Agenda 07/26/2011 Item #16E37/26/2011 Item 16.E.3.
EXECUTIVE SUMMARY
Recommendation to approve and authorize the Chairman to sign an Agreement between
the ,Board of County Commissioners (BCC) and the International City Management
Association Retirement Corporation (ICMA -RC) for the latter to continue to provide 457
deferred compensation services to employees.
OBJECTIVE: To have the Board of County Commissioners approve the contract for ICMA -RC
to continue to provide 457 deferred compensation services to its employees.
CONSIDERATIONS: The Board of County Commissioners last approved and signed the
existing administrative services agreement between the Board and ICMA -RC on July 25, 2006.
The agreement was defined as a five year agreement from the date which the Board and ICMA -
RC entered into agreement. Based on the Agreement terms. we are requesting that the Board of
County Commissioners approve the new service agreement (Exhibit 1) with ICMA -RC for a
period of five (5) years. The service agreement provides the same fee based contractual
agreement as was previously approved.
• No account maintenance fee
• Mutual fund service fee of 0 basis point
• A plan administration fee of 29 basis points (.29 %)
The Agreement has been reviewed by the Purchasing Department, the County Attorney's Office,
and Risk Management.
FISCAL IMPACT: Employees pay any fees that are charged to their accounts by ICMA -RC.
There is no cost to the County to administer the program.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office,
requires simple majority vote. and is legally sufficient for Board action. — CMG
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated
with this Executive Summary.
RECOMMENDATION: That the Board of County Commissioners approves and authorizes the
Chairman to sign an Agreement with ICMA -RC to provide deferred compensation ( "457 Plan ")
services to employees.
Prepared By: Ofelia Talton, Interim Manager — Compensation.. Department of Human Resources
Attadtmems: ICMA -RC Administrative Service Agreement
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7/26/2011 Item 16.E.3.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.3.
Item Summary: Recommendation to approve and authorize the Chairman to sign an
Agreement between the Board of County Commissioners (BCC) and the International City
Management Association Retirement Corporation (ICMA -RC) for the latter to continue to
provide 457 deferred compensation services to employees.
Meeting Date: 7/26/2011
Prepared By
Name: TallonOfelia
Title: Applications Analyst,Human Resources
6/27/2011 10:43:49 AM
Submitted by
Title: Applications Analyst,Human Resources
Name: TallonOfelia
6/27/2011 10:43:51 AM
Approved By
Name: SmithKristen
Title: Administrative Secretary.Risk Management
Date: 6/27/'2011 11:41:21 AM
Name: LybergAmy
Title: Director - Human Resources.Human Resources
Date: 6/27/2011 1:00:47 PM
Name: CarnellSteve
Title: Director - Purchasing /General Services,Purchasing
Date: 7 /7/2011 12:36: 28 PM
Name: PriceLen
Title: Administrator - Administrative Services.
Date: 7 /11/2011 2:02:11 PM
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Name: GreeneColleen
Title: Assistant County Attorney.County Attorney
Date: 7/14/2011 2:01:12 PM
Name: KiatzkowJeff
Title: County Attorney,
Date: 7/14/2011 4:26:24 PM
Name: StanleyTherese
Title: Management/Budget Analyst, Senior.Office of Managemem & Budget
Date: 7/18/2011 2:30:48 PM
Name: KlatzkowJeff
Title: County Attorney,
Date: 7/18/2011 4:03:59 PM
Name: SheffieldMichael
Title: Manager- Business Operations, CMO
Date: 7 /18!2011 5:05:11 PM
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7/26/2011 Item 16.E.3.
7/26/2011 Item 16.E.3.
ADMINISTRATIVE SERVICES AGREEMENT
Between
ICMA Retirement Corporation
and
Collier County Board of County Commissioners
Type: 457
Account k: 303201
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7/26/2011 Item 16.E.3.
Plan number 303201
ADMINISTRATIVE SERVICES AGREEMENT
This Administrative Services Agreement ( "Agreement'% made as of the day
of , 2011 (herein referred to as the "Inception Date"), between the International
City /County Management Association Retirement Corporation ( "ICMA -RC "), a
nonprofit corporation organized and existing under the laws of the State of Delaware, and
the Collier County Board of County Commissioners ("Employer"), an Entity organized
and existing under the laws of the State of Florida with an office at 3299 Tamiami Trail
East, Naples, Florida 34112.
RECITALS
Employer acts as public plan sponsor of a retirement plan ( "Plan "), and in that
capacity, has responsibility to obtain administrative services and investment alternatives
for the plan;
VantageTrust (the "Trust") is a group trust established and maintained in
accordance with New Hampshire Revised Statutes Annotated section 391:1 and Internal
Revenue Service Revenue Ruling 81- 100,1981.1 C.B. 326, which provides for the
commingled investment of retirement funds held by various state and local governmental
units for their employees;
ICMA -RC acts as investment adviser to VantageTrust Company, the Trustee of
the Trust;
ICMA -RC has designed, and the Trust offers, a series of separate funds (the
"Funds") for the investment of plan assets as referenced in the Trust's principal
disclosure document, "Making Sound Invesuneut Decisions: A Retirement Investment
Guide." ("Retirement Investment Guide").
The Funds are available only to public employers and only through the Trust and
ICMA -RC.
In addition to serving as investment adviser to the Trust, ICMA -RC provides a
range of services to public employers for the operation of employee retirement plans
including, but not limited to, communications concerning investment alternatives,
account maintenance, account recordkeeping, investment and tax reporting, transaction
processing, benefit disbursement, and asset management.
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AGREEMENTS
Aaooiniment of ICMA -RC
Plan number 303201
7/26/2011 Item 16.E.3.
Employer hereby appoints ICMA -RC as Administrator of the Plan to perform all
nondiscretionary functions necessary for the administration of the Plan. The functions to
be performed by ICMA -RC shall be those set forth in Exhibit A to this Agreement.
2. Adoption of Trust
Employer has adopted the Declaration of Trust of VantageTrust Company and agrees to
the commingled investment of assets of the Plan within the Trust. Employer agrees that
operation of the Plan and the investment, management, and distribution of amounts
deposited in the Trust shall be subject to the Declaration of Trust, as it may be amended
from time to time and shall also be subiect to terms and conditions set forth in disclosure
documents (such as the Retirement Investment Guide or Employer Bulletins) as those
terms and conditions may be. adjusted from time to time.
3. Emollover Duty to Furnish Information
L-mplover agrees to furnish to ICMA -RC on a timely basis such information as is
necessary for ICMA -RC to carry out its responsibilities as Administrator of the Plan,
including information needed to allocate individual participant accounts to Funds in the
Trust, and information as to the employment status of participants, and participant ages,
addresses, and other identifying information (including nix identification numbers),
Employer also agrees that it will notify ICMA -RC in a timely basis regarding changes in
staff as it relates to various roles. This is to be completed through the online EZLink
employer contact options. ICMA -RC shall be entitled to rely upon the accuracy of any
information that is furnished to it by a responsible official of the Employer or any
information relating to an individual participant or beneficiary that is furnished by such
participant or beneficiary, and ICMA -RC shall riot be responsible for any error arising
from its reliance on such information. ICMA -RC will provide reports, statements and
account information to the Employer through EZLink, the online pian administrative tool
Employer is required to send in contributions through EZLink, the online plan
administration tool provided by ICMA -RC. Alternative electronic methods may be
allowed, but must be approved by ICMA -RC for use. Contributions may not be sent
through paper submittal documents.
4. Certain Rewesentations and Warranties
ICMA -RC represents and warrants to Employer that:
(a) ICMA -RC is a non - profit corporation with full power and authority to
enter into this Agreement and to perform its obligations under this
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7/26/2011 Item 16.E.3. '
Plan number 303201
Agreement The ability of ICMA -RC to serve as investment adviser to the
Trust is dependent upon the continued willingness of the Trust for ICMA -
RC to serve in that capacity.
(b) ICMA -RC is an investment adviser registered as such with the U.S.
Securities and Exchange Commission under the investment Advisers Act
of 1940, as amended. ICMA -RC Services, LLC (a wholly owned
subsidiary of ICMA -RC) is registered as a broker- dealer with the U.S.
Securities and Exchange Commission ( "SEC ") and is a member in good
standing with Financial Industry Regulatory Authority ( "F1NRA ") and the
Securities Investor Protection Corporation ( "SIPC ").
(c) ICMA -RC shall maintain and administer the Plan in compliance with the
requirements for eligible deferred compensation plans under Section 457
of the Internal Revenue Code and other applicable federal law; provided,
however, trial ICMA -RC shall not be responsible for the eligible status of
the Plan in the event that the Employer directs ICMA -RC to administer the
Plan or disburse assets in a manner inconsistent with the requirements of
Section 457 or otherwise causes the Plan not to be carried out in
accordance with its terms. Further, in the event that the Employer uses its
own customized plan documcnt, ICMA -RC shall not be responsible for
the eligible status of the Plan to the extent affected by terns in the
Employer's plan document that differ from those in ICMA -RC's standard
plan document.
Employer represents and warrants to ICMA -RC that:
(d) Employer is organized in the form and manner recited in the opening
paragraph of this Agreement with full power and authority to enter into
and perform its obligations under this Agreement and to act for the Plan
and participants in the manner contemplated in this Agreement. Execution,
delivery, and performance of this Agreement wili not conflict with any
law, rule, regulation or contract by which the Employer is bound or to
which it is a party
(e) Employer understands and agrees that ICMA -RC's sole function under
this Agreement is to aet as recordkeeper and to provide administrative,
investment or other sem ices at the direction of Plan participants, the
Employer, its agents or designees in accordance with the terms of this
Agreement. Under the terms of this Agreement, ICMA -RC does not
render investment advice, is not the Plan Administrator or Plan Sponsor as
those terms are defined under applicable federal, state, or local law, and
does not provide legal, tax or accounting advice with respect to the
creation, adoption or operation of the Plan and the Trust. IC,'vtA -RC does
not perform any service under this Agreement that might cause ICMA -RC
to be treated as a "fiduciary" of the Plan under applicable law except to the
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7/26/2011 Item 16.E.3.
Plan number 303201
extent provided in the Managed Accounts agreement between the
Employer and ICMA -RC dated November 13, 2007 to the beginning of
that section on fiduciary status
(f) Employer acknowledges that certain such services to be performed by
ICMA -RC under this Agreement may be performed by an affiliate or
agent of ICMA -RC pursuant to one or more other contractual
arrangements or relationships, and that ICMA -RC reserves the right to
change vendors with which it has contracted to provide services in
connection with this Agreement without prior notice to Employer.
(g) Employer approves the use non - specific information about its Plan in
ICMA -RC external media, publications and materials. Examples include
press releases announcements and inclusion of such plan information in
request for proposal responses.
Participation in Certain Proceedings
The Employer hereby authorizes ICMA -RC to act as agent, to appear on its behalf, and to
join the Employer as a necessary parry in all legal proceedings involving the garnishment
of benefits or the transfer of benefits pursuant to the divorce or separation of participants
in the Plan. Unless Employer notifies ICMA -RC otherwise, Employer consents to the
disbursement by ICMA -RC of benefits that have been garnished or transferred to a
former spouse, current spouse, or child pursuant to a domestic relations order or child
support order.
6. Compensation and Payment
(a) Plan Administration Fee. The amount to be paid for plan administration
scrvices under this Agreement shall be 0.29% per annum ofthe amount of
Pian assets invested in the Trust. Any fees will be paid by the plan
participants and not the COUNCY. Such fee shall be computed based on
average daily net Plan assets in the Trust.
(b) Mutual Fund Services Fee. There is an annual charge of 0.00% assessed
against average daily net Plan assets invested in the Trust's non-
proprietary Trust Series funds.
(c) Compensation for Management Services to the Trust, Compensation
for Advisory and other Services to The Vantagepoint Funds and
Payments from Third -Parr Mutual Funds. Employer acknowledges
that in addition to amounts payable under this Agreement, ICMA -RC
receives fees from the Trust for investment management services
furnished to the Trust. Employer further acknowledges that certain wholly
owned subsidiaries of ICMA -RC receive compensation for advisory and
other services furnished to the � antagepoint Funds, which serve as the
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7/26/2011 Item 16.E.3.
Plan number 303201
underlying portfolios of a number of Funds offered through the Trust. The
fees referred to in this subsection are disclosed in the Retirement
Investment Guide. These fees are not assessud against assets invested in
the Trust's Mutual Fund Series, In addition, to the extent that third party
mutual funds are included in the investment line -up for the Plan, ICMA -
RC may receive payments from such third party mutual funds or their
service providers, which may be in the form of 12b -I fees, service fees, or
compensation for suo- accounting or other services provided by ICMA -RC
on behalf of the funds.
(d) Redemption Fees. Redemption fees imposed by outside mutual funds in
which Plan assets are invested are collected and paid to the mutual fund by
ICMA -RC. ICMA -RC remits 100% of redemption fees back to the
specific mutual fund to which redemption fees apply. These redemption
fees and the individual mutual tund's policy with respect to redemption
fees are specified in the prospectus for the individual mutual fund and
referenced in the Retirement Investment Guide.
(e) Payment Procedures. All payments to ICMA -RC pursuant to this Section
6 shall be paid out of the Plan assets held by the Trust and shall be paid by
the Trust, to the extent not paid by the Employer. The amount of Plan
assets held in the Trust shall be adjusted by the Trust as required to reflect
such payments. In the event that the Employer agrees to pay amounts
owed pursuant to this section 6 directly, any amounts unpaid and
outstanding after 30 days of invoice to the Employer shall be withdrawn
from Plan assets held by the Trust,
The compensation and payment set forth in this section 6 is contingent upon the
Employer's use of ICMA -RC's EZLink system for contribution processing and
submitting contribution funds by ACH or wire transfer on a consistent basis over the
term ofthis Agreement.
Contribution Remittance
Employer understands that amounts invested in the Trust are to be remitted directly to the
Trust in accordance with instructions provided to Emplover'by ICMA -RC and arc not to
be remitted to ICMA -RC. In the event that any check or wire transfer is incorrectly
labeled or transferred to ICMA -RC, ICMA -RC may return it to Employer with proper
instructions.
S. Indemnification
ICMA -RC shall not be responsible for any sets or omissions of any person with respect
to the Plan or related Trust, other than ICMA -RC in connection with the administration
Or operation of the Plan. Employer shall indemnity, ICMA -RC against, and hold ICMA -
RC harmless from, any and all loss, damage, penalty, liability, cost, and expense,
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7/26/2011 Item 16.E.3. '
Plan number 303201
including without limitation, reasonable attorney's fees, that may be incurred by, imposed
upon, or asserted against ICMA -RC by reason of any claim, regulatory proceeding, or
litigation arising from any act done or omitted tc be dune by any individual or person
with respect to the Plan or related Trust, excepting only any and all loss, damage, penalty,
liability, cost or expense resulting from ICMA -RC's negligence, bad faith, or willful
misconduct. The foregoing indemnification shall not constitute a waiver of sovereign immunity
beyond the limits set forth in Section 768.28, Florida Statutes.
Term
This Agreement shall be in effect and commence on the date all parties have signed and
executed this Agreement ( "Inceptiun Date "), The term of this Agreement will commence
on the Inception Date and extend five (5) years from that date. This YgrccmentroriiFire-
re rew
proo ided b) eithef Pam, le the Othe? "e less than 66 detys before tile e"d 4 stleh
Agreement -veer The Employer understands and agrees that, in the event the Emplover
terminates this Agreement (or replaces the VantagcTrust PLUS Fund as an investment
option in its investment line -up), ICMA -RC retains full discretion to release Plan assets
invested in the VantagcTrust PLUS Fund in an orderly manner over a period of up to 12
months from the date ICMA -RC receives wrinen notification from the Employer that it
has made a final and binding selection of a replacement for ICMA -RC as administrator of
the Plan (or a replacement investment option for the VantagcTrust PLUS Fund).
10. Amendments and Adiustments
(a) This Agreement may be amended by written instrument signed by the parties.
(b) ICMA -RC may amend this agreement for non- material amendments by providing
60 days' advance written notice to the Employer prior to the effective date of such
proposed amendment. Such amendment shall become effective unless, within
the 60 -dav notice period, the Employer notifies ICMA -RC in writing that it
objects to such amendment.
(c) The parties agree that enhancements may be made to administrative and
operations services under this Agreement. The Employer will be notified of
enhancements through the Employer Bulletin, quarterly statements, electronic
messages or special mailings. Likewise, if there are any reductions in fees, these
will be announced through the Emplover Bulletin, quarterly statement, electronic
or special maiiing.
11. Notices
All notices required to be delivered under this Agreement shall be in writing and shall be
delivered, mailed, e- n-railed or faxed to the location of the relevant party set forth below
or to such other address or to the attention of such other persons as such parr may
hereafter specify by notice to the other party,
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7/26/2011 Item 16.E.3.
Plan number 303201
ICMA•RC: Legal Department, 1CMA Retirement Corporation, 777
North Capitol Street, N.B., Suite 600, Washington, D.C., 20002 -4240
.Facsimile; (202) 962 -4601
Employer: at the office set forth in the first paragraph hereof specifically,
Collier County Government Center, Purchasing Department, 3327
Tamiami Trail East. Naples, Florida 34112, Attn: Steve Camcll,
Purchasing Director, iax:252 -6584, email: SteveCamell@.colliergov.net,
or to any other address, facsimile number or e-mail address designated by
the Employer to receive the same by written notice simiiady given.
Each such notice, request or other communication shall be effective: (i) if given by
facsimile, when transmitted to the applicable facsimile num'ner and there is appropriate
confirmation of receipt; (ii) if given by mail or e -mail, upon transmission to the
designated address with no indication that such address is invalid or incorrect; or (iii) if
given by any other means, whcn actually delivered at the aforesaid address.
12. _QOmelcte Agreement
This Agreement shall constitute the complete and full understanding and sole agreement
bawcen ICMA -RC and Emnluyer relating TO the object of this Agreement and correctly
sets forth the complete rights, duties and ohhgations of each party to the other as of its
date. This Agreement supersedes all written and oral agreements, communications or
negotiations among the parties, Any prior agreements, promises, negotiations or
representations, verbal or otherwise, not expressly set forth in this Agreement are of no
force and effect,
13. Titles
The headings of Sections of this Agreement and the headings for each of the attached
scheduies are for convenience only and do riot define or limit the contents thercol,
14, lnc__orporationofSchedules
All Schedules (and any subsequent amendments thereto), attached hereto, and referenced
herein, are hereby incorporated within this .Agreement as if set forth fully herein,
IS. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the
State of Florida, applicable to contracts made in that jurisdiction without reference to its
conflicts of laws provisions.
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7/26/2011 Item 16.E.3.
Plan number 303201
In Witness Whereof, the parties hereto certify that they have read and understand this
Agreement an all Schedules attached hereto and have caused this Agreement to be
executed by their duly authorized officers as of the Inception Date first above written.
ATTEST:
Dwight E. Brock, Clerk of Courts
BY:
BOARD OF COUNTY COMMISSIONERS
FOR COLLIER COUNTY, FLORIDA, A
POLITICAL SUBDIVISION OF THE
STATE OF FLORIDA
FRED COYLE, CHAIRMAN
First Witness
ICMA Retire Corp.
Type /print witness name
Second Witness
Type /print witness name
Angela Montez, Assistant Corporate Secretary
(CT OVED AS TO FORM AND LEGAL SUFFICIENCY:
B
Colleen M. Greene, Assistant County Attorney
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7/26/2011 Item 16.E.3.
Plan number 303201
I
Please return fully executed contract to: New Business Unit
ICMA -RC
777 North Capitol Street NE
Suite 600
Washington DC 20002 -4240
10
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Plan numoer 303201
Exhibit A
Administrative Services
7/26/2011 Item 16.E.3.
The administrative services to be performed by ICMA -RC under this Agreement shall be
as follows:
(a) Participant enrollment services, including providing a welcome package and
enrollment kit containing instructions and notices necessary to implement
the Plan's administration. Employees will enroll online or through form.
ICMA -RC will provide an enrollment link through the general ICMA -RC
web site. Plan sponsor will also make available the online enrollment link in
their Intranet site or via email to new employees. Employer can also enroll
employees through EZLink.
(b) Establishment of participant accounts for each employee participating in the
Plan for whom ICMA -RC receives appropriate enrollment instructions.
ICMA -RC is not responsible for determining if such Plan participants are
eligible under the terms of the Plan.
(c) Allocation in accordance with participant directions received in good
order of individual participant accounts to investment funds offered under
the Trust. Participants can complete allocations through Investor Services,
Voice Response System or through Account Access, the secure participant
online system provided by ICMA -RC.
(d) Maintenance of individual accounts for participants reflecting amounts
deferred, income, gain or loss credited, and amounts distributed as
benefits.
(e) Maintenance of records for all participants for whom participant accounts
have been established. Thcsc files shall include enrollment instructions
(provided to ICMA -RC through Account Access, LZLink or form),
beneficiary designation instructions and all other and documents concerning
each participant's account, and if applicable, records of any transaction
conducted thruugh the Voice Response Unit ("VRU "), Account .Access or
other electronic means.
(f) Provision of periodic reports to the Employer through EZLink
Participants will have access to account information through Investor
Services, Voicc Response System, Account Access and through quarterly
statements that can be delivered electronically through .Account Access or
by postal service.
(g) Communication to participants of information regarding their rights and
elections under the Plan.
(h) Making available Investor Services Representatives through a toll -free
telephone number from 5;30 a.m. to 9;00 P.M. Eastern Time, Mondav
through Friday (excluding holidays and days on which the securities
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7/26/2011 Item 16.E.3.
Plan number 303201
markets or ICMA -RC are closed for business (including emergency
closings), to assist participants.
(i) Making available a toll -free number and access to VantageLine, ICMA -
RC's interactive VRU, and ICMA -RC's web site, to allow participants to
access certain account information and initiate plan transactions at any
time. Account access and VantageLine are normally available 24 hours a
day, seven days a week except during scheduled maintenance periods.
However, service availability is not guaranteed.
p) Distribution of benefits as agent for the Employer in accordance with
terms of the Plan. Participants who have separated from service can
request distributions through Account Access or via form.
(k) upon approval by the Employer that a domestic relations order is an
acceptable qualified domestic relations order under the terms of the Plan,
ICMA -RC will establish a separate account record for the alternate payee
and provide for the investment and distribution of assets held there under,
(1) Loans may be made available on the terms specified in the Loan Guidelines,
if loans are adopted by the Employer. Participants can request loans through
Investor Services or Account Access.
(m) Online Advice may he made available through a third party vendor on the
terms specified on ICMA -RC's website.
(n) ICMA -RC will determine appropriate delivery method (electronic and /or
print) for plan sponsurpanieipant communications and education based on
a number of factors (audience, effectiveness, etc.)
12
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:ont9dentlatity
CMA -RC is committed to providing a secure and
confidential environment for participant data,
elections, and account history. Security systems
are in place for our network systems and for the
voice response system.
Systems Security
7/26/2011 Item 16.E.3. -
Focal Multi - layered will ensures
Point that only authorized users have
�' .S& access to appropriate data.
ICMA -RC Is committed to providing a secure "
environment for all participant and plan sponsor access and data. The following briefly
reviews our extensive controls for maintaining data security.
Software and Hardware Security
• IAN: Novell Netware's operating system has built-in security to identify and
authenticate users connecting to the LAN.
• Mainframe: IBM's Resource Access Control Facility (RACF) security product performs
the authentication of users,
• Web: Servers providing participant and plan sponsor information are situated behind a
flrewall.
• Laptop: Representatives download information to their laptops for participant/plan
sponsor meetings. Control is maintained by
Individual password protection of each laptop
Application of authentication software and strong encryption algorithms on each
laptop
Separate encryption of stored date for multiple layers of protection, and
- Separate authentication for access to the application that provides interface with
account data
All applications employ layers of security to ensure that the users connecting to them have
access only to appropriate data and functions. Network and mainframe nardware are based
in secure computer rooms with restricted access and require periodic replacement of user
passwords.
Access Security
• User ID and Passwords: Participants can setup their own User ID and password
online by clicking the 'Create an Initial User ID and Password' link located on the home
page. Upon successfully supplying their identifying information, SSN, Date of Birth, Zip
Code and Email Address, the participant will oe permitted to setup their login
information. The SSN is not used to log into the system and the participant will not be
required to enter this information again once the self - selected User ID has been
established unless they require a User ID reminder or reset their account. The
participant wil, be required to select a User ID between 6 - 32 characters, a password
between 6 — 12 characters, select a security image and answer three security
questions.
The self- selected User ID and other features such as email alerts of security related
account activity provide the participant a high ievel of security. The system will
determine if the self - selected User ID is available. If so, the system will display a
message indicating the User IC is not available and to select another User ID. If the
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7/26/2011 Item 16.E.3. -
participant so chooses, they may check the availability of their selected User ID before
submitting their request.
There are eight graphics to select from during the Create an Initial User ID and
Password process. The participant will have the option of changing the graphic at any
time by logging into Account Access and accessing the Change Security Image page.
The Change Security Image page will allow the participant to select from 21 images.
The graphic provides an extra level of security against phishing in that If the graphic
does not appear or the incorrect graphic appears, the participant will know he or she is
not on the ICMA -RC official website.
In addition to a self- selected User ID, password and selected graphic, the participant
will be required to answer at least three security questions, The participant will choose
from a list of 12 questions that only he or she would be able to answer. Like the
security image, the participant has the option of changing their security
questions /answers at any time by logging into Account Access and accessing the
Change Security Question page.
Upon creating a User ID, the first time the participant logs into Account Access they will
be prompted to enter their User ID, password and answer one of their security
questions. Upon subsequent logins, the participant will be prompted to answer one of
their security questions as an additional layer of security, only if the participant is
logging in from a different computer or browser than the last time they logged into
Account Access,
External Router: The external router provides the Initial line of defense. The external
router receives all Internet packets and the access list determines who gains access to
our network. The access list permits only devices designated in our Internet Security
Policy. This configuration works in tandem with the firewall to ensure that only
authorized access is available. The firewall only allows access to services and devices
designated in our Internet Security Policy. Ali other packets are dropped.
Firewall ICMA -RC employs a firewall to prevent unauthorized access to ICMA -RC's
internal computing environment. To enhance confidentiality and privacy to those
participants and plan sponsors who request access to account information via the
Internet, a browser that supports Secure Sockets layer (SSL) security must be used
(such as Microsoft Explorer 6.0 or higher or Mozilla Firefox). This security layer
encrypts the information that Is sent to and from ICMA -RC through the Internet,
ensuring key information does not traverse the Internet in clear, readable text. Account
inquiry sessions that are Idle for more than 30 minutes are automatically loggee off.
Intrusion Detection. This software sounds an alert when an intrusion has been
attempted, is occurring, or nas occurred. Network sensors collect traffic that is
analyzed for signs of intrusion and misuse based on attack pattern signatures.
Signatures are updated periodically by Internet Security Systems (ISS) when new
vulnerabilities are uncovered: these updates are then applied at ICMA -RC. ICMA -RC
Informaton Security staff reviews the database and oerforms necessary research to
ascertain their validity .
Tripwire: Internet accessible network servers have Tripwire file integrity software for
Integrity assessmerc. Policy rules are defined to identify key files and establish
reporting rules. Integrity checks are run which show the results of any changes that
violate the ooiicy file rules. Information Security staff perform necessary steps to verify
that the changes identified in violation were authorized.
Virus Scanning: Symantec Antivirus scanning software is Implemented on all
production /Excnange servers are user desktops. ICMA -RC's Exchange Administrator
accesses Symantec's website daily to determine i! uocated virus signature patterns are
available; if so, Viey are promptly eownloadec anc implemented.
Packet Page -2273-
7/26/2011 Item 16.E.3. '
Reepoeea to security Breeches
Security breach procedures are in place to quickly respond to situations where confidential
information may have been breached. ICMA -RC's Computer Security Incident Response
procedures address incidents with a methodical, organized and pre - planned response.
When an incident is reported or observed ICMA -RC executes a "Protect and Proceed"
strategy, which is designed to protect and preserve ICMA -RC's computing resources, and
to establish normal computer operations as quickly as possible. Actions are initiated
immediately to stop the attack, prevent unauthorized access, stop the proliferation of the
virus (or whatever the incident may be), and begin damage assessment and recovery.
Audit Reviews
Extemal Auditor, Ernst and Young, performs an annual review of ICMA -RC's Internet
environment as a part of our SAS -70 review. ICMA -RC's Internal Audit Department also
contracts with outside security firms to review the security controls in our environment and
ensure we are employing the best practices and the latest technology.
Verizon Business Web Certification
ICMA -RC's webslte Is certified by Verizon Business. The Verizon Business Web
Certification Program reduces security risks and liability for both ICMA -RC and the
participant by providing, verifying, and improving the use of logical and physical baseline
security standards.
The Web Certification Program consists of:
Completing a detailed field guide that documents controls, procedures and
configuration of ICMA -RC's Internet environment
0 Successfully passing an on -site evaluation of the computer facilities which house the
web servers
• Successfully passing the quarterly remote scan security testing
a Successfully passing random spot -check tests
The Verizon Business Web certification demonstrates ICMA -RC's efforts to assure site
availability, information protection. and data integrity, as well as enhancing user confidence
and trust. The annual certification process not only raises security awareness and exposes
overlooked or neglected threats, but also adds credibility to any site's security efforts.
Packet Page -2274-
7/26/2011 Item 16.E.3. d
y«,KU CERTIFICATE OF LIABILITY INSURANCE
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THIN CERTIFlCATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFlCATE HOLDER. THIS
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Packet Page -2275-