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Sec. 22-62(a). Plan Administrator and Named Fiduciary. The Board shall serve as the Plan Administrator and named fiduciary of the DC Plans. The Board shall be responsible for, and shall have the power and authority necessary to effectuate the administration, management and operation of the DC Plans. The Board shall construe, interpret and implement the provisions of this Article and the Plan Documents, in its discretion and pursuant to uniform and non-discriminatory rules, policies and procedures. In the event of a conflict between this Article and a Plan Document, the provisions of this Article shall control unless application of this Article would negatively impact the tax advantages associated with a DC Plan.
Sec. 22-62(b). Employment of Professionals. The Board may employ record-keepers, investment consultants, investment managers, retirement plan consultants, and other service providers as may be necessary for the proper administration of the DC Plans. Professionals employed by the Board shall discharge their duties in accordance with and be subject to the highest prevailing industry standard of care for their respective disciplines.
Sec. 22-62(c). Payment of Expenses. The Board shall facilitate and approve the payment of expenses that are reasonably necessary for the proper administration of the DC Plans. Expense payments authorized by the Board shall be funded from the appropriate Trust Fund, unless the City has agreed to pay a particular expenses and has budgeted for such expense.
Sec. 22-62(d). Correction of errors. The Board shall correct errors that occur in the administration of the DC Plans in accordance with the rules governing the correction of errors in tax-qualified and tax-deferred retirement programs.
Sec. 22-62(e). Additional Powers and Duties. In addition to all other powers and duties, the Board shall:
(1) Keep a record of all of its proceedings, and such record shall be open to inspection by Participants and the public;
(2) Review and resolve ambiguities arising in the administration of the DC Plans, including questions of eligibility, benefits, account distributions and interpretation of Plan Documents;
(3) Manage the investment of DC Plan assets with the advice and counsel of the Board's investment consultants and pursuant to the Plan Documents governing the Trust Funds;
(4) Adopt necessary rules and regulations governing the administration of the DC Plans;
(5) Hear and resolve employee, Participant and beneficiary claims relating to the DC Plans;
(6) Delegate fiduciary decision-making, administrative functions and ministerial duties to the City's Pension and Benefits Administrator, in its discretion;
(7) Contract with service providers to perform administration, investment, recordkeeping and custodial services with regard to the DC Plans; and
(8) Do all other things necessary for the proper administration of the provisions of the DC Plans.
Sec. 22-62(f). Prohibited Acts. No member of the Board shall have any interest, direct or indirect, in the gains or profits of an investment made by the Board or an investment option approved by the Board, except as a Participant or beneficiary of a DC Plan. No member of the Board shall, directly or indirectly, for himself or as an agent, in any manner use the moneys or other assets of any DC Plan, except to make such payments from the DC Plan Trust Funds as are authorized by the Board.
Sec. 22-62(g). Due Diligence. When managing the DC Plan investments, the Board shall exercise the judgment and care of a prudent retirement plan fiduciary. The Board shall structure an investment array for Participants that allows for appropriate diversification, minimizes the risk of large losses and avoids conflicts of interest.
(Ord. 11937, § 1, 7-12-22)
To the extent permitted by law, the Board, the individual members of the Board and the City's personnel who engage in the administration of the DC Plans shall be indemnified and held harmless against any and all liabilities (including defense costs and expenses) arising by reason of an act or failure to act in their fiduciary and administrative capacities to the DC Plans, and for liability and costs resulting from the acts and omissions of their duly appointed agents, except for those acts, omissions, or conduct resulting from their own willful misconduct, willful failure to act, or gross negligence. The City may procure fiduciary liability insurance designed to fund the indemnification provided by this section, and may charge the cost of such insurance to the DC Plans as a reasonable expense of administration. The City shall be liable for indemnification under this section only to the extent that the liability exceeds the amount available through the DC Plans' fiduciary liability insurance.
(Ord. 11937, § 1, 7-12-22)
The DC Plans shall be construed and enforced under the laws of the State of Arizona and any federal law, rule or regulation applicable to a tax-qualified governmental retirement plan or a tax-deferred IRC Section 457 deferred compensation plan. The DC Plans are intended to be structured and operated as IRC Section 414(d) governmental plans or eligible IRC Section 457 deferred compensation plans, and both the DC Plans and this Article shall be administered in accordance therewith.
(Ord. 11937, § 1, 7-12-22)
Sec. 22-65(a). Amendment of DC Plans. The Board may alter, amend or modify any provision of the DC Plans to comply with applicable federal laws and to provide additional benefits, rights or features to Participants and beneficiaries; provided, however, that no amendment approved by the Board shall impact employer contributions to a DC Plan or have a material impact on the City's cost of maintaining a DC Plan. No amendment to a DC Plan shall diminish or infringe upon the vested rights of any Participant or beneficiary under a DC Plan. Any amendment submitted to the Board for approval must be reviewed and approved by legal counsel prior to adoption.
Sec. 22-65(b). Termination of DC Plans and Amendments Impacting City Costs. The Mayor and City Council may alter, amend or terminate a DC Plan at any time in their discretion. Any amendment to a DC Plan that will impact employer contributions to a DC Plan or have a material impact on the City's cost of maintaining a DC Plan must be approved by the Mayor and City Council to be effective. No amendment or termination of a DC Plan shall diminish or infringe upon the vested rights of any Participant or beneficiary under a DC Plan.
(Ord. 11937, § 1, 7-12-22)
ARTICLE IV.
GROUP INSURANCE AND MEDICAL HEALTH PLANS*
GROUP INSURANCE AND MEDICAL HEALTH PLANS*
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* Editors Note: Section I of Ord. No. 4138, enacted Feb. 19, 1974, amended art. IV, §§ 22-78--22-85, to include medical health benefits in the provisions of the article. Formerly art. IV was entitled "Group Insurance."
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