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<br />
<br />INSURANCE NOT REQUIRED
<br />WORK MAY PROCEED
<br />CLERK OF COUNCIL
<br />DATE: 7-;10-07
<br />0: ~r.3CnYle\ fllenefi Is
<br />(t)(fq+ ~Vberrv)
<br />THIS AGREEMENT entered into as of the first day of August, 2007 between ProcessWorks, Inc. (hereinafter "PWI") and The
<br />City of Santa Ana, CA (hereinafter "Employer").
<br />
<br />N-2007 -077
<br />
<br />PROCESSWORKS, INC.
<br />SECTION 125 AGREEMENT FOR SERVICE
<br />
<br />WHEREAS, a Flexible Benefit Plan ("Plan"), is to be established by the Employer and designed to comply with Section 125 of
<br />the Internal Revenue Code ("Code").
<br />
<br />WHEREAS, the Plan incorporates professional material, and internally developed corporate information and proprietary
<br />software and recordkeeping services.
<br />
<br />NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES AND AGREEMENTS HEREIN
<br />CONTAINED, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, THE PARTIES
<br />AGREE TO THE FOLLOWING TERMS:
<br />
<br />SECTION 1 - PWI RESPONSIBILITIES
<br />1.1 PWl's services shall include preparation of an individualized Flexible Benefit Plan Document, Adoption Resolution and
<br />Summary Plan Description unless Employer chooses not to have PWI prepare these items.
<br />1.2 PWI agrees to make available the Plan materials to be used for the sole use ofthe Employer's Plan and not for distribution
<br />to others. Stock communication and enrollment materials will be included as outlined in the attached Fee Schedule.
<br />1.3 PWI agrees to provide recordkeeping, reports and administration services as outlined in the atrached Fee Schedule.
<br />1.4 Data held in PWI's administration system and online is the legal property ofPWI.
<br />1.5 PWl shall have the right to retain, at its own cost, outside services in preparing, implementing and operating the Plan.
<br />1.6 One (1) chec will be faxed or emailed (based on Employer chd' )'t ployer designee wee listing either
<br />reimbu~semen or iven wee 0 t' b prQ.e~7;~'~~' J~la;,
<br />system IS busy to p ~ve 11;,) tl1\le
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<br />~~ }i~f ;{iW
<br />
<br />The Employ ns P ,,~s Plili\,srrvic~5'vid P an ~riz~rpW'r to 0
<br />necessary to prepare, implement, and operate the Employer's Plan to comply with legal requirements set forth in the
<br />IC. \jJ1'~~tj15S?~~~,!~.,t~!..~egrlra~.iQP.~., 1. ,h'! Ijfi\pl~. ~'!rl.~n!'IP,~dr:ninistratorlsponsor has ultimate fiduciary responsibility and
<br />IcJalfi\~ ~~!~~Jj\Y:it:rl i b'Lel " t,' L,Li i i : Lie iii',!!
<br />The Employer agrees to provide data that PWI needs in comlnunication and enrollment of the Plan in a timely manner.
<br />2.3 The Employer recognizes that the Plan Document is an important legal document and that it has been prepared to conform
<br />to the desired provisions of the program. PWI cannot be responsible for the legal or tax aspects of the Plan or its
<br />appropriateness for the Employer's situation. If EmployerlEmployer's representative requires customized language to be
<br />incorporated into the Plan's legal document(s), Employer agrees to pay an hourly fee plus expenses for customization.
<br />2.4 The Employer understands that requests for reimbursement are electronically scanned and digitally saved according to,
<br />among other items, date received. PWI utilizes commercially reasonable hardware, software, and corresponding
<br />procedures to safeguard the digital images.
<br />2.5 The Employer understands PWI destroys all paper records including requests for reimbursement within either: 1) a
<br />reasonable time period after the paper record has been electronically scanned and verified, or 2) the retention period
<br />required by law. After such time period, the paper records are professionally destroyed when necessary and certificate
<br />verification filed at PWI.
<br />2.6 The Employer agrees to notify PWI about any required Employer sponsored plan design amendment(s) affecting its Plan,
<br />such as employee classification, new hire eligibility, plan year, etc. If so contracted and paid, PWI will prepare and
<br />provide Employer with updated legal documents. Plan amendment fees will apply.
<br />2.7 The Employer is required to provide PWI with highly compensated and key employee information for nondiscrimination
<br />testing on a timely basis to perform required testing. If one or more tests fail, the Employer is responsible to make the
<br />necessary adjustments and to notify PWI of such adjustments after receiving notification from PWI. PWI cannot be
<br />responsible for any penalties or fmes imposed by governmental agencies as a result or lack of these tests.
<br />2.8 If a Form 5500 filing is required, and PWI is so contracted, the Employer must complete the necessary data information,
<br />and return it to PWI in a timely marmer for PWI to prepare a signature-ready Form 5500 filing. The Employer is
<br />responsible for reviewing all filings for accuracy prior to mailing to the appropriate governmental agency. PWI cannot be
<br />responsible for any penalties or fines imposed by governmental agencies as a result or lack of these filings.
<br />2.9 The Employer is required to distribute Summary Plan Description (SPD), Summary Material Modifications (SMM),
<br />and/or Summary Annual Report (SAR) as defmed in the current governmental regulations.
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