Loading...
HomeMy WebLinkAboutres2002-039WHATCOM COUNTY COUNCIL AGENDA BILL NO. As2002 -329 LEARANCES Initial Date Date Receivedln Cmwcil 0 rte A enda Date Ass / nedto: ator: S. Great 0829 )) _ ' yL �C �'. r -`) SEP 3 - 2002 '1/ / R/ °ive: i- SeptIQ 2002 Finance/Courrci(— Cmrsent Agenda n Head: 08/2) r MCLEARANCES ead: G. Des /er tor L. Gibson 0829 smg/RUdger, 3 ernea SUBJECT. Agreements establishing Retirement Health Savings (RHS) Plan for Unrepresented Employees ATTACHMENTS: Memo, Resolution, Agreement, Declaration of Trust, and Medical & Dental Expense Reimbursement Plan SEPA review required? ( ) Yes ( X ) NO SEPA review completed? ( ) Yes ( X ) NO Should Clerk schedule a hearing ? ( ) Yes X NO Requested Date: ( ) SUMMARYSTATEMENT: These documents amend the County's existing agreement with the y g g ICMA Retirement Corporation ( "ICMA -RC ") to provide the Whatcom County VantageCare Retirement Health Savings (RHS) Plan for Whatcom County's Unrepresented employees. Distribution Request indfcurs those who should receive„ copy after Council action List specie names to the right. AS Facilities Management ASFinance AS Human Resources Karen S. Coens AS info Services Assessor Auditor Coop true ve Extension District Court Executive Health Hearing Examiner Jail COUNCIL ACTION TAKEN: 2002 -329 9/10/02. Approved 7-0, Res. 42002 -039 Related County Contract #: 200106020 -1 Juvenile Parks Planning Prosecutor Public Works Sheri Superior Court Treasurer Omer Related File Numbers: Ordinance or Resol ion Number (this item): (Z - 2 2 PROPOSED BY: County Executive INTRODUCTION DATE: September 10 2002 RESOLUTION NO. 2002 -039 WHATCOM COUNTY RETIREMENT HEALTH SAVINGS (RHS) PLAN WHEREAS, Whatcom County (the "County") has employees rendering valuable services; and WHEREAS, the establishment of a retiree health savings plan for such employees serves the interests of the County by enabling it to provide reasonable security regarding such employees' health needs during retirement, by providing increased flexibility in its personnel management system, and by assisting in the attraction and retention of competent personnel; and WHEREAS, the County has determined that the establishment of the retiree health savings plan (the Plan ") serves the above objectives; NOW, THEREFORE BE IT RESOLVED by the Whatcom County Council that the County hereby adopts the Plan in the form of the ICMA Retirement Corporation's VantageCare Retirement Health Savings program. BE IT FURTHER RESOLVED that the assets of the Plan shall be held in trust, with the County serving as trustee, for the exclusive benefit of Plan participants and their beneficiaries, and the assets of the Plan shall not be diverted to any other purpose prior to the satisfaction of all liabilities of the Plan. The County has executed the Declaration of Trust of the Whatcom County Integral Part Trust in the form of: ❑ The model trust made available by the ICMA Retirement Corporation, pursuant to the specific provisions of the Employer Vantagecare Retirement Health Savings (RHS) Plan Adoption Agreement (executed copy attached hereto). BE IT FURTHER RESOLVED, that the Human Resources Manager shall be the coordinator and contact for the Plan and shall receive necessary reports, notices, etc. APPROVED this 10" day of September ,2002. ATTEST: WHATCOM COUNTY COUNCIL WHATCOM COUNTY, WASHINGTON APPROVED AS TO FORM: Daniel L. Gibson, Senior Civil Deputy Prosecutor I: \SHARED \BENEFIT PROGRAMS \Retirement Health Savings \Council Resolution.091002.doc Wh, .TCOM COUNTY a° c° HUMAN RESOURCES ADMINISTRATIVE SERVICES rP i County Courthouse 311 Giand Avenue, Suite #107 Bellingham, WA 98225 -4038 gsHHO <° (360) 676 -6802 Dewey G. Desler Karen Sterling Goens Director Manager TO: Pete Kremen, County Executive FROM: Karen Sterling Goens, AS Human Resources Manager DATE: August 9, 2002 SUBJECT: RETIREMENT HEALTH SAVINGS (RHS) PLAN RECOMMENDATION On June 21, 2002, the County issued a Request for Proposals to explore plan options for a Retirement Health Savings (RHS) Plan for Whatcom County employees, beginning with a pilot project for unrepresented employees as the first step. An RHS Plan is one that allows pre -tax dollars to be set aside to pay for medical expenses upon separation from employment. No taxes are paid on contributions or investment earnings, and no taxes are paid on withdrawals. There were three respondents – Ryan, Swanson & Cleveland Attorneys, VEBA Service Group, and ICMA Retirement Corporation. A Task Force consisting of Dewey Desler – Deputy Administrator; Brad Bennett – AS Finance Manager; Dan Gibson – PA Senior Civil Deputy; Hal Hart – Planning & Development Services Department Director; Roger DeSpain – Parks & Recreation Department Director; Deane Sandell – Undersheriff; Bruce VanGlubt– District Court & Probation Administrator; Wendy Wefer - Clinton – AS Associate Human Resources (HR) Manager; Judy Peterson –AS Senior HR Representative; and myself reviewed materials submitted by the three respondents. Task Force members were asked to rate RFP responses on a number of areas including: • Overall presentation— coherence, readability, quality • Focus of response to Whatcom County's specific request • Experience in providing plans to the Washington State public sector • Firm's approach to employee information and education • Fees • Qualifications and experience of staff As the RFP's from Ryan, Swanson & Cleveland Attorneys and the VEBA Service Group did not meet the County's RFP requirements with regard to investment options and options for individual choice, the Task Force unanimously agreed to recommend ICMA to provide the RHS plan. The ICMA proposal was clearly the most complete and allowed the greatest flexibility to design a product to best meet our needs. Another factor was ICMA's proven administrative efficiency as carrier for the County's 401(a) and 457 deferred compensation plans. ICMA also has extensive experience in the Washington State public sector, provides quality free educational seminars for employees, and is a non - profit entity. Pete Kremen /RHS August 9, 2002 The Task Force met with ICMA representatives on July 19, to begin initial plan design, The Task Force recommends the following: • Implementation on November 1, 2002. • Funding by elective employee contributions from compensation, and from elective contributions of available accrued leave at separation. • Accounts accessible at separation of County employment, at age 50, or if disabled (as defined by Whatcom County's Long Term Disability plan). • Holding open enrollment once each year, with new employees eligible to enroll within 60 days of hire. • Initially offering the plan only to unrepresented employees, with the understanding that once the plan is established it may be made available to unions during negotiations, if appropriate. It is recommended that the Executive's Office approve the unanimous recommendation of the Retirement Health Savings Plan Task Force so plan design can be finalized with ICMA and the Plan can be taken before the Council on September 10, 2002. Should you have any questions regarding this process or the recommendation of the Task Force, please don't hesitate to contact me or any member of the Task Force. Thank you for your positive consideration of this very important tool to aid in unrepresented retention and recruitment. The RHS Plan Task Force recommends selecting ICMA Retirement Corporation as the administration of the County's Retirement Health Savings Plan and moving ahead with implement ation on November 1, 2002. t� / Approve Deny Comments: Pete Kren —I County Executive cc: Task Force Members Dewey Desler Brad Bennett Dan Gibson Hal Hart Roger DeSpain Deane Sandell Bruce Van Glubt Wendy Wefer- Clinton Judy Peterson /a -©0 Date ISSHAREDOENEFIT PROGRAMSIRETIREMENT HEALTH SAVINGSWEMO -TASK FORCE RECOMMENDATION 0502 . DOC WHATCOM COUNTY CONTRACT INFORMATMATRUFFT IdSHAREEaREQUESTS FOR PROPOSALSQRetirernent Health Savings \Cons Infn_ICMA.doc OrikinatinR Department: Administrative Services -Human Resources Contact Person: Karen Sterlin Goens, Human Resources Mana er Contractor's Name: ICMA Retirement Corporation ( "ICMA -RC ) Is this a New Contract? If not, is this an Amendment to an Existing Contract? Yes No X_ Yes If an Amendment, previous number(s): 200106020-1 Is this a renewal? Yes N X Contract Expiration Date: Throu h N/A tion a Service(s) Provided: l Contract Amount: If a Professional Services Agreement is more than $15, 000 or a Bid participant, per year until is more than $35, 000, please submit an Agenda Bill for Council m County's 457 and 401(a) approval. ith ICMA -RC are $5 million r401i(a) er, or when average 457 401(a) balances are at least . Dates or clauses that require calendarin : N/A IdSHAREEaREQUESTS FOR PROPOSALSQRetirernent Health Savings \Cons Infn_ICMA.doc July 8, 2002 Wendy Wefer- Clinton Whatcom County 311 Grand Avenue, Suite 503 Bellingham, Washington 98225 Dear Ms. Wefer - Clinton: This letter agreement will serve to amend the existing Agreement between Whatoom County (the "Employer") and the ICMA Retirement Corporation ( "ICMA -RC ") to provide the Whatcom County VantageCare Retirement Health Savings (RHS) Plan for Employers eligible employees ( "Accountholders "). The existing Agreement between Employer and ICMA -RC is hereby amended as follows: 1. Employer desires to make the RHS plan administered by ICMA -RC available to its employees. The details of the RHS plan shall be as mutually agreed between Employer and ICMA -RC, but in general shall be as set forth in the RHS plan materials developed by ICMA -RC and provided to Employer. 2. Absent an explicit agreement to the contrary between ICMA -RC and Employer, Accountholder fees and expenses shall be payable from RHS assets, in accordance with the requirements of the RHS plan asset forth in paragraph 8 below. Employer plan fees, as set forth in paragraph 10 below, shall be payable from the Employer's assets. 3. Each Accountholder will receive a consolidated quarterly statement providing information for any deferred compensation plan, qualified plan or RHS account maintained by each Accountholder and administered by ICMA -RC. 4. Tax withholding and reporting will be provided by ICMA -RC and its agents in conjunction with the Employer for each RHS Account administered by ICMA -RC. 5. The Employer shall be responsible for maintaining Accountholder primary and contingent beneficiary designations, and shall be required to provide the most recent designations upon the request of ICMA -RC. Information required to be retained by the employer shall be set forth in the RHS plan materials developed by ICMA -RC and provided to Employer. 6. The details of ICMA -RC's administration of the RHS plan, as well as other features of the RHS plan, shall be as set forth in RHS plan materials. The RHS plan materials are hereby incorporated by reference and made a part of this Agreement, except that Employer and ICMA -RC may from time to time mutually agree in writing to terms that vary from the RHS plan materials. 7. The Employer understands that, as a general matter, the Internal Revenue Service ( "IRS ") may decline to rule on certain design features or provisions that the Employer may request to have added to the RHS plan materials. The Employer agrees to hold ICMA -RC harmless in connection with the addition and administration of any RHS plan feature or provision requested by the Employer for which the IRS will not provide express interpretive guidance. 8. Accountholder's account administration fees will be paid from RHS assets according to the following schedule: a. An annualized fee of .90% will be applied to the first $7,000 of an Accountholder's account balance. (There will be a minimum annual charge of $35). b. An annualized fee of .55% will be applied to assets between $7,001 and $23,000. c. For accounts greater than $23,000, a maximum annual fee of $150 will apply. Account administration fees will be calculated each quarter based on the balance on the last day of the previous quarter, and will be charged against the account on a quarterly basis. For De Minimis (as defined in the RHS plan materials) and severance payouts, there will be a fee of $25 collected at the time of disbursement. 9. ICMA -RC reserves the right to introduce an adviser Gass of its funds at a higher expense ratio. If ICMA -RC's break even levels have been achieved, ICMA -RC agrees to make corresponding reductions of fees in Section 8. 10. Employer plan fees will be based on the Employers total §401 and §457 plan assets and average participant §401 and §457 plan account balances administered by ICMA -RC. Employers with less than $5 million in combined assets and average participant balances below $25,000 will be charged the greater of (a)$200 or (b) $25 per Accountholder. If Whatcom County finds these terms agreeable, please so indicate by having the appropriate person sign and date this letter agreement in the space indicated below. Very truly yours, jov;Y�4a. Paul Gallagher Corporate Secretary Agreed: Authorized Official Date APPROVED AS TO FORM:A Dan ;el L. Gibson, Senior Civil Deputy Prosecutor Date , 2 WHATCOM COUNTY RETIREE MEDICAL AND DENTAL EXPENSE REIMBURSEMENT PLAN WHATCOM COUNTY RETIREE MEDICAL AND DENTAL EXPENSE REIMBURSEMENT PLAN Article I Preamble 1.01 Establishment of Plan 1.02 Purpose of Plan Article 11 Definitions 2.01 "Benefits" 2.02 "Code" 2.03 "Dependent' 2.04 "Eligible Medical or Dental Expenses" 2.05 "Employer" 2.06 "Entry Date" 2.07 "Participant' 2.08 "Plan Administrator" 2.09 "Plan Year" 2.10 "Retiree" 2.11 "Spouse" Article 111 Eligibility 3.01 General Requirements 3.02 Termination of Coverage of an Eligible Dependent Article IV Amount of Benefits 4.01 Annual Benefits Provided by the Plan 4.02 Cost of Coverage Article V Payment of Benefits 5.01 Eligibility for Benefits 5.02 Claims for Benefits Article VI Plan Administration 6.01 Allocation of Authority 6.02 Provision for Third -Party Plan Service Providers 6.03 Several Fiduciary Liability 6.04 Compensation of Plan Administrator 6.05 Bonding 6.06 Payment of Administrative Expenses 6.07 Timeliness of Payments 6.08 Annual Statements Article VI Claims Procedure 7.01 Procedure if Benefits are Denied Under the Plan 7.02 Requirement for Written Notice of Claim Denial 7.03 Right to Request Hearing on Benefit Denial 7.04 Disposition of Disputed Claims 7.05 Preservation of Other Remedies Article VIII Amendment or Termination of Plan 8.01 Permanency 8.02 Employer's Right to Amend 8.03 Employer's Right to Terminate Article IX General Provisions 9.01 No Employment Rights Conferred 9.02 Payments to Beneficiary 9.03 Nonalienation of Benefits 9.04 Mental or Physical Incompetency 9.05 Inability to Locate Payee 9.06 Requirement of Proper Forms 9.07 Source of Payments 9.08 Tax Effects 9.09 Multiple Functions 9.10 Gender and Number 9.11 Headings 9.12 Applicable Laws 9.13 Severability ARTICLE I Preamble THIS INSTRUMENT made and published by Whatcom County (hereinafter called "Employer ") on the.l0tbcay of September 20 02 , creates the Whatcom Retiree Medical and Dental Expense Reimbursement Plan, as follows: - County 1.01 Establishment of Plan The Employer named above hereby establishes a Retiree Medical and Dental Expense Reimbursement Plamas of the 10rh day of Ggnremh , 20 02 . 1.02 Purpose of Plan This Plan has been established to reimburse the eligible Retirees of the Employer for medical and dental expenses incurred by them, their Spouses and Dependents, pursuantto the Employer's VantageCare Retirement Health Savings (RHS) Plan. ARTICLE 11 Definitions The following words and phrases as used herein shall have the following meanings, unless a different meaning is plainly required by the context: 2.01 "Benefits" means any amounts paid to a Participant in the Plan as reimbursement for Eligible Medical and Dental Expenses incurred by the Participant during a Plan Year by him, his Spouse, or his Dependents. 2.02 "Code" means the Internal Revenue Code of 1986, as amended. 2.03 "Dependent" means any individual who is a dependent of the Participant within the meaning of Code Sec. 152. 2.04 "Eligible Medical or Dental Expenses" means those expenses designated by the Employer as eligible for reimbursement in the VantageCare Retirement Health Savings Plan Adoption Agreement. 2.05 "Employer" means the unit of state or local government creating this Plan, or any affiliate or succes- sor thereof that likewise adopts this Plan. 2.06 "Entry Date" means the first day the Participant meets the eligibility requirements of Article III as of such Date. 2.07 "Participant" means any Retiree who has met the eligibility requirements set forth in Article III. 2.08 "Plan Administrator" means the Employer or other person appointed by the Employer who has the authority and responsibility to manage and direct the operation and administration of the Plan. 2.09 "Plan Year" means the annual accounting period of the Plan, which begins on the t cr day of November , 2002 and ends on the 31stday of December 20 02 with respect to the first Plan Year, and thereafter as long as this Plan remains in effect, the period that begins on January 1 and ends on December 31 . 2.10 "Retiree" means any individual who, while in the service of the Employer, was considered to be in a legal employer - employee relationship with the Employer for federal withholding tax purposes, and who was part of the classification of employees designated as covered by the Employer's VantageCare Retire- ment Health Savings Plan. 2.11 "Spouse" means the Participant's lawful spouse as determined under the laws of the state in which the Participant has his primary place of residence. All other defined terms in this Plan shall have the meanings specified in the various Articles of the Plan in which they appear. ARTICLE 111 Eligibility 3.01 General Requirements Each Retiree who meets the eligibility requirements outlined in the Employer's VantageCare Retirement Health Savings Plan shall be eligible to participate in this Plan. 3.02. Termination of Coverage of an Eligible Dependent An Eligible Dependent's coverage shall terminate — (a) after the death of the Retiree, upon the attainment of age 19 (or 24 for a full time student); (b) Notwithstanding (a) above, an Eligible Dependent's coverage shall not cease if the individual is incapable of self- sustaining employment by reason of mental or physical handicap and he or she became handicapped while an Eligible Dependent of the Participant. The account balance may continue to be utilized to pay Benefits of the individual if he or she qualified as a Depend- ent of the Participant during the Participant's life, and the Plan has received due proof of incapacity within 31 days of when the individual's coverage under the Plan would otherwise terminate. The individual's coverage may be continued as long as the individual remains incapacitated. The Plan may request proof of the continued existence of such incapacity from time to time. ARTICLE IV Amount of Benefits 4.01 Annual Benefits Provided by the Plan Each Participant shall be entitled to reimbursement for his documented, Eligible Medical or Dental Ex- penses incurred during the Plan Year in an annual amount not to exceed the account balance of the Partici- pant in the Employer's VantageCare Retirement Health Savings Plan. 4.02 Cost of Coverage The expense of providing the benefits set out in Section 4.01 shall be contributed as outlined in the Em- ployer's VantageCare Retirement Health Savings Plan. ARTICLE V Payment of Benefits 5.01 Eligibility for Benefits (al Each Participant in the Plan shall be entitled to a benefit hereunder for all Eligible Medical and Dental Expenses incurred by the Participant on or after the Entry Date of his or her participa- tion, land after the effective date of the Plan) subject to the limitations contained in Article V, below, regardless whether the mental or physical condition for which the Participant makes application for benefits under this Plan was detected, diagnosed, or treated before the Partici- pant became covered by the Plan. (b) In order to be eligible for benefits, the Participant must meet the benefit eligibility criteria outlined in the Employer's VantageCare Retirement Health Savings Plan Adoption Agreement. (c) A Participant who becomes totally and permanently disabled (as defined by the Social Security Administratio will become immediately eligible to receive medical benefit payments from the Plan. Pursuant t action 9.02 and Employer's VantageCare Retirement Health Savings Plan Adoption Agreemen he surviving Spouse and Eligible Dependents shall become immediately eligible to receive or to ntinue receiving medical benefit payments from the Plan upon the death of the Participant. or as defined by a Whatcom County long -term disability 5.02 Claims for Benefits plan covering the participant No benefit shall be paid hereunder unless a Participant has first submitted a written claim for benefits to the Plan Administrator on a form specified by the Plan Administrator, and pursuant to the procedures set out in Article VI, below. Upon receipt of a properly documented claim, the Plan Administrator shall pay the Participant the benefits provided under this Plan as soon as is administratively feasible. ARTICLE VI Plan Administration 6.01 Allocation of Authority The Employer shall control and manage the operation and Administration of the Plan. The Employer shall have the exclusive right to interpret the Plan and to decide all matters arising thereunder, including the right to remedy possible ambiguities, inconsistencies, or omissions. All determinations of the Employer with respect to any matter hereunder shall be conclusive and binding on all persons. Without limiting the generality of the foregoing, the Employer shall have the following powers and duties: (a) To decide on questions concerning the Plan and the eligibility of any Employee to participate in the Plan, in accordance with the provisions of the Plan; (b) To determine the amount of benefits that shall be payable to any person in accordance with the provisions of the Plan; to inform the Plan Administrator, as appropriate, of the amount of such Benefits; and to provide a full and fair review to any Participant whose claim for benefits has been denied in whole or in part; and (c) To designate other persons to carry out any duty or power which would otherwise be a fiduci- ary responsibility of the Plan Administrator, under the terms of the Plan. (d) To require any person to furnish such reasonable information as it may request for the purpose of the proper administration of the Plan as a condition to receiving any benefits under the Plan; (e) To make and enforce such rules and regulations and prescribe the use of such forms as he shall deem necessary for the efficient administration of the Plan. 6.02 Provision for Third -Party Plan Service Providers The Plan Administrator, subject to approval of the Employer, may employ the services of such persons as it may deem necessary or desirable in connection operation of the Plan. The Plan Administrator, the Employer (and any person to whom it may delegate any duty or power in connection with the administra- tion of the Plan), and all persons connected therewith may rely upon all tables, valuations, certificates, reports and opinions furnished by any duly appointed actuary, accountant, (including Employees who are actuaries or accountants), consultant, third party administration service provider, legal counsel, or other specialist, and they shall be fully protected in respect to any action taken or permitted in good faith in reliance thereon. All actions so taken or permitted shall be conclusive and binding as to all persons. 6.03 Several Fiduciary Liability To the extent permitted by law, neitherthe Plan Administrator nor any other person shall incur any liability for any acts or for failure to act except for his own willful misconduct or willful breach of this Plan. 6.04 Compensation of Plan Administrator Unless otherwise agreed to by the Employer, the Plan Administrator shall serve without compensation for services rendered in such capacity, but all reasonable expenses incurred in the performance of his duties shall be paid by the Employer. 6.05 Bonding Unless otherwise determined by the Employer, or unless required by any Federal or State law, the Plan Administrator shall not be required to give any bond or other security in any jurisdiction in connection with the administration of this Plan. 6.06 Payment of Administrative Expenses All reasonable expenses incurred in administering the Plan, including but not limited to administrative fees and expenses owing to any third parry administrative service provider, actuary, consultant, account- ant, attorney, specialist, or other person or organization that may be employed by the Plan Administrator in connection with the administration thereof, shall be paid by the Employer, provided, however that each Participant shall bear the monthly cost (if any) charged by a third party administrator for maintenance of his Benefit Account unless otherwise paid by the Employer. 6.07 Timeliness of Payments Payments shall be made as soon as administratively feasible after the required forms and documentation have been received bythe Plan Administrator. 6.08 Annual Statements The Plan Administrator shall furnish each Participant with an annual statement of his medical and dental expense reimbursement account within ninety (90) days after the close of each Plan Year. ARTICLE VII Claims Procedure 7.01 Procedure if Benefits are Denied Under the Plan Any Participant, Spouse or Eligible Dependent, or his duly authorized representative may file a claim for a plan benefit to which the claimant believes that he is entitled. Such a claim must be in writing on a form provided by the Plan Administrator and delivered to the Plan Administrator, in person or by mail, postage paid. Within thirty (30) days after receipt of such claim, the Plan Administrator shall send to the claimant, by mail, postage prepaid, notice of the granting or denying, in whole or in part, of such claim, unless special circumstances require an extension of time for processing the claim. In no event may the exten- sion exceed ninety (90) days from the end of the initial period. If such extension is necessary, the claimant will be given a written notice to this effect prior to the expiration of the initial 30 -day period. The Plan Administrator shall have full discretion to deny or grant a claim in whole or in part. If notice of the denial of a claim is not furnished in accordance with this Section, the claim shall be deemed denied and the claimant shall be permitted to exercise his right to review pursuant to Sections 7.03 and 7.04. 7.02 Requirement for Written Notice of Claim Denial The Plan Administrator shall provide, to every claimant who is denied a claim for benefits, written notice setting forth in a manner calculated to be understood by the claimant: (a) The specific reason or reasons for the denial; (b) Specific reference to pertinent Plan provisions on which the denial is based; (c) A description of any additional material of information necessary for the claimant to perfect the claim and an explanation of why such material is necessary, and Id) An explanation of the Plan's claim review procedure. 7.03 Right to Request Hearing on Benefit Denial Within sixty (60) days after the receipt by the claimant of written notification of the denial (in whole or in part) of his claim, the claimant or his duly authorized representative, upon written application to the Plan Administrator, in person or by certified mail, postage prepaid, may request a review of such denial, may review pertinent documents, and may submit issues and comments in writing. 7.04 Disposition of Disputed Claims Upon its receipt of notice of a request for review, the Plan Administrator shall make a prompt decision on the review. The decision on review shall be written in a manner calculated to be understood by the claim- ant and shall include specific reasons for the decision and specific references to the pertinent plan provi- sions on which the decision is based. The decision on review shall be made not later than sixty (60) days after the Plan Administrator's receipt of a request for a review, unless special circumstances require an extension of time for processing, in which case a decision shall be rendered not later than one hundred - twenty (120) days after receipt of a request for review. If an extension is necessary, the claimant shall be given written notice of the extension prior to the expiration of the initial sixty (60) day period. If notice of the decision on the review is not furnished in accordance with this Section, the claim shall be deemed denied and the claimant shall be permitted to exercise his right to legal remedy pursuant to Section 7.05. 7.05 Preservation of Other Remedies After exhaustion of the claims procedures provided under this Plan, nothing shall prevent any person from pursuing any other legal or equitable remedy otherwise available. ARTICLE VIII Amendment or Termination of Plan 8.01 Permanency While the Employer fully expects that this Plan will continue indefinitely, due to unforeseen, future busi- ness contingencies, permanency of the Plan will be subject to the Employer's right to amend or terminate the Plan, as provided in Sections 8.02 and 8.03, below. 8.02 Employer's Right to Amend The Employer reserves the right to amend the Plan at any time and from time -to -time, and retroactively if deemed necessary or appropriate to meet the requirements of the Code, or any similar provisions of subsequent revenue or other laws, orthe rules and regulations in effect under any of such laws or to conform with governmental regulations or other policies, to modify or amend in whole or in part any or all of the provisions of the Plan. 8.03 Employer's Right to Terminate The Employer reserves the right to discontinue or terminate the Plan at any time without prejudice ARTICLE IX General Provisions 9.01 No Employment Rights Conferred Neither this Plan nor any action taken with respect to it shall confer upon any person the right to be con- tinued in the employment of the Employer. 9.02 Payments to Beneficiary Any benefits otherwise payable to a Participant following the date of death of such Participant shall be paid as outlined in the Employer's VantageCare Retirement Health Savings Plan Adoption Agreement. 9.03 Nonalienation of Benefits No benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assign- ment, pledge, encumbrance or charge, and any attempt to do so shall be void. No benefit under the Plan shall in any manner be liable for or subject to the debts, contracts, liabilities, engagements or torts of any person. If any person entitled to benefits under the Plan becomes bankrupt or attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any benefit under the Plan, or if any attempt is made to subject any such benefit to the debts, contracts, liabilities, engagements of torts of the person entitled to any such benefit, except as specifically provided in the Plan, then such benefit shall cease and terminate in the discretion of the Plan Administrator, and he may hold or apply the same or any part thereof to the benefit of any dependent or beneficiary of such person, in such manner and proportion as he may deem proper. 9.04 Mental or Physical Incompetency If the Plan Administrator determines that any person entitled to payments under the Plan is incompetent by reason of physical or mental disability, he may cause all payments thereafter becoming due to such person to be made to any other person for his benefit, without responsibility to follow the application of amounts so paid. Payments made pursuant to this Section shall completely discharge the Plan Adminis- trator and the Employer. 9.05 Inability to Locate Payee If the Plan Administrator is unable to make payment to any Participant or other person to whom a pay- ment is due under the Plan because he cannot ascertain the identity or whereabouts of such Participant or other person after reasonable efforts have been made to identify or locate such person (including a notice of the payment so due mailed to the last known address of such Participant or other person as shown on the records of the Employer), such payment and all subsequent payments otherwise due to such Partici- pant or other person shall be escheated under the laws of the State of the last known address of the Participant or other persons eligible for benefits. 9.06 Requirement of Proper Forms All communications in connection with the Plan made by a Participant shall become effective only when duly executed on forms provided by and filed with the Plan Administrator. 9.07 Source of Payments The Employer shall be the sole source of benefits under the Plan. No Employee or beneficiary shall have any right to, or interest in, any assets of the Employer upon termination of employment or otherwise, except as provided from time to time under the Plan, and then only to the extent of the benefits payable under the Plan to such Employee or beneficiary. 9.08 Tax Effects Neither the Employer nor the Plan Administrator makes any warranty or other representation as to whether any payments received by a Participant hereunder will be treated as includible in gross income for federal or state income tax purposes. 9.09 Multiple Functions Any person or group of persons may serve in more than one fiduciary capacity with respect to the Plan. 9.10 Gender and Number Masculine pronouns include the feminine as well as the neuter gender, and the singular shall include the plural, unless indicated otherwise by the context. 9.11 Headings The Article and Section headings contained herein are for convenience of reference only, and shall not be construed as defining or limiting the matter contained thereunder. 9.12 Applicable Laws The provisions of the Plan shall be construed, administered and enforced according to the laws of the State of _ Washington 9.13 Severability Should any part of this Plan subsequently be invalidated by a court of competent jurisdiction, the remain- der thereof shall be given effect to the maximum extent possible. IN WITNESS WHEREOF, we have executed this Plan Agreement the date and year first written above. Whatcom County (Employer) By: Whatcom County Executive ATTEST Secretary APPROVED AS TO FORM: Daniel L. Gibson, Senior Civil Deputy Prosecutor CLa 't Date 10 DECLARATION OF TRUST OF THE WHATCOM COUNTY INTEGRAL PART TRUST DECLARATION OF TRUST OF THE WHATCOM COUNTY NAME OF EMPLOYER INTEGRAL PART TRUST Declaration of Trust made as of the 10th day of September 20 02 by and between the Whatcom Coi nt;r Washine[on a Countv Government Nemec Employe, ' Erma Typo or En(Ty (hereinafter referred to as the 'Employer ") and m&„tCoM r urmt;r or its designee (hereinafter Name Or I leave, referred to as the "Trustee "). RECITALS WHEREAS, the Employer is a political subdivision of the State of Wasb'ngon exempt from federal income tax under the Internal Revenue Code of 1986; and "'e WHEREAS, the Employer provides for the security and welfare of its eligible employees (here- inafter referred to as "Participants'), their Spouses, Dependents and Beneficiaries by the maintenance of one or more post- retirement welfare benefit plans, programs or arrangements which provide for life, sickness, medical, disability, severance and other similar benefits through insurance and self- funded reimbursement plans (collectively the "Plan "); and WHEREAS, it is an essential function and integral part of the exempt activities of the Employer to assist Participants, their Spouses, Dependents and Beneficiaries by making contributions to and accu- mulating assets in the trust, a segregated fund, for post- retirement welfare benefits under the Plan; and WHEREAS, the authority to conduct the general operation and administration of the Plan is vested in the Employer or its designee, who has the authority and shall be subject to the duties with respect to the trust specified in this Declaration of Trust; and WHEREAS, the Employer wishes to establish this trust to hold assets and income of the Plan for the exclusive benefit of Plan Participants, their Spouses, Dependents and Beneficiaries; and NOW, THEREFORE, the parties hereto do hereby establish this trust, to be known as the Declaration of Trust of the _ Whatcom County Integral Part Trust Name of Employ" (hereinafter referred to as the "Trust"1, and agree that the following constitute the Declaration of Trust (hereinafter referred to as the "Declaration"): ARTICLE 1 Definitions 1.1 Definitions. For the purposes of this Declaration, the following terms shall have the respective meanings set forth below unless otherwise expressly provided. _ (a) "Account" means the individual recordkeeping account maintained under the Plan to record the interest of a Participant in the Plan in accordance with Section 7.4. M "Account Transfer" means a transfer of the Participant's Account upon his or her death to be used for the payment of benefits for the Participant's Spouse and Dependents. (c) "Administrator" means the Employer or the entity designated by the Employer to carry out admin- istrative services as are necessary to implement the Plan. (d) "Beneficiary" means the person or persons designated by the Participant pursuant to the terms of the Plan, or, if the Plan provides otherwise, the Spouse and Dependents, who will receive any benefits payable hereunder in the event of the Participant's death. (e) "Code" means the Internal Revenue Code of 1986, as amended from time to time. If) "Dependent" means an individual who is a person described in Code Section 152(a)- (g) "Investment Fund" means any separate investment option or vehicle selected by the Employer in which all or a portion of the Trust assets may be separately invested as herein provided. The Trustee shall not be required to select any Investment Fund. IN " Nonforfeitable Interest" means the interest of the Participant or the Participant's Spouse, Depend- ent or Beneficiary (whichever is applicable) in the percentage of Participant's Employer's contribu- tion which has vested pursuant to the vesting schedule specified in the Employers Plan. A Partici- pant shall, at all times, have a one hundred percent (100%1 Nonforfeitable Interest in the Partici- pant's own contributions. lil "Spouse" means the Participant's lawful spouse as determined under the laws of the state in which the Participant has his primary place of residence. (j) "Trust" means the trust established by this Declaration. lk) 'Trustee" means the person or persons appointed by the Employer to serve in that capacity. ARTICLE II Establishment of Trust 2.1 The Trust is hereby established as of the date set forth above for the exclusive benefit of Partici- pants, their Spouses, Dependents and Beneficiaries. ARTICLE 111 Construction 3.1 This Trust and its validity, construction and effect shall be governed by the laws of the State of Waahi gt n sm. 3.2 Pronouns and other similar words used herein in the masculine gender shall be read as the feminine genderwhere appropriate, and the singular form of words shall be read as the plural where appropriate. 3.3 If any provision of this Trust shall be held illegal or invalid for any reason, such determination shall not affect the remaining provisions, and such provisions shall be construed to effectuate the purpose of this Trust. ARTICLE IV Benefits 4.1 Benefits. This Trust may provide benefits to the Participant, the Participant's Spouse and Dependents. Death benefits may be provided to a Beneficiary pursuant to the terms of the Plan. 4.2 Form of Benefits. This Trust may provide benefits by cash payment. This Trust may reimburse the Participant, his Spouse or Dependents for insurance premiums or other payments expended for permissi- ble benefits described under the Plan. This trust may reimburse the Employer, or the Administrator for insurance premiums. ARTICLE V General Duties 5.1 It shall be the duty of the Trustee to hold title to assets held in respect of the Plan in the Trustee's name as directed by the Employer or its designees in writing. The Trustee shall not be under any duty to com- pute the amount of contributions to be paid by the Employer or to take any steps to collect such amounts as may be due to be held in trust under the Plan. The Trustee shall not be responsible for the custody, investment, safekeeping or disposition of any assets comprising the Trust, to the extent such functions are performed by the Employer or the Administrator, or both. 5.2 It shall be the duty of the Employer, subject to the provisions of the Plan, to pay over to the Adminis- trator or other person designated hereunder from time to time the Employer's contributions and Partici- pants' contributions under the Plan and to inform the Trustee in writing as to the identity and value of the assets titled in the Trustee's name hereunder and to keep accurate books and records with respect to the Participants of the Plan. ARTICLE VI Investments 6.1 The Employer may appoint one or more investment managers to manage and control all or part of the assets of the Trust and the Employer shall notify the Trustee in writing of any such appointment. 6.2 The Trustee shall not have any discretion or authority with regard to the investment of the Trust and shall act solely as a directed Trustee of the assets of which it holds title. To the extent directed by the Employer (or Participants, their Spouses and Dependents, or Beneficiaries to the extent provided herein) the Trustee is authorized and empowered with the following powers, rights and duties, each of which the Trustee shall exercise in a nondiscretionary manner: (a) To cause stocks, bonds, securities, or other investments to be registered in its name as Trustee or in the name of a nominee, or to take and keep the same unregistered; (b) To employ such agents and legal counsel as it deems advisable or proper in connection with its duties and to pay such agents and legal counsel a reasonable fee. The Trustee shall not be liable for the acts of such agents and counsel or for the acts done in good faith and in reliance upon the advice of such agents and legal counsel, provided it has used reasonable care in selecting such agents and legal counsel; (c) To exercise where applicable and appropriate any rights of ownership in any contracts of insurance in which any part of the Trust may be invested and to pay the premiums thereon; and (d) At the direction of the Employer (or Participants, their Spouses, their Dependents, their Benefi- ciaries, or the investment manager, as the case may be) to sell, write options on, convey or transfer, invest and reinvest any part thereof in each and every kind of property, whether real, personal or mixed, tangible or intangible, whether income or non - income producing and wherever situated, including but not limited to, time deposits (including time deposits in the Trustee or its affiliates, or any successor thereto, if the deposits bear a reasonable rate of interest), shares of common and preferred stock, mortgages, bonds, leases, notes, debentures, equipment or collateral trust certificates, rights, warrants, convertible or exchangeable securi- ties and other corporate, individual or government securities or obligations, annuity, retire- ment or other insurance contracts, mutual funds (including funds for which the Trustee or its affiliates serve as investment advisor, custodian or in a similar or related capacity), or in units of any other common, collective or commingled trust fund. 6.3 Notwithstanding anything to the contrary herein, the assets of the Plan shall be held by the Trustee as title holder only. Persons holding custody or possession of assets titled to the Trust shall include the Employer, the Administrator, the investment manager, and any agents and subagents, but not the Trustee. The Trustee shall not be responsible or liable for any loss or expense which may arise from or result from compliance with any direction from the Employer, the Administrator, the investment manager, or such agents to take title to any assets nor shall the Trustee be responsible or liable for any loss or expense which may result from the Trustee's refusal or failure to comply with any direction to hold title, except if the same shall involve or result from the Trustee's negligence or intentional misconduct. The Trustee may refuse to comply with any direction from the Employer, the Administrator, the investment manager, or such agents in the event that the Trustee, in its sole and absolute discretion, deems such direction illegal. 6.4 The Employer hereby indemnifies and holds the Trustee harmless from any and all actions, claims, demands, liabilities, losses, damages or reasonable expenses of whatsoever kind and nature in connection with or arising out of (i) any action taken or omitted in good faith by the Trustee in accordance with the directions of the Employer or its agents and subagents hereunder, or (ii) any disbursements of any part of the Trust made by the Trustee in accordance with the directions of the Employer, or (iii) any action taken by or omitted in good faith by the Trustee with respect to an investment managed by an investment manager in accordance with any direction of the investment manager or any inaction with respect to any such investment in the absence of directions from the investment manager. Notwithstanding anything to the contrary herein, the Employer shall have no responsibility to the Trustee under the foregoing indemni- fication if the Trustee fails negligently, intentionally or recklessly to perform any of the duties undertaken by it under the provisions of this Trust. 6.5 Notwithstanding anything to the contrary herein, the Employer or, if so designated by the Employer, the Administrator and the investment manager or another agent of the Employer, will be responsible for valuing all assets so acquired for all purposes of the Trust and of holding, investing, trading and disposing of the same. The Employer will indemnify and hold the Trustee harmless against any and all claims, actions, demands, liabilities, losses, damages, or expenses of whatsoever kind and nature, which arise from or are related to any use of such valuation by the Trustee or holding, trading, or disposition of such assets. 6.6 The Trustee shall and hereby does indemnify and hold harmless the Employer from any and all ac- tions, claims, demands, liabilities, losses, damages and reasonable expenses of whatsoever kind and nature in connection with or arising out of (a) the Trustee's failure to follow the directions of the Employer, the Administrator, the investment manager, or agents thereof, except as permitted by the last sentence of Section 6.3 above; (b) any disbursements made without the direction of the Employer, the Administrator, the investment manager or agents thereof; and Ic) the Trustee's negligence, willful misconduct, or reck- lessness with respect to the Trustee's duties under this Declaration. ARTICLE VII Contributions 7.1 Employer Contributions. The Employer shall contribute to the Trust such amounts as specified in the Plan or by resolution. 7.2 Participant Contributions. If specified in the Plan, each Participant may make voluntary after -tax contributions. Under no circumstances shall Participant Contributions exceed an insubstantial amount. These contributions shall be collected by the Employer and remitted to the Trust for deposit at such time or times as required under the terms of the Plan. 7.3 Accrued Leave. Contributions up to an amount equal to the value of accrued sick leave, vacation leave, or other type of accrued leave, as permitted under the Plan. The Employer's Plan must provide a formula for determining the value of the Participant's contribution of accrued leave . The Employer's Plan must contain a forfeiture provision that will prevent Participants from receiving the accrued leave in cash in lieu of a contribution to the Trust. 7.4 Accounts. Employer contributions, Participant contributions, and contributions of accrued leave , all investment income and realized and unrealized gains and losses, and forfeitures allocable thereto will be deposited into an Account in the name of the Participant for the exclusive benefit of the Participant, his Spouse, Dependents and Beneficiaries. The assets in each Participant's Account may be invested in Investment Funds as directed by the Participant (or, after the Participant's death, by the Spouse, Dependents or Beneficiaries) from among the Investment Funds selected by the Employer. 7.5 Receipt of Contributions. The Employer or, if so designated by the Employer, the Administrator or investment manager or another agent of the Employer, shall receive all contributions paid or delivered to it hereunder and shall hold, invest, reinvest and administer such contributions pursuant to this Declara- tion, without distinction between principal and income. The Trustee shall not be responsible for the calculation or collection of any contribution under the Plan, but shall hold title to property received in respect of the Plan in the Trustee's name as directed by the Employer or its designee pursuant to this Declaration. 7.6 No amount in any Account maintained under this Trust shall be subject to transfer, assignment, or alienation, whether voluntary or involuntary, in favor of any creditor, transferee, or assignee of the Em- ployer, the Trustee, any Participant, his Spouse, Dependent, or Beneficiaries. 7.7 Upon the satisfaction of all liabilities under the Plan to provide such benefits, any amount of Employer contributions, plus accrued earnings thereon, remaining in such separate Accounts must, under the terms of the Plan, be returned to the Employer. ARTICLE Vlll Other Plans If the Employer hereafter adopts one or more other plans providing life, sickness, accident, medical, disability, severance, or other benefits and designates the Trust hereby created as part of such other plan, the Employer or, if so designated bythe Employer, the Administrator or an investment manager or an- other agent of the Employer shall, subjectto the terms of this Declaration, accept and hold hereunder contributions to such other plans. In that event (a) the Employer or, if so designated by the Employer, the Administrator or an investment manager or another agent of the Employer, may commingle for invest- ment purposes the contributions received under such other plan or plans with the contributions previously received by the Trust, but the books and records of the Employer or, if so designated by the Employer, the Administrator or an investment manager or another agent of the Employer, shall at all times show the portion of the Trust Fund allocable to each plan; (b) the term 'Plan" as used herein shall be deemed to refer separately to each other plan; and (c) the term "Employer" as used herein shall be deemed to refer to the person or group of persons which have been designated by the terms of such other plans as having the authority to control and manage the operation and administration of such other plan. ARTICLE IX Disbursements and Expenses 9.1 The Employer or its designee shall make such payments from the Trust at such time to such persons and in such amounts as shall be authorized by the provisions of the Plan provided, however, that no payment shall be made, either during the existence of or upon the discontinuance of the Plan (subject to Section 7.7), which would cause any part of the Trust to be used for or diverted to purposes other than the exclusive benefit of the Participants and their Beneficiaries pursuant to the provisions of the Plan. 9.2 All payments of benefits under the Plan shall be made exclusively from the assets of the Accounts of the Participants to whom or to whose Spouse, Dependents, or Beneficiaries such payments are to be made, and no person shall be entitled to look to any other source for such payments. 9.3 The Employer, Trustee and Administrator may be reimbursed for expenses reasonably incurred by them in the administration of the Trust. All such expenses, including, without limitation, reasonable fees of accountants and legal counsel to the extent not otherwise reimbursed, shall constitute a charge against and shall be paid from the Trust upon the direction of the Employer. ARTICLE X Accounting 10.1 The Trustee shall not be required to keep accounts of the investments, receipts, disbursements, and other transactions of the Trust, except as necessary to perform its title - holding function hereunder. All accounts, books, and records relating thereto shall be maintained by the Employer or its designee. 10.2 As promptly as possible following the close of each year, the Trustee shall file with the Employer a written account setting forth assets titled to the Trust as reported to the Trustee by the Employer or its designee. ARTICLE XI Miscellaneous Provisions 11.1 Neither the Trustee nor any affiliate thereof shall be required to give any bond or to qualify before, be appointed by, or account to any court of law in the exercise of its powers hereunder. 11.2 No person transferring title or receiving a transfer of title from the Trustee shall be obligated to look to the propriety of the acts of the Trustee in connection therewith. 11.3 The Employer may engage the Trustee as its agent in the performance of any duties required of the Employer under the Plan, but such agency shall not be deemed to increase the responsibility or liability of the Trustee under this Declaration. 11.4 The Employer shall have the right at all reasonable times during the term of this Declaration and for three (3) years after the termination of this Declaration to examine, audit, inspect, review, extract informa- tion from, and copy all books, records, accounts, and other documents of the Trustee relating to this Declaration and the Trustees' performance hereunder. ARTICLE X11 Amendment and Termination 12.1 The Employer reserves the right to alter, amend, or (subject to Section 9.1) terminate this Declaration at any time for any reason without the consent of the Trustee or any other person, provided that no amendment affecting the rights, duties, or responsibilities of the Trustee shall be adopted without the execution of the Trustee to the amendment. Any such amendment shall become effective as of the date provided in the amendment, if requiring the Trustee's execution, or on delivery of the amendment to the Trustee, if the Trustee's execution is not required. 12.2 Upon termination of this Declaration and upon the satisfaction of all liabilities under the Plan to provide such benefits, any amount of Employer contributions, plus accrued earnings thereon, remaining in such separate Accounts must, under the terms of the Plan, be returned to the Employer. ARTICLE XIII Successor Trustees 13.1 The Employer reserves the right to discharge the Trustee for any or no reason, at any time by giving ninety (90) days' advance written notice. 13.2 The Trustee reserves the right to resign at any time by giving ninety (90) days' advance written notice to the Employer. 13.3 In the event of discharge or resignation of the Trustee, the Employer may appoint a successor Trus- tee who shall succeed to all rights, duties, and responsibilities of the former Trustee under this Declara- tion, and the terminated Trustee shall be deemed discharged of all duties under this Declaration and responsibilities for the Trust. IN WITNESS WHEREOF, the Employer and the Trustee have executed this Declaration by their respective duly authorized officers, as of the date first hereinabove mentioned. EMPLOYER: TRUSTEES: APPROVED AS TO FORM: Daniel L. Gibson, Senior Civil Deputy Prosecutor eoc�J 30 2D�1 Date WHATCOM COUNTY VANTAGECARE RETIREMENT HEALTH SAVINGS (RHS) PLAN ADOPTION AGREEMENT EMPLOYER VANTAGECARE RETIREMENT HEALTH SAVINGS (RHS) PLAN ADOPTION AGREEMENT Plan Number:8 no?m Employer Retirement Health Savings Plan Name: Wha"M County Retirement H l th S ' g (RHS) Plan I. Employer Name: Whatcom C r.. II. The Employer hereby attests that it is a unit of a state or local government or an agency or instrumen- tality of one or more units of a state or local government. III. The Effective Date of the Plan: November 1. 2002 IV. The Employer intends to utilize the Trust to fund only welfare benefits pursuant to the following wel- fare benefit plants) established by the Employer: Resolution 9009 -099 and 9,1hqPqiiPnf ❑rlm_ntS V. Eligible Groups and Participant Eligibility Requirements A. The following group or groups of Employees are eligible to participate in the VantageCare Retire ment Health Savings Plan: All Employees All Full -Time Employees Non -Union Employees Public Safety Employees -- Police Public Safety Employees -- Firefighters General Employees Collectively- Bargained Employees (Specify X Other (specify below) The group specified must correspond to a group of the same designation that is defined in the stat- utes, ordinances, rules, regulations, personnel manuals or other material in effect in the state or locality of the Employer. Q If this box is checked, in lieu of mandatory participation, the Employer provides for a op time irrevocable election by eligible Employees to participate in RHS: Until such time as the election is made, the Employee shall not participate`in the'Plan or receive contributions pursuant to Section A. Newly eligible Employees shall be provided an election window of ` 30 days (no more than 60) from the date of initial eligibility during which they may make the election to participate��irticipa- tion may Begin no earlier than the calendar month following the end of the election window: If the Employee does not make the election in the year of initial eligibility, the election to participate may be made in a later year. An annual election window of 60 -days (nomore'ifumSO) - shall be provided during which the election maybe made. The election window shall run from _Orr. t to Nov 99 (insert your annual time frame for the election window, e.g. October l to November 29). Participation may begin no earlier than the calendar year following the year of the election. Once made, the election is irrevocable and may not be revoked. If the Employer's underlying welfare benefit plan or funding under this VantageCare Retirement Health Savings Plan is in whole or part a non-collectively bargained, self- insured plan, the nondiscrimination requirements of Internal Revenue Code (IRC) Section 105(h) will apply. These rules may impose taxation on the benefits received by highly compensated Employees if the Plan discriminates in favor of highly compensated Employees in terms of eligibility or benefits. The Employer should discuss these rules with appropriate counsel. B. Participant Eligibility 1. Minimum period of service required for participation is N/A (write N/A if an Employee is eligible to participate orto elect to participate immediately upon employment). 2. Minimum age required for eligibility to participate is N/A required). (write N/A if no minimum age is VI. Contribution Sources and Amounts A. Mandatory Contributions 1. Direct Employer Contributions N/A The Employer shall contribute on behalf of each Participant N/A %of earnings or $__!/A for the Plan Year. Definition of earnings: 2. Employee Mandatory Annual Leave Contributions The Employer will make mandatory contributions of annual leave as follows: Accrued Sick Leave* [3 Yes 0 No Accrued Vacation* 0 Yes 0 No Other* (describe) 0 Yes 0 No * Please provide the formula for determining the Accrued Leave contribution: ._See attachment (page 10) An Employee shall not have the right to discontinue or vary the rate of annual leave contribu- tions. 3. Employee Mandatory Compensation Contributions N/A The Employer will make mandatory contributions of Employee compensation as follows: 0 Reduction in Salary - % of earnings (as defined in VI.A.1.) or $ will be contributed forthe Plan Year. 0 Decreased Merit or Pay Plan Adjustment - All or a portion of the Employees' annual merit or pay plan adjustment will be contributed as follows: N/A An Employee shall not have the right to discontinue or vary the rate of mandatory contributions of Employee compensation. B. Elective Contributions 1. VoluntaryWhar -Tax Contributions Each Employee may contribute U to 25 (defined as: base salary) P % of earnings la - , or for the ;Plan Year on;a voluntary after -tax basis. In no event may aggregate Employee voluntary after -tax contdbutions�exceed 25% of total contributions in any Plan Year. An Employee shall have the right to--di sconiinue or vary the rate of elective after -tax contribu- tions ofEmployWVarniF'Sgs: M .amount (i.e. no more i discuss this issuewht 2. Elective Pre-Tax :Contr The Employer will per 'cnninh,rtfnric �rii mployer acknowledges that the Internal Revenue Service has after tax contributions: in an integral part trust. ICMA -RC has that sucb�contnbutions are allowable in an insubstantial of total contributions in any Plan Year). The Employer should late counsel. Employee to make the .following elections to make pre-tax a. Irrevocable Election for Pre Tax Contributions from Compensation: A one -time, irrevocable election of the amount of Employer contributions of compensation.made on his or her behalf: IV Yes No The Employer limits the amount elected to either a fixed percentage or a range of percent- ages of an Employee's earnings (as shown below): 1,3,5,8,10,15, and 200% of earnings de i ed s salary) 9 ° °''as' °• ba; e or up to N/A % of earnings (as defined in VI.A.1) for the Plan Year. Newly eligible Employees shall be provided an election window of 30 days (no more than 60) from the date of initial eligibility during which they may ­­make election to contribute. Contributions may begin no earlier than the calendar month following the end of the election window. If the Employee does not make the election in the year of initial eligibility, the election to contribute may be made in a later year. An annual election window of 60 days (no more than 60) shall be provided during which the election may be made. The election window shall run from n,.. t to m,.., 99 (insert your annual time frame for the election window). Contributions may begin no earlier than the calendar year following the year of the election. Once made, the election is irrevocable and may not be revoked. b. Irrevocable Election for Pre -Tax Contributions of Accrued Leave: A one -time, irrevocable election of the amount of employer contributions of Employee accrued Q sick Q vacation 0 other N/A (describe) leave made on his or her behalf. I? Yes 0 No The Employer limits the amount elected as shown below: I(n% ,.f caqh d up,, pat: f Newly eligible Employees shall be provided an election window of 30 days (no more than 60) from the date of initial eligibility during which they may make the election to contribute. Contributions may begin no earlier than the calendar month following the end of the election window. If the Employee does . not make the election in the year of initial eligibility, the election to contribute may be made in a later year. An annual election window of 60 days Ino more than 60) shall be provided: during which the election may be made. The election window shall run from not i to Nnjr 99 (insert your annual time frame for the election window). Contributions may begin no earlier than the calendar year following the year of the election. Once made, the election is irrevocable and may not be revoked. c. Annual Prospective Election for Pre Tax Contributions of Leave: An annual, irrevocable election to he h O ve his or her Osick vacation Clother N/n (describe) leave to be accrued in the next calendar year contributed to the Plan on his or her behalf. 0 Yes 23 No The Employer limits the amount elected as shown below: N/A Contributions of future leave accruals will be remitted to the Plan 0 as earned 0 at the end of the calendar year. N/A The election to contribute must be made in the calendar year before the year in which contributions are to begin. Once made, the election shall apply to succeeding calendar years unless otherwise revised or revoked by the Employee on an annual basis. An annual election window of N/A days (no more than 60) is provided during which eligible Employees may make the election to contribute. The election window shall run from NIA to N/A (insert your annual time frame forthe election windowl. By adopting section a, b, and /or c, the Employer acknowledges that the Internal Revenue Service has not ruled on irrevocable election contributions in an integral part trust. ICMA- RC has obtained the advice of counsel that such contributions are allowable under the conditions outlined in this Adoption Agreement. The Employer should discuss this issue with appropriate counsel. C. Limits on Total Contributions The total contribution on behalf each Participant (including both Mandatory and Elective Contributions) for each Plan Year shall not exceed the following limit(s): Q %of earnings (as defined in VI.A.1.). Q $ Q There is no Plan- defined limit on the percentage or dollar amount of earnings that may be contributed. Limits on individual contribution types are defined within the appropriate section above. See Section V.A. for a discussion of nondiscrimination rules that may apply to non - collectively bargained self- insured Plans. VII. Vesting Schedule A. The account is 100% vested at all times, unless specified otherwise in B. below. B. The following vesting schedule applies to Direct Employer Contributions outlined in VI.A.1: Years of Specified Service Percent Completed Vesting N/A C. The account will become 100% vested upon the death, disability, retirement, or attainment of benefit eligibility by a Participant. Definition of retirement: D. Any period of service by a Participant prior to a rehire of the Participant by the Employer shall not count toward the vesting schedule outlined in B. above. N/A VIII. Forfeiture Provisions N/A Please complete this Section if a vesting schedule is indicated in Section VII. B. Upon separation from the service of the Employer, a Participant's non - vested funds shall: Q Remain in the Trust to be reallocated among all Plan Participants as Direct Employer Contri- butions for the next and succeeding contribution cycle(s). Q Remain in the Trust to be reallocated on an equal dollar basis among all Plan Participants. 0 Remain in the Trust to be reallocated among all Plan Participants based upon Participant account balances. 0 Revert to the Employer. IX. Eligibility Requirements to Receive Medical Benefit Payments from the VantageCare Retirement Health Savings Plan A. A Participant is eligible to receive benefits: At retirement only (as defined in Section VII.C.) At separation from service with the following restrictions X At the earlier of age 50 or separation from .. At age only At retirement and age At retirement or age B. A Participant who dies or becomes totally and permanently disabled (as defined by the Social Security Administratio will become immediately eligible to receive medical benefit payments from his /her VantageCare Retirement Health Savings Plan account. X. Permissible Medical Benefit Payments (or as defined by a Whatcom County long —term (disability plan covering the participant. Benefits eligible for payment consist of: A. X All Medical Expenses eligible under IRC Section 213* OR except direct expenses for long —term care services. B. The following Medical Expenses (select only the expenses you wish to cover under the VantageCare Retirement Health Savings Plan): Medical Insurance Premiums Medical Out -of- Pocket Expenses* Medicare Part B Insurance Premiums Medicare Supplement Insurance Premiums COBRA Premiums Dental Insurance Premiums Dental Out -of- Pocket Expenses* Long Term Care Insurance Premiums Long Term Care Benefits* Other (Must be eligible under IRC Section 213)* * See Section V.A. for a discussion of nondiscrimination rules which may apply to non - collectively bargained, self- insured Plans. XI. Death Benefit ATTACHMENT (page 10) REPLACES ALL CROSSED OUT PARAGRAPHS IN THIS SECTION Rthe racuuunc urwving spouse and /or surviving eli ible d in Section XIII F) of the decea iately eligible to maintain the accou t and _ ..._ ._.._ n .,, 111urfiral ..cncu. apcunca ui aecuon n aowe�_ U n notification of a Participant's death, the Participant's account balance will be transferred the amagepoint Money Market Fund *. The account balance may be reallocated by the surviN spou or dependents Pie a read the current prospectus carefully prior to investing. An investment in th' fund is neither ad nor guaranteed and there can be no assurance that the Fund will b ble to maintai stable net asset value of $1.00 per share. Vantagepoint Mutual Funds e distribute by ICMA -RC Services, LLC, a controlled affiliate of ICMA Retirement rporation. Member N D /SI PC In the event of an count Transfer, if a Participant's account balance has not b n fully utilized upon the death of th eligible spouse, the account balance may continue to b utilized to pay benefits of eligible de ndents who have not reached the age of 19 (or 24 f full -time students). Ii no eligible dependents 6yrvive the spouse, the remaining account balanc ill be paid to the eligible spouse's estate a soon as practical. After the death of the spou , upon the attainment of age 19 (or 24 for full -times dents) by all eligible dependents, any re ining account balance will be paid to such dependent(s). Upon the death of all eligible depend ts, the balance will be paid to the estate of the last depen nt [o die as soon as practical. The e limit for eligible dependents maybe waived if the individual incapable of self- sustaining em oymen[ by reason of mental or physical handicap and the incapa ation occurred prior to the P rticipant's death. The account balance may continue to be utilized o pay benefits of the indi dual if he or she qualified as a dependent of the Participant during t Participant's life, an the Plan has received due proof of incapacity within 31 days of when the dividual's coverag under the Plan would otherwise terminate. The individual's coverage ma be continued long as the individual remains incapaci- tated. The Plan may request proof of the Xsta d exi ence of such incapacity from time to time. There will be no elective withholding of F , or local taxes for death benefit lump sum account payments to the Participant's spte, dependent(s), or dependent's estates. If there are no living spouse or dependene of death of the Participant, the account will be paid to the designated beneficiary(ies) co nt Distribution in the year of payout as elected in B. below. If there are no living ry(i I, the account will be paid to the Partici- pant's estate in the year of payout as elec elo There will be no elective wit account payments to benefi If this box is checked, in death of the Participant. Account Distribution: The beneficiary(ies). Upon notification of artic the Vantagepoint M ney Me rated beneficiarv( ' .sl. federal, state, or l0 1 taxes for death benefit lump sum the Participant's td V. an Account Transfer, the follo�King shall apply in the case of the account balance will be paid is death, the Participant's account bal Fund *. The account balance may be Participant's designated be transferred into A by the desig- * Please r3/ad the current prospectus carefully prior to investing. An investm t in this fund is neither i ured nor guaranteed and there can be no assurance that the Fund wt be able to mainta" a stable net asset value of $1.00 per share. Vantagepoint Mutual Funds re distrib- uted ^ICMA -RC Services, LLC, a controlled affiliate of ICMA Retirement Corporate Mem- e are no living beneficiary(ies), the account will be paid to the Participant's estate. The will elective withholding of federal, state, or local taxes for death benefit lump sum account\ ants to beneficiary(ies) or the Participant's estate. B. In the event of an Account Distribution due to the Participant's death, the death benefits will be paid in the calendar year following the calendar year of the Participant's death. 0 If this box is checked, in lieu of the above paragraph, death benefits will be paid in the calendar year of the Participant's death. The Employer is responsible for reporting and remitting any applicable taxes, as outlined in the VantageCare Retirement Health Savings Plan Employer Manual. XII. Severance Benefit N/A A. No severance benefit shall be provided under this VantageCare Retirement Health Savings Plan unless otherwise provided in B. below. B. 0 If this box is checked, the Employer's VantageCare Retirement Health Savings Plan provides for the payment of the Participant's account balance to the Participant upon termination of employ- ment in advance of retirement (as defined in Section VII.C.) or prior to becoming eligible for medi- cal benefits under the Plan. The following termination events qualify the Participant for severance benefits: If the Plan provides severance benefits, the vested value of the Participant's account will be paid as a lump sum to the Participant upon notification from the Employer that the Participant has termi- nated employment and is eligible to receive a severance benefit. All severance benefits will be paid as a lump sum. The Employer will be responsible for reporting and remitting any applicable taxes, as outlined in the VantageCare Retirement Health Savings Plan Employer Manual. XIII. The Plan will operate according to the following provisions: A. Employer Responsibilities 1. The Employer will submit all VantageCare Retirement Health Savings Plan contribution data via electronic submission. 2. Participant status updates and /or changes or personal information updates and /or changes (Participants' termination dates, Participants' benefit eligibility dates, etc.) will be provided via electronic submission. B. Participant account administration fees will be paid through the redemption of Participant account shares, unless agreed upon otherwise in the Administrative Services Agreement. C. Employer plan fees will be paid by the Employer as outlined in the Administrative Services Agreement. D. Assignment of benefits is not permitted. E. Payments to an alternate payee (payee other than a Participant) are not permitted with the exception of reimbursement of health insurance premiums to the Employer. F. An eligible dependent is the Participant's lawful spouse and any other individual who is a person described in IRC Section 152(al. G. Upon termination of employment prior to a Participant becoming eligible for medical benefits from a VantageCare Retirement Health Savings Plan account, Participant accounts that are $5,000 or less will be considered De Minimis, and will be paid to the Participant. H. The Employer will be responsible for withholding, reporting and remitting any applicable taxes, as outlined in the VantageCare Retirement Health Savings Plan Employer Manual. XIV The Employer hereby acknowledges it understands that failure to properly fill out this Employer VantageCare Retirement Health Savings Plan Adoption Agreement may result in the loss of tax exemption of the Trust and /or loss of tax - deferred status for Employer contributions. EMPLOYER Accepted: Vantagepoint Transfer Agents, LLC ?a, a 3 4, �'/ Corporate Treasurer APPROVED AS TO FORM: P 02&;&Z L n Daniel L. Gibson, Senior Civil Deputy Prosecutor 3v.DY Date Attachment to Whatcom County VantageCare RHS Plan Adoption Document Insert for VI.A.2. - Daae 2 Per Unrepresented Resolution 2002 -029, employees with the allowed maximum of 960 hours in their sick leave bank at the end of the calendar year, may accrue up to 48 additional sick leave hours for use during the subsequent year Win the bank reverting back to no more than 960 hours at year end. Employees may elect to have 25% of any unused portion of those 48 hours contributed to the RHS plan. Replacement for Section XI.A Death Benefits — pages 6 & 7: XI. Death Benefit In the event of a Participant's death, the following shall apply: Account Transfer: The surviving spouse and /or surviving eligible dependents (as defined in section XIII.F. ) of the deceased Participant are immediately eligible to maintain the account and use it to fund eligible medical benefits specified in Section X above. Upon notification of a Participant's death, the Participant's account balance will be transferred into the Vantagepoint Money Market Fund'. The account balance may be reallocated by the surviving spouse or dependents. Please read the current prospectus carefully prior to investing. An investment in this fund is neither insured nor guaranteed and there can be no assurance that the Fund will be able to maintain a stable net asset value of $1.00 per share. Vantagepoint Mutual Funds are distributed by ICMA -RC Services, U-C, a controlled affiliate of ICMA Retirement Corporation. Member NASD /SIPC. In the event of an Account Transfer, V a Participant's account balance has not been fully utilized upon the death of the eligible spouse, the account balance may continue to be utilized to pay benefits of eligible dependents. If no eligible dependents survive the spouse, the remaining account balance may continue to be utilized to pay benefits of the designated beneficiary of the spouse. Upon the death of all eligible dependents, the balance may continue to be utilized to pay benefits of the designated beneficiary of the last dependent to die. Benefits paid to the designated beneficiary(ies) of the spouse or dependents may be subject to federal and state income taxes. In the event that there are no surviving designated beneficiaries of the spouse or dependents, any remaining assets in the Participant's account shall be paid to the estate of the spouse or last dependent to die as soon as practical. There will be no elective withholding of federal, state, or local income taxes for benefit payments to the designated beneficiary(ies) of the spouse, designated beneficiary(ies) of the dependent(s), or a spouse or dependent's estate. If there are no living spouse or dependents at the time of the death of the Participant, the designated beneficiary(ies) of the deceased Participant is immediately eligible to maintain the account and use it to fund eligible medical benefits specified in Section X above. If there is no living beneficiary(ies), the account will be paid to the Participant's estate in the year of payout as elected in B. below. Benefits paid to the Participant's designated beneficiary(ies) may be subject to federal and state income taxes. There will be no elective withholding of federal, state, or local income taxes for benefit payments to the Participant's designated beneficiary(ies) or the Participant's estate. 10