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25D - AGMT RECORDKEEPING SVC 457 PLAN
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25D - AGMT RECORDKEEPING SVC 457 PLAN
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7/12/2018 5:33:26 PM
Creation date
7/12/2018 5:26:24 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Finance & Management Services
Item #
25D
Date
7/17/2018
Destruction Year
2023
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VON Prudential <br />C. Compensation <br />Services Agreement <br />Provided by Prudential Retirement <br />Insurance and Annuity Company <br />1. Direct Fees. Prudential's fees for the Services will be set at 4.9% bps. The Plan Sponsor agrees the <br />Plan will be liable to pay Prudential directly for Services rendered in accordance with the approved <br />fee. <br />The Plan Sponsor agrees that all fees not deducted directly from Participant accounts will be paid by <br />the Plan within thirty (30) days of the date of an invoice timely presented, unless fees are paid within <br />that time by the Plan Sponsor. If the Plan Sponsor does not pay or direct Prudential to charge the <br />Plan for fees within thirty (30) days, the Plan Sponsor authorizes Prudential to collect direct fees from <br />the Plan's forfeiture account, if permitted by the Plan. If the amount in the forfeiture account is <br />Insufficient to pay all such fees, Prudential will present the Plan Sponsor with an invoice for the <br />unpaid balance, which shall be payable immediately upon receipt. <br />Hossioie tees to Pruoenuai and Aliwates. i tie Han 6ponsor acknowiedges inat Nruuenuai may ue <br />deemed to benefit from advisory and other fees paid to it or its affiliates for managing, selling, or <br />settling of the Prudential mutual funds and other investment products or securities offered by <br />Prudential or its affiliates, and further acknowledges that Prudential may benefit directly from the <br />difference between investment earnings of Prudential stable value funds and the amount credited to <br />deposits in those funds. Prudential may also benefit from broker-dealer or other entities' co- <br />sponsorship of Prudential conferences. In addition, the Plan Sponsor acknowledges that associated <br />persons of Prudential Retirement's affiliated broker-dealer receive greater compensation for client <br />assets allocated to proorietary investment options. <br />3. Compensation to Third Parties. Commissions ranging from 0.0% to 1.0% will be paid in connection <br />with deposits made to a group annuity contract issued by Prudential. The Plan Sponsor <br />acknowledges that the broker dealer selling the investment products and services to the Plan. If any, <br />may be compensated, directly or indirectly, by the principal underwriter of the mutual fund, by an <br />affiliate of the collective trust or by the executing broker dealer in connection with self-directed <br />brokerage accounts. Such compensation may include preferred provider payments, retail rollover <br />payments, payment of broker expenses in connection with Prudential training and educational <br />meetings or other variable payments. <br />4. Possible Additional Compensation/Loss. In certain circumstances (such as trading errors or delays), <br />market trades may occur at times when the share price of the trade is not the price assured to the <br />Plan and Participants. Prudential will net any pricing differences that occur and absorb any net loss <br />and retain any net gain that results; provided, however, that the Plan Sponsor will be responsible for <br />any net loss resulting from incorrect information it provides to Prudential, and Prudential will not <br />absorb any such loss. The Plan Sponsor agrees and acknowledges that Prudential will retain any net <br />gain that results as additional compensation for Services rendered. Additional information may be <br />found in the Disclosure section of your Implementation Workbook. <br />5. Float Earnings. Plan Sponsor agrees and acknowledges that Prudential may earn additional <br />compensation in the form of'Float" earnings on contributions and on distributions and loans. <br />Prudential describes this compensation in its written float policy located in the Disclosures section of <br />the Implementation Workbook. <br />6. Production of Documents. The charges under this Agreement do not include Prudential's fees, costs <br />and expenses, including legal expenses, associated with considering or responding to requests for <br />documents, providing testimony, or participating in legal or regulatory proceedings as a result of the <br />performance of the Services. Prudential shall invoice Plan Sponsor separately, and Plan Sponsor <br />agrees to reimburse Prudential for such reasonable fees, costs and expenses. <br />D. Amendment or Termination of Agreement; Successor Recordkeeper <br />3 <br />25D-7 <br />
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