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RESOLUTION 92-20617 RESOLUTION NO. 92-20617 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE WAIVING OF COMPETITIVE BIDS FOR SERVICE PROVIDERS FOR THE DEFINED CONTRIBUTION RETIREMENT PLAN FOR UNCLASSIFIED EMPLOYEES AND ELECTED OFFICIALS AND AUTHORIZING EXECUTION OF THE ATTACHED AGREEMENTS WITH THE INTERNATIONAL CITY MANAGERS ASSOCIATION RETIREMENT CORPORATION AND THE PUBLIC EMPLOYEES BENEFIT SERVICES CORPORATION. Whereas, the City Commission adopted a defined benefit retirement plan for all unclassified employees and elected officials which was effective on April 1, 1988; and, Whereas, on October 8, 1992, the City Commission of the City of Miami Beach, Florida adopted an alternative retirement plan for its unclassified employees and elected officials on a defined contribution basis; and, Whereas, Defined Contribution Retirement Plans allow the employee to direct the investment of the funds in their accounts; and, Whereas, such self directed investment accounts are similar in nature to the Deferred Compensation accounts currently offered to all employees; and, Whereas, the City recently received bids on services for its Deferred Compensation Plan and awarded contracts to the International City Managers Association Retirement Corporation and the Public Employees Benefit Services Corporation offered by the U. S. Conference of Mayors; and, Whereas, the City Manager has recommended that it is in the best interests of the City of Miami Beach to waive competitive bidding for the service providers for the Defined Contribution Retirement Plan, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: Section 1. The City Commission hereby finds that it is in the best interests of the City to expedite the employment of plan providers for the Defined Contribution Retirement Plan and as the criteria for selection would be the same as the criteria for selection of the provider of the Deferred Compensation provider, waive competitive bidding and award the provision of such services to the International City Managers Association Retirement Corporation and the Public Employees Benefit Services Corporation (the "Plan Providers"). Section 2. The Mayor and the City Clerk of the City are hereby authorized to execute the attached agreements and all necessary documents with the Plan Providers to allow for the servicing of employee accounts in the Defined Contribution Plan. Passed and Adopted this 8th day of October , 1992. Attest: Mayor City Clerk FORM APOVED L•G � Ai • By Da t- AO 4J30 9 c • ICMA Retirement Corporation Prototype Money Purchase Plan & Trust Adoption Agreement it 11 ICMA RETIREMENT CORPORATION (X)1-91F 111111111111111111 132 AGENDA DATE �: - I 2- • • \. LN•N•mmmmmmm•••• ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN & TRUST ADOPTION AGREEMENT #001 The Employer hereby establishes a Money Purchase Plan and Trust to be known as (the"Plan")in the form of the ICMA Retirement Corporation Prototype Money Purchase Plan and Trust. This Plan is an amendment and restatement of an existing defined contribution money purchase plan. ❑ Yes ❑ No If yes,please specify the name of the defined contribution money purchase plan which this Plan hereby amends and restates: I. Employer: II. Prototype Sponsor: Name: ICMA Retirement Corporation Address: 777 N.Capitol Street,N.E. Washington,D.C.20002-4240 Telephone Number: (202)962-4600 III. The Effective Date of the Plan shall be the first day of the Plan Year during which the Employer adopts the Plan,unless an alternate Effective Date is hereby specified: Month/Day IV. Plan Year will mean: ❑ The twelve(12)consecutive month period that coincides with the limitation year. (See Section 6.05(i)of the Plan.) ❑ The twelve (12) consecutive month period commencing on and each anniversary thereof. Month/Day V. Normal Retirement Age shall be age (not to exceed age 65). ] 001-91F r . 1 , , VI. ELIGIBILITY REQUIREMENTS: 1. The following groups of Employees are eligible to participate in the Plan: ❑ All Employees ❑ A• ll Full-Time Employees ❑ Salaried Employees ❑ Non-Union Employees ❑ Management Employees ❑ Public Safety Employees ❑ G• eneral Employees ❑ O• ther(specify below) 2. The Employer hereby waives or reduces the requirement of a twelve(12) month Period of Service for participation.The required Period of Service shall be . (Write N/A if an Employee is eligible to participate upon employment.) If this waiver or reduction is elected, it shall apply to all Employees within the Covered Employment Classification. 3. A minimum age requirement is hereby specified for eligibility to participate. The minimum age requirement is (not to exceed age 21). (Write N/A if no minimum age is declared.) VII. CONTRIBUTION PROVISIONS 1. The Employer shall contribute as follows(choose one): ❑ Fixed Employer Contributions With or Without Mandatory Participant Contributions. The Employer shall contribute on behalf of each Participant °lo of Earnings or$ for the Plan Year(subject to the limitations of Article VI of the Plan). Each Participant is required to contribute °l°of Earnings or $ _for the Plan Year as a condition of participation in the Plan. (Write"0" if no contribution is required.) If Participant contributions are required under this option, a Participant shall not have the right to discontinue or vary the rate of such contributions after becoming a Plan Participant. The Employer hereby elects to"pick up"the Mandatory/Required Participant Contribution. ❑ Yes ❑ No [Note to Employer: Neither an opinion letter issued by the Internal Revenue Service with respect to the Prototype Plan,nor a determination letter issued to an adopting Employer is a ruling by the Internal Revenue Service that Participant contributions that are picked up by the Employer arc not includable in the Participant's gross income for federal income tax purposes. The Employer may seek such a ruling. Picked up contributions are excludable from the Participant's gross income under Section 1 34 414(h)(2)of the Internal Revenue Code of 1986 if they meet the requirements of Rev. Rul. 81- 35, 1981-1 C.B. 255. Those requirements are (1) that the Employer must specify that the 2 001-91F • • contributions,although designated as Employee contributions,are being paid by the Employer in lieu of contributions by the Employee; and (2) the Employee must not have the option of receiving the contributed amounts directly instead of having them paid by the Employer to the Plan.] ❑ Fixed Employer Match of Participant Contributions. The Employer shall contribute on behalf of each Participant % of Earnings for the Plan Year(subject to the limitations of Articles V and VI of the Plan)for each Plan Year that such Participant has contributed % of Earnings or $ . Under this option,there is a single,fixed rate of Employer contribu- tions,but a Participant may decline to make the required Participant contributions in any Plan Year, in which case no Employer contribution will be made on the Participant's behalf in that Plan Year. ❑ Variable Employer Match of Participant Contributions. • The Employer shall contribute on behalf of each Participant an amount determined as follows (subject to the limitations of Articles V and VI of the Plan): ❑ %of the contributions made by the Participant for the Plan Year (not including Participant contributions exceeding %of Earn- ings or$ ); ❑ PLUS % of the contributions made by the Participant for the Plan Year in excess of those included in the above paragraph (but not including Participant contributions exceeding in the aggregate % of Earnings or$ ). ❑ Employer contributions on behalf of a Participant for a Plan Year shall not exceed $ or %of Earnings,whichever is ❑ more or ❑ less. 2. Each Participant may make a voluntary(unmatched),after-tax contribution,subject to the limitations of Section 4.04 and Articles V and VI of the Plan. ❑ Yes ❑ No 3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following payment schedule: VIII. EARNINGS Earnings,as defined under Section 2.09 of the Plan,shall include: 1. Overtime ❑ Yes ❑ No 2. Bonuses ❑ Yes ❑ No 3 (X)1-0 F {1r; IX. LIMITATION ON ALLOCATIONS If the Employer(i) maintains or ever maintained another qualified plan in which any Participant in this Plan is(or or could possibly become a participant,and/or(ii)maintains a welfare benefit fund(as defined was)a participant19(e) in Section 4 of the Code)or an individual medical account(as defined in Section 4150)(2)of the Code,under which amounts are treated as Annual Additions with respect to any Participant in this Plan),the Employer hereby contributions to all such plans as provided herein,if necessary,in order to avoid excess contributions agrees to limit _ (as described in Sections 6.03 and 6.04 of the Plan). 1. If the Participant ant is covered under another qualified defined contribution plan maintained by the Employer,other than RegionalPrototype a Plan,the provisions of Section 6.02(a) through(f)of the.Plan will apply as if the other plan were a Master or Prototype Plan,unless another method has been indicated below. Other Method. (Provide the method under which the plans will limit total Annual Additions to the Maximum Permissible Amount,and will properly reduce any excess amounts,in a manner that precludes Employer discretion.) ci ant is or has ever been a participant in a defined benefit plan maintained by the Employer, 2. I f the Participant and if the limitation in Section 6.04 of the Plan would be exceeded,then the Participant's Projected Annual Benefit under the defined benefit plan shall be reduced in accordance with the terms thereof to the extent necessary to satisfysuch limitation. If such plan does not provide for such reduction,or if the limitation is still exceeded after the reduction,annual additions shall be reduced to the extent necessary in the manner described ig n Sections 6.01 through 6.03.The methods of avoiding the limitation described in this paragraph will not apply if the Employer indicates another method below. Other Method. (Note to Employer: Provide below language which will satisfy the 1.0 limitation ❑ of section 415(e)of the Code. Such language must preclude Employer discretion. See section 1.415-1 of the Regulations for guidance.) 3. The limitation year is the following twelve(12)consecutive month period: Month/Day . b,i 4 001-,)1F= X. VESTING PROVISIONS The Employer hereby specifies the following vesting schedule,subject to(1)the minimum vesting requirements as noted and(2) the concurrence of the Plan Administrator. Years of Specified Minimum Service Percent Vesting Completed Vesting Requirements** - Zero % No minimum One % No minimum Two % No minimum Three % Not less than 20% Four % Not less than 40% Five 9'o Not less than 60% Six % Not less than 80% Seven or more 100 % Must equal 100% (**These minimum vesting requirements conform to the Code's three- to seven-year vesting schedule. If the employee becomes 100% vested by the completion of five years of service,there is no minimum for years three and four.) XI. - INVESTMENT OPTION ❑ A Participant may direct his/her investment only to or into an investment option that provides a guarantee of principal. ❑ A Participant may direct his/her investment of not more than %in an investment option which does not provide any guarantee of principal. ❑ A Participant may direct his/her investment, without restriction, among various investment options available under the Trust. ❑ Specify any other investment restrictions: XII. BENEFITS UPON SEPARATION 1. Upon separation from service for reason other than death,disability,or attainment of Normal Retirement Age,the Participant may elect to commence receiving benefits from the following accounts,without regard to age: a) Employer Contribution Account(Nonforfeitable Interest) ❑ Yes ❑ No b) Participant Contribution Account(if applicable) ❑ Yes ❑ No c) Participant Portable Benefits Account ❑ Yes ❑ No 5 001-91t= 2. If"no" to any of the above, the earliest age at which the Employer will allow a distribution from the Employer Contribution Account, the Participant Portable Benefits Account, and/or the Participant Contribution Account,if applicable,shall be age (not later than Normal Retire- ment Age). 3. Notwithstanding Subsection(2)above,a distribution shall be made pursuant to Section 10.04 of the Plan, De Minimis Accounts. Further,the Participant shall be entitled to request that his/her entire Non forfeitable Interest in his/her Account be transferred to another plan,pursuant to Section 10.03 of the Plan. XIII. Loans are permitted under the Plan,as provided in Article XIV. 0 Yes ❑ No XIV. The Employer hereby attests that it is a unit of state or local government or an agency or instrumentality of one or more units of state or local government. XV. The Prototype Sponsor hereby agrees to inform the Employer of any amendments to the Plan made pursuant to Section 15.05 of the Plan or of the discontinuance or abandonment of the Plan. XVI. The Employer hereby appoints the Prototype Sponsor as the Plan Administrator pursuant to the terms and conditions of the ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN& TRUST. The Employer hereby agrees to the provisions of the Plan &Trust. XVII. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement may result in disqualification of the Plan. XVIII. An adopting Employer may not rely on a notification letter issued by the National or District Office of the Internal Revenue Service as evidence that the Plan is qualified under section 401 of the Internal Revenue Code. In order to obtain reliance with respect to plan qualification, the Employer must apply to the appropriate key district office for a determination letter. This Adoption Agreement may be used only in conjunction with basic Plan document number 001. In Witness Whereof, the Employer hereby causes this Agreement to be executed on this day of , 19 EMPLOYER Accepted: ICMA RETIREMENT CORPORATION By: By: Title: Title: Attest: Attest: 3.;b ICMA RETIREMENT CORPORATION.CORPORATE HEADQUARTERS,777 NORTH CAPITOL STREET,NE.WASHINGTON,DC 20002 4240 6 (C1-(HF 401 Qualified Plan RC Use Only Employer Data Form 1. Employer Number ICMA Instructions to Employer:Provide necessary information to RETIREMENT establish your plan properly. Please contact Client Services CORPORATION at(800)669-7400,if you have any questions. General 2. Employer's Full Name (City of, County of, etc.) Plan Information 3. Employer's Mailing Address 4. City 5. State 6. Zip Code 7. Employer's Federal Tax Identification Number 8. Number of Employees 9. Number of Employees Eligible for Plan 10. Last Month of Plan Year (write in month 01-12) Contact Information 11. Title (not name) of Plan's Primary Contact Person Primary Contact Person will automatically receive all RC correspondence, reports, and bulletins Telephone ( 12. Title (not name) of Contact Person for Benefit Payments Telephone ( ❑ Check here if Contact Person for Benefit Payments should receive RC correspondence, reports and bulletins 13. Title (not name) of Contact Person for Contributions Telephone ( 0 Check here if Contact Person for Contributions should receive RC correspondence, reports, and bulletins Note: If neither of the boxes in 12 or 13 Is checked, default correspondent will be Plan Coordinator named In the resolution. Implementation of Plan 14. Contribution Frequency (check one):❑ (W) Weekly D (M) Monthly ❑ Other (specify) ❑ (B) Bi-weekly ❑ (S) Semi-monthly 15. Contribution Data Format (check one): ❑ (T) Tape ❑ (D) Diskette 16. First pay date following plan implementation 17. Are employees covered by the plan also covered by another qualified plan? J Yes J No CMA RETIREMENT CORPORATION, CORPORATE HEADQUARTERS,777 NORTH CAPITOL STREET, NE, WASHINGTON. DC 20002-4240 i;4y PEBSCO PENSION SERVICE AGREEMENT 140 AGENDA �TEM IQ DATE 1 0 92_ PEBSCO SERVICE GUARANTEES PUBLIC EMPLOYEES BENEFIT SERVICES CO. PEBSCO is committed to providing accurate and timely services to our customers. PEBSCO is hereby guaranteeing the following services: • Administration Guide PEBSCO will provide the Administration Guide which includes the plan documents, the Summary Plan Description (SPD), Administrative forms and Nationwide Life Funding Contracts. This guide will be prepared and mailed within 15 business days of the receipt of all information. • Periodic Valuations The periodic valuation consisting of the participant statements, compliance testing, appropriate annual governmental filings and investment experience allocation. This package will be provided to you no later than 40 business days after the receipt of all required information or the reporting period end whichever is later. • Comoliance Testing Non-Discrimination Testing will be performed within 25 business days of the end of the reporting period or receipt of requested information whichever is later. if PEBSCO fails to fulfill the commitment stated in this exhibit, you will receive a reduction on your :rvice fee cost equal to the charge for performing the service. The fee reduction for the Periodic Valuation will be 25% of your annual administration service fees up to $500. If PEBSCO performs a service inaccurately, the errors will be corrected and the service will be performed within a mutually agreeable completion date or PEBSCO will provide the applicable fee reduction as stated above in this exhibit. 141 ARTICLE I BASIC DOCUMENT PEBSCO PLAN ADMINISTRATION SERVICE AND FEE AGREEMENT PLAN SPONSOR: PLAN NAME: ("the Plan" ) PLAN ADMINISTRATOR: PEBSCO CASE NUMBER: EFFECTIVE DATE OF COMMENCEMENT OF SERVICES: THIS AGREEMENT sets forth the plan administrative services PEBSCO ("PEBSCO) hereby agrees rees to provide to the Plan Sponsor, the fees to be charged for such services, and the duties and obligations of the Plan Sponsor to provide certain information as requested periodically by PEBSCO to enable PEBSCO to perform such services. The services provided under this Agreement are limited to services provided for the plan referred to above and such services shall not be extended to any other plans maintained by the sponsor. 1. DUTIES AND RESPONSIBILITIES OF PEBSCO: PEBSCO will provide the administrative Services listed in Article Il of this Agreement. PEBSCO will provide the optional services listed in Article II of this Agreement as requested by the Plan Sponsor, and agreed to by PEBSCO. Periodically, PEBSCO will be responsible for requesting information from the Plan Sponsor in order to perform the services listed in Article II. PEBSCO will specify a due date when requesting such information to allow adequate time for the performance of these services prior to any deadlines imposed by governmental agencies. 2. DUTIES AND RESPONSIBILITIES OF THE PLAN SPONSOR: The Plan Sponsor will be responsible for paying any fees or charges assessed by any governmental agency, including but not limited to the Internal Revenue Service (IRS) and the Department of Labor (DOL), for the filing of reports or documents as required by such governmental agency. The Plan Sponsor will be responsible for timely and accurate submission of information requested by PEBSCO. If PEBSCO does not receive the information requested by the date stated in the correspondence or the information is incorrect, PEBSCO will not be responsible for any penalties or fees assessed by governmental agencies for late or delinquent filings. Our service guarantee will not begin (as specified) until we have received complete and accurate information. PEBSCO will charge an additional fee for the performance of services on a "rush" basis due to untimely receipt of information from the Plan Sponsor. A "rush basis" is defined as anytime PEBSCO is asked to perform a service in less time than is required under normal conditions. 3. SERVICE FEES: The Plan Sponsor agrees to pay the fees listed in Article II for the performance of services. Fees for Plan Administration Services and other services will be deducted monthly from each participants account. 4. PARTICIPANT DIRECTION OF INVESTMENTS: Pursuant to the terms of the contract, PEBSCO will honor the investment direction (contributions and exchanges) of the Plan Trustee or Plan Administrator regardless of participant investment direction. The •Plan Sponsor and Trustee shall hold PEBSCO harmless against any and all liability costs which PEBSCO or the Plan has incurred subsequent to effective date of this Agreement due to or as a result of PEBSCO's action in accordance with the written direction of the Plan Trustee or Plan Administrator. 5. MISSTATEMENTS OF INFORMATION: PEBSCO will rely on the accuracy of information received from the Plan Sponsor. Should an error or omission in the information received cause PEBSCO to re-process any of the services described in Article ll, the Plan Sponsor agrees to pay PEBSCO for the services which must be re-done. 6. AMENDMENT OF AGREEMENT: PEBSCO reserves the right to amend any part of this Agreement at any time. 143 7. TERMINATION OF AGREEMENT: This Agreement may be terminated by any party at any time by giving the other party 30 days advance written notice. 8. LEGAL, TAX AND INVESTMENT ADVICE: The Plan Sponsor understands and agrees that PEBSCO does not hereby agree or contract to provide legal, tax and investment advice. Any responsibility for the preparation and interpretation of any legal documents affecting the Plan shall be the sole responsibilities of the Plan Sponsor and/or legal counsel retained by the Plan Sponsor for such purposes. 9. SERVICE PROVIDER RELATIONSHIP: PEBSCO agrees to perform services contained in this Agreement at the request of the Plan Sponsor as evidenced by the Plan Sponsor's execution of this Agreement. PEBSCO is not a fiduciary as the term is defined in the Employee Retirement Income Security Act of 1974 ("ERISA"). 10. ENTIRE AGREEMENT: This Agreement, including Article I, II, and III and other such Articles as appropriate shall constitute the entire Agreement. . GOVERNING LAW: This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio, except as to any matters which are required to be governed by the laws and regulations of any other jurisdiction, including, but not limited to, Federal; ERISA of 1974, as amended; and the Department of Labor; and the Internal Revenue Service. 1'14 Article II 27-Feb-92 PUBLIC EMPLOYEES BENEFIT SERVICES CORPORATION (PEBSCO) SERVICES AND FEES MONEY PURCHASE PLAN EMPLOYEE DIRECTED INVESTMENTS Money Purchase Plan (Employer) Plan Effective Date Most Recent Restatement Na Plan Year TO Sponsor Fiscal Year TO PEBSCO reserves the right to charge an additional fee for any other services requested or if PEBSCO is required to repeat a service due to incorrect or incomplete information provided by the Employer or Plan Administrator. DOCUMENT SERVICES FOR THE NATIONWIDE PROTOTYPE • Specimen Board of Trustees Resolution • Prototype Completion The employer is reponsible for I• RS Determination Letter Submission if req'd any IRS filing fees. • Notice to Interested Parties • Plan Qualification Assistance " Summary Plan Description preparation INSTALLATION SERVICES • Provide employer enrollment guide and enrollment materials. • Prepare Administration Manual complete with administrative forms. * Plan parameters and employee records on PEBSCO's administration system. ANNUAL PLAN SERVICES PROVIDED a Employee Enrollment Materials and Forms a Individual Account Maintenance • Eligible Employee Determination Maintain Participant Accounts • Asset Reconciliation Monitor Investment Options a Contribution and Forfeiture Allocation Track Contributions and Withdrawals a Maximum Contributions/Benefits Compliance Record Non-Financial Data * Coverage and Participation compliance testing ' Two participant directed exchanges per year at articipant Benefit Statements no additional charge • Periodic valuations of Plan investments a Additional non-discrimination testing (e.g. testing compensation definition) PEBSCO Form 4 NF -92 r 15 ANNUAL ADMINISTRATIVE CHARGES Package Selection (please check ONLY ONE): Annual Charges Semi-Annual Valuations and Statements Annual participant charge of$24/participant plus with all available Funds an Annual Asset Management charge of 1.25% 1st Year Annual Guarantee for Fixed Contract 7.30% Semi-Annual Valuations and Statements Annual participant charge of$24/participant plus with Nationwide Funds only an Annual Asset Management charge of 1.00% 1st Year Annual Guarantee for Fixed Contract 7.30% Quarterly Valuations with all available Annual participant charge of$24/participant plus Funds an Annual Asset Management charge of 1.55% 1st Year Annual Guarantee for Fixed Contract 7.00% Quarterly Valuations with Nationwide Annual participant charge of$24/participant plus Funds only an Annual Asset Management charge of 1.30% 1st Year Annual Guarantee for Fixed Contract 7.00% Other Available Services S Per Transaction Charge Loan Program Language No charge Loan Application and Calculation $100 per loan application Loan Maintenance $25 per loan per year —an Amendments required by IRS Regulations No charge _ Jmmary Plan Description Modifications No charge Additional Allocations Charged on a case by case basis Plan Termination $60 per Hour Additional participant directed exchanges $7 per exchange PEBSCO must receive one consolidated payroll report for each deposit for the Plan. Charges will be deducted monthly from each participant account. The Employer, Plan Administrator, and PEBSCO agree that this Agreement may be terminated at any time by any party by giving to the other parties 30 days advance written notice. PEBSCO Form 4 NF -92 446 ARTICLE Ill PEBSCO SERVICE AGREEMENT DATA FORM Plan Name: PEBSCO Case Number: Effective Date Of Commencement Of Services: Plan Sponsor(s): ARTICLE TITLE EFFECTIVE.:. PREPARATION • NUMBER DATE: DATE. (BY PEBSCO) Service Guarantee I Basic Document II Fee Schedule III Service Agreement Data Form PEBSCO is committed to provide you with quality and timely services. Our goal is Service Excellence. We the undersigned hereby agree to the Service Guarantee, Basic Document Services described on the Fee Schedule. Plan Sponsor Authorized Representative PEBSCO By: By: Title: Title: Date: Date: o pd j/j es/svcag re.re p CITY OF MIAMI BEACH fr1:;1 CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. 2- 2 n TO: Mayor Seymour Gelber and DATE: October 8 , 1992 Members of the City Commission FROM: Roger M. Carlto64/01A, „ City Manager SUBJECT: Approval to Waive Competitive Bidding and Execute Contracts with the International City Managers Association Retirement Corporation and the Public Employees Benefit Service Corporation for the Servicing of the newly enacted Defined Contribution Retirement Plan Administrative Recommendation The Administration recommends that the City Commission find that it is in the best interests of the City to waive competitive bidding, which requires a five-sevenths vote, and to execute all necessary agreements with the International City Managers Association Retirement Corporation ("ICMA") and the Public Employees Benefit Service Corporation ("PEBSCO") for the administration of the Defined Contribution Retirement Plan. Background The City Commission requested that the Administration make recommendations on the structure and scope of a Defined Contribution Retirement Plan as an option to the current Defined Benefit Retirement Plan at its meeting of September 2, 1992. The Administration reviewed the effects of such a Plan and offered two Ordinances amending the current Unclassified Employees and Elected Officials Retirement Plan to allow for the option by the employee to move into this Plan and the Ordinance creating the Defined Contribution Plan on the Commission meeting of September 16, 1992, where it was passed on first reading. As the Defined Contribution Plan, like the currently offered Deferred Compensation Plan, requires an administrator for the recordkeeping and management of employee directed accounts, the City needs to have the providers of such services in place to operate the Plan upon its inception. The City Code of the City of Miami Beach allows the City Commission to waive competitive bidding if it finds that it is in the best interests of the City to do so, the City Manager recommends that the bids be waived and the Commission adopts the Resolution by a five-sevenths vote. ::8 AGENDA ITEM R` —AA DATE (� 1Oi2" -2_ r Analysis The requirements of recordkeeping and investment management that are inherent in a defined contribution plan are identical to the requirements of a deferred compensation plan. The City recently received bids from providers of services for deferred compensation services and a selection panel selected ICMA and PEBSCO as the best organizations to provide this service to the City and its employees. As the selection criteria would be identical for providing defined contribution services, both of the deferred compensation providers also provide defined contribution services and the new City Defined Contribution Plan is anticipated to become effective on October 18, 1992, it is in the City's best interest to waive competitive bidding on this service and award contracts to the current deferred compensation providers, ICMA and PEBSCO. Conclusion To properly expedite the inception of the Defined Contribution Plan for unclassified employees of the City of Miami Beach, it is in the best interests of the City to waive competitive bidding and award contracts to ICMA and PEBSCO. 1"9 .'<L(4IN,A1_, RESOLUTION NO. 92-20617 Authorizing the waiving of competitive bids for service providers for the defined contribution retirement plan for unclassified employees and elected officials and authorizing execution of the attached agreements with the International City Managers Association Retirement Corporation and the Public Employees Benefit Services Corporation.