in the holding account until we receive participant level reports,balance the
reports with the retirement funds received, and prepare the allocation. There are three potential allocation
methods:
• Exact Match: Final report totals match exactly to retirement funds received. We will
proceed with the allocation without your written authorization.
• Non-Exact Match (Outside Gains/Loss Only): Final report totals do not match retirement
funds received and the difference is due to outside gains or losses incurred between the time
of final valuation and the wire date of the retirement funds. We will allocate the outside
gain/loss pro-rata to all participants with a transfer balance. Your written authorization will
be required if the amount of outside gain/loss exceeds 5%of total transfer amount. If five
percent or less, we will proceed with the allocation without your written authorization.
Please let us know immediately if you would prefer to handle this type of allocation
differently.
• Non-Exact Match(Outside Activity): Final report totals do not match retirement funds
received and the difference is a combination of outside gains/losses and additional plan
activity(i.e. contributions or withdrawals). We will prepare an allocation and require your
written authorization before allocating to participant accounts.
If participant reports do not balance with the amount of retirement funds received, we will notify you and
work with your prior service provider to resolve any discrepancy. As a service to you we will adjust
reports for outside investment option returns at no charge. If additional adjustments are required Principal
Life reserves the right to charge for this service.
Once we have an approved allocation, we will transfer retirement funds and earnings from the holding
account to participants'retirement accounts based on their investment elections. For participants that
have not made an election,retirement funds will be directed into the participant-level default option you
have chosen for your plan.
Wire Instructions
We will provide wire instructions when the retirement funds can be transferred.
If the retirement funds are received by Principal Life before 3:00 p.m. Central Time(CT), Monday
through Friday, on any banking business day,the retirement funds are received and earnings are credited
the next business day. If the retirement funds are received by Principal Life after 3:00 p.m. CT,Monday
through Friday, on any banking business day,the retirement funds are received and earnings are credited
the second business day. Circumstances beyond our control may arise which would prevent us from
meeting this timing. In the event of such an occurrence, we will credit earnings as soon as
administratively possible.
Participant Services
Activity Summaries will be sent once all retirement funds have been allocated to the retirement accounts
held for the benefit of participants. The Summaries contain information pertaining to your transfer of
retirement funds only.
The Principal Retirement Service Center®and TeleTouch®, an interactive voice response system,will be
made available to plan participants. At that time,participants may rebalance the retirement accounts held
for their benefit and/or change investment direction.
Recordkeeping of the Retirement Plan
At the Principal Life,we strive to provide our clients with the most accurate and complete recordkeeping
services possible. In order to do this,the following information regarding your retirement plan is
necessary:
Your prior service provider(s) has stated they will provide the following data:
• Summary of retirement funds as of the date transferred to Principal Life
• Allocation breakdown of forfeitures by year
We will ask for your assistance in obtaining this information in the event we are unsuccessful in obtaining
it from your prior service provider. You will receive a letter after the Activity Summaries have been
mailed requesting any remaining information we may need.
The following items will not be provided by your prior service provider(s). We are asking for your
assistance in obtaining the following:
• Gross contributions
• Qualified Domestic Relations Order, if applicable
Unclaimed Property
Unclaimed property can occur when participants do not cash a distribution check. The DOL requires the
plan fiduciaries to perform a due diligence search for missing participants. The plan fiduciaries must
operate the plan in the interest of participants and beneficiaries. Locating missing participants is part of
this fiduciary duty.
For all distribution checks drafted prior to your plan services being transferred to Principal Life we will
ask your prior service provider to work with you to locate missing participants. If for any reason you or
your prior service provider is unable to comply with DOL requirements regarding unclaimed property
Principal Life can offer our assistance under a supplemental service fee arrangement.
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