May 12, «FirstName» «LastName» «JobTitle» «Company» «Address1» «Address2» «City», «State» «PostalCode» Dear «FirstName»:

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1 HUMAN RESOURCES 330 West 20 th Avenue San Mateo, CA Office: (650) Fax: (650) May 12, 2014 «FirstName» «LastName» «JobTitle» «Company» «Address1» «Address2» «City», «State» «PostalCode» Dear «FirstName»: The City of San Mateo (City) is requesting proposals from 457(b) Deferred Compensation Plan Administrators for City employees and retirees as well as administration of its Retiree Health Savings Account program and 3121 Plans. For the 457(b) Deferred Compensation Plan, the City currently offers participants various investment options through three (3) providers, including stable value, general/fixed account options and mutual funds through the California Public Employees Retirement System (CalPERS), ICMA-Retirement Corporation (ICMA-RC), and MassMutual. The retiree health Savings plans are offered by ICMA-RC, Nationwide Retirement Solutions (NRS) and Peery & Associates. As of December 31, 2013, the combined total assets of the 457 Deferred Compensation plans were approximately $49.8 million. The combined total of the retiree health accounts were approximately $14.8 million and the OBRA 3121 Social Security Replacement Plan was approximately $2.9 million. The City seeks proposals and interaction directly with providers, not agents or brokers. The Request for Proposal (RFP) also solicits proposals from providers regarding Retiree Health Savings Accounts (RHSA). Currently, the City uses ICMA-RC with a 115 Integral Part Trust, NRS with a Voluntary Employee Beneficiary Association (VEBA) and Peery & Associates with a 401(a) and (h) defined contribution plan. The selection of a vendor for the RHSA solicitation may be combined with or separate and apart from the other defined contribution plan determination. The City reserves the right to either contract jointly or separately with providers for the RHSA services. 1

2 There are approximately 497 active City employees who are eligible to participate in the Deferred Compensation Plan and approximately 309 active employees are participating. The City does not capture the number of employees that may have accounts at multiple providers or the number of retirees or former employees with accounts. The City expects the respondents to the Deferred Compensation portion of the RFP to respond to SST s recommended investment portfolio with the lowest possible cost share class they will offer. The City also expects the successful respondent(s) to duplicate the recommended 457 portfolio or offer other investment alternative funds for the RHSA plans. The City wishes to explore a sole provider for all of these Deferred Compensation and other programs although it is also soliciting proposals under multiple scenarios. As a result, respondents may submit proposals covering any combination of the following three alternatives: SCENARIO 1: City contracting with a single provider with all existing assets transitioning immediately at no cost or penalty to the City or participants; SCENARIO 2: City contracting with a single provider for all new deferrals and unencumbered assets. Encumbered assets will remain with existing provider(s) until available for transition without penalty. SCENARIO 3: City contracting with multiple providers. The proposals should assume a transition start date of early September 2014 and completion of asset transfers in February The City has identified an administrative reimbursement allowance of $50,000 due at the time of fund transition and subsequent annual total administrative expense reimbursement allowance of $50,000 plus an annual CPI increase based on the San Francisco Bay Area CPI each year thereafter. Subsequent annual reimbursements are due on a quarterly basis of each contract year. Additionally, proposals submitted under Scenario 1 must satisfy any encumbrance to funds so that the City and/or plan participants are not negatively impacted by this transition. The electronic RFP is downloadable from SST Benefits Consulting s website at: At the home page click RFPs. The Log-In name is SanMateoCA and the password is Sanmateo15. These are all one word and are case sensitive. 2

3 The following information can be retrieved from the site: Request for Proposal (for downloading) Exhibit A: Sample Administration Fee Grids Exhibit B: Plan Administrative Services Agreements Exhibit C: Plan Documents Exhibit D: Draft Investment Policy Statement Exhibit E: Draft Education Policy Statement Exhibit F: Census of entire workforce / deferrals Exhibit G: Demographics Participants in each existing plan Amount of assets in each investment option Period ending 12/31/2013 totals by plan Exhibit H: Termination Fees from current provider Exhibit I: Sample Professional Services Agreement The demographic and process selection information and its contents are presented to you on a confidential basis and may not be used for any purpose other than responding to this RFP, nor provided to an outside party, except by express written approval of the City of San Mateo. Ten (10) copies of your written proposal must be received at the address below by 4:00 p.m. PST on June 12, Proposals received after this date (even if they are postmarked before 4:00 p.m. on June 9, 2014) will not be considered. Proposals should be mailed to: Jay Castellano, Benefits Manager City of San Mateo 330 W. 20th Avenue San Mateo, CA Three (3) additional copies of your written proposal must be simultaneously sent to: Bill Tugaw, Consultant SST Benefits Consulting 4364 Town Center Blvd., Suite 315 El Dorado Hills, CA

4 In addition to the hardcopy written proposal, Providers must transmit an electronic version of the RFP response grids to Jay Castellano at and to Bill Tugaw at Proposals shall be mailed, using certified or registered mail with return receipt requested, sent by overnight delivery services, or hand delivered to the City address above. Faxed proposals will not be accepted. The City reserves the right to accept or reject any and all proposals or any items or groups of items offered in response to this RFP. City reserves the right to negotiate the terms and conditions of the agreement. All requests for information and / or clarification should be directed to: Bill Tugaw, Consultant SST Benefits Consulting 4364 Town Center Blvd., Suite 315 El Dorado Hills, CA Phone: (916) Ext. 103 Fax: (916) billtugaw@sstbenefits.com All communications regarding this RFP must only be with the consultant cited above. Any communications with other individuals from the City of San Mateo may result in the immediate and complete rejection of a Proposer s proposal. Attached as Attachment A is a series of statements that must be confirmed as a part of your proposal. Please include these statement confirmations in your cover letter or Executive Summary. Sincerely, Jay Castellano, Benefits Manager Enclosure: Attachment A 4

5 ATTACHMENT A A statement that the offer made in the proposal is firm and binding for 180 days from the date the proposal is opened and recorded. A statement that all aspects of the proposal, including cost, have been determined independently, without consultation with any other prospective Proposer or competitor for the purpose of restricting competition. A statement that all declarations in the proposal and attachments are true and that this shall constitute a warrant, the falsity of which will entitle the City to pursue any remedy by law. A statement that the Proposer agrees that all aspects of the RFP and the proposal submitted shall be binding if the proposal is selected and a Contract awarded. A statement that the Proposer agrees to provide the City with any other information the City determines is necessary for an accurate determination of the Proposer s ability to perform the services as proposed; and A statement that the prospective Proposer, if selected, will comply with all applicable rules, laws and regulations. 5