INVITATION TO BID CONTRACT FOR FLORIDA RETIREMENT SYSTEM (FRS) MEMBER ANNUAL STATEMENTS (MAS) ITB NO.: DMS-12/ Amendment 1

Transcription

1 INVITATION TO BID CONTRACT FOR FLORIDA RETIREMENT SYSTEM (FRS) MEMBER ANNUAL STATEMENTS (MAS) ITB NO.: DMS-12/ Amendment 1 The Department hereby formally provides written responses to questions received. FAILURE TO FILE A PROTEST WITHIN THE TIME PRESCRIBED IN S (3) OF THE FLORIDA STATUES, OR FAILURE TO FILE A BOND OR OTHER SECURITY WITHIN THE TIME ALLOWED FOR FILING A BOND, SHALL CONSTITUTE A WAIVER OF PROCEEDINGS UNDER CHAPTER 120 OF THE FLORIDA STATUTES.

2 Written Responses to Questions All written questions are reproduced in the same format as submitted by the Respondent. Question #1 The MAS contains both static and variable data. Will any of the variable data be printing in 4 color? Answer #1 Not for the 2013 MAS. Question #2 Answer #2 Question #3 Can you provide a sample of the form that is to be printed (or a pdf)? I m curious where all the variable imaging occurs. Variable address data appears on the first page and all other variable data for that individual appears on page 2, see attached MAS sample for In future years, the layout and information provided will vary. Is this an existing contract? If so, can you share the current vendor name and pricing? Answer #3 The existing contract has expired. The former vendor was TC Delivers; see attached pricing sheet. Question #4 Is the information that is variable print black only? Answer #4 Yes. Question #5 Does the envelope supplied need to be listed as a sub-contractor? Answer #5 Yes. Question #6 Does the paper supplier need to be listed as a sub-contractor? Answer #6 No. Question #7 If the forms are pre-printed as a shell and the personalized information completed in-house, does the printer of the shell need to be listed as a sub-contractor? Answer #7 Question #8 Yes. On page 14 Can your further define INK: The MAS will be printed in 4-part full color? Is this 11 x 17 duplex 4-color variable imaging?

3 Answer #8 Yes. Question #9 Can a sample MAS be posted? Answer #9 See question and answer#2. Question #10 Can the prior bid tabulation be posted? Answer #10 See question and answer #3. Question #11 Answer #11 On page 15 FOLDING will the FRS bulletin be supplied to the contractor already folded for insertion with the MAS? Yes. Question #12 Can a USPS postage account be set-up so that postage can be paid in advance? Answer #12 Contractor s mailing account will be used, see Question #13 Level II background screening. Will our Public Trust Level 5C cover this requirement? Page 17 allows equivalent. Answer #13 If approved by the department, see 2.12 G. Question #14 Answer #14 We must use NPC s indicia to mail. Bid states that a postal advance MAY be issued. What s the chances of this occurring? Very good. Question #15 Answer #15 Question #16 Are there two different base static forms (Hybrid & Pension Plan)? There are two groups under each type (Hybrid and Pension Plan), up to four static forms could be required. Mentions those to be mailed to home addresses are to be further bi-folded to 3-2/3rds. What other mailing/shipments are there?

4 Answer #16 Question #17 The electronic notice for members not receiving MAS via USPS will be handled by the Division of Retirement. Otherwise, returning excess bulletins and any envelopes to the Division of Retirement after the MAS printing, inserting, and mailing is completed. Who is current incumbent? Answer #17 See question and answer #3. Question #18 What is the contract $ value been over the past 5 years? Answer #18 See question and answer #3. Question #19 Is variable member data black only or color? Answer #19 See question and answer #1. Question #20 Are there any screens required in the variable area? Answer #20 Not in the 2013 MAS. Question #21 Are there any In-State preferences for Florida based vendors? Answer #21 No. Question #22 Are samples available? Answer #22 See question and answer #2. Question #23 The paper identified Section 3.04 page 14 Fortune 60# will not run on production lasers. It is a suitable paper for offset printing but it is not a suitable paper for production laser work. Question: If the paper identified is not suitable for laser production will the Department approve an industry accepted alternative? Answer #23 The method to propose an alternative paper is covered in Paper under section 3.04 on page 14.

5 Question #24 Is it possible to receive a sample of the annual statement format and a previous newsletter related to this bid? Answer #24 See the question and answer #2 for sample format from last MAS. The 2012 FRS bulletin can be found under Retirement Newsletters on the Publications page of the Division of Retirement s website at Question #25 Can you provide a sample of the form that is to be printed (or a pdf)? I m curious where all the variable imaging occurs. Answer #25 See the question and answer #2. Question #26 Is this an existing contract? If so, can you share the current vendor name and pricing? Answer #26 See the question and answer #3. Question #27 Is the information that is variable print black only? Answer #27 See the question and answer #1. Question #28 The MAS contains both static and variable data. Will any of the variable data be printing in 4 color? Answer #28 See the question and answer #1.

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52 MEMBER ANNUAL STATEMENT AS OF JUNE 30, 2012 Name: Doe, John Birth date: 00/00/0000 SSN: XXX-XX-0000 Agency: Alachua Co Clerk of Circuit Court Primary Beneficiary (see page 3): >>>>>>>>>> Membership Class Years Service X Percent Per Year = Accrued Percent X Average Final Compensation (AFC) Regular $000,000 Special Risk Special Risk Admin Support Elected Officers Total At normal retirement, your Option 1 monthly benefit equals the Total Accrued Percent multiplied by the AFC, then divided by 12 months. The AFC above is the average of your 5 highest fiscal years salary through June 30, The fiscal year is July 1 through June 30. The AFC for benefit projections reflects the uncertainty of salary increases during this fiscal year due to the current budget situation facing our participating employers. For the first fiscal year of the projection, no increase in the AFC is included. After that 1 year period, the projected AFC is increased 2% per year for estimate projections. The 2% increase is a conservative percentage compared to the long-term average salary growth rate for all FRS members over their career. Because you have not reached normal retirement, your benefit is reduced 5% for each year you are under age >>. If you terminated your employment on June 30, 2012, and retired July 1, 2012, your early monthly retirement benefit would be: Option 1 $>>>>.>> Option 2 $>>>>.>> Assuming you are continuously employed in your current retirement plan through the end of the fiscal year in which you reach >> years of service, your estimated monthly benefit based on >>.>> years of creditable service and retirement effective July 1, >>>>, will be: Option 1 $>>>>.>> Option 2 $>>>>.>> Assuming you are continuously employed in your current retirement plan through the end of the fiscal year in which you reach normal retirement age of >>, your estimated monthly benefit based on >>.>> years of creditable service and retirement effective July 1, >>>> will be: Option 1 $>>>>.>> Option 2 $>>>>.>> An Option 1 monthly benefit is a lifetime benefit for you with no continuing benefit to your beneficiary. An Option 2 monthly benefit is a lifetime benefit for you, but if you die sooner than 10 years from your retirement date, your beneficiary receives the benefit for the rest of that 10-year period. You may be eligible to select Option 3 or 4, which provides a continuing lifetime benefit to a qualified beneficiary upon your death. Please see Pension Plan Payment Options on page 4. You previously requested and were notified of your cost to claim additional creditable service. The current cost to purchase this service is $>>>>>>.>>. We included this service in the total years shown above. Florida law requires us to add interest at the rate of 6.5% to the unpaid balance at the close of business on June 30 of each year. The total amount of contributions and payments you made to your retirement account through 6/30/2012, is $>>>>>.>>. This statement and calculations of your estimated retirement benefit are based on unverified data and are only approximations of the amount you would receive upon retiring. While we have made every effort to make this statement as accurate as possible, please understand the statement does not have the force and effect of law, rule, or regulation governing benefit payments. If any difference or error occurs, the law will take precedence in determining how we calculate your benefit.

53 FRS PENSION PLAN FUNDED STATUS As of the July 1, 2011 valuation, the FRS Pension Plan had actuarial assets of $126.1 billion and actuarial liabilities of $144.1 billion, resulting in a plan funding level of 87.5%. During years when the FRS Pension Plan is determined to be less than 100% actuarially funded, the Florida Legislature may take steps to improve the funding level by increasing employee or employer contributions or lower plan costs by reducing future Pension Plan benefits. PRIMARY BENEFICIARY To make it easier for you to keep your designation up to date, we added an enhancement that allows you to change your beneficiary designation electronically through your Online Services account. If you prefer to use a paper form to file your beneficiary designation, complete a Beneficiary Designation Form, BEN-001 and mail or fax the completed form to our office. To receive a monthly benefit, your beneficiary must qualify as a joint annuitant, which is defined as: your spouse; your natural or legally adopted child who is either under age 25 or is physically or mentally disabled and incapable of selfsupport (regardless of age); or your parent, grandparent, or a person for whom you are the legal guardian, provided your parent, grandparent, or person for whom you are the legal guardian received one-half of his or her financial support from you or is eligible to be claimed as a dependent on your federal income tax return. Please see the Beneficiary Designation and Survivor Benefits sections of the Retirement Guides and view the FRS Quick Clip Beneficiary Designation Before You Retire on our website for more information. PURCHASING OPTIONAL SERVICE CREDIT Subject to certain restrictions, you may purchase optional service credit such as leaves of absence without pay, in-state and out-of-state public service, past service, prior service, military service, and suspensions without pay. If you requested the amount due to purchase such service, we included the cost and service credit in the MAS estimates. You may purchase service credit with a personal payment or you may rollover pre-tax funds from another tax-qualified plan. If you do not intend to purchase the service and wish to have it removed from your account, please notify our office. PENSION PLAN VESTING AND NORMAL RETIREMENT REQUIREMENTS Effective July 1, 2001, your vesting requirement is 6 years of service. If you terminated FRS-covered employment before July 1, 2001, and returned to covered employment after that date, you must be employed for a full work year (earn 1 year of service credit) before you are eligible for the 6 year vesting provision. However, if you were less than 1 work year from vesting at the time you left employment, you will not be required to work longer than the amount of time originally required to vest you for benefits. If you are a member of the Regular Class, Senior Management Service Class or Elected Officers Class, your normal retirement age/date is either the first day of the month following your completion of 30 years of service or the first day of the month in which you reach 62 years of age or older and are vested, whichever occurs first. If you are a member of the Special Risk Class or Special Risk Administrative Support Class, your normal retirement age/date is either the first day of the month following your completion of 25 years of Special Risk Class service or the first day of the month in which you reach 55 years of age or older and are vested with 6 years of Special Risk Class service, whichever occurs first. DEFERRED RETIREMENT OPTION PROGRAM Once you reach normal retirement, you may participate in DROP. DROP allows you to apply for retirement benefits and have those benefits accumulate with interest in the FRS Trust Fund while you continue to work for up to 60 months for an FRS employer. You must elect to join DROP within 12 months of reaching normal retirement, unless you are eligible for a deferral. You may defer your DROP entry date to the first of the month in which you reach age 57, if you complete 30 years of service before that date, and still participate for 60 months. Special Risk Class members may defer to the first of the month in which age 52 is reached, if 25 years of Special Risk Class service is completed before that date. You must elect to join DROP within 12 months of your normal retirement date or deferral date. Your total participation decreases by a month for each month your application is delayed after your normal retirement date or deferral date. You must elect DROP participation within this 12-month period or you will lose your eligibility to participate in this program. If you are considered instructional personnel in grades K-12 as defined in Section (2), F.S., you may defer your DROP participation to any date after reaching normal retirement. Please see the DROP brochure and view the FRS Quick Clip DROP Retirement on our website for more detailed information about DROP eligibility and participation.

54 APPLICATION AND EFFECTIVE RETIREMENT DATE You must submit an application to retire and receive benefits or to enter DROP. You can get an application for retirement from your Human Resource office or on the division s website. You can submit it up to 6 months before your retire. The division must approve your retirement application and you must terminate all employment with FRS employers before benefits can be paid from your account. All FRS Pension Plan retirement benefits are paid monthly, on the last business day of the month. If you retire without DROP participation and we receive your application form (FR-11) within 30 days after your termination date, your effective retirement date will be the first day of the month after your termination date. If we receive it after the 30 day period, the effective date will be the first day of the month after the month we receive the application. To retire through DROP participation, we must receive your application forms (DP-11 and DP-ELE) by the last working day of the calendar month you choose to begin DROP, or your DROP and effective retirement date will be the first day of the month in which we receive your application. PENSION PLAN PAYMENT OPTIONS At retirement, you must choose your monthly payment option. In addition to the Option 1 and 2 benefits shown on page 2, you may be eligible to select Option 3 or 4 as a payment option. Your beneficiary must qualify as a joint annuitant (see Primary Beneficiary on page 3) in order for you to select either Option 3 or 4. An Option 3 or 4 benefit provides lifetime continuing benefits and is actuarially reduced from the Option 1 benefit based on your and your joint annuitant s ages at retirement. Upon your death, Option 3 will provide your joint annuitant the same benefit you received for his or her life. Upon the death of either you or your joint annuitant, Option 4 will provide the survivor with two-thirds of the benefit you received while both of you were alive. All 4 payment options are payable for your lifetime. Please see the Benefit Payment Options section of the Retirement Guides and view the FRS Quick Clip Benefit Payment Options on our website for further information. TERMINATION AND REEMPLOYMENT To be eligible to receive retirement benefits, you must terminate all employment with all FRS employers for 6 calendar months. If you become employed with an FRS employer during the 6 calendar month period from your effective date of retirement or termination from DROP, your retirement will be voided and you will have to repay all benefits received (including DROP, if applicable). After you meet the 6 calendar month termination requirement, you can be reemployed by a participating FRS employer during the 7 th through the 12 th calendar months of retirement. You must suspend your monthly retirement benefit during any of these months you are working for an FRS employer. After the 12 th month of retirement, there are no limitations and you can resume collecting your monthly retirement benefit. COST-OF-LIVING INCREASE The amount of your annual cost-of-living adjustment (COLA) is determined by your retirement service credit prior to July 2011 divided by the total service credit at retirement, multiplied by 3 percent. For example, for a member who retires with 30 years of service and 28 years of that service occurred before July 2011, the calculation would be as follows: 28 / 30 =.9333 X 3% = 2.80% annual COLA percentage. FRS Pension Plan retirees receive their COLA in their July benefit payment each year. The annual increase is calculated using the amount of your June benefit, excluding any Health Insurance Subsidy (HIS) payment. If you have not been retired for a full year, your first COLA will be prorated based on the number of months you were retired as of June 30. HEALTH INSURANCE SUBSIDY A Health Insurance Subsidy (HIS) payment is made to eligible retirees who apply and certify they have health insurance coverage. We calculate the monthly HIS payment you may be eligible to receive by multiplying the total years of creditable service at retirement by $5. The current minimum monthly payment is $30 and the maximum monthly payment is $150. Separate contributions made by FRS participating employers fund the HIS payment. It is not a guaranteed benefit and may be reduced or cancelled by statutory changes. CONTACT INFORMATION Contact the Division of Retirement, Bureau of Retirement Calculations with questions about your MAS, an estimate of benefits or other questions concerning your retirement account. You may access your account information from the Online Services section of the division s website, which is available to all FRS Pension Plan members, retirees and beneficiaries. You can contact the bureau by at Calculations@dms.MyFlorida.com; by telephone, toll-free at (888) or locally at (850) ; or by mail at the address at the bottom of the first page.