Title
Resolution - Approval of Engagement of Trustee and Acknowledgement and Approval of Plan Administrator's Engagement of Third Party Administrator/Actuary of Pedernales Electric Cooperative, Inc. Employees Defined Benefit Retirement Plan - B Arldt
Other Info
Submitted By: Don Ballard
Department: Human Resources
Financial Impact and Cost/Benefit Considerations: As discussed in Executive Session.
Discussion
Effective January 1, 1964, Pedernales Electric Cooperative, Inc. ("Plan Sponsor" or "Cooperative"), 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").
In December 2017, the Board appointed Charles Schwab Bank as the Trustee for the DB Plan. Charles Schwab Bank is now unable to serve in that capacity due to a fund within the DB Plan.
The Pedernales Electric Cooperative, Inc. Plan Administration Committee ("Committee"), members of which have been appointed by the Plan Sponsor, serves as Plan Administrator of the DB Plan, and previously undertook a benchmarking comparison of costs, fees and expenses and services offered with respect to the DB Plan and received the results from such benchmarking comparison.
The Committee, in its capacity as a fiduciary of the plans, has now reviewed information on other proposals, conducted in-person interviews, follow-up calls and reference checks on other possible trustees and its offerings to participants.
The Committee in accordance with its Bylaws has communicated with the Plan Sponsor regarding its investigations and deliberations at this Board meeting.
Under the terms of the DB Plan, the Plan Sponsor has the authority to remove and appoint a trustee for the DB Plan; and the Plan Sponsor has discussed and considered the Committee's presentation.
Body
NOW, THEREFORE, BE I...
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