The URL can be used to link to this page

Home My WebLink About2023-238-E-County Attorney-Groom Law Group-Federal Filing legal servicesMEMORANDUM OF UNDERSTANDING Between NORTH CAROLINA DEPARTMENT OF STATE TREASURER And COUNTY OF ORANGE, NORTH CAROLINA Background The Supplemental Retirement Income Plan of North Carolina (the “NC 401(k) Plan”) is a defined contribution retirement plan sponsored by the State of North Carolina, administered by the North Carolina Department of State Treasurer (the “Department”), and overseen by the North Carolina Supplemental Retirement Board of Trustees (the “Board”). The NC 401(k) Plan is available to the employees of participating state and local governmental employers in North Carolina, and Orange County participates in the plan. The NC 401(k) Plan is governed by the North Carolina General Statutes, the Internal Revenue Code (the “Code”), regulations promulgated by the United States Department of Treasury (the “Treasury Regulations”), and guidance and procedures issued by the Internal Revenue Service (“IRS”). The NC 401(k) Plan is a qualified plan under Code Section 401(a) and received a favorable determination letter from the IRS on November 16, 2016. The Treasury Regulations require a 401(k) plan to have a written plan document governing the operation of the plan. The Board adopted the current amended and restated plan document on December 10, 2015, and the plan document has been amended through the most recent Board meeting on February 23, 2023. The Department and Board are responsible for operating the NC 401(k) Plan according to the provisions of the plan document. Participating employers in the NC 401(k) Plan are responsible for certain aspects of plan compliance, including submitting employer and employee contributions in accordance with applicable law and the plan document. From 2003 to 2022, Orange County did not make employee contributions available in two of its 26 annual payroll periods, which violated the plan document (the “Compliance Error”). IRS Revenue Procedure 2021-30 describes the IRS’s Employee Plans Resolution Compliance System (“EPCRS”). EPCRS includes the Voluntary Compliance Program (“VCP”), which allows plans to submit proposed corrections of compliance errors to the IRS for approval. Purpose The Department, as administrator of the NC 401(k) Plan, plans to submit a proposed correction of the Compliance Error to the IRS using VCP (the “VCP Submission”). DocuSign Envelope ID: 80C8EC1A-BEE0-42B4-A8F7-77C58CF68141 Responsibilities The Department has retained outside counsel to prepare and file the VCP Submission and to represent the NC 401(k) Plan at the IRS. The Department and Orange County will cooperate with one another and outside counsel in the VCP Submission, including providing information relevant to the VCP Submission, subject to any legal, policy, and confidentiality restrictions. The Department will review and approve the VCP Submission. The Department will be responsible for exercising the following discretion regarding the VCP Submission and will do so in consultation with Orange County and outside counsel: 1. Deciding whether and (if applicable) when to file the VCP Submission; and 2. Deciding whether and (if applicable) when to withdraw the VCP Submission. Phase 1 of the VCP Submission process covers the work by outside counsel through the filing of the initial VCP Submission with the IRS. Work during Phase 1 includes without limitation collecting information for the VCP Submission, drafting the VCP Submission, soliciting comments from the Department, and communicating as needed with the Department and Orange County. Phase 2 of the VCP Submission process covers the work by outside counsel following the initial VCP Submission through a final decision by the IRS or the withdrawal of the VCP Submission by the Department. Work during Phase 2 includes without limitation may include without limitation supplemental or amended submissions to the IRS and communications with the IRS, the Department, and Orange County. Costs Orange County will pay the costs of the VCP Submission charged by outside counsel, subject to the following limitations: 1. The cost of Phase 1 of the VCP Submission will not exceed $15,500 without a written amendment to this MOU signed by both parties. The amount in the previous sentence includes the IRS’s filing fee of $3,500; and 2. The cost of Phase 2 of the VCP Submission will not exceed $15,000 without a written amendment to this MOU signed by both parties. The parties will work in good faith to update the costs as necessary to continue pursuing the VCP Submission. The Department will promptly forward the outside counsel’s invoices to Orange County. Orange County will pay the outside counsel directly within 30 days of receipt of an invoice. DocuSign Envelope ID: 80C8EC1A-BEE0-42B4-A8F7-77C58CF68141 Accepted and agreed: By: _________________________________ Date: ________________ Thomas G. Causey Executive Director, Retirement Systems Division North Carolina Department of State Treasurer County of Orange By: _________________________________ Date: ________________ Bonnie Hamersley Orange County Manager DocuSign Envelope ID: 80C8EC1A-BEE0-42B4-A8F7-77C58CF68141 5/27/2023 5/30/2023 Revised 04/23 1 ORANGE COUNTY—INTERNAL USE ONLY ______________________________________________________________________________ Finance Information Vendor Name: Groom Law Group Vendor Contact Person: Reid Chisholm Phone: 919-814-3843 Address:3200 Atlantic Ave City Raleigh State: NC Zip: 27604 Department: County Attorney Amount: $30,000 Purpose: Federal Filing legal services Budget Code(s): 10210020 630000 ($22,350) 10395020 720023 ($7,650) Vendor # Vendor Status with NCSOS: Vendor is a BOCC consultant: Yes No Contract Details Contract Type: New Amendment (Original Contract: ) (Most Recent Amendment ) Effective Date 5-26-23 End Date Notice Date (Notice Purpose ) Award Approved by Board (Agenda Date: ); Made or Administered by County Attorney Signature Authority - BOCC Express Delegation (Agenda Date: ) - Policy 9.4: Under $5,000; Service Under $90,000; Construction Under $250,000 - Budget Policy Section XV (Capital Improvement Project: ) Bidding Informal Bidding ($30k-$90k); Formal RFP ($90k+); Other (<$30k); Exception(# ) Department Affirmation This agreement is approved as to technical form and content and I as Department Director affirmatively state work on this project has not been initiated prior to execution of the agreement. Services related to this agreement have already begun or been completed. Description of the nature of the emergency condition that was addressed: Department Director’s Signature ________________________________________ Date: ________ Information Technologies This agreement has been reviewed and is approved as to information technology content and specifications: Office of the Chief Information Officer___________________________________ Date: ________ Inapplicable because no hardware/software purchases or related services Risk Management This agreement is approved for sufficiency of insurance standards, specifications, and requirements: Office of the Risk Management Officer___________________________________ Date: _________ Financial Services This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act: Office of the Chief Financial Officer ____________________________________ Date: _________ Legal Services This agreement is approved as to legal form and sufficiency: Office of the County Attorney __________________________________________Date: ________ Clerk to the Board All Docusign contracts must be copied to the Clerk upon completion: occlerkdocs@orangecountync.gov The following signature block is for hard copies only and is not required for Docusign contracts: Received for record retention: Office of the Clerk to the Board __________________________________________Date:_________ x DocuSign Envelope ID: 80C8EC1A-BEE0-42B4-A8F7-77C58CF68141 5/25/2023 5/27/2023