Attachment 1C - OCC-OFR GLI Memorandum of Understanding.pdf

MEMORANDUM OF UNDERSTANDING BETWEEN OFFICE

OF THE COMPTROLLER OF THE CURRENCY AND

DEPARTMENT OF THE TREASURY, OFFICE OF

FINANCIAL RESEARCH

I. BACKGROUND

Section 152 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd- Frank) established the Office of Financial Research (OFR) within the United States Department · of the Treasury. The Director of the OFR has authority to fix, adjust and administer the pay for all OFR employees and is required by 12 U.S.C. §1833b(a) to seek to maintain compensation and benefit comparability with agencies listed in Section 1833b(a) including the Office of the Comptroller of the Currency (OCC). As such, the OFR has determined that it is in the OFR's best interests to enter into a Memorandum of Understanding (MOU) with the OCC for the provision of services related to some of the benefits that OFR will provide to its employees in accordance with Dodd-Frank. As used in this MOU, the terms "Office of Financial Research" and "OFR" include other elements of Treasury's Departmental Offices (DO) that provide support to that Office and exercise authorities on its behalf.

II. PURPOSE AND AUTHORITY

The purpose of this MOU is to define the compensation and benefit services that will be provided to OFR. This MOU does not obligate funds. It establishes the framework for reimbursement but does not itself constitute a promise of payment. However, failure to make payment is a breach of this Agreement, and the OCC shall not be obligated to provide any services under this Agreement if OFR fails to make payment. Obligations will be created, and payments processed only through interagency agreements (IAAs) associated with this MOU. The IAA associated with this MOU will be a non-acquisition assisted IAA as any contractual support provided under this agreement is incidental to the services being provided by the servicing agency and is not being acquired specifically for OFR. The OCC and OFR enter into this MOU under the authority of 12 U.S.C. §§481, 482 and 5416 and the Economy Act, 31 U.S.C. §1535.

This MOU supersedes all prior MOUs between the OCC and OFR on compensation and benefits services.

III. TERMS AND CONDITIONS

A. OCC Benefit Contracts

The OCC will allow the participation of up to 350 OFR employees as a covered group in the following OCC benefit contracts (hereafter referred to as the Contracts):

ATTACHMENT 1C - OCC-OFR GLI MOU

Service Description Contract Number Expiration Date

Group Life Insurance 2031JW21Q00092 12/31/2025 Vision Care TCC17HQC0006 12/31/2026 401(k) Plan TCC14HQC0001 12/31/2023 Dental Insurance TCC15HQC0004 12/31/2024 Long-Term and Short-Term Disability Insurance 2031JW21C00004 12/31/2025 Business Travel Accident Insurance 2031JW20C00011 12/31/2024

If OFR determines that the total number of employees may exceed 350 during the term of this agreement, then to the extent consistent with the Contracts and to the extent any proposed changes to add OFR employees is within the scope of the Contracts, the parties will cooperate to obtain coverage for the additional employees.

Participation in the 401(k) Plan, Group Life Insurance, and Short-Term Disability benefit contracts by OFR employees had payroll impact; therefore, Treasury's payroll provider, the United States Department of Agriculture, National Finance Center (NFC), made programming changes to its systems to allow OFR employees to participate. When future programming changes to NFC systems are required to allow OFR employees to participate in these benefit contracts, OFR will be responsible for any associated costs. OCC will provide OFR with a written justification of the cost analysis.

B. Contractual Rights

The OCC will hold all contractual rights and obligations necessary to administer the Contracts over the life of the Contracts in accordance with OCC policies and procedures. The Contracts have options that may be exercised at the OCC's sole discretion. Assuming all options are exercised, the Contracts will expire between December 31, 2023 and December 31, 2026.

This MOU does not obligate the OCC to exercise any options under the Contracts. If OCC begins planning to obtain benefit services for its employees through an arrangement other than through the exercise of options under the Contracts, OCC will promptly notify OFR.

OFR, in turn, will inform the OCC whether it wants to be included in the arrangement or whether it plans to make other arrangements for continued support.

The OCC will ensure that the OFR is furnished a copy of each of the Contracts, including all contract modifications. The OFR acknowledges and agrees that it has read and understands the terms and conditions of the Contracts.

C. OTS 401(k) Plan

The OFR decided it will offer a 401(k) Plan to its employees in accordance with Section 152 of Dodd-Frank, and pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111-203) (Dodd-Frank), the OCC became the Plan sponsor for the OTS 401(k) Plan. As the Plan sponsor, the OCC or its designated service provider, currently Charles Schwab, is responsible for administering the OTS 401(k) Plan. The OCC agreed to allow for OFR employees to participate in the OTS 401(k) Plan. However, at its discretion, the OCC may amend this agreement and transfer OFR employee participants to the OCC Plan if deemed to be in best interest of the OCC, OFR, and/or the Plans.

The OCC, as the Plan Sponsor for the Plan Sponsor for the OTS 401(k) Plan has authority over the OTS 401(k) Plan including Plan design, loan administration, withdrawal provisions, participation eligibility, and other Plan features. The OFR, as a participating employer under the OTS 401(k) Plan, must elect employee/employer contribution rates for OFR employees participating in the OTS 401(k) Plan in accordance with its authority. OFR must disseminate to Plan participants any information and materials that OCC provides regarding the Plan and its features. OFR must inform Plan participants to check their Statement of Earnings and Leave (SEL) on a regular basis and inform the Treasury Department’s Human Resources (HR) of any discrepancies. Treasury Department’s HR will notify in writing both the appropriate Bureau of Fiscal Service-Administrative Resource Center (BFS-ARC) and OCC points of contact when an error is reported.

At a minimum, on a quarterly basis, OCC, Treasury Department’s HR, and BFS-ARC staff will meet to discuss the 401(k) Plan features, issues and the annual external audit process. The meetings will primarily be held by a conference call, but the OCC reserves the right to request that an in-person meeting be held instead at BFS-ARC’s location in WV, as deemed appropriate.

The OFR is to convey this provision to BFS-ARC and obtain agreement.

The OCC 401(k) Plans Oversight Committee will hold quarterly meetings at OCC’s Headquarters location in DC to discuss any and all 401(k) governance and plan matters. OFR will be notified in advance of all scheduled meetings and an OFR representative will be permitted to attend all meetings. The OFR representative will be a non-voting meeting participant but will serve in an advisory position.

D. Contract Disputes Related to Participation and Benefits for OFR Employees

In the event of a dispute or issue related to the participation of or benefits provided to OFR employees under the Contracts, the OFR agrees it will provide any assistance requested by the OCC to resolve such dispute or issue. In regards to the OTS 40l (k) Plan, the OCC will work directly with BFS-ARC, Treasury and/or OFR personnel to correct any employee defined contribution or other Plan mistakes involving an OFR employee.

E. Administrative and Personnel Support for OFR

OCC shall provide ongoing professional, educational, and administrative support to OFR and its employees for the benefits provided under the Contracts, as well as the administration of the Federal Employees Health Benefits (FEHB) biweekly premium subsidy. Support includes, but is not limited to:

Providing counseling to OFR employees and prospective hires on all of the benefits covered under this MOU;

Providing benefit orientations, briefings, webinars, and educational seminars;

Processing benefits enrollments and payments through NFC and other benefit vendor systems that are covered under this MOU;

Administering the FEHB biweekly premium subsidy;

Providing communication materials for placement on OFR’s intranet/SharePoint site for use by OFR employees;

Providing 401(k) consultations and educational materials; and

Providing communication to OFR plan participants on the services provided by the 401(k) Plan service provider.

Providing the Treasury Department’s HR with 401(k) plan handout materials that are to be directed to OFR participants.

During the first pay period of onboarding, the OFR shall notify the OCC of a request to schedule a supplemental benefits orientation with at least a one-week notice. Once an orientation date is confirmed, the OFR will provide a link to a virtual platform, in the event that in-person orientations are not being conducted. A supplemental benefits orientation is required for employees brand new to the OFR as well as employees who transfer from DO to OFR and OFR employees who convert from a non-benefit eligible position to a benefit eligible position. The benefits orientation will include an overview of their eligibility for benefits under the Contracts, including a separate 401(k) counseling session.

The OCC will acknowledge questions and requests from OFR employees within two business days of receipt. OFR employees are to e-mail their questions or requests related to the services provided under this MOU to the OCC at OFR@occ.treas.gov. If the OCC is unable to resolve the issue within two business days, the OCC will provide the OFR employee with an estimated date that a response can be expected.

F. OCC Access to OFR Employee Information

Within 10 business days of request, the OFR shall provide to the OCC access to OFR employee NFC data and OCC data report requests for the purposes listed in Section II above. OFR acknowledges and agrees that OCC shall have access to OFR employee information including information governed by the Privacy Act, 5 USC §552a. OFR shall provide notice to its employees that the OCC is administering the Contracts on behalf of OFR and that OCC employees will have, as part of enrollment, administration, management, and communication support, access to OFR employee information including Privacy Act information. The OFR shall arrange for at least two in-person meetings each year with DO, Treasury’s Administrative Resources Center, OCC and OFR officials to review payroll data and discuss issues and changes.

G. Determining Geographic Pay Rates for OFR Remote Work Employees

The OCC is responsible for determining geographic rates for the remote work locations approved for OFR employees.

The OCC will assist in coordinating and performing related administrative tasks, as needed, with Treasury and the National Finance Center to include establishing pay tables as new remote work locations are identified

IV. REIMBURSEMENT

Reimbursement of OCC's services will be through separate IAAs. The IAAs shall provide for reimbursement of 1) all actual OFR related costs, including modifications of the Contracts, 401(k) Plan recordkeeping fees, and other direct costs, not to exceed $700,000 per year and 2) the cost of one full-time composite staff person for administrative support for $200,000 per year.

The composite staff person consists of OCC personnel in various departments (i.e., Human Resources, Acquisitions Management, Financial Management and Legal who either administer the Contracts and/or provide services under this MOU). OFR will reimburse the OCC on a quarterly basis and the amount shall not exceed $900,000 per year.

OCC will prepare and send OFR via the Treasury Department’s HR a quarterly chargeback report each quarter to support the OCC reimbursement request.

However, notwithstanding the limit above for contract costs and administrative support, all 40l

(k) errors that are corrected by the OCC, including any funds to correct such errors, shall be paid by OFR and submitted, after approval by OFR, through the NFC to the OTS 40l (k) Plan vendor, currently Charles Schwab. The OCC will notify impacted OFR employees of any errors and provide them their appropriate rights.

V. POINTS OF CONTACT

The individuals listed below shall serve as the points of contact for this MOU:

OFR

Departmental Offices Kelly Nettleton Senior HR Business Partner, Office of Human Resources 202-941-9394 Kelly.Nettleton@treasury.gov

OCC

Office of Human Capital Linda Whalen Benefits Analyst, Human Resources, Compensation and Benefits 202-649-6654 Linda.Whalen@occ.treas.gov

VI. OTHER PROVISIONS

A. Effective Date and Termination

This Agreement is effective upon signature by both parties and will remain in force until either party proposes that the Agreement be terminated. This agreement is subject to cancellation or termination, with at least 90 calendar days advance written notice by either party. The OCC shall be reimbursed for the cost of all completed and partially completed work as of the effective date of cancellation plus any termination costs.

B. Amendment

This Agreement may be amended at any time by mutual agreement. Such amendments shall be effective upon signature by both parties.

C. Interpretation of Agreement

Nothing in this agreement is intended to conflict with the current practices of the OFR.

However, should disagreement arise as to the interpretation of the Terms of this agreement that cannot be resolved between OCC HR and the OFR, the area(s) of disagreement will be reduced to writing by each agency and presented to the authorized officials at both agencies for resolution. If settlement cannot be reached at this level, the disagreement will be raised to next level in accordance with OCC and OFR procedures for final resolution.

D. Entire Agreement

This MOU contains the entire and exclusive agreement of the Parties with respect to its subject matter. It supersedes all previous agreements between the parties relating to its subject matter.

This MOU may be executed in separate counterparts, each of which when executed and delivered shall be deemed an original, and all of which taken together shall constitute one and the same MOU.

Office of Financial Research James Martin Deputy Director of Operations

Signature Date

Office of Comptroller of the Currency Andre Adams Contracting Officer

Signature Date