Los Angeles County Municipal Code Part 8 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 Board of Supervisors, Participants, Beneficiaries and governmental agencies of all information, descriptions and reports required by applicable law. Each other fiduciary shall have such powers, duties and authorities as shall be specified in the Plan or Trust Agreement. The Administrative Committee shall also be responsible for contracting with any private firm selected by the Committee to provide services related to the Plan.

(Ord. 2004-0064 §§ 1, 2 (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. 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. 2004-0064 §§ 1, 2 (part), 2004.)

A.

Except as otherwise provided in this Plan or Trust Agreement, the Administrative Committee shall have sole and absolute discretion to administer the Plan, interpret the provisions of the Plan, make factual findings with respect to any issues arising under the Plan and determine the rights and benefits of Participants and other persons under the Plan. The Administrative Committee may adopt rules for the administration of the Plan provided that such rules are not inconsistent with the terms of the Plan, except that the Administrative Committee may modify any notice period required by the Plan or designate any officer to serve as the recipient of any form or notice that has to be filed under the Plan. In addition, the Administrative Committee shall remedy possible ambiguities, inequities or inconsistencies in the Plan and shall correct deficiencies and supply omissions therein. Subject to the provisions of Section 5.26.370, such determinations and findings shall be final and

conclusive, to the extent permitted by law, as to all interested persons for all purposes of the Plan. The Administrative Committee shall instruct the Trustee or Contractor as to the benefits to be paid hereunder and shall furnish the Trustee or Contractor 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. Subject to the County's reserved authority to contract with the Trustee and TPA on behalf of the Plan as provided in Subsection B 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 and Chapter 2.121 of this County Code. 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. The CEO shall develop, adopt and implement policies consistent with applicable guidance issued by the Internal Revenue Service providing for the correction of any operational errors under the Plan. Pursuant to such policies, the CEO may require a County department to make contributions to the Plan to complete an appropriate correction with respect to a Participant employed within that department. The Plan Administrator shall administer the Plan in accordance with any correction policies adopted by the CEO.

B.

The Chief Executive Officer shall be responsible for recommendations to the Administrative Committee and/or Board of Supervisors on all matters involving budget, liability and fiduciary insurance, Employee relations, and County policy relating to the Plan. The Director of Personnel shall be responsible for all Participant contact and services associated with the Plan. 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).

C.

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.

D.

The Auditor-Controller shall provide or contract for annual audits of the Plan, processing of payroll deductions and County contributions, maintaining appropriate County accounting records, transferring of funds to the Trustee or Investment Managers, and periodic reviews of the financial integrity of the Plan.

E.

The Treasurer shall be responsible for recommendations to the Administrative Committee on the administration of all contracts with the Trustee, and investment options.

F.

The Administrative Committee may assign additional duties and responsibilities to its members, and may from time to time reassign any of the duties and responsibilities set forth above as it deems appropriate.

G.

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

(Ord. 2014-0017 § 22, 2014; Ord. 2010-0063 § 11, 2010; Ord. 2004-0064 §§ 1, 2 (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 5.26.460, 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. 2004-0064 §§ 1, 2 (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. 2004-0064 §§ 1, 2 (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. 2004-0064 §§ 1, 2 (part), 2004.)

The Investment Funds shall be held by the Trustee for the exclusive benefit of the Participants and their Beneficiaries, and, unless a different Investment Manager has been appointed, shall be invested by the Trustee upon such terms and in such property as is provided in the Plan and in the Trust Agreement. Except as otherwise provided by the Administrative Committee, the Trustee will, from time to time, make payments, distributions and deliveries from the Investment Funds as provided in the Plan. The Trustee in its relation to the Plan shall be entitled to all of the rights, privileges, immunities and benefits conferred upon it and shall be subject to all of the duties imposed upon it under the Trust Agreement. The Trust Agreement is hereby incorporated in the Plan by reference.

(Ord. 2004-0064 §§ 1, 2 (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. 2004-0064 §§ 1, 2 (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 8 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 shall not include the cost of TPA fees, Trustee fees and investment management and custodial fees incident to the Investment Funds. The expenses incurred as a result of County employees performing the functions described in Part 8 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, 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 calendar year 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 Participants' accounts if it reasonably determines that actual Plan expenses authorized by this subsection will exceed the estimated annual fees determined prior to the beginning of the fiscal year.

B.

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.

C.

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 of Supervisors, and will be charged through the Trustee or reimbursed from Plan assets and paid to the County. The expenses, fees and costs so charged will be allocated to the individual Participants' accounts and shall be reflected on quarterly statements. Fees incident to investments in specific Brokerage Investments available through the Personal Brokerage Account Window are not limited by the contract or contracts approved by the Administrative Committee or the Board of Supervisors.

D.

In the event that the Plan accumulates (1) fees in excess of actual administrative expenses, or (2) unallocated earnings from Plan operations, or (3) any amounts transferred from the contingency and expense reserve established under Section 5.23.080.I.3 of the Deferred Earnings Plan as a result of the merger of the Deferred Earnings Plan into this Plan, the Administrative Committee shall allocate excess fees and earnings first by establishing a reserve for contingencies and payment of planned obligations not to exceed one-half of the total annual fees (other than TPA fees) charged to Participants, and then by allocating any remainder by reducing TPA fees charged to Participants or other administrative fees paid by the County by a method determined by the Administrative Committee.

(Ord. 2014-0017 § 23, 2014; Ord. 2010-0063 § 12, 2010; Ord. 2008-0071 § 9, 2008; Ord. 2008-0022 § 9, 2008: Ord. 2004- 0064 §§ 1, 2 (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. 2004-0064 §§ 1, 2 (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 as provided in Section 5.26.240.

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 to 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. 2004-0064 §§ 1, 2 (part), 2004.)