Township of Toms River

Transcription

1 Township of Toms River Actuarial Services for Compliance with GASB 45 SCOPE OF WORK: The purpose of this bid is to enter into a contract with a qualified actuary for the performance of actuarial services for the Township of Toms River. The Township is required to comply with the Governmental Accounting Standards Board ( GASB ) Statement No. 45 (GASB 45) Accounting and Financial Reporting by Employers for Post-Employment Benefits Other than Pensions. CONTRACT TERM: It is the intent of the Township of Toms River to enter into a contract for actuarial services for a two (2) year term beginning upon award of contract by resolution of Township Council through twenty-four (24) consecutive months. Pursuant to N.J.S.A. 40A:11-15, this contract may be extended for up to two (2) additional one year terms after the expiration of the original contract period. Contract extensions shall be subject to the availability and appropriation of funds for each year the contract is to be extended. All terms and conditions of the contract shall remain the same. Any price changes authorized on contract extensions shall be pursuant to N.J.S.A. 40A: SERVICES REQUIRED: The Township is soliciting sealed bids for the services of a qualified actuarial firm to complete actuarial valuation(s) and prepare a report on the Township s post-employment benefits, other than pensions. The post-employment benefits, other than pensions, offered to certain members are retiree medical, prescription drug, dental and eye-care, depending on the respective bargaining unit(s) they are governed under. This study shall comply with GASB 45 (Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions); as per LFN and LFN R, copies attached. The Township has not established a separate trust or plan to prefund other post-employment benefits referred to in GASB 45. The actuarial report shall develop the annual required contribution (ARC) and information necessary for inclusion and disclosure in the Township s Basic Financial Statements and/or Comprehensive Annual Financial Report as it relates to reporting post-employment benefits other than pensions as required by GASB 45. S-1

2 REQUIREMENTS: The bid shall address all data, analysis and information necessary for inclusion and disclosure in each participating member s Basic Financial Statements and/or Comprehensive Annual Financial Report as it relates to reporting post-employment benefits other than pensions, as required by GAAP and should include the following: Letter of Transmittal signed by a member of the firm having the authority to enter into contracts on behalf of the organization. Letter is to acknowledge receipt of each addendum, if any were issued. If unsure as to the status of addenda, contact the Purchasing Officer to verify. Give a brief description of your firm and its organization. Project Team Please provide professional biographies/resumes for the members of the proposed team that would be responsible for the actuarial study and report. The primary actuary to be assigned to Township s account must be a Fellow of the Society of Actuaries ( Fellow ) and have a minimum of five (5) years experience as an actuary providing health consulting services, experience analysis, and valuation assignments for public health plans. Successful bidder s staff must be available for consultation on an as-needed basis between 8:30 a.m. and 4:30 p.m., Monday through Friday. Detail the specific data your firm would require in order to complete the actuarial study and in what format the data needs to be transmitted. Proposed actuarial fees. Understanding of Scope of Work: Include information that explains your firm s ability to perform these services, emphasizing experience with GASB 45. Describe your firm s experience working with health plans sponsored by government employers. Describe the process you use to develop the actuarial valuation assumptions. What role does the employer play in this process? The Township currently requires certain retirees pay into their health benefits. All active employee groups make a contribution pursuant to existing contracts and/or ordinances. Describe how you would handle this situation in your actuarial valuation. Do you include all necessary disclosures in your valuation report? What additional information do you include? S-2

3 Does your valuation include results under more than one actuarial funding method? If so, describe how the results are presented. Include a description of your firm s experience in performing actuarial services for GASB 45 implementation and/or other similar engagements. Include a list of the local governments in New Jersey for which your firm (i.e., both your local office and all other offices in the State) has provided the requested services, for reference purposes. BID PRICE: Each firm submitting a bid is requested to complete the bid price sheet. It is important to remember that while price is the primary consideration, it will not be the sole factor in determining which firm shall be awarded this audit contract. DESCRIPTION OF GOVERNMENTAL ENTITIES: A. General Background Information for each member is contained in the following (as of December 31, 2009): GROUP ACTIVE RETIRED BENEFITS Police Health, Dental, Prescription & Eye-care All other Employees Consisting of: Community Service Officers (15) Blue Collar (129) White Collar/Confidential (144) Supervisors (34) Self-Pay (Cobra) (5) Health, Dental, Prescription & Eye-care SERVICES TO BE PROVIDED: 1. Final actuarial report for calendar year 2009 by December 31, Final actuarial report for calendar year 2010 by March 31, Advise and assist the Township with all calculations, including but not limited to the Annual Required Contribution ( ARC ) and the net OPEB Obligation ( NOO ) necessary to comply with GASB 45 reporting requirements. 4. Advise and assist the Township with regards to a funding decision and any related funding disclosures necessary. 5. Actuarial firm s staff shall review draft(s) of proposed report(s) with the Township. S-3

4 6. Actuarial firm shall provide the Township with sufficient supporting documentation to facilitate, as may be required and necessary, line-item level posting of adjusting journal entries to the computerized general ledger system. MEDICARE PART B: Medicare Part B is not a part of this bid. OPEB FUNDING: The Township has not set aside any assets or reserves for OPEB funding. TIME REQUIREMENT: The actuarial report will be due no later than December 31, 2010 for calendar year 2009 and not later than 90 days after the closing of the calendar year end (March 31) in all subsequent years. The dates may be changed upon mutual agreement. REQUEST FOR INFORMATION: Any requests for clarification or additional information regarding these specifications shall be submitted in writing to: Township of Toms River Pamela Applegate Roche, Purchasing Agent 33 Washington Street, P.O. Box 728 Toms River, New Jersey Questions must be received no later than September 20, 2010 in order to be considered. BID GUARANTEE: No bid guarantee (i.e. bid bond, Certified check or Cashier s check) is required on this bid. PERFORMANCE BOND: The requirement for a Consent of Surety for a Performance Bond is waived on this bid. PAYMENTS: Payments shall be made on a monthly basis for work performed pursuant to this contract. Payment is not provided for any travel expenses. Payment shall be made by the proper execution of a Township Purchase Order. S-4

5 INSURANCE: Insurance requirements are stipulated on page S-6 of these bid specifications. DURATION OF BID: All bids shall remain firm for a period of 60 (sixty) days from date of receipt of bids. S-5

6 TOWNSHIP OF TOMS RIVER INSURANCE REQUIREMENTS Certificates of Liability and Workmen's Compensation insurance satisfactory to the Township of Toms River shall be filed with the Township Purchasing Department. All of the VENDOR'S/CONTRACTOR'S insurance coverage s shall contain a clause indemnifying and saving harmless the Township of Toms River, and their agents from any and all liability of whatever nature arising from the work to be performed under the Contract, including attorney's fees and costs in connection with the defense of such claims. The Certification of Insurance furnished by the VENDOR/CONTRACTOR shall state specifically that the above indemnification is guaranteed by the policy. Such statement, if not included in the body of the policy, will be typed on the face or back of the certificate. The minimum amounts of insurance to be carried by the VENDOR/CONTRACTOR shall be as follows: 1. WORKMEN'S COMPENSATION & EMPLOYERS LIABILITY INSURANCE The VENDOR/CONTRACTOR shall take out and maintain during the life of the contract adequate workmen's compensation and employer's liability insurance for all employees employed in connection with the work, and in case any work is sublet, the VENDOR/CONTRACTOR shall require each sub-contractor similarly to provide workmen's compensation and employer's liability insurance for the latter's employees, unless such employees are covered by the protection afforded by the VENDOR'S/CONTRACTOR'S insurance. Coverage A shall be New Jersey Statutory Coverage B (Employer's Liability) shall be unlimited as per New Jersey Workmen's Compensation Law 2. COMPREHENSIVE GENERAL LIABILITY INSURANCE Limits shall be a minimum of $1,000, bodily injury and property damage combined. The Certificate of Insurance must indicate coverage at the above limits for: A. Contractual - indicated on the face of the Certificate as being in accordance with the specifications. B. Independent Contractors (if any) C. Completed Operations 3. COMPREHENSIVE AUTOMOBILE LIABILITY Limits shall be a minimum of $1,000, bodily injury and property damage combined. The Certificate of Insurance must indicate coverage at the above limits for (A.) Hired Vehicles and (B.) Non-Owned Vehicles. Certificate of Insurance must indicate that the TOWNSHIP OF TOMS RIVER has been named as an additional insured for this contract. S-6

7 TOWNSHIP OF TOMS RIVER BID PRICE SHEET FOR ACTUARIAL SERVICES In accordance with the specification for Actuarial Services the undersigned agrees to provide the specified service at rate of $ per hour not to exceed $ for the contract term. The rate shall remain firm/fixed for the duration of this two (2) year contract commencing upon Resolution of Award by the Township Council. Number of Years in Business as of the bid opening date: Company: Address: Phone: Fax: Contact Name: Signature: Date: PHONE # FAX # P-1