Title
Resolution - Approval of Board Delegation of Authority, Composition, and Role of PEC Plan Administration Committee - W Burns
Other Info
Submitted By: Lisa Scarborough on behalf of W Burns
Department: Human Resources
Financial Impact and Cost/Benefit Considerations: No additional costs anticipated.
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. The Plan Sponsor's Board of Directors ("Board") previously appointed a Management Committee to serve in this role, which has since been renamed the Pedernales Electric Cooperative, Inc. Plan Administration Committee ("Committee"). In addition, the Board has previously allocated certain administrative and investment responsibilities to the Committee, determined an appointment process for Committee members, and appointed persons to serve as members of the Committee. The Committee has seven employees as members. Five members of the Committee are currently regular members. The position of a Human Resources Manager and a Finance Manager are the only permanent members of the Committee.
The Plan Sp...
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