Title
Resolution - Revocation of Plan Administration Committee (PAC) Bylaws and Approval of Retirement Plan Committee Charter - A Stover
Other Info
Submitted By: A Stover
Department: General Counsel
Financial Impact and Cost/Benefit Considerations: As discussed in Executive Session
Discussion
Effective January 1, 1964, Pedernales Electric Cooperative, Inc. (PEC or the Cooperative) established for the exclusive benefit of its employees and their beneficiaries, a 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, PEC established for the exclusive benefit of its employees and their beneficiaries, an Employees Defined Contribution Savings Plan, a money purchase pension 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, PEC as the Plan Sponsor has the authority to appoint a person or committee to serve in the capacity of Plan Administrator. Beginning in 2010, PEC appointed employees to serve as members of the Pedernales Electric Cooperative, Inc. Plan Administration Committee.
Subject to the requirements of the Employee Retirement Income Security Act of 1974 (ERISA), PEC as the Plan Sponsor has undertaken a review of administration of its DB Plan and 401(k) Plan and has determined to revoke the bylaws and operating guidelines of the Plan Administration Committee and instead reconstitute and approve a charter for a Retirement Plan Committee.
The Retirement Plan Committee charter outlines its role to administer and supervise the operation of both the DB Plan and the 401(k) Plan of the Cooperative, includes the structure of the Retirement Plan Committee to include five employees as members of the RPC, and guidelines for operati...
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