City of Tacoma Human Resources. QUESTIONS and ANSWERS

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1 City of Tacoma Human Resources Deferred Compensation Program Management Consultant RFP Specification No. HR F QUESTIONS and ANSWERS All interested parties had the opportunity to submit questions in writing to Procurement and Payables Division, via to by July 27, The answers to the questions received are provided below and posted to the City s website at This information IS NOT considered an addendum. Respondents should consider this information when submitting their proposals. Question 1: Answer 1: Question 2: Answer 2: Question 3: May we have a plan report from your recordkeepers? Attached are the last reports we received from Nationwide and ICMA-RC (our two record keepers) that were presented to the Deferred Compensation Committee this year. Was your current consultant invited to bid on this RFP? Yes What are you currently paying in consulting fees? Answer 3: With the last extension of this contract $65,000 for 2017 and $66,000 for Payments are billed quarterly. Question 4: Answer 4: Question 5: Answer 5: Question 6: Answer 6: Question 7: Answer 7: Question 8: Why are you going out to bid? The current contract is expiring and all renewal options have been exhausted. What is your major concern with the plan? There are no major concerns with our Plan. In regards to the first Minimum Requirement bullet on page 11 of the RFP, can you please advise if sole-provider administration pertains to soleprovider consultation? Yes sole-provider investment and plan consulting services. How many manager searches have been conducted each year, over the last 3 years? None. When was the last time the plan issued an RFP for recordkeeping/provider services? Answer 8: An RFP was last issued in Form No. SPEC-230A Revised: 03/13/2007 Page 1 of 2

2 Question 9: Can you please provide the length of time your current consultant has been retained? Answer 9: The current consultant has been retained since Question 10: Is the scope outlined in the RFP consistent with the current consultant s contract? If not, what items are different? Answer 10: Yes, it is consistent with the current contract. Form No. SPEC-230A Revised: 03/13/2007 Page 2 of 2

3 City of Tacoma 457 Investment Committee Meeting 2017 Review, 2018 Education Strategy MARCH 16, 2018 PRESENTED BY: PETER HOERBER, REGIONAL VICE PRESIDENT, NORTHWEST COREY WIGGINS, DIRECTOR OF RELATIONSHIP MANAGEMENT

4 PLAN GROWTH Category Change # total 457 accounts 2,735 2, % # year-end contributing 457 participants 1,660 1, % 457 roll-ins $2,068,819 $2,290, % 457 contributions $15,452,500 $16,441, % 457 asset retention $9,649,052 transfers out $9,247,061 transfers out Decreased from 3% to 2.5% of year end assets 457 assets $327,145,907 $374,513, % 457 average account balance $119,615 $130, % For Plan Sponsor use only. Not for public distribution.

5 PLAN BENCHMARKING Category Average Account Balance Average Annual Contribution City of Tacoma $130,812 $8,201 City Clients 1 $68,402 $4,794 ICMA-RC 2 $65,843 $4,801 ICMA-RC Similar Size 3 $71,791 $4, plans including only city plans. Excludes part time service plans plans including local government plans (city, county, etc.). Excludes part time service plans, State plans plans with assets between $150M and $300M. Includes 17 local government plans (city, county, etc.). Excludes part time service plans, State plans For Plan Sponsor use only. Not for public distribution. 3

6 2017 REVIEW PARTICIPANT EDUCATION Representative Results 1-on-1 consultations 1,280 service guarantee met Days on site 80 service guarantee met Scott Berry, RPS Locations Visited Police, Public Utilities, Street Operations, Urban Waters, Municipal Building, Nisqually River Project, Urban Waters, Tacoma Rail, Waste Water, Cowlitz River Project, Fire Communications, Green River Project, Library - Moore Branch, Library - Main Branch, Water Plant #3, Street Operations, Power Loveland, Fire Training, Solid Waste, Traffic Signals & Lights, Municipal Court, Fleet PD, McMillen Reservoir, Carpentry/Paint Shop, Convention Center. 1-on-1 consultations 9 (*22 consultations in Q1,2018) Jim Reinke, CFP Seminars 3 Webinars attendees - 10 Question Retiree Guide Social Security Steps - Public Sector Focus Healthcare Costs in Retirement 172 attendees, 353 registered Topics: Behavior Traps and Tips, Estate Planning, Beneficiary Designations / RMD's, Retirement Savings Drawdown For Plan Sponsor use only. Not for public distribution.

7 SERVICE UPDATE Separate Roth 457 investment allocations - Plan option to enhance Roth offering Am I on Track Tool pension calculation update Ongoing CFP webinar promotion Custom mobile app and participant landing page Vanguard Target Retirement Date Fund share class change - Effective October 20, 2017 Vanguard 2065 Target Retirement Date Fund added to lineup - Effective Feb 16, 2018 Default fund changed to age-appropriate target date fund - Effective Feb 16,

8 2018 COMMUNICATIONS PLANNING CALENDAR Month Campaign Campaign Objectives Media April Realize Retirement Tour Increase plan awareness Meet your rep Retirement readiness Flyer, Poster, , Onsite (4/24) June Investment Education Diversification , Phone Appt, One/one s September Financial Planning Retirement readiness Increase formal plan usage , Webinar For Plan Sponsor use only. Not for public distribution.

9 REALIZERETIREMENT ADVENTURE A fully immersive public sector escape game with a mix of financial retirement education.

10 DIVERSIFICATION Identify investors in one fund (not including target date funds) Targeted campaign with diversification message.

11 FINANCIAL PLANNING 3 Goal-Specific and Comprehensive financial plans completed in Goal: Increase financial plan usage. Recorded webinar: How-to start a financial plan Targeted campaign to high-balance and late-career participants. Asset Allocation and Retirement Planning focus.

12 2017 PERFORMANCE GUARANTEES TYPE Participant Services Phone Response Time Return Calls to Plan Sponsor Participant Quarterly Statement Delivery Plan Sponsor Quarterly Statement Delivery Number of On-Site Individual Meetings SERVICE Calls picked up within an average of less than 45 seconds annualized and in aggregate for the Call Center. Note: Measurement will not include days in which extraordinary events occur beyond the control of ICMA-RC that increase the daily call volumes by 25% above the average daily call volume for the year. Calls returned within one (1) business day. Quarterly Participant Statements in aggregate delivered electronically within twelve (12) business days, unless performance returns are received late due to factors beyond ICMA-RC s control. Plan Sponsor level statements made available on EZLink within twelve (12) business days. Mutually agreed upon number of on-site individual meetings. FINANCIAL GUARANTEE $2,500 per year in which this does not occur. $1,000 per year in which less than 95% of calls are not returned with one (1) business day. $2,500 per year in which less than 99% of statements in aggregate meet the deadline due to circumstances under ICMA-RC s control. $2,500 per year in which Plan level statements are not made available within twelve (12) business days. $2,500 per year in which the target number of 1,270 meetings is not met.* *Assumes Department Heads make available access to participants and employees to meet the required target. GUARANTEE MET Yes Yes Yes Yes Yes 10

13 2017 PERFORMANCE GUARANTEES TYPE Number of On-Site Group Meetings Financial Planning Service Contribution Posting Withdrawals and Rollovers/Transfers Out Emergency Withdrawals SERVICE Mutually agreed upon number of on-site group seminars. Mutually agreed upon number of seminars or days on-site. Same evening at the price as of the close of business that day, if received in good order by 1:00pm Pacific Time. Mail lump sum payments no later than three (3) business days following the date of receipt, if received in good order and the termination date has been received from the City. Mail lump sum payments no later than two (2) business days following the date of receipt by 1:00pm PT and approval from the Plan Sponsor and full documentation is provided. FINANCIAL GUARANTEE $2,500 per year in which the target number of seminars is not met. $2,500 per year in which the target number of seminars or days is not met. $2,500 per year in which at least 26 payrolls are submitted and in which two (2) or more payrolls received in good order are not processed within the benchmark due to an ICMA-RC error. $2,500 for each year in which at least 20 lump sum payments are made and in which less than 95% of payments received in good order are not processed within the benchmark due to an ICMA-RC error. $2,500 for each year in which at least 20 lump sum payments are made and in which less than 95% of payments received in good order are not processed within the benchmark due to an ICMA-RC error. GUARANTEE MET Yes. 18 on-site group meetings facilitated by the RPS met the revised target as mutually agreed upon. Yes Yes Yes N/A Less than 20 emergency withdrawals were processed in

14 2017 PERFORMANCE GUARANTEES TYPE Loan Processing Report Delivery Quarterly Administrative Revenue Accounting and Payment Training Draft and Distribute Survey Satisfaction Survey Score SERVICE Loans requested by Account Access and through Loans by Telephone Service and in good order by 1:00pm PT to be processed effective that day s market price (unless a spousal waiver is required). Monthly Reports available within EZLink within seven (7) business days after the end of the calendar month. Report provided within thirty (30) business days of the end of the quarter. Mutually agreed upon training for the City s Benefits staff. Annual schedule to be mutually agreed upon with the City and ICMA-RC. Measurement system to be mutually agreed upon with the City and ICMA-RC. FINANCIAL GUARANTEE $2,500 for each year in which less than 99% of transactions requested are not processed within the benchmark due to an ICMA-RC error. $2,500 for each year in which less than 99% of reports are not available in EZLink. $1,000 per year in which all reports are not provided within thirty (30) business days of the end of the quarter. $1,000 per year in which mutually agreed upon training was not provided. $2,500 per year in which survey is not distributed by the agreed upon timeframe. $2,500 per year in which ICMA- RC does not meet the measured benchmark that is mutually agreed upon between the City and ICMA-RC. GUARANTEE MET Yes Yes Yes Yes, Yes. Survey distributed in December 2016, Results presented in Yes. Survey distributed in December 2016, Results presented in

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