Los Angeles County Municipal Code Part 7 Administration of the Plan and Trust Agreement

As Administrator, the Administrative Committee shall have sole and exclusive responsibility for the administration of the Plan, including but not limited to the preparation and delivery to the Los Angeles County Board of Supervisors, Participants, Beneficiaries and governmental agencies of all information, descriptions and reports required by applicable law. Each fiduciary shall have such powers, duties and authorities as shall be specified in the Plan or Trust Agreement. Subject to the County's reserved authority to contract with the Trustee and TPA on behalf of the Plan as provided in Section 5.18.250C below, the Administrative Committee shall also be responsible for contracting with any private firm selected by the Committee according to County policies and procedures to provide services related to the Plan. To the extent provided in the TPA contract, the Administrative Committee or its designee(s) may authorize extensions of time to the term of the contract to be implemented through an amendment executed by the Administrative Committee Chair.

(Ord. 2014-0017 § 2, 2014: Ord. 2004-0063 § 1 (part), 2004.)

A.

The chairman of the Administrative Committee shall be the Chief Administrative Officer of the County. The chairman of the Administrative Committee shall select a secretary and may select such other officers as are needed from time to time. The members of the Administrative Committee or their designated representatives may authorize one or more of their number or any duly appointed Agent or County employee to carry out action that may be taken by the Administrative Committee.

B.

The Administrative Committee shall hold meetings at least quarterly or more often at the call of the chairman, provided that it shall meet jointly with the administrative committee for the County of Los Angeles Deferred Compensation and Thrift Plan. A majority of the members of the Administrative Committee shall constitute a quorum and all action taken by the Administrative Committee shall be by majority vote at a meeting at which a quorum is present. The Administrative Committee shall maintain written minutes of its meetings.

(Ord. 2004-0063 § 1 (part), 2004.)

A.

In addition to responsibilities and powers set out elsewhere in the Plan, the Administrative Committee shall have the following powers, which may be delegated to one or more Agents or the County:

The Administrative Committee shall have sole and exclusive authority to interpret where necessary the provisions of the Plan and determine the rights and benefits of Participants and other persons under the Plan. Such authority and power shall include the following: (i) resolving all questions relating to the eligibility of Employees to become Participants; (ii) determining eligibility for and the amount of benefits payable to Participants or their Beneficiaries, and determining the time and manner in which such benefits are to be paid in accordance with the terms of the Plan; (iii) authorizing and directing all disbursements by the Trustee from the Trust Fund; (iv) construing and interpreting the Plan and the Trust Agreement and adopting rules for administration of the Plan and the Trust Agreement which are not inconsistent with the terms of such documents; and (v) resolving all questions of fact with respect to any matter arising in connection with the administration of the Plan.

The Administrative Committee will establish rules and procedures to be followed by Participants and Beneficiaries in filing applications for benefits, in furnishing and verifying proofs that are satisfactory to the Administrative Committee for the determination of age, marital status, termination of service, Beneficiary designation, and in any other matters required to administer the Plan.

The Administrative Committee may modify any notice period required by the Plan or designate any County officer to serve as the recipient of any form or notice that has to be filed under the Plan.

The Administrative Committee shall instruct the Trustee as to the benefits to be paid hereunder and shall furnish the Trustee with any further information reasonably required by it for the purpose of distributing such benefits and making investments in or withdrawals from one or more of the Investment Funds.

The Administrative Committee may contract with one or more Investment Managers, or enter one or more investment arrangements, with respect to the Investment Funds.

Subject to the County's reserved authority to contract with the Trustee and the TPA on behalf of the Plan as provided in Subsection C below, the Administrative Committee shall also have the authority to contract with one or more private firms for services related to the Plan, consistent with Section 44.7 of the Los Angeles County Charter, Part 3 of Chapter 2.104 of this Code, State and County contracting policies and Chapter 7 of Title 9 of the California Government Code (Section 87000, et seq.). To the extent provided in the TPA contract, the Administrative Committee or its designee(s) may authorize extensions of time to the term of the contract to be implemented through an amendment executed by the Administrative Committee Chair.

Subject to the provisions of Section 5.18.260 and Section 5.18.320, all decisions of the Administrative Committee as to the facts of any case and the application thereof to any case, as to the interpretation of any provision of the Plan or its application to any case, and as to any other interpretive matter or other determination or question related to the Plan or its administration shall be final and conclusive, to the extent permitted by law, as to all interested persons for all purposes of the Plan.

B.

The Administrative Committee may assign additional duties and responsibilities to its members, and, with the exception of those duties expressly reserved to the County, may from time to time reassign any of the duties and responsibilities set forth in this Section as it deems appropriate.

C.

The County, as Plan sponsor, shall be responsible for contracting with the Trustee(s) and the TPA. Any additions or changes to the terms of the TPA contract may be implemented through a contract amendment executed by the CEO (provided that extensions to the term of the contract may, to the extent permitted by the contract, be authorized by the Administrative Committee or its designee(s) and implemented through an amendment executed by the Administrative Committee Chair).

D.

The County Treasurer is responsible for recommending to the Administrative Committee contracts for the guaranteed investment contracts or bank deposit funds that comprise the fixed income Investment Funds, and for administering all investment contracts.

E.

The CAO shall be responsible for recommendations to the Board on all matters involving the appointment or removal of the Trustee, the County budget, employee relations and County policy relating to the Plan. The CAO also shall be responsible for recommendations to the Administrative Committee concerning Plan operations and for the conduct of certain business operations on the Administrative Committee's behalf, including the review of Plan expenses to determine that they do not exceed approved limits, the purchase of fiduciary liability insurance, the administration of the Trust Agreement, TPA contracts and any communication regarding Plan provisions or services contracts regarding the same.

F.

The Director of Personnel for the County shall be responsible for all Participant contact and services associated with the Plan.

G.

The County Counsel shall provide, or contract for, all legal advice or representation required by the Administrative Committee and/or the County and its officers and employees in connection with their administration of the Plan.

H.

The County Auditor-Controller shall be responsible for recommending a Plan auditor, administering auditor contracts, writing the specifications for Plan audits, supervising Plan audits, processing of payroll deferrals and County contributions, maintaining appropriate County accounting records, transferring of funds and account allocation information to the TPA, Trustees or Investment Managers, and periodic reviews of the financial integrity of the Plan.

I.

Each of the above County officers may discharge any duty required by this Section through any designated deputy or assistant or contractor.

J.

The Trustee has only those duties set forth in the Trust Agreement. The Trust Agreement is hereby incorporated in the Plan by reference.

K.

The County expressly reserves to itself the duties set forth in subsection C, the first sentence of subsection E and subsections G and H of this Section.

(Ord. 2014-0017 § 3, 2014; Ord. 2004-0063 § 1 (part), 2004.)

Any action taken by the Administrative Committee with respect to the rights or benefits under the Plan of any Participant or Beneficiary shall be revocable by the Administrative Committee as to payments, distributions or deliveries not theretofore

made hereunder pursuant to such action. Notwithstanding Section 5.18.330, appropriate adjustments may be made in future payments or distributions to a Participant or Beneficiary to offset any excess payment or underpayment theretofore made hereunder to such Participant or Beneficiary.

(Ord. 2004-0063 § 1 (part), 2004.)

The Administrative Committee may employ such expert communication and enrollment, legal, accounting, investment, trustee, custody, or other assistance as it deems necessary or advisable for the proper administration of the Plan and Investment Funds.

(Ord. 2004-0063 § 1 (part), 2004.)

All action taken by the Administrative Committee under the Plan shall treat all persons similarly situated in a uniform and consistent manner.

(Ord. 2004-0063 § 1 (part), 2004.)

All payments of benefits provided for by the Plan (less any deductions provided for by the Plan) shall be made solely out of the Investment Funds in accordance with instructions given to the Trustee by the Administrative Committee, and the County shall not be otherwise liable for any benefits payable under the Plan.

(Ord. 2004-0063 § 1 (part), 2004.)

A.

Prior to the beginning of each County fiscal year, the Administrative Committee shall determine the amount of annual fees that it reasonably estimates will be necessary to properly administer the Plan during such fiscal year. For purposes of its determination, the Administrative Committee shall take into account (i) direct, additional County costs expected to be incurred as a result of County employees performing the functions defined in Part 7 and (ii) the cost of contractors that provide services to the Plan, including, without limitation, fiduciary and liability insurance coverage, communication consultants, investment advisors, auditors and legal services, pursuant to contracts that are approved by the Board or the Administrative Committee. The expenses subject to this subsection A shall not include: (1) TPA fees, or (2) Trustee fees and investment management and custodial fees incident to the Investment Funds, all of which are addressed in subsection B.

The expenses incurred as a result of County employees performing the functions defined in Part 7 shall not exceed the amount approved by the Board of Supervisors in the County budget.

Expenses incurred as a result of contractors performing the Plan functions described in this Part 7, and the cost of fiduciary and liability insurance, are limited by the contract or contracts approved by the Administrative Committee or the Board.

The annual fees approved by the Administrative Committee may be charged through the Trustee or reimbursed from Plan assets and paid to the County.

The estimated annual fees for the Plan approved by the Administrative Committee pursuant to this subsection will be charged to each Participant's account on a per-capita basis. The per-Participant, annual charge will be determined by dividing the estimated annual fees for the Plan by the number of Participants on the last day of the month prior to the beginning of the fiscal year for which the fees are being determined. The per-Participant annual charge will be divided by 12 and billed monthly to each Participant's account during the fiscal year. A Participant will be billed only for months in which he or she has an account balance in the Plan. The monthly charges will appear on the Participant's quarterly statement.

Employees who become Participants in the Plan during the fiscal year will be charged the same monthly per-Participant charge determined prior to the beginning of the fiscal year by the Administrative Committee.

Until such time as the Administrative Committee approves a new annual fee, Participants will be charged the same monthly per-Participant charge as previously set by the Administrative Committee.

The Administrative Committee may assess an emergency surcharge to Participant's accounts if it reasonably determines that actual Plan expenses authorized by the subsection will exceed the estimated annual fees determined prior to the beginning of the fiscal year.

Expenses incurred by members of the Administrative Committee as a result of performing their duties under the Plan will be charged through the Trustee or reimbursed from Plan assets and paid to the member incurring such expense. Such expenses may include the costs of educational materials or classes relating to plan administration or investments if the Administrative Committee determines that such costs are reasonable and necessary.

B.

TPA, Trustee fees, and investment management and custodial fees incident to the Investment Funds are limited by the contract or contracts approved by the Administrative Committee or the Board. TPA and Trustee fees will be charged through the Trustee or reimbursed from Plan assets and will be allocated to the individual Participants' accounts and reflected on quarterly statements. Investment management and custodial fees incident to the Investment Funds shall be periodically charged to the appropriate Investment Fund.

C.

In the event that the Plan accumulates (i) fees in excess of actual administrative expenses, or (ii) unallocated earnings from Plan operations, the Administrative Committee shall allocate excess fees and earnings first by establishing a reserve for contingencies and payment of planned obligations not to exceed 100% of the aggregate total annual County fees, TPA fees, and Trustee fees charged to Participants the preceding fiscal year, and then by allocating any remainder by reducing TPA fees charged to Participants by a method determined by the Administrative Committee.

(Ord. 2004-0063 § 1 (part), 2004.)

The Administrative Committee shall have the duty to make changes in the administration of this Plan which are necessary to comply with federal or State of California laws.

(Ord. 2004-0063 § 1 (part), 2004.)

A.

Initial Claim. Any Participant or Beneficiary who believes that he or she is entitled to receive a benefit under the Plan must file an application with the Administrative Committee as provided in Part 6.

B.

Appeal. If an application for benefits is denied, the Participant or Beneficiary will be advised of his or her right to appeal the denial to the Administrative Committee. The Participant or Beneficiary may appeal the denial of his or her application by filing with the Administrative Committee a written request for review of such claim stating the specific facts supporting his or her claim and specifying the remedy sought. The appeal shall be reviewed by Agents of the Administrative Committee. If the Agents determine that the claim is valid, benefits shall be distributed as soon as administratively feasible in accordance with the terms of the Plan. If, however, such Agents recommend denial of the claim, such appeal shall be reviewed by the Administrative Committee at its next open meeting. The determination of the Administrative Committee as to the denial of a claim on appeal shall be final and binding to the extent permitted by law.

(Ord. 2004-0063 § 1 (part), 2004.)