HomeMy WebLinkAboutSouth Central Joint Powers AgreementOak Park Hei
Re q uest for Council Action
'Vieetin Date 7
YLi U)-01
A Item Title Approval. of Joint Powers A with South Central Service Cooperative
and Authorization to execute. Time Re I min.
A Placement Consent
Ori g inatin g Department/Re Administration/Kimberly Kam per
Re q uester's Si
Action Re Approve Aoreement and authorize staff to s
Back roan d/ j ustifi- cation (Please indicate if an previous action bias been taken or if other public bodies
have advised
If y ou recall the Cit is chan its health insurance to Blue Cross Blue Shield of Minnesota — Aware
Gold as part of the South Central Service Cooperative (SC SC) pool. To officiall become part of the
SCSC the Cit must enter into a Joint Powers A four Group Emplo Benefits and other
Financial and Risk Mana Services.
I would like to re that y ou approve the a and authorize staff to si document. I have
attached g eneral information on SCSCE and the a for y our review.
Date/Time Received
Financial Implications $
Bud
Bud Yes
No
Administrative Recornmendiation:
Approve
Comments:
Cit Administrator/Date
Den
Line Item
Fundin Lev Other
No Recommendation
C,
_IAS HAREDTorinsWOUNCIL ACTION I QUEST.doc
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quality through
cooperation
SOUTH CENTRAL SERVICE COOPERATIVE
1610 Commerce Drive • North Mankato, Minnesota 56003 -1912
Phone: (507) 389-1425
FAX: (507) 389 -1 772
Web Site: www.mnscsc.
South Central Service Cooperative
City County —Other Governmental Agency
Health Insurance Pool
About the Pool
Goal: To provide rate stabilization & rc asi ng power;
The Service Cooperative negotiates on behalf of the pool & conducts cts the required R-FP
Plan Year: Jan 1 -- Dec 3 1;
'resent carrier is Blue Cross & Blue Shield of MN;
* Each group sirs a Joint Powers .Agreement;
Each group determines its own plan benefit design(s);
Specific Stop -Loss: $50,000 per member (includes transplants);
Aggregate Stop -Loss protects the Fool;
ACH system of monthly premium payments is required;
Each group has an interest- bearing account at Wells-Fargo Banff Haut to pa
claims and plan costs;
The South Central SC receives es are administrative e fee of 1.5 % to corer Pool
management operational expenses.
Fool benefits
CSM retention charges are reduced
* Dollars are maximized to pay claims
Annual participation fee (July I — June 30)
$75 base fee plus $3 per employee (total is capped at $1
Year I — charges for the first six months are waived
Year 2 f — full participation fee
Oversight
Service Coo rat e Board of Directors - provides govemance for all insurance
programs;
Staff Management Team - Les M rtisko, Executive Director and Paul Olson Insurance
Coordinator;
4
G�
C EIy
%. U V 1
qualit throu
cooperation
SOUTH CENTRAL SERVICE COOPERATIVE
1610 Com ere Drive * North Man kat , M 1 n nesota 56003 -1912
P hone:
(507) 389 -1425
(507) 389 -1772
Web Site
w w w .m nscs c.o rg
South Central Service Cooperative
City - County -Other Governmental Agency
Health Insurance Pool
Counties
L e Sur County
Waseca County
ariault County
v o nwan County
} Cities
City of Le S eur
City of Waseca
City of Hastings
City of North Mankato
City of Arlington
City of Ne w Ulm & Public Utilities
City of Blue Earth
City o f Lake Crystal
City of Henderson
Ci of La faye tt e
City of sleepy Eye
Other Governmental Agenci
Minnesota Malley Action Council
Region nine Development Comr isssion
"rir ont health Care Center
Wells Public Utilities
Blue Earth Light & Water
Utilities Plus
Minnesota Municipal utilities Assoc.
Sleepy Eye Municipal Hospital
JOINT POWERS AGREEMENT
for
GROUP EMPLOYEE BENE.FITS
and other
FINANCIAL and RISK MANAGEMENT SERVICES
between
CITY OF OAK PARK HEIGHTS
and the
SOUTH CENTRAL Safe'!/ /CE COOPERATIVE
JOINT POWERS AGREEMENT
FOR GROUP EMPLOYEE BENEFITS AND OTHER FINANCIAL AND RISK
MANAGEMENT SERVICES
TABLE OF CONTENTS
Page
S 1.
S 2.
S C ON I
SC0N 4.
P URPOSE, INTENT AN 8J EC ■ ■ V ■1■Y + . i r . . . a . #
1. 1. Purpose
1.2. Inte
1 *a Objective
D EF IN17 1 ON S # s i f • f ■ s ■ r f • s a • f w s # • f # a • i # • i 4 f • • 4 i ■
2 .1. Agreement
2 .2. Associate Member
2 #3. Benefit Fund Reserve
2.. Board
2. OA
2 . 6 , CA Employee Benefits
2. Discretionary Employee Benefits
2.. Group Contract
2.. Group Employee Benefits
2 .10. Other Financial And R isk Ms s e a t Services
2.11. Operating Agreement
2 .1 2. P articipant
2.1 3 Participant Member
2.14# Pool
2.1 5, P rovIder
2.1 SC
JOWT POWEFtS GOVERNING BOAR
1 1, Bard Membership
12, Upon Dlwolubon of SC
3.3. Acknowledgement by Associate Members
RIGHTS TS AND R S NSIN ■ ES THE BOARD i i # # i • i i v v • i # i a ■ � ■ f + a f + + i
4 . 1. Group Employee Benefits
4 , 1.1. CA Employee Benefit
4 .1-2. Discretionary Employee Benefits
4 .2. Other Financial and Risk Management Services
470220:
4 ■ r t
Oper ating Agr eements
4 .4 . Service Provider
4 . 4 .1 . Selection
4 .4-2. Governmental Uni S idling and Contractin
L aw s
4 ■3. Serv Provider Rate Increases
4 .5 . Advisory Committg
4 , 6. Authority of Board
4.7. N o Responsibi
4. 8. Establishment of Rate Reserves
S C N 5. RIGHTS AND RESPONSIBILITIES OF PARTICIPANTS 7
5 . 1 . Group
Employee Benefits
5.1.1
Enrollment and Renewal
5 .1 -2,
Participants to Furnish Data
5 . 1 ,3.
Remittan ce Pr9miums and Contract
Charges
5 . 2 . Other
Financial and Risk Manag Sees
5 . 3 . Participant
Wit
.3 #P a
Voluntary Withdrawal
5 .3,2.
Withdrawal al ei g to Participant Rate
Solicitation
5 .3- 3.
Withdrawal Relating to Dual Offerin
Ef fect
of art cipa nt Withdrawal
5 . 4 . 1 .
Benefit Fund Reserves
5 .4-2.
Future Participation Limited
6.1. Fund Reserves
6 .2. General RU ICS Regarding Management ent a nd #too
Of SWet Fund Reserves and Res and
0 0velopment Fund Reserves
6 ■2# 1 . Benefit Fund Reserves
6,2.2. Research and Development Fund R rvee.
.�. M a effmt and Disposition of er e t Fund Reserve's
Upon Participant Withdrawal or Pool Terminadon
6 . 3 , 1. Wit of Participant
(5 -3-2., - Terming ion of Pool
6 , 4 . R eversion of Fund Reserves Prohibited
SEC N 7. LENGTH OF A GREBMENT AN TERMINA71ON ........ ■ i . 1
J
1 i . a a 4 a f ■ i y i a
SECTION 8 ■ LIABILITY OF PA S .••# 4, ■,a •i, #. ■.. # *... #•a•
SIGNATURES i ■ i ■ # # a r r r ! 0 r 4 ■ i ■ ■ W # ■ # ■ 4 ■ i i f � # r s ■ i 4 i r r # rt ■ ■ • • # f # • a rt s
970224, y
w r f
JOINT POWERS AGREEMENT
FOR GROUP EMPLOYEE BENEFITS AND OTHER FINANCIAL AND RISK
MANAGEMENT SERVICES
This Jo Power A greement, her r eferred L
as re t ,, , t
between Participant Member IS made
Pa rtici p ant Me are now r and other hereafter become parties this Aw and
the SOUTH CENTRAL SERVICE COOPERATIVE, hereinafter call "Sc called �� ��
RECITALS
W h e r e a s , Minn. Stat. § 471, 5 t Subds. 1 and
authori two or mor
governmental units to exercise joi ntly or cooperativ p owe r s whl
ornmon c e possess �
f and
Whereas, Minn. Stat. § 123.582, establishes service coo
ravest pu
W hich, among other things, is to assist arti ipatin governmental tai nits in meeting certain
specific reeds which can most advantageously met on a reg i onal ova# bass#
N OW THEREFORE, the parties hereto ag as follows
SECTION 1
PURPOSE, INTENT AND OBJECTIVE
I . I . PUr Under the provisions of MInnesota. law, g overnm e n tal units may enter into
Contracts for the purposes of p roviding Grog Employ y enema f tear em and
for the provision of obtaining other Financial and Risk
M anagement Services dee ed
necessary or beneficial for their operation. U nder the WOViSims of M inn.
S tat. §
two or more governmental units (including, but not limited to school di stri c ts,, countie
towns, other governmental agencies and service coo eraves
m ay agree to exercise
j ointly or cooperatively powers which they osaess in common. Pur to Minn. Stat.
47 1 .59 , Su d 2, the pa rfts state that their c ommon power
shall be exercised for the
purposes of transferring. to ft Board certain matters p ertaining to the admini and
funding of Group Employee Benefits and obtaining Other ins i
� sl and Risk M
Services, all as described herein. It is not the pu r p o s e ot this Agreem to transfer to the
Board the authority to execute contracts on behalf of Particip to in
any manner become
involved in any collective bargaining process, or to transfer liability or responsibility r
matters other than securing proposals, proposing alternative g
ndin arrang ements ,
negotiating rate renewals, verifying benefit settlements and the facilitation o
administrative services for Group Employee Benefits and diher Financial r � d R i sk
Management Services.
97022`3.'121
4
1 .2. Intent. It is the par intent to
CQM PlY with the statutory ra uir
i haws P to Beet for erer�t t rcu
proposal, COBRA and its
vice ccperat�ves, anti �� � li �r�e�ota ex
��s r cable federal and state sta tutes. the
govern service cooperatives, it is tt�tes. Pur to
ov
u nits a allowed also i that nonp rofi t
pa�c�pate a Asociate n o ng o v ernmen ta l
� t#�r i�cial n Participants � the Gr Emp l o y
Risk Management Services ee Benefits
to thi rerner�� al ; � made available to r�tic�par� pursuan
t i not intended that such
r s r r the ers o prof t, o overnme tal units
}/y authorities exclusively deleg
described i Mi nn. Scat. § 471.59 Sub g ur its
Minn 1.3. Objectiv Pursuant to Stat. § 471. Su d, 2, th
Powers Agreement is to uthorl cec f hi it
e the r to;
( a) e procure a
admini Group Em
ir�ar�c�a� a �s� � B enefits n the
Ma eries that em he
Pooling asks for the purpose of stabilizing pct f
a����n and/or red costs
are
( b) d and clarify requ est for proposals, rights and
lenth of cotraot, trr��rr � rresponsibilities, r
ation guidelines, the relative lia i `
parties, tie rr�thod +• ��y of the y which parties to this
exercise their common p eow ' rg reement hall
.
SECTION 2
DEFINITIONS
2.1. AgrOOMent means 'this' J oint Powers Agreement s the
time to time* may e amended from
2.2. A 1m m eans any nonprofit or nog overnr en
p atici pste � r� any o tie fro tee ' + entity w h i c h
rev yee e e f or Other Finami l
ices made ays����e to them � R isk Mana
a u nit the oar. As deemed ft SC, such Phrase shall
as defined in Minn. stIt 471.
in � � which '! is a for
Participation Agreement y the Board and
representation ors the � e�eots not have vot��n
2.3. Benefit Fund Fk*s*rVO means assets held for the provision o Gr oup pee
2.4. Board means the service
Cooperative Board of D irectors actin
Governing Board. s the Jo ewers
2.5. - C8A means collective bar g ai ning reemn.
9 70 2 20' 13 2 1
-2-
2 . 6. cSA rrnploy " B ensfIts me such emp l oy ee elfa�
retirement benefits as
are required, with respect to any particular Participant, to
�� � provided to some �� an of
such
� eployees pursuant to the terms of a o011ectiv
e bar ag reem e nt.
in no evert shall any Discretionary Employee Benefits be considered SBA Empl Benefits
unless and until part of a collective bargaining agreement neg atd and agreed to b a
between a union a Participant. in the event an Discretionary
�nin y y Employee Benefit �s
termina by the Board but continued by one or mor Par
Di scretionary Employee Benefit shall become the sole r
c
2.7.
013 Cretionary EmPlOyee Benefits means but sh all # Gill no l i mi te d to he alth
��J
benefits coverage, w ellness and employee assistance progr l i fe in sur ance, di
income p rotection, dental insurance, flexible spending „ ro r ms, retirement p and
other services and benefits as directed by the Board from Ume to
ti and p rovided by a
Participant for its er plc ee , e cc# sive of any cBA Emp lo y ee
E mplo yee Benefits. D iscretionar y
oyee Benefits may be terminated or reduced by the Board at any `o eve nt
any (Discretionary Employee Benefits be considered cBA Emplo Benef un less u nt i l
part of a Collective bargaining agreement neoated and ag reed to
by and between a union
a
Partic ipant. In the event any Discretionary Employee Benefit is termi by the Soar
but continued by one or mor Participants,, the r ovision of
� such D iscretionary Em ployee
Benefit shall become the sole responsibility Of such Partici
2 .8. Group contract shall mean an agreement for the r enderin g and
betfeen a Partici and a Provider of such services. III
2.9. Group Employee S enefIts shall mean CE3A Emp loye e
eneffts provided b G
Contract to employees of Participants pursuant to a collective .
t e bara�ni recent and
Discretionary Employee Benefits made available from the
to tlrry by the Board in it
discretion for employees of electing Participants. The u ndertakin g s for the provision of
Group Employee Benefits in this Areerrrent may be terminated by the J oint dowers Board o r
the Sc s applicable) at any brae.
2.10. Other Financial And Risk Management Serviose May i nc l ude,
l f y but s not be
limited to,, technical advice regarding borrowing p rog rams, cont racted � acted ! sal se r v ices,
property /casualty safety group protection, personal roe and ca s u alty salty rotection,
student accident coverage,, and other services as made available b Group o contract for
Participants from time to time by the Board.
2.1 1 , operating Ar "moat means an agreement b and between
y e S C and a Prorder
which establishes terrors for the administration and funding of CBA Ma m �
r Other p oyee Benefi
sc etionary Employee Benefft , or Financial and Risk rra em
D is c re tionary Services.
2.12 P articipant means both Participant Members and Associate Members, it shall not
refer to Individual employees obtaining insurance or other benefit covers e r n
n p spa t to a
p lan offered b a Participant which is funded or administered in whole or in p art p ursuant
to this Agreement.
34`223 132
Imo. a 1 1 # Pa Membe m ea n s 1 � J 5M� 1 governme defin .+� Minn. S tat
47 1.59 which is aooepted for participation in this
reerent �y tie .
2.14. l me the collecti group ot Participa
B �re�or� g i v en pro of C pro
ne��ts
t ary Employee Benefits, or Othe F inanci
Servi as tie oonte� �� � l and i Mana
squire. Absent an agreement expressl
separate P ool sib exist for each so r t e contrary
� or rid s epara t e group Contra shall exis
b the Pr and Participant for the red �' t
rr� of er�os or benefits for w hic h
such Pool is formed.
2.15. Provid means the p erson , insurance i
e carder or entity which Is selected by the
Board in its di which by rriten Gro C with the artiorpant agr
provide the Participant vier drop l Benefits to
�1ar�a et�ts or O ther Fina and Ri
Manag Services.
2.16. SC m f a S outh Cen l S1 • iCY C1/ V er i
a�ve govern a and lic
cor poration, w hose existence i authorized pursuant t Minn. �
SECTION 3
JOINT POWERS GOVERNING BOARD
3.1. Board Membersh1p, Pursuant to Minn, �r �. § 1. dud. 11, #� SC Board of
D irectors will also serve as the Board referred to in t
A The Board w be
e le c ted p to the BylaS of the SC, go
{ � eieeotio o i board o directors. As
appro the nerd may de-si a representative to act on its behalf,
even 3 . 2 . Upon DISSOlution of SC. In the t a SO is dissolved, the Board shall
con tO e and ft Members shall be ele solely from the goveming bodes of t he
P arti c i p a n t Me to this lrmn in a manner
co with roisio ofi the
Joint Pourers Act, Minn Stat § 471-59 S bd. 2.
3.3. Acknowfod b Assoclate MO MbOrs. A sso c i a te Me which are not
g overnmental units acknowledge that Minn. St 471 not of tho t
participa bon in a Joint Powers Agreement, even thou 5 b
authorizes nonprofit, nongovernmental org anizatio ns
Benefit F o par i Grp Emplo
other Financial and Risk Management Services
other pro made a
f rom ti tO time by service coop eratives. B parlic in any s pro made
available by the SC, such nongovernmental Associ
Mem spree to be bound by the
relevant terms of this Agreement and t hat the B is re o f their interests
Associate Members w hich are g o v e r nme n t a l u nit s
and which have elected Associ Heber
status also agree to be bound by the relevant terms o
this A and that the Boers i
representative of their interests.
70 2 2 0. 13 1
__ 17
SECTION a
RIGHTS AND RESPONSIBILITIES OF THE BOARD
4 . 1. Croup Employee Benefits.
I I E mp l o yge
B oard may provide and dm nis r
a lt e rn a ti v e financing arran respectin
sha ll be benefits which a Par has r
p
ed
rovided � ern�oyee pursuant to a Collectiv
Contra for b ar g aining a The ��
oup
o the provision of such benefits shall a betty Prr. {}�J i �/ / 1 /��y + ryy1 l}�J en the Partici and tie
uthoriat�on to ohane o�� or � Boa � authority n o r J }{.� `t ts y benefit respecting a Participant C A
B ene f i ts ,
Empl
4.1.2. Discretionary Employee Benefits. T
B oa rd may from time to i
m a k e a for adoption by Partici Discreti Employee Benetits and ma
ad and ne alternative financing arran
Group � erner�ts reseot�n such be the
Co for the provision of such benefits shall b
tern the SC and the Pr
or between the Participant and the rotder;• s the
�� B oard shall deterrni from time to
e Notwithstanding that a Group - C for i r
� tlnry Employee E3en b
b et w een a Partici and a Pr the Board upon
re n otice to Partici ns
m ay roseolei amend, reduce or terminate any such ri
i sorettonary Em net in
its sole
end absolute discretion.
4 .2 other Fi and Rlsk Management So
riss. The oat` may administ an
pr other Fi and R Management dery
des for elec Participants. The
responsibilities of the Board in the Performance of Other
F i n anci a l and Risk Man
Services will be set forth in eratin Ag r eements
dete the most cost-effective and appropriate manner 4 n whi
Finan cial and Risk Management er ent services and the service f
the same. ees VW other costs pertaining to
4 .3. Oper Ag me men ts. Th Bo ard m a y ne Opera A for the
benefit of the SC and each the P articipant& CO of thS Ope A s hail be
on file for review by any P&MCIPant upon req
SC Shall . be baud a ser fee in
consideration for services rendered pursuant to this A g reement and s O
Agreements, ThS amount and source of such serve
oe fee shall be esta from ti to
time b y the Provider and the SC and shall be r v
o ed the Board. Such service fee may
include, but shall not b e #iff0ted to, a p ercentag e of prem iums collected from Partic
for the payment of Group Emp loyee Benefits a fixed fey, or such other a rran g e m ent as
approved from time t time b the Board. At the time a '
��an elec to partici i
any of the Group Employee Benefits made available h Partic
y t e hoard, the shall, by
execution of this Agreement, be deemed to have acknowledged
and agreed to the amount of
such service tee as set forth in Addendum A attached her
and the source of its pa
incfuding any part hereof derived from discoun refun
dividends, or similar reven
a s well a s the disposition and expenditures of p remiums and oth ter revenues reeved from
9 13 2 1
dO A i
P ar t ici p ants to the extent di therein. An updated
A dden d um A will be treed to
Part i c ipants least ann Servi fees payable with resPect tO Other Financial and
Banc Services shall be established from time to time as d etermined
4 . 4. Service P rovlder3,
4 .4. 1. Se1e0 The Partici h e reby dele
selet the Providers for gate to B oard the right t
group Employee Benefits and Other Financial
and Risk M anage m ent
Services,
4.4,2, Governmental Unit SIdding and Contr
�' all 1s appli
t Bo d shall Comply with all state and federal laws relatin
re f pr ,
revieW ot Pr l of Group C r and other yaws and reg r
to contracting for Group Em ployee Benefits and Other din
ancial and Risk Management
Services.
4. 4.3. S P rovider Rate Increases. The
Boa rd will nnall elew
renew in formation as presented by Providers, mace reco mmendat i o ns and d eter m ine i
requests f or proposals are necessary. Rate renewals '
r group insura wili be
determined on the basis of the aggregate chary a of r
� erg mss.
4 .5. Ad C Th wI aid s ha l l a on rp e + c
Th e purpose of any such committee May include,, but shell not be r
Processing o information relating to Grou Employ to Bene recei +
such y the toy d
ben efits as well as other programs and services. The
B oard shall co but is not
required to adopt, advisory co rnittee recommend ati
one and pro La
representation on any Insurance Advisory Committee forme b
the hoard s hall be
representative of the exclusive representatives of Particip i h r ele va nt P
4 . 6 . Authority of Board. The Board, with due con
idraon given to rec
submitted by any advisory com mittee which ma y be estabfthed,, shell, unless otherwise
expressly agreed retain final authority in all metiers relay `
e to this A as well
as Group E MP10yee Benefits, other Financial and Risk +
Mar�ageren Serv and other
programs subject to this Agreement,
4 . 7 . No Responsibility, The Board, its authorize represe epresetalves, m and
designees shall have no duty or liability o are of the
t y Partici Providers, o O ther
Financial and Rik Management Providers with r espect to the fees, p r e miums and
contract chargee, offers, acceptances or binders of coverage, cancellation g � noces or other
charg reia ng to the arts i aunt s subscribers, all of which s hall
be the resp of
the Participants party to such agreements. The Board i ts authored representatives,
employees and designees, and each Participant shall have .
o duty or l due to
negligence of other Participan and Providers.
4 . 8 . Esta of Rate Reserves, The Board shall fr
M fte to time de
the mini amount of funds needed in any Benefit Reserve Fund r purposes ot ri
management and rate stabile abon. Factors which shad be considered by the Board ma
97fiQ:
include actuarial reports and shall include statutory requirements for such
Fund or other
similar funds.
SECTION 5
RIGHTS AND RESPONSIBILITIES OF PARTICIPANTS
5.1, Group Employee Benefits.
5.1.1. Enrollment and Renewal. Each Participant w ill execute any n ecessar y
Group Contract, Group Contract amendment enrollment and renewal documents direct
with the Provider,
5.1.2. Participants to Furnish Data. Each Participant agrees to furnish all
necessary employee data (census) pertaining to insurance coverage directly to the Provider,
as requested.
5.1-3. RemIttance of Premiums- and Contract charges. The Participant
shall remit premiums and/or contract charges in the nee and manner as from time to time
determined by the Board.
5.2. other Financial and Risk Management services. The oi ant agrees to
execute and submit all necessary data required to perform the respective service as
requested to the appropriate parties by the Board. The Participant shall remit payment as
designated by the Board for such servicas as billed and when due.
5.3. Participant Withdrawal.
5,3.1. Voluntary Withdrawal. At any bme during a yew (but at least three 3
months prior to renewal), a Participant may terminate its participation in 1 reement
or in a Pool upon ninety 0 days written notice to the Board and ail Providers of prog rams
in which it participates.
5.3.2. Withdrawal Rwating to Participant Rat* solicitation. If a
Participant solicits proposals Independently of this Agreement when there has not been
fifty percent o% it re g a in the aggregate rates for that Participant rots in a given
year, the Board retains the right to deem that the Participant has withdrawn from the
appropriate Pool. "Soliciting proposals'* shall be defined as requesting and/or accepting
proposals. Notwithstanding the foregoing, a Participant receiving a 0% or greater
increase in the aggregate rate for that Participant group in a given year shall be allowed to
solicit proposals without Jeopardizing their participation in the Pool. If the Participant
elects to reject all proposals and remain a Participant in the Pool, the Participant will
receive a rate to be established by the Board.
970220'1321
5.3-3. withdrawal Relatin to Dual Offerin If a PartIcipant offers G r ou p
Emplo Benefits through an additional o different lan which
r r � t �� the d�artio f #�
Board
e o be substantially si milar to those rove
P �c! � fed y fool in whi ��1
then the .Board retains the right to deem that
withdrawn from the Pool. s uch Participan
5 , 4. Effect of Participant Withdrawal. Upon a Partici
w ithdr a wal from this r pant w ithdr awa l � ded
Agre or from a Pool, the followin rules shall app
5 . 4 . 1. Benefit Fund Reserves. Assets related to
Be nefit Fund eee shall
be subject to the rules set forth in Section 6 . 3 .1 below.
5.4,2# Future Participation Limited, if a Particip i deemed by the B
t o hav withdrawn from a Pool or this Agreement p ursuan t to Se 5.3 a bo v e, su
Participant's participation in this Agreement o r such Pooh
the ease may be, Sh be
prohibited for a period of twenty-four 2 months from the
date o such withdrawal o r
deemed withdrawal.
SECTION 6
FUND ADMINISTRATION
6 .1. Fund Reserves, It is understood and ag reed tha
the means of pro Group
Employee Benefits for Participants may result in the est
y ablishme se find accounts
( e.g. , risk stabile atim, Benefit Reserve Funds and Research and Development Fund
Reserves) the purposes of which may include but are n ot limi the p and
financing of such Group Employee Benefits and th
s of the c ost of such
benefits.
6 .2. General Rules Regarding Manag and DID
RIn of eefit Fun
Reserves and Research and ev1 rent Fund Ro s erve s .
6 .2- 1 . Benefit Fund Reserves,, The Board may use ark l
f y Be Fund
or the followin purposes;
( a) to negotiate the purchase of, administer, p rovide an d m (e ither
directly o r through the purchase of insurance,, or both CA p to e
Benefits and Discretionary Employee Benefits in ludin g, Ul .... nQt l imi ted
IAL pro r ►MS d irectly related to the purpose for which the Fund was
created, such ass for example, In the case of a Health Pool, an Employe
Assistance Program AP and Wellness Program)
(b) to pay or provide for the payment of all reawna ie and nec ess a ry expens
o f administering the affairs of the applicable Fool including without
limitation, all expenses which may be incurred in connection with the
9 70220. t 32
•k s
establishment a nd administration of tho aPplIcable Pooh t}
of admini strative, legal, accounting, other ex p e rt p# t an cl as
the leasing of such premises and the p ur ch ase or lease of material
supplies, equipment, and liability and Property insurance;
pursuant to Section 4 . 8, to establish and accumu u past of a Benefit
Fund Reserve an accumulation of funds deemed adequate by the Boa to
carry out the pur poses of the applicable Pool, for examp for
rate st � purposes of
ty d risk reserve
( d) to pay any federal, stag or local income
ernploytent death or over tax
which may be properly imposed on or levied ag ainst the li
io � cal group
Em ployee Benefit plan or Pool r on benefits paid therefrom;
( 8) to pay for any bond and to pay the premiunis on
any insurance purchased b
the applicable Pool, including, but not limited to liabi
insurance,
4 stop loss" insurance and other insurance intended to
ir�directl the a dire or
y benefits established with respect to the pp licale Poor
to pay the SC any service "" fee a able to
p � t pursuant to or a
pursuant to this Agreement: and
(g) to pay for the services of such consultants who services are ordi narily
and necessarily incident to the establishment, mainte nance e ante and
administration of the Pool.
6.2.2. Research and Dev*IoPment Fund Resew
Upon notice to
Participants, the Board may from time to time establis
one or more esearoh and
Development Fund Reserves. Con ribu ons to such Research
and De Fund deserves
may be made from P ard6pant contributions or ie benefit refunds da r discoun p rovided,
however, that in the case of benefit refunds or discoun s, 1 s contributio to the
Research and Development Fund shall be f i disclosed
y to Participants by eit the hoard
or the SC, and 11 the participants agree to undertake to dis all such c to
enrolled employees. The Board may apply Research and Oeve lo pffw n t fund deserves to the
payment of legislative, technical or professional consultation tees
as well as for the
following purposes:
( a) to conduct research re alternative means of fin ancing ancin of group
Employee Benefits#
(b) to conduct research regarding the feasibilit providing additional t' � add tonal group
Employee Benefits; and
( C) to pay for such other, similar expenses a the Board shall from time to
time approve, provided, however, th no such' expense shall directly inure
t o the benefit of the Board or the SC.
9 70220; 1 3 2 1
� s
Revenues and ex pend'tur es of Research and Development ent Fund Accounts shall b d e
Addendum A as the sane may be ame nded from time to time.
6 . 3. M anagoment and D Isposition Of Benefit Fund P articipan t
Withdrawal or Pool Termination, The following pules shall govern t he djsp()sjtjon of
Ben efit Fund Reserves in the evert of a Participant withdrawal
o r the ter of a Pooi.
6 .3-1. Withdrawal of artici pant. In the event of the wit ot
Participant prior to the termination of this Ag reement or of
P ool, Ben Fund deserves
attributable to contributions of such Participant shall not be returned to such Parti
6.3.2. Termination of Pool. In the evert of termination of a Pool,
contributions of Participants to the related Benefit Fund Reserv
of termin and the assets then remaining in any such Fund shall contnue to be used and
appli exCIUSively for the;
( a) payment of benefits to or on behalf of enrolled
eIMp10yee with r espect
claims arising prior to such termination,
(b provision of si milar benefits . for such em pl oyees ,
. r yeas
(a) payment of reasonable and necessary expenses incurred in such
termination, and
(d) payment of taxes,
mil no monies or other assets remain in the applicable
nd* UPon such termination, the
B oard shall confine to serve far such period of time and to t
set nece to carry
out the directions of the preceding sentence and to liqu
ft aPiiosie Fund.
6 .4. Reversion of Fund sery s Pr ohibitod.
D ur I ng the contin of this
Agreement the assets of B enettt Fund Reserves and the
eery and oev elopm e nt Fund
Reserves shall never inure to the benefit of the Board or
to SC or a Par and shall
be held for the exclusive purpose o p roviding be nefits e is to employees of Participants
enrolled in the applicable Pool and defraying the reasonable e x pen ses sea of administering the
a pplicable Pool,
SECTION 7
LENGTH OF AGREEMENT AND TERMINATION
Pursuant to Minn. Stet. § 471 9, Su d. 4 , but subject o the p rovis i ons � p s ores herein relating to
Participant withdrawal, this Agreement ent shall be ongoing
97'220. 1 321
_1 _
SECTION 8
LIABILITY OF PARTIES
An Padc1pant to this A holds the Board and its em 10yees and i S esi an(j
the SC and its boardt MPIOYe6s and desi harmless trom an and all cause ot action
arisin a t law or in equ unless such action shall aril
and
f rom its r their gross n li gence
is rrt air aliatin ot all d
y /+ y� �yy /� �y� and tats r i b to t # is t li r an Est ari
this Agree n�s a is M u lt of int wr Ali
b her are the soli respon
Provider and the Participants, and not the respo of the hoard or the SC.
P to all a stake and federal haws
th is A a afro
rr��r� ars p arties and i s , signed t y the
� try soars the parti
SOUTH CENTRAL SEFMCE CO P A VE
Title
ate
SOUTH CEYTRAL SERE COOP EPA
B
Date
PARTICIPANT MB48
By
Title
Date
�Mcl�w
By
Title
D ate
9 1321
ADDENDUM A
South Central Service Cooperative Schedule of service Fees
Product Service Fee
Administrator Supplemental ental Life % of first $5000 p remiu m
of premium over $5000
Health
Life
Long-Term Disability
1.50% of premium
5% of first $5000 premium
1 % of premium over $5000
5% of first $5000 premium
1 % of premium over $5000
Property Casualty
(Joint program with MS BAIT)
Section 125
Workers Compensation
(joint program with MSBAIT)
2 of p remium
loo of annual fee
.25% of premium