(A) On March 14, 2006, the Retirement Board authorized establishment of a Hybrid Plan, with a defined benefit (DB) and defined contribution (DC) component. New Section 19B, Benefit Program H, and related plan amendments, create a new Hybrid Program that a participating municipality may adopt for MERS members to be administered in whole or in part under the discretion of the Municipal Employees' Retirement Board as trustee and fiduciary, directly by (or through a combination of) MERS or MERS* duly-appointed third-party administrator for the DC component. On December 1, 2006, the Retirement Board entered into an amended and restated alliance agreement (the "2006 Alliance Agreement") with ICMA-RC (the International City Management Association Retirement Corporation) as third-party administrator for the DC Program or components established under the MERS Plan Document (which replaced the 2001 Alliance Agreement dated November 14, 2001). This Uniform Hybrid Program Ordinance has been approved by the Retirement Board under the authority of MCL 38.1536(2)(a); Plan section 36(2)(a) declaring that the Retirement Board "shall determine . . . and establish" all provisions of the retirement system. Under this authority, the Retirement Board authorized Section 19B, Benefit Program H, which shall not be implemented unless in strict compliance with the terms and conditions of this subchapter as provided under section 19B(17):
(1) In the event any alteration of any provision of section 19B, or other sections of the plan document related to the provisions of Benefit Program H, is made or occurs, under section 43B of the plan document concerning collective bargaining or under any other plan provision or law, adoption of Benefit Program H shall not be recognized, other than in accordance with this section and other sections of the plan document related to the provisions of Benefit Program H.
(2) In the event any alteration of the terms or conditions stated in this subchapter is made or occurs, it is expressly recognized that MERS and the Retirement Board, as sole trustee and fiduciary of the MERS Plan and its trust reserves, and whose authority is nondelegable, shall have no obligation or duty: to administer (or to have administered) the Benefit Program H; to authorize the transfer of any plan assets to the hybrid program; or to continue administration by MERS directly or indirectly, or by any third-party administrator.
(B) Concurrent with the adoption of this subchapter, and as a continuing obligation, the City Council is approving, for submission to MERS, documents necessary for adoption and implementation of MERS Benefit Program H. This obligation applies to any documents deemed necessary to the operation of the DC component by MERS' third-party administrator.
(Ord. 091012-1, passed 10-12-2009)