Common use of Financial Performance Guarantees Clause in Contracts

Financial Performance Guarantees. Contractor shall report to the County and make the appropriate penalty payments to the Plan as indicated below Plan Sponsor & Participant Service Minimum Service Standard Performance Measurement Fees at Risk Participant Contact Center Hours of Availability Retirement Representatives available 99% of time during regular hours of service. (8 a.m. to 10 p.m. EST, Monday through Friday and 9 a.m. to 5:30 p.m. EST, Saturdays) except for closings of NYSE, holidays and shortened hours associated with early market close or holiday eves Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Call Abandon Rate Less than 3% of participant calls abandoned (Empower complex wide) Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Call Answering Speed 80% of participant calls answered within 20 seconds (Empower complex wide) Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees First Call Resolution for Participants 90% of participant questions resolved during first call Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees IVR / Internet Availability 99% of the time IVR/Internet available excluding regularly scheduled maintenance Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Participant and Plan Level Reporting for Plan Sponsor via Plan Sponsor Center (PSC) 99% of the time reports available online - updated monthly and nightly excluding regularly scheduled maintenance Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Distribution of Form 1099R or 1099-MISC Available by January 31 of each calendar year, excluding corrected 1099R or 1099- MISC Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Participant Confirmation Statement 99% mailed or available online on within two business days following completion of transaction processing Executed as part of automated processes. Accuracy consistent with minimum service standard unless otherwise 1% of quarterly fees Participant Statement Mailing/Availability Participant statements mailed/made electronically available within 15 business days of quarter-end. Initial quarter following conversion is 20 business days. Metric provided as part of the quarterly Empower Client Service Report 1% of quarterly fees Plan Sponsor & Participant Service Minimum Service Standard Performance Measurement Fees at Risk Distribution Upon Request of Generic and/or Participant Specific Documents Including Administrative Forms, Enrollment and Termination Materials, and Participant Statement Copies 99% of documents distributed within one business day of participant request. (Excludes enrollment material delays directly related to quarterly performance information updates required by FINRA) Executed as part of automated processes. Accuracy consistent with minimum service standard unless otherwise disclosed. 1% of quarterly fees Disbursements 99% of participant disbursement requests processed accurately within two business days of completed requests received in good order. Transactions must be entered by 4 p.m. EST or close of market due to shortened hours associated with early market close / holiday eves Metric provided on the quarterly Empower Client Service Report 1% of quarterly fees Contribution and Loan Repayment Processing Contribution and loan repayment processing completed the same business following confirmation of totals provided in funding request to the plan sponsor and wire received by 4 p.m. EST. Wires received after 4 p.m. EST will receive the following days trade date. Metric provided on the quarterly Empower Client Service Report 1% of quarterly fees Submission of Feedback Files to Plan Sponsor Payroll/Third Parties 95% of interfaces and feed files will be accurate and provided within timeframe as mutually agreed by parties. Metric provided on the quarterly Empower Client Service Report 1% of quarterly fees Timeliness of Callbacks to Plan Sponsor Same day assuming message left before 1:00 pm ET; if after 1 pm ET, call will be returned no later than 2:00 pm ET the following business day excluding Paid Time Off (PTO) days of the Relationship Manager or Client Service Manager Ongoing, joint evaluation by Plan Sponsor and Relationship Manager 1% of quarterly fees Plan Sponsor & Participant Service Minimum Service Standard Performance Measurement Fees at Risk Investment Transfers 99% of investment transfers processed accurately on the same business day if participant direction received in good order by Empower by 4 p.m. EST, early close time of investment, or close of market due to shortened hours associated with early market close or holiday eves Executed as part of automated processes. Accuracy will be consistent with minimum service standard unless otherwise disclosed. 1% of quarterly fees Participant Issue Resolution (inquires not handled on first call) Average resolution time complex wide will be within 5 business days participant first call reporting issue assuming timely responses from Plan Sponsor (excludes death cases, QDRO cases or cases that involve feedback or information from third parties) Evaluated as part of standard business process. Accuracy consistent with minimum service standard unless otherwise disclosed. Reported as part of the quarterly Empower Service Level Report 1% of quarterly fees Deposits of Cash – Non Payroll Related Events 99% of cash received from Participants will be accurately processed within the following timeframes: All incoming cash received from the lockbox by the close of the NYSE will be logged, deposited and invested the same day as received. All incoming cash received from the lockbox after the close of the NYSE will be logged, deposited and invested on the next day that the NYSE is open for trading. All deposits subject to receiving requisite accompanying documentation in good order. Metric provided on the quarterly Empower Client Service Report 1% of quarterly fees Account Management Satisfaction (See Attachment F) An account management satisfaction composite score of “3” or better on a “1-5” scoring system on based on the Account Management Report Card based on four (4) quarterly assessments Evaluation by Plan Sponsor Within 45 days after the end of each calendar quarter, the Contractor shall submit all required documentation to the County evidencing satisfaction of this requirement. If a composite score of “3” is not met, a non-performance fee of 1% of quarterly recordkeeping fees will be paid. Annual communication/ education plan and activity report Prepare and submit to the County a communication and education plan for the coming year and an activity report of the activities during the prior contract year with a comparison of results and activities to the prior communication and education plan. This plan will be mutually agreed by the parties and shall propose the schedule of enrollment retirement planning and investor education seminars to be conducted in coordination with staff from the County. It must fully describe the communication materials to be used and include samples of such materials and fully describe supplemental educational resources that the Contractor will make available to employees and include samples of such materials. Metric provided on the quarterly Empower Client Service Report Within 45 days after the end of the contract year, the Contractor shall submit the required plan and report. If the standard is not met, a non-performance fee of $500 per day will be paid to the Plan, up to a maximum of 1% of recordkeeping fees.

Financial Performance Guarantees. Contractor shall report to the County and make the appropriate penalty payments to the Plan as indicated below Plan Sponsor & Participant Service Minimum Service Standard Performance Measurement Fees at Risk Participant Contact Center Hours of Availability Retirement Representatives available 99% of time during regular hours of service. (8 a.m. to 10 p.m. EST, Monday through Friday and 9 a.m. to 5:30 p.m. EST, Saturdays) except for closings of NYSE, holidays and shortened hours associated with early market close or holiday eves Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Call Abandon Rate Less than 3% of participant calls abandoned (Empower complex wide) Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Call Answering Speed 80% of participant calls answered within 20 seconds (Empower complex wide) Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees First Call Resolution for Participants 90% of participant questions resolved during first call Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees IVR / Internet Availability 99% of the time IVR/Internet available excluding regularly scheduled maintenance Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Participant and Plan Level Reporting for Plan Sponsor via Plan Sponsor Center (PSC) 99% of the time reports available online - updated monthly and nightly excluding regularly scheduled maintenance Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Distribution of Form 1099R or 1099-MISC 1099‐MISC Available by January 31 of each calendar year, excluding corrected 1099R or 1099- MISC Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Participant Confirmation Statement 99% mailed or available online on within two business days following completion of transaction processing Executed as part of automated processes. Accuracy consistent with minimum service standard unless otherwise 1% of quarterly fees Participant Statement Mailing/Availability Participant statements mailed/made electronically available within 15 business days of quarter-end. Initial quarter following conversion is 20 business days. Metric provided as part of the quarterly Empower Client Service Report 1% of quarterly fees Plan Sponsor & Participant Service Minimum Service Standard Performance Measurement Fees at Risk Distribution Upon Request of Generic and/or Participant Specific Documents Including Administrative Forms, Enrollment and Termination Materials, and Participant Statement Copies 99% of documents distributed within one business day of participant request. (Excludes enrollment material delays directly related to quarterly performance information updates required by FINRA) Executed as part of automated processes. Accuracy consistent with minimum service standard unless otherwise disclosed. 1% of quarterly fees Disbursements 99% of participant disbursement requests processed accurately within two business days of completed requests received in good order. Transactions must be entered by 4 p.m. EST or close of market due to shortened hours associated with early market close / holiday eves Metric provided on the quarterly Empower Client Service Report 1% of quarterly fees Contribution and Loan Repayment Processing Contribution and loan repayment processing completed the same business following confirmation of totals provided in funding request to the plan sponsor and wire received by 4 p.m. EST. Wires received after 4 p.m. EST will receive the following days trade date. Metric provided on the quarterly Empower Client Service Report 1% of quarterly fees Submission of Feedback Files to Plan Sponsor Payroll/Third Parties 95% of interfaces and feed files will be accurate and provided within timeframe as mutually agreed by parties. Metric provided on the quarterly Empower Client Service Report 1% of quarterly fees Timeliness of Callbacks to Plan Sponsor Same day assuming message left before 1:00 pm ET; if after 1 pm ET, call will be returned no later than 2:00 pm ET the following business day excluding Paid Time Off (PTO) days of the Relationship Manager or Client Service Manager Ongoing, joint evaluation by Plan Sponsor and Relationship Manager 1% of quarterly fees Plan Sponsor & Participant Service Minimum Service Standard Performance Measurement Fees at Risk Investment Transfers 99% of investment transfers processed accurately on the same business day if participant direction received in good order by Empower by 4 p.m. EST, early close time of investment, or close of market due to shortened hours associated with early market close or holiday eves Executed as part of automated processes. Accuracy will be consistent with minimum service standard unless otherwise disclosed. 1% of quarterly fees Participant Issue Resolution (inquires not handled on first call) Average resolution time complex wide will be within 5 business days participant first call reporting issue assuming timely responses from Plan Sponsor (excludes death cases, QDRO cases or cases that involve feedback or information from third parties) Evaluated as part of standard business process. Accuracy consistent with minimum service standard unless otherwise disclosed. Reported as part of the quarterly Empower Service Level Report 1% of quarterly fees Deposits of Cash – Non Payroll Related Events 99% of cash received from Participants will be accurately processed within the following timeframes: All incoming cash received from the lockbox by the close of the NYSE will be logged, deposited and invested the same day as received. All incoming cash received from the lockbox after the close of the NYSE will be logged, deposited and invested on the next day that the NYSE is open for trading. All deposits subject to receiving requisite accompanying documentation in good order. Metric provided on the quarterly Empower Client Service Report 1% of quarterly fees Account Management Satisfaction (See Attachment F) An account management satisfaction composite score of “3” or better on a “1-5” scoring system on based on the Account Management Report Card based on four (4) quarterly assessments Evaluation by Plan Sponsor Within 45 days after the end of each calendar quarter, the Contractor shall submit all required documentation to the County evidencing satisfaction of this requirement. If a composite score of “3” is not met, a non-performance fee of 1% of quarterly recordkeeping fees will be paid. Annual communication/ education plan and activity report Prepare and submit to the County a communication and education plan for the coming year and an activity report of the activities during the prior contract year with a comparison of results and activities to the prior communication and education plan. This plan will be mutually agreed by the parties and shall propose the schedule of enrollment retirement planning and investor education seminars to be conducted in coordination with staff from the County. It must fully describe the communication materials to be used and include samples of such materials and fully describe supplemental educational resources that the Contractor will make available to employees and include samples of such materials. Metric provided on the quarterly Empower Client Service Report Within 45 days after the end of the contract year, the Contractor shall submit the required plan and report. If the standard is not met, a non-performance fee of $500 per day will be paid to the Plan, up to a maximum of 1% of recordkeeping fees.

Financial Performance Guarantees. Contractor shall report to the County and make the appropriate penalty payments to the Plan as indicated below below. Plan Sponsor & Participant Service Minimum Service Standard Performance Measurement Fees at Risk Participant Contact Customer Care Center Hours of Availability Retirement Representatives available 99% of time during regular hours of service. (8 5 a.m. to 10 7 p.m. ESTPacific time, Monday through Friday and 9 6 a.m. to 5:30 2:30 p.m. ESTPacific time, Saturdays) except for closings of NYSE, holidays and shortened hours associated with early market close or holiday eves eves. Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Call Abandon Rate Less than 3% of participant calls abandoned (Empower complex wide) Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Call Answering Speed 80% of participant calls answered within 20 seconds (Empower complex wide) Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees First Call Resolution for Participants 90% of participant questions resolved during first call Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees IVR / Internet Availability 99% of the time IVR/Internet available excluding regularly scheduled maintenance Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Participant and Plan Level Reporting for Plan Sponsor via Plan Sponsor Center (PSC) Website 99% of the time reports available online - updated monthly and nightly excluding regularly scheduled maintenance Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Distribution of Form 1099R or 1099-MISC Available by January 31 of each calendar year, excluding corrected 1099R or 1099- MISC Metric provided as part of the quarterly Empower Service Level Report 1% of quarterly fees Participant Confirmation Statement 99% mailed or available online on within two business days following completion of transaction processing Executed as part of automated processes. Accuracy consistent with minimum service standard unless otherwise disclosed 1% of quarterly fees Plan Sponsor & Participant Service Minimum Service Standard Performance Measurement Fees at Risk Participant Statement Mailing/Availability Participant statements mailed/made electronically available within 15 business days of quarter-end. Initial quarter following conversion is 20 business days. Metric provided as part of the quarterly Empower Client Service Report 1% of quarterly fees Plan Sponsor & Participant Service Minimum Service Standard Performance Measurement Fees at Risk Distribution Upon Request of Generic and/or Participant Specific Documents Including Administrative Forms, Enrollment and Termination Materials, and Participant Statement Copies 99% of documents distributed within one business day of participant request. (Excludes enrollment material delays directly related to quarterly performance information updates required by FINRA) Executed as part of automated processes. Accuracy consistent with minimum service standard unless otherwise disclosed. 1% of quarterly fees Disbursements 99% of participant disbursement requests processed accurately within two business days of completed requests received in good order. Transactions must be entered by 4 p.m. EST or close of market due to shortened hours associated with early market close / holiday eves eves. Metric provided on the quarterly Empower Client Service Report 1% of quarterly fees Contribution and Loan Repayment Processing Contribution and loan repayment processing completed the same business following confirmation of totals provided in funding request to the plan sponsor and wire received by 4 p.m. EST. Wires received after 4 p.m. EST will receive the following days trade date. Metric provided on the quarterly Empower Client Service Report 1% of quarterly fees Submission of Feedback Files to Plan Sponsor Payroll/Third Parties 95% of interfaces and feed files will be accurate and provided within timeframe as mutually agreed by parties. Metric provided on the quarterly Empower Client Service Report 1% of quarterly fees Timeliness of Callbacks to Plan Sponsor Same day assuming message left before 1:00 pm ET; if after 1 pm ET, call will be returned no later than 2:00 pm ET the following business day excluding Paid Time Off (PTO) days of the Relationship Manager relationship manager or Client Service Manager client service manager Ongoing, joint evaluation by Plan Sponsor plan sponsor and Relationship Manager 1% of quarterly relationship manager No fees at risk Plan Sponsor & Participant Service Minimum Service Standard Performance Measurement Fees at Risk Investment Transfers 99% of investment transfers processed accurately on the same business day if participant direction Direction received in good order by Empower by 4 p.m. EST, early close time of investment, or close of market due to shortened hours associated with early market close or holiday eves Executed as part of automated processes. Accuracy will be consistent with minimum service standard unless otherwise disclosed. 1% of quarterly fees Participant Issue Resolution (inquires not handled on first call) Average resolution time complex wide will be within 5 business days participant first call reporting issue assuming timely responses from Plan Sponsor (excludes death cases, QDRO cases or cases that involve feedback or information from third parties) Evaluated as part of standard business process. Accuracy consistent with minimum service standard unless otherwise disclosed. Reported as part of the quarterly Empower Service Level Report 1% of quarterly fees Deposits of Cash – Non Payroll Related Events 99% of cash received from Participants participants will be accurately processed within the following timeframes: All incoming cash received from the lockbox by the close of the NYSE will be logged, deposited and invested the same day as received. All incoming cash received from the lockbox after the close of the NYSE will be logged, deposited and invested on the next day that the NYSE is open for trading. All deposits subject to receiving requisite accompanying documentation in good order. Metric provided on the quarterly Empower Client Service Report 1% of quarterly fees $5,000 per quarter for failure to meet service benchmark. Plan Sponsor & Participant Service Minimum Service Standard Performance Measurement Fees at Risk Account Management Satisfaction (See Attachment F) An account management satisfaction composite score of “3” or better on a “1-5” scoring system on based on the Account Management Report Card based on four (4) quarterly assessments Evaluation by Plan Sponsor Within 45 days after the end of each calendar quarter, the Contractor shall submit all required documentation to the County evidencing satisfaction of this requirement. If a composite score of “3” the standard is not met, a non-performance fee of 1% of quarterly recordkeeping fees $500 for that contract year will be paidpaid to the plan; $10,000 per year. Annual communication/ education plan and activity report Prepare and submit to the County a communication and education plan for the coming year and an activity report of the activities during the prior contract year with a comparison of results and activities to the prior communication and education plan. This plan will be mutually agreed by the parties and shall propose the schedule of enrollment retirement planning and investor education seminars to be conducted in coordination with staff from the County. It must fully describe the communication materials to be used and include samples of such materials and fully describe supplemental educational resources that the Contractor will make available to employees and include samples of such materials. Metric provided on the quarterly Empower Client Service Report Within 45 days after the end of the contract year, the Contractor shall submit all required documentation to the required plan County evidencing satisfaction of this requirement. If the standard is not met, a non-performance fee of $500 for that contract year will be paid to the Plan. Plan Sponsor & Participant Service Minimum Service Standard Performance Measurement Fees at Risk Annual Financial Statement Prepare and reportsubmit to County the Plans’ annual financial statements and information with content and mutually agreed upon format acceptable to the County and its independent accounting firm. Any alternative date must be annually requested by Contractor and agreed upon by the County. The Contractor will also provide the financial ratings for bond investments, if applicable. The Plans’ Annual Financial Statements will be based upon the County’s fiscal year July 1 to June 30 and will be provided annually to the County by July 30th. The County whenever possible will agree to an alternative date so long as it enables the County to meet its end year financial closing deadlines. Within 15 days after the end of the County’s Fiscal Year (June 30th), the Contractor shall submit provide the annual summary reports. Within 30 days after the end of the County’s Fiscal Year (June 30th), the Contractor shall submit provide additional information for supplemental schedules and for external auditors. If the standard is not met, a non-performance fee of $500 per day will be paid to the Plan, up to a maximum of 1% of recordkeeping fees$5,000 per annum, starting July 31st.