Title
Resolution - Approval of Appointment of Members to the Plan Administration Committee - A Stover/A Alcazar
Other Info
Submitted By: Ericca Klein on behalf of A Stover/A Alcazar
Department: Human Resources
Financial Impact and Cost/Benefit Considerations: Expenditure of Cooperative funds is not anticipated to be impacted; expenditure of staff time is not anticipated to be impacted.
Discussion
Effective January 1, 1964, Pedernales Electric Cooperative, Inc. (“Plan Sponsor”), established, for the exclusive benefit of its employees and their beneficiaries, the Pedernales Electric Cooperative, Inc. Employees Defined Benefit Retirement Plan, a defined benefit pension plan intended to qualify under Sections 401(a) and 501(a) of the Internal Revenue Code (“DB Plan”).
Effective January 1, 1968, Plan Sponsor established, for the exclusive benefit of its employees and their beneficiaries, the Pedernales Electric Cooperative, Inc. Employees Defined Contribution Savings Plan, a profit-sharing plan intended to qualify under Sections 401(a) and 501(a) of the Internal Revenue Code, and now known as the Pedernales Electric Cooperative, Inc. Employees’ 401(k) Savings Plan ("401(k) Plan").
Under the terms of the DB Plan and of the 401(k) Plan, the Plan Sponsor has the authority to appoint a person or committee to serve in the capacity of Plan Administrator and has previously appointed persons to serve as members of the Pedernales Electric Cooperative, Inc. Plan Administration Committee ("PAC"). The PAC has seven employees as members. The position of a Human Resources Manager and a Finance Manager are the only permanent members of the PAC. Five members of the PAC are regular members and require Board of Directors appointment.
In May 2020, the Board of Directors approved the “Responsibilities of and Guidelines for Appointment of Members of the Pedernales Electric Cooperative, Inc. Plan Administration Committee.” The guidelines provide that “the candidates should be a member of management (manager, director) or other FLSA-exempt employee, in good standing with the Cooperative, who have some experience, background, or strong interest in an area that relates to retirement plan administration. Each candidate will be confirmed to have no disciplinary actions and submitted to the CEO for their consideration, selection and recommendation to the Board for action at the December board meeting.”
The Plan Sponsor also now wishes to appoint two new members to the PAC to replace a member who has retired and replace a member no longer with PEC. Additionally, PEC wishes to re-confirm one existing member to the PAC as described in greater detail below.
Body
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE that the Plan Sponsor hereby appointments the following persons to the Pedernales Electric Cooperative, Inc. Plan Administration Committee ("PAC"):
• Vance Hoy, Electrical Distribution Design & Planning Manager, (Operations), New Member.
• Craig Meador, Director, Regional Operations, (Operations), New Member.
• Seth Stoppelmoor, Cyber Security Manager, (Compliance & Regulatory), Existing Member. Each appointee shall commence service on the PAC effective as of the date he submits written acceptance of such appointment to the Chair of the PAC. Each appointee shall serve as a regular member of the PAC for the term of the appointment as outlined by the Board’s Delegation of Authority, Composition, and Role of PEC Plan Administration Committee.