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HomeMy WebLinkAbout20220962.tiffRESOLUTION RE: APPROVE DELEGATION OF ADMINISTRATIVE AND FIDUCIARY DUTIES AND RESPONSIBILITIES OF WELD COUNTY 401K AND 457 RETIREMENT PLANS TO 401K SAVINGS PLAN AND 457 DEFERRED COMPENSATION PLAN FIDUCIARY COMMITTEE AND APPROVE BY-LAWS 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, Weld County offers 401k and 457 Retirement Plans ("Plans") to its' employees as supplemental retirement plans, and WHEREAS, the Plans are governed by plan documents in compliance with Internal Revenue Service (IRS) and Federal Department of Labor regulations, and WHEREAS, the Weld County 401k Plan document specifies that the Director of Administrative Services is the Plan Administrator, and the Weld County 457 Plan document specifies the employer (Weld County) is the Plan Administrator, and WHEREAS, Finance and Administration staff is recommending a 401 k Savings Plan and 457 Deferred Compensation Plan Fiduciary Committee ("Committee") be created to oversee the Plans' administration and serve as the fiduciaries for the Plans in order to better fulfill the County's fiduciary responsibilities of both Plans, and WHEREAS, Finance and Administration staff is recommending the Committee consist of five (5) members as follows: the Director of Administrative Services, the Chief Financial Officer, the County Treasurer, the Director of Human Resources, and the HR Benefits Manager, and WHEREAS, each Plan's document specifies under Section 9.04 that the Plan Administrator may delegate any or part of the administrative duties and responsibilities under the Plan to a retirement committee, and that the duties and responsibilities of the retirement committee shall be set out in a separate written agreement, and WHEREAS, the Plan Administrators of both plans believe it is in the best interest of Weld County and the Plans' participants to delegate all administrative and fiduciary duties and responsibilities as specified in the attached Committee's By -Laws, attached hereto as Exhibit "A." NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the 401k Savings Plan and 457 Deferred Compensation Plan Fiduciary Committee, be, and hereby is created, effective immediately. BE IT FURTHER RESOLVED by the Board that, in accordance with the Plan documents, this Resolution shall serve as the required written agreement delegating those administrative and fiduciary duties and responsibilities associated with the Plans to the Weld County 401k Savings Plan and 457 Deferred Compensation Plan Fiduciary Committee as described herein and as specified in the By -Laws, attached hereto as Exhibit "A." CC :$ocC(KF'), Fi(DvJISo), AC1(cP/cD), cA(Bt3) 4/7/22. 2022-0962 PE0034 DELEGATION OF ADMINISTRATIVE AND FIDUCIARY DUTIES AND RESPONSIBILITIES OF WELD COUNTY 401K AND 457 RETIREMENT PLANS TO 401K SAVINGS PLAN AND 457 DEFERRED COMPENSATION PLAN FIDUCIARY COMMITTEE AND APPROVE BY-LAWS PAGE 2 BE IT FURTHER RESOLVED by the Board that the By -Laws of the Weld County 401k Savings Plan and 457 Deferred Compensation Plan Fiduciary Committee set forth in the attached Exhibit "A," be, and hereby are, approved. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 28th of March, A.D., 2022. BOARD OF COUNTY COMMISSIONERS WELD 4 OUNTY, COLORADO ATTEST: defiltet) jejw e1 Weld County Clerk to the Board eputy Clerk to the Board torney Date of signature: 3/31 /2 Scott K. James, Chair 2022-0962 PE0034 EXHIBIT A By -Laws Weld County 401k Savings Plan and 457 Deferred Compensation Plan Fiduciary Committee Introduction These By -Laws describe the general operating rules and procedures for the Weld County 401k Savings Plan and 457 Deferred Compensation Plan Fiduciary Committee (the "Committee"). While these By -Laws should be applied and interpreted in a manner that is consistent with all applicable laws and regulations, it is not intended to establish, in and of itself, any legally binding obligations. Purpose The purpose of the Committee is to oversee and review (a) the investments of the assets of the Weld County 401k Savings Plan and 457 Deferred Compensation Plan (the "Plans") and (b) the administration of the Plans. In this capacity, the Committee is empowered to delegate responsibility for the administration of the Plans to one or more third -party administrators, recordkeepers or Weld County personnel and retain and discharge investment managers, investment advisors, and trustees, as applicable, in its discretion. Any such delegation shall be made in writing (or via electronic communication) or through a contract or similarly binding agreement, as applicable. Committee Membership The Committee shall be composed of individuals appointed by the Board of County Commissioners of Weld County. The Committee shall consist of five (5) members as follows: the Director of Administrative Services or his/her designee; the Chief Financial Officer; the Treasurer; and two (2) representatives from the Human Resources Department. A majority of the Committee may appoint a successor to fill any vacancy on the Committee. From its members, the Committee will elect a Chair. A Vice Chair may also be elected. The Committee's secretarial functions may be performed by a member ("Secretary") or delegated to a non- member by the Committee. Committee Meetings The Committee's shall hold at least two (2) meetings per year. A special meeting may be called by the Chair or Vice Chair, on his or her own initiative or whenever requested by any other member of the Committee. A simple majority of Committee members present and voting (if there is a quorum) shall be necessary for the Committee to take action. Meetings of the Committee may be held by telephone conference or video conference (provided that all members are able to hear and speak to one another), and any members participating by telephone or video conference will be treated as present and voting. Any member participating by telephone or video conference may vote verbally or electronically, such as via electronic mail. In addition, and notwithstanding any provision herein to the contrary, the Committee may take action upon a simple majority electronic vote, in the absence of a meeting or quorum, where deemed advisable in the Committee's sole discretion. 2022-0962 Any member of the Committee may initiate a unanimous written consent for any action which the Committee is permitted to take under the Plans. If such a consent is agreed to by all members of the Committee it will have the same force and effect as an action taken at a meeting of the Committee. For purposes of this paragraph, consent provided by one or more Committee members electronically, such as via electronic mail (in lieu of an actual signature), shall be deemed to be written consent. The Chair shall preside at meetings and shall have the authority to sign documents, other than service contracts which must be signed by the Chair of the Board of County Commissioners, on behalf of the Committee following a majority vote or a unanimous written consent for the action described in the document. The Vice Chair shall act in place of the Chair when the Chair is absent or unavailable. The Secretary (or non-member to whom the Committee's secretarial functions have been delegated) shall prepare the minutes of the Committee's meetings, maintain current copies of the investment policies for the Plans and all current delegations of the Committee's responsibilities, and maintain all other files of the Committee. Key Responsibilities Any action of the Committee is intended to be interpreted and construed in accordance with the provisions of the respective Plans and Trusts, the Internal Revenue Code of 1986, as amended (the "Code"), other federal statutes, and such state laws that are not pre-empted (collectively, "applicable law"), as applicable to the respective Plans. With respect to its responsibilities for the administration of the Plans, the Committee (or its designee) shall: • Appoint and monitor third -party administrators, trustees, and recordkeepers with respect to administrative functions under the Plans and take whatever action is prudent and appropriate, including the removal of such parties; • Review the reasonableness of administrative related fees paid by the Plans; • Make discretionary determinations of all questions that arise concerning the construction and interpretation under the Plans, including the interpretation of benefits eligibility and the administration of the Plans; • Ensure that participants are provided with information regarding their rights, benefits, and accounts under the Plans, as required by applicable law; • Adopt such rules and regulations as it may deem reasonably necessary for the proper and efficient administration of the Plans and consistent with the purposes of the Plans; • Direct the third -party administrators, trustees, and recordkeepers with respect to all matters involving eligibility for, contributions to, account balances under, and distributions from, the Plans; • Oversee and ensure compliance with all reporting and disclosure requirements applicable to the Plans; and • Appoint, employ, and oversee agents and delegate to them any of the administrative or ministerial powers or duties of the Plans' Administrator(s), and take corrective action that is prudent and appropriate, including the removal of any such agents or delegates. 2 • Proactively seek education opportunities With respect to its responsibilities for the review and oversight of the investments of the Plans and Trusts, the Committee shall: • Select the investments offered under the Plans; • Review and evaluate the performance of the investments offered under the Plans, and take any corrective action that is prudent and appropriate regarding such investments, including the addition, removal or replacement of such investments; • Review the reasonableness of investment related fees paid by the Plans; • Appoint one or more independent investment advisors to evaluate and make recommendations regarding investment options under the Plans; • Appoint investment managers to manage the investments offered under the Plans; • Review and evaluate the performance of the investment advisors and investment managers under the Plans and take any corrective action that is prudent and appropriate, including the removal of such parties; • Establish, maintain, and amend (as necessary or desirable) investment policies for the Plans, communicate the terms of the respective investment policies to the investment advisors, investment managers, and other service providers that manage, hold or otherwise handle assets of the Plans and Trusts, and monitor such parties to ensure that they comply with the terms of any applicable Plans, Trusts, and investment policies; and • Designate the default investment funds to be used for the investment of the accounts of participants who do not submit investment elections, if applicable. Conduct of Committee Members Conflict of Interest: If a Committee member is a participant in the Plans, the member shall have no authority regarding any matter specifically affecting his or her individual interest in the Plans, for example, such member's claim for benefits under the Plans. As such, the member shall recuse himself or herself from voting on any such specific matter. This does not preclude a member from acting regarding Plan matters affecting Plan participants generally, even though the member is incidentally affected by such determination, provided that such action must be in accordance with the Plans. Gifts: To maintain the integrity of the Committee and to keep their decisions and the reasons for those decisions above reproach, the Committee members shall not solicit donations, gifts, or privileges from any firm or individual that is currently doing business with or is in the selection process to do business with the plans. Administrative Expenses Administrative Expenses will be paid as approved by the Committee. The approval will be noted in the meeting minutes. Administrative expenses include but are not limited to such things as: Consulting fees, attorney fees, and auditor fees. 3 The Chair or his/her delegate may revise these by-laws at any time in his/her sole discretion. Approved by the Board of County Commissioners of Weld County on Mal/Ch Z 0 , 2022. 4 DELEGATION OF ADMINISTRATIVE AND FIDUCIARY DUTIES AND RESPONSIBILITIES OF THE WELD COUNTY 401K AND 457 RETIREMENT PLANS TO THE 401K AND 457 RETIREMENT PLANS FIDUCIARY COMMITTEE AND APPROVE BY-LAWS APPR SU STANCE: 147 Elected Official or Department Head ED T APPROVED AS TO FUNDING: Controller APPROVED AS TO FORM: 1 0.4 1 -Co County Attorney Hello