HomeMy WebLinkAboutContract CAG-96-012
City of Renton # and Be*Administration Company
Cafeteria Plan (Section 125, IRC)
Administrative Services Contract
City of Renton, hereafter referred to as Employer, and Benefit Administration
Company, hereafter referred to as Company, hereby enter into an agreement
whereby the Company shall provide the Employer with certain administrative
services for the operation of Employer's Flexible Benefits Plan, hereafter
referred to as Plan.
In consideration of the mutual promises contained herein, the parties agree as
follows:
1 Purpose of Contract
1.1 Employer agrees to employ the Company to provide the Employer
with administrative services for the operation of the Plan, and to
compensate the Company, in accord with the terms of this contract, for
the performance of such services.
1.2 Company agrees to perform services in accord with the provisions of
this contract.
2 Services
2.1 Company shall:
A. Maintain offices with facilities and personnel adequate to
perform the services provided for herein.
B. Provide monthly reports to Employer detailing employee
participation in the Plan, including salary reduction amounts and
Cafeteria Plan (Section 125, IRC) Page 1 Administrative Services Contract
Plan Services by BENEFIT ADMINISTRATION COMPANY,1301 Fifth Avenue,Suite 3300,Seattle,Washington 98101,(206)625-1800,Facsimile(206)682-8016
City of Renton • and BerOAdministration Company
deposits to health care expense reimbursement and dependent
care accounts.
C. Receive and process claims made by participants in the Plan
for health care and dependent care expenses. Review of claims
will include verification of eligibility as well as adjudication.
Company may, in processing claims, communicate either by phone
or letter with claimant.
D. Pay approved claims to the extent account balances permit,
using funds provided by Employer.
E. Provide an explanation of benefits to each participant who has
submitted a claim, showing action on the claim and the
participant's account balance after settling the claim. At
Employer's option, a copy of each such explanation will be
provided at the time of claims settlement or less often (for example,
quarterly, along with the report in 2.1.H, below).
F. Prepare and maintain a claims file for each participant who files
a claim.
G. Upon appeal by a plan participant, promptly provide a complete
review of the appealed claim settlement, notifying both the
participant and Employer of the result of the review.
H. Provide Employer with a quarterly financial report summarizing
participant health care and dependent care accounts.
I. Provide to Employer for each employee with a Dependent Care
Account the IRS-required report of claims payments by each
January 31 for the immediately preceding Plan year .
J. Perform appropriate discrimination test upon Employer's
Flexible Benefits Plan.
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Plan Services by BENEFIT ADMINISTRATION COMPANY,1301 Fifth Avenue,Suite 3300,Seattle,Washington 98101,(206)625-1800,Facsimile(206)682-8016
City of Renton and BeADAdministration Company
K. Provide Employer with completed IRS Form 5500 for
Employer's Flexible Benefits Plan within seven months of plan year
end. Employer is to review and sign the form and file the form with
the Internal Revenue Service.
2.2 The services to be provided by Company are ministerial in nature,
which is to say that Employer retains all authority and responsibility as
Plan sponsor.
3 Accountability
3.1 The Company will carry out its administrative functions with
reasonable care using practices generally accepted by service
organizations providing such functions to employee benefit plans.
3.2 Company Not the Insurer. Employer agrees that the sole function of
Company is to provide administrative services and that the Company shall
have no liability for the funding of benefits.
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4 Records and Documents
4.1 Company agrees that all forms, lists of names, journals, ledgers and
all other recorded information and documents incidental to administration
of this Plan are and shall remain the property of Employer.
4.2 All data stored on data processing media pertaining to the Plan is the
property of Employer. In the event of termination of administrative
services, Company will assist the Employer in identifying, understanding
and decoding said information and data and Company shall be
reimbursed for such work in accordance with the terms of this contract.
Cafeteria Plan(Section 125, IRC) Page 3 Administrative Services Contract
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Plan Services by BENEFIT ADMINISTRATION COMPANY,1301 Fifth Avenue,Suite 3300,Seattle,Washington 98101,(206)625-1800,Facsimile(206)682-8016
City of Renton . and Be*Administration Company
4.3 The following materials are property of Company and Employer
agrees that it shall have no right to use such materials following
termination of this contract:
A. Claims processing and payment manuals;
B. Administrative procedure manuals;
C. Data processing systems; and
D. Computer programs.
5 Governing Law and Validity
5.1 The validity, interpretation and performance of this contract shall be
controlled and construed according to the laws of the State of
Washington.
5.2 Employer agrees that Company is not a successor to any previous
administrative service organization.
6 Fees
6.1 As of the first day of each calendar month, Company shall submit, for
payment by Employer, an invoice for $6.00 for each employee with one or
more flexible spending accounts, which shall be considered the fee for
administrative services during that month.
6.2 Employer will pay Company the amount shown on the invoice within
thirty days of receipt thereof.
6.3 This contract does not cover the following items, and Company shall
be reimbursed for any expenditures incurred by it in relation thereto:
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Plan Services by BENEFIT ADMINISTRATION COMPANY,1301 Fifth Avenue,Suite 3300,Seattle,Washington 98101,(206)625.1800,Facsimile(206)682-8016
City of Renton • and BeoAdministration Company
A. Printing of Plan forms or documents with Employer's prior
approval;
B. Premiums for bonds, fiduciary liability insurance or errors and
omissions insurance required for Employer; and
C. Expenses incurred by Company for travel outside the Puget
Sound area which is requested and authorized by Employer;
7 Proprietary and Confidential Information
7.1 Employer agrees that Company shall not be obligated to disclose any
proprietary or confidential information of Company to Employer or
Employer's designee. Company agrees not to disclose any Employer
information to others without prior approval of Employer.
8 Entire Contract
8.1 This contract embodies the entire contract and understanding of the
parties and supersedes all prior oral and written communications between
them. The terms hereof may be modified only by a written statement
signed by both parties hereto. This contract is for the sole benefit of
Employer and its successors, and Company and its successors or
assigns, and shall not be construed as granting any rights in favor of any
other persons.
9 Indemnification
9.1 Each Contractor hereby agrees to indemnify, defend, and hold
harmless the City of Renton and its council members, officers, employees,
agents, attorneys, and assigns (hereinafter"Indemnitees") from and
against all actions, causes of action, liabilities, claims, suits, penalties,
Cafeteria Plan(Section 125, IRC) Page 5 Administrative Services Contract
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Plan Services by BENEFIT ADMINISTRATION COMPANY,1301 Fifth Avenue,Suite 3300,Seattle,Washington 98101,(206)625-1800,Facsimile(206)682-8016
City of Renton • and Be*Administration Company
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fines, judgments, liens, awards and damages of any kind whatsoever
(hereinafter "Claims") including injury to or death of any person (including,
without limitation, claims brought by employees or invitees of such
Contractor) and for damage to or loss of any property by Contractor, and
expenses, costs of litigation, and reasonable attorneys fees related
thereto, or incident to establishing the right of indemnification. Contractor
expressly waives any governmental immunity and any immunity under
industrial insurance whether arising from Title 51 of the Revised Code of
Washington or any other statute or source, to the extent of the indemnity
set forth in this paragraph. In the event that Contractor is successful in
proving that the foregoing indemnity is limited by RCW 4.24.115, such
Contractor shall defend, indemnify and hold harmless the Indemnitees to
the full extent allowed by RCW 4.24.115. In no event shall Contractor's
obligations hereunder be limited to the extent of any insurance available
to or provided by Contractor. Contractor shall require each Subcontractor
to provide an indemnity, b and for the benefit of the
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Indemnitees, to the same extent required of the Contractor.
10 Term of Contract
10.1 This contract shall become effective when signed by both parties,
and shall remain effective until terminated. Either party may terminate
this contract or offer to modify it by giving ninety (90) days advance
notice, set in writing, to the other party. The 90-day requirements of this
paragraph may be waived by the mutual consent of the parties hereto.
10.2 Any notice required or permitted to be given pursuant to paragraph
10.1 hereof shall be in writing and shall be served upon the other party
personally, or by certified mail, postage prepaid, return receipt requested,
unless otherwise provided herein.
This agreement shall be binding upon the Company, its successor or assigns,
and the Employer and its successors.
Cafeteria Plan(Section 125, IRC) Page 6 Administrative Services Contract
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Plan Services by BENEFIT ADMINISTRATION COMPANY,1301 Fifth Avenue,Suite 3300,Seattle,Washington 98101,(206)625-1800,Facsimile(206)682-8016
City of Renton . and Be*Administration Company
In witness whereof, the parties hereto have caused this contract to be signed
and executed by their authorized signatures as shown below:
For Benefit Administration Company
By:
Date:
Title:
Title: 9Cr,` I4-W ft<"cr Q
For City of Renton
By: Zeat" L44",
Date: -713
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Title: d2ts6a
Cafeteria Plan (Section 125, IRC) Page 7 Administrative Services Contract
Plan Services by BENEFIT ADMINISTRATION COMPANY,1301 Fifth Avenue,Suite 3300,Seattle,Washington 98101,(206)625-1800,Facsimile(206)682.8016