SERVICE AGREEMENT
BETWEEN
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Actuaries
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Plan
Name (“plan” or “client”) |
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Third
Party Administrator |
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AND
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701 |
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Employer
Name |
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Address |
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Address |
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City State Zip |
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City State Zip |
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The above plan, herein referred to as “Client”, with the consent of the Employer, has engaged Actuaries and Associates, herein referred to as “TPA” to provide routine administrative services for the qualified retirement plan.
CLIENT
RESPONSIBILITIES
The
Employer and Plan shall:
____ Act as plan administrator as that term is used
in ERISA, and in the management and exercise of discretionary authority over
the disposition of plan assets and management and interpretation of the plan;
____ Review the plan adoption agreement and/or plan
document prepared by the TPA for accuracy, have the documents reviewed by legal
counsel as desired, and execute the final version within 30 days of receipt;
____ If a “takeover” of an existing plan, provide
the TPA with a copy of the plan’s existing adoption agreement or document and
any related documentation necessary for the completion of a replacement
adoption agreement or document;
____ Inform the TPA of any changes that necessitate
an amendment to the plan adoption agreement or document at least 30 days prior
to the effective date of such change;
____ Complete the TPA’s annual “Data Request Packet”
(DRP) and assume all responsibility for the accuracy of such data;
____ Submit the completed DRP to the TPA as soon as
administratively feasible following the end of the plan year;
____ Verify the accuracy of the responses on all
governmental forms prepared by the TPA;
____ Return properly signed governmental forms to the
TPA in a manner that permits the TPA to submit the same to the IRS prior to the
normal or extended filing deadline;
____ Inform the TPA when a participant is eligible
for a withdrawal from the plan including distribution upon termination, loan,
hardship withdrawal, or in-service withdrawal; assume responsibility for
completion and execution of forms associated with such transactions;
____ Be responsible for the withholding and deposit
of taxes associated with plan distributions directly or through the plan’s
investment company;
____
Respond to the TPA’s annual letter addressing participant distributions and
Form 1099R preparation by the deadline stated within the letter;
SERVICES
PERFORMED BY TPA
The TPA
shall:
____ Design benefits
and complete an adoption agreement or document for the plan and submit same to
the IRS for approval when necessary or upon request of the Client;
____ Prepare any necessary or requested amendments
to the adoption agreement or plan document;
____ Prepare a restatement of the adoption
agreement or document when mandated by the IRS;
____ Use its best
efforts to inform the Client of new legal requirements or interpretations;
____ Notify Client of upcoming plan year end and request data necessary to the completion of an annual valuation;
____ Determine employee eligibility, each
participant’s benefit or share of contributions, forfeitures, earnings and
expenses and each participant’s vested percentage;
____ Prepare an annual valuation consisting of a
Summary Annual Report, Contribution Report, Account Balance Statement,
applicable Discrimination Test reports, and participant statements (if not
provided by the investment company);
____ Prepare all governmental reporting forms and
provide Client with signature ready forms to the extent practicable, and submit
same to the IRS;
____ Calculate benefits due in the event of a
participant’s termination of employment or application for any other
withdrawals from the plan;
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FUNCTIONS THE TPA CANNOT PERFORM
____ The TPA is not a
plan fiduciary and is not the Plan Administrator as the term is defined in
ERISA;
____ The TPA has no power, authority, or control
with respect to the management or disposition of the plan assets and has no
discretionary authority with respect to the management or interpretation of the
plan;
____ The TPA cannot
provide investment advisory services;
____ The TPA cannot
provide accounting or legal services;
____ The TPA cannot be
responsible for the accuracy of information or reports provided by the client
or the client’s agent, accountant, attorney, investment advisor, investment
company, or previous TPA and shall not verify or investigate the accuracy of
such information.
____ The TPA shall bill the client on either a
quarterly or annual basis based on the frequency of services.
____ Payment of
services is due upon invoice receipt.
____ The TPA will discontinue further service when
payment is 90 days overdue.
____ A retainer shall be required to cover any
services that are to be performed following the termination of this Agreement
or a termination of the plan. Such
services shall include a fee to transfer data to a new service provider.
____ The fees outlined by the TPA assume that any
data provided by the Client is in a format acceptable to the TPA and is
complete and accurate. TPA reserves the
right to charge the Client for the reasonable costs the TPA incurs in gathering
missing data, correcting any errors or obtaining the data in an acceptable
format.
____ If the TPA files suit to collect fees under
this Service Agreement, the Plan and
Employer shall be jointly and severally liable for all fees, attorney’s fees
and collection costs.
____ By signing this agreement, the Client and
Employer accept responsibility for payment of all services invoiced by the
TPA.
INDEMNIFICATION
The Client shall indemnify and hold harmless Actuaries and
Associates and its representatives from any liability, cost, or other expense
including attorney’s fees that may be incurred unless such arises from
Actuaries and Associates own willful misconduct or gross negligence. Actuaries and Associates shall not be
obligated or expected to commence, participate in or defend any legal action or
proceeding in connection with the plan.
TERM OF AGREEMENT
This Agreement may be terminated by either party at any time upon
30 day written notice to the other party.
All files created or held by the TPA including data provided by the
Employer, Client or the Employer’s or Client’s agent, sponsor, accountant,
attorney, investment advisor, investment company, or previous TPA shall remain
the property of the TPA. This Agreement
may be amended only by a written amendment signed by all parties.
ACCEPTANCE
By signing below the parties accept the terms of this agreement,
and the Employer agrees that it, as well as Plan, is obligated to pay the TPA’s
fees as set forth in the Service Agreement.
_______________________________
Date
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Plan Representative
__________________________
Employer Representative
_______________________________
TPA Representative