03.07 - NJPA Joint Powers Agreement Revision

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Member shall be deemed to have withdrawn from this Agreement,as well as from the applicable Pool(s). ii. Withdrawal from a Pool. Withdrawal by a Participant Member from any Pool shall not affect the Participant Member's participation in any other Pool. iii. Program Funds. No Program Funds or any other amounts that may, in any way, be attributable to a Participant Member's participation in a Pool shall be returned to the Participant Member in the event such Participant Member's participation in the Pool ends prior to the Pool's termination. iv. Future Participation Limited. If a Participant Member withdraws or is deemed by the Trustees to have withdrawn from a Pool, such Participant Member's participation in such Pool shall be prohibited for a period of twelve(12)months from the date of such withdrawal or deemed withdrawal. If a Participant Member withdraws or is deemed by the Trustees to have withdrawn from this Agreement, such Participant Member's participation in this Agreement(and any Pool offered hereunder)shall be prohibited for a period of twelve(12)months from the date of such withdrawal or deemed withdrawal. SECTION 6: PROGRAM FUNDS ADMINISTRATION 6.1 Program Funds. It is understood and agreed that, in connection with the Group Employee Benefits and Other Financial and Risk Management Services made available pursuant to this Agreement, the Trustees may acquire Program Funds. The Trustees may, in its discretion, establish and maintain separate accounts for specified portions of the Program Funds, and may designate specific purposes, such as the payment and financing of Group Employee Benefits or the stabilization of the cost of such benefits, for which the amounts credited to such accounts shall be used,but it shall not be required to do so. 6.2 General Rules Regarding Management and Disposition of Program Funds. Program Funds shall be used solely for the purposes of providing Group Employee Benefits and Other Financial and Risk Management Services,providing related services,defraying the reasonable expenses of administering such benefits and services,and, if the Trustees determine that such use would either directly or indirectly benefit Participant Members(e.g., by spreading risk,achieving economies of scale, generating revenues or enhancing the Trustees' ability to negotiate with Providers as a result of the Trustees' visibility, presence in the marketplace or enhanced expertise),establishing,providing and administering similar benefits and services offered by the joint action of other governmental units. Program Funds shall not inure to the benefit of the Trustees;this prohibition shall not, however, prohibit the payment of service fees to an SC as provided below. Subject to the foregoing,the Trustees, in its sole discretion, shall determine the management and disposition of the Program Funds. The Trustees may consider Advisory Committee recommendations regarding the use of Program Funds before any determinations are made. Funds may only be used for the purposes of managing and maintaining the pool. Acceptable uses include, but are not limited to,the following: i. to negotiate the purchase of,administer,provide and maintain(either directly or through the purchase of insurance,or both)Group Employee Benefits(including,but not limited to programs related to the purpose for which the Fund was created, such as, for example, in the case of a Health Pool,an Employee Assistance Program(EAP)and Wellness Program)and Other Financial and Risk Management Services; 11 Rev. 7/2015