New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle II - Deferred Compensation Board › Part 9003 - Selection Of And Agreements With Trustees, Independent Consultants, Administrative Service Agencies, Financial Organizations And Certified Public Accountants › Section 9003.1 - Contracts or agreements

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
				contracts or agreements effecting the appointment of any trustee, independent
				consultant, administrative service agency, financial organization or firm of
				certified public accountants to provide services in respect of a plan shall be
				awarded pursuant to the procedures set forth in this Part and shall comply with
				the requirements of this Subtitle. Contracts or agreements with administrative
				service agencies shall not be required in whole or in part if an appointed
				trustee or financial organization, in the opinion of the board or of the
				deferred compensation committee, as applicable, is able to perform all or a
				portion of the required services as effectively. Contracts or agreements with
				independent consultants shall not be required in whole or in part if, in the
				opinion of the board or of the deferred compensation committee, as applicable,
				such board or deferred compensation committee is able to effectively make
				decisions with respect to the investment of plan assets, the allocation of plan
				assets among financial organizations and the selection of financial
				organizations to invest the assets of a plan without the advice of a
				consultant. Upon the expiration or termination of any contract or agreement
				entered into in accordance with this Subtitle, the board or deferred
				compensation committee, as applicable, shall follow the procedures set forth in
				this Part in awarding new contracts and entering into new agreements. Unless
				they are entered into in accordance with the procedures set forth in this Part
				and are in all other respects in substantial compliance with the requirements
				of this Subtitle, all contracts or agreements entered into in respect of a plan
				shall be null and void and new competitive proposals shall be submitted
				pursuant to the procedures set forth in this Part. Notwithstanding the previous
				sentence, no trustee who is the only trustee of a plan shall be forced to
				resign the position of trustee solely by operation of this section prior to the
				time such person's successor as trustee has been duly qualified and
				appointed.
(b) Notwithstanding
				subdivision (a) of this section, a deferred compensation committee may contract
				with a firm of certified public accountants selected as a result of a
				competitive proposal undertaken by the local employer that expressly included
				in the scope of services an audit of the deferred compensation plan sponsored
				by the local government to be conducted in compliance with section
				9005.1 
				of this Part. The competitive request for proposals must be in general
				compliance with section
				9003.2  of
				this Part, except for the requirement of notice in the State Register. The
				deferred compensation committee must adhere to the criteria contained in
				section
				9003.3  of
				this Part in the selection of such auditor made pursuant to this subdivision. A
				firm of certified public accountants selected by a deferred compensation
				committee pursuant to this subdivision shall be subject to the provisions of
				section
				9003.5 
				of this Part. The firm of certified public accountants may be the same firm
				that is under contract with the local employer for other auditing services of
				the local employer.
(c)
				Notwithstanding subdivision (a) of this section, the board or a deferred
				compensation committee may contract with a financial organization for the
				purposes of investing a portion of the assets of a plan selected as a result a
				search conducted by the independent consultant to the board or deferred
				compensation committee of financial organizations that provide such services.
				The board or deferred compensation committee shall provide direction to the
				independent consultant, in writing, designating the generally recognized
				investment classification and sub-classification that the independent
				consultant is to make a recommendation to the board or deferred compensation
				committee after the conduct of a search of qualified financial organizations
				and the number of financial organizations that is to be recommended, which
				number shall not be less than three. The independent consultant must adhere to
				the criteria contained in section
				9003.3  of
				this Part prior to recommending any financial organization to the board or
				deferred compensation committee. The independent consultant must recommend at
				least the number of financial organizations requested by the board or deferred
				compensation committee in each generally accepted investment classification and
				sub-classification and a detailed analysis of each financial organization being
				recommended, including a comparison of such recommended financial organization
				to the appropriate and generally recognized benchmarks for such investment
				classification and sub-classification. The board or deferred compensation
				committee may select one or more financial organizations for the purposes of
				investing a portion of the assets of a plan from the recommendation of the
				independent consultant. The provisions of this subdivision apply to the board
				and any deferred compensation committee that enters into contracts with
				financial organizations separately from any other contracts or agreements
				effecting the appointment of any trustee, independent consultant,
				administrative service agency, or firm of certified public accountants to
				provide services in respect of a plan.