REQUEST FOR PROPOSAL for Actuarial Services

Transcription

1 Issue Date: REQUEST FOR PROPOSAL for Actuarial Services Prepared by Eastern Adams Regional Police Commission, for The Police Pension Plan Harry McKean, Commission Member 110 North Berlin Avenue New Oxford, PA 17350

2 Table of Contents Introduction and Historical Background 1 Qualifications and Professional Staff 2 Scope of Services to be Provided 4 References 6 Fees 7 Submission of Proposals 8 Evaluation Criteria 9 Miscellaneous provisions 10

3 Introduction and Historical Background Eastern Adams Regional Police Commission is soliciting proposals from qualified firms to provide actuarial services to its two defined benefit pension plans. The provisions of the Police Pension Plan are governed by Pennsylvania Act 600 of 1956, as amended. The funding and reporting to the agencies of the Commonwealth of Pennsylvania is in accordance with Act 205 of The plan provides retirement, death, and disability benefits to the Eastern Adams Regional Police Department s police officers. The Police Plan has 6 actives, 3 vested, and 2 retirees. The general administration and the responsibility for the proper operation of the retirement system are vested in the Eastern Adams Regional Police Commission. Page 1 of 10

4 Qualifications and Professional Staff Minimum Qualifications 1. The firm is a professional actuarial firm that provides actuarial valuations, experience investigations, and pension consulting services. 2. The principal actuary who will be responsible for the plan is an Enrolled Actuary and is certified to perform actuarial services under Act The firm must provide actuarial services to at least 25 Pennsylvania municipalities. 4. The proposal must be signed by the principal actuary and must state the name, title, address, and phone number of a contact person who is authorized to provide clarification of the proposal should it be necessary. Experience with Pennsylvania Municipal Retirement Plans 1. Actuaries and Actuarial Staff: a. Principal Actuary: Identify the principal actuary by name and give the year such actuary became an Enrolled Actuary under Section 3042 of the Employees Retirement Income Security Act of 1974 and the number of years of experience with Pennsylvania municipal retirement plans. Also, indicate the number of Pennsylvania municipal retirement plans, and retirement plans in general, for which the principal actuary has primary client responsibility. b. Identify other actuaries employed by the actuarial consulting firm who are certified to perform actuarial services under Act 205 and the number of years of experience with Pennsylvania municipal retirement plans. c. Provide the total number of enrolled actuaries employed by the actuarial consulting firm. d. Provide the number of actuarial support staff who perform actuarial calculations for Pennsylvania municipal retirement plans. Page 2 of 10

5 Qualifications and Professional Staff (Continued) 2. Firm History and Operations a. For how many years has the firm been providing actuarial services? b. For how many years has the firm been providing actuarial services to Pennsylvania Municipal Retirement Plans? c. For how many Pennsylvania Municipal Retirement Plans is your firm currently providing actuarial services? d. Please identify the location of the primary office that will provide services for the pension plans. e. Describe the ownership structure of the firm, including the relationships of each branch office to the branch offices and to the headquarters. Identify the individual or individuals who have overall responsibility for the firm s operations. f. Please describe any material developments in the ownership structure of your organization over the past three years. Describe any planned material changes in your organization in detail. g. How many employees are located at the branch office that will be responsible for services under this proposal? h. If the client contact person is other than the actuary, please identify who will be the client contact person on the account? Page 3 of 10

6 Scope of Services to be Provided for Eastern Adams Regional Police Commission Pension Plan Regular Services The successful actuarial firm will be required to perform the following actuarial services for the Pension Plans on an annual or biennial basis: 1. Prepare the actuarial valuation reports as of January 1 of each odd-numbered year, beginning January 1, The reports include benefit information on all members in the plans, as well as plan funding information. The valuation process should include a review of the actuarial assumptions as well as the plan's overall condition. 2. Prepare the Act 205 forms to be submitted every other year, beginning January 1, Prepare annual benefit statements showing benefit information for each member of the plan beginning January 1, Determine the minimum municipal obligation (MMO) required by Act 205 to be submitted by the Chief Administrative Officer to the governing body by September 30 of each year. 5. Assist the Commission in determining pension benefits for retired and terminated members. 6. Provide assistance and attend meetings as required or requested by Departmental management and the Commission. Page 4 of 10

7 Scope of Services to be Provided for Eastern Adams Regional Police Commission Pension Plan (Continued) Additional Services The successful actuarial firm will be required to perform the following actuarial services upon request of the Commission: 1. Inform the Commission of legislative and regulatory changes that may be applicable to the plans. 2. Provide actuarial studies for benefit cost estimates and additional actuarial services upon the request of the Commission. 3. Provide the necessary documentation or actuarial testimony during labor negotiations, and assist with arbitration if needed. 4. Prepare (or assist the solicitor in preparing) plan documents including amendments, Summary Plan Descriptions, and ordinances or resolutions as needed by the Commission. Page 5 of 10

8 References Please list five (5) Pennsylvania municipal pension plan clients for whom the firm has provided actuarial services within the past year. At least three (3) of the reference clients must be clients who have been serviced by the principal actuary who will be assigned to Eastern Adams Regional Police Commission. For each reference listed, include the name of the municipality, the contact person at the municipality, telephone number and the address. Page 6 of 10

9 Fees Please provide the following information regarding fees: Regular Actuarial Services Annual fee: $ Page 7 of 10

10 Submission of Proposals Bidders should submit their proposals to: Harry McKean, Commission Member 110 North Berlin Avenue New Oxford, PA Bids may only be submitted to the above address. Proposals must be received by July 15, No exceptions to this deadline will be allowed unless the Commission extends the deadline, whereupon it will notify recipients of the RFP. You should submit six (6) copies of your proposal. Proposals become the property of the Commission upon submission and will not be returned. All costs for developing proposals are entirely the responsibility of the actuarial firm and shall not be chargeable to the Commission. The Commission accepts no responsibility for lost or late delivery of proposals. Questions about the Request for Proposal must be submitted in writing by mail at 110 North Berlin Avenue, New Oxford, PA no later than July 8, Page 8 of 10

11 Evaluation Criteria Only proposals that meet the Minimum Qualifications will be evaluated. The evaluation will take place in two phases. Phase One will involve review of written proposals. Phase Two will involve interviews with the Commission who will make the final selection. In both phases of the selection process, firms will be evaluated using the following criteria. Understanding of Pennsylvania Municipal Pension Plans, including Act 600 and Act 205 Depth of Professional Staff Communication of Actuarial Results Firm Organizational Background and Reputation Quality of Actuarial Services References Fees Page 9 of 10

12 Miscellaneous Provisions The Eastern Adams Regional Police Commission reserves the right to cancel this RFP at any time and to reject any and all proposals submitted in response to this RFP, if the Board determines such action or actions to be in the best interest of the membership of the pension plans. The Commission also reserves the right to request clarification of any submission, modify or alter the Scope of Services and solicit new submissions, reject any or all submissions, and wave immaterial irregularities in any submission. The Commission does not intend to entertain limited liability clauses of any type with the winning bidder. Page 10 of 10