City of Jacksonville, Florida

Transcription

1 ONE CITY. ONE JACKSONVILLE City of Jacksonville, Florida Lenny Curry, Mayor Procurement Division Ed Ball Building 214 N. Hogan Street, Suite 800 Jacksonville, Florida Addendum Number: Three (3) Proposal Number: Title of RFP: Due Date and Time: P Retirement Plan Service Provider Wednesday, May 17, 2017, 2:00 P.M. EST This addendum is issued for the information of proposers on the above titled project. This addendum will take precedent over the original RFP should there be any discrepancies noted. Attached are the questions received and the responses to those questions for the above referenced RFP. Also attached is the City of Jacksonville Plan Assets... Date: April 24,2017 Alex Baker Professional Services Specialist PLEASE SIGN AND RETURN ADDENDUM WITH ENTIRE PROPOSAL PACKAGE IN A SEALED ENVELOPE. Proposers Signature Title Company Name Date 214 N. Hogan Street, Suite 105 Jacksonville, FL Phone: Fax: Page 1

2 Prudential Questions 1. Will you please provide the plan documents? Response: These documents will be sent to you upon request. OBRA Adoption Agreement new DC plan statutes.doc JAX 02 PD Amend 3.pdf JAX 02 PD Amend 1.pdf JAX 02 Amend pdf PlanDocu mentamendmentno Plan Doc pgs pdf City of Jacksonville 457 amendment No 457 Amend No 3 Mar pdf 2. Are you willing to provide the current investment lineup and asset breakdown by fund? And are the investments the same across all plans? The investments are the same except for the OBRA, where the only investment option available is the stable value fund. Attached is the balance by fund for each Plan. Please do not assume any specific mapping strategy. 3. Will you please provide the number of group and one-on-one meetings the 3 on-site representatives conducted in 2016? Group 223 / Individual 3, In the RFP document, the breakdown of active and separated employees with a balance was provided for each plan (as well as number of participants contributing to the DC and OBRA plans), but will you also please provide: a. Number of active employees contributing to the Deferred Comp plan b. Number of eligible employees for each plan Ppt Actively Contributing Eligible Employees 457(b) 3,003 8, (a) 0 N/A 401(a) General Employees Defined Contribution 1,055 OBRA (457) 466 JHA

3 Lincoln Questions 1. It was noted that the number of unique participants at 12/31/15 was 8,034. Can a current figure be provided? 11, Can the asset allocations for each plan be provided? Attached. 3. Are there any termination provisions or liquidity restrictions (i.e. MVA, 12 month put, etc.)? Fund Liquidity Crediting rate Assets GFF 20 Equal Q payments or MV with possible MVA 3% $13,207,145 GGF MV 1.8% $1,102,084 GWSVF Lesser of BV or MV 1 yr return 1.43% $34,778, Please describe the current pricing structure, (e.g. asset based, per participant, a combination of both)? The City will not disclose the current pricing at this time. 5. Please provide the annual contributions by plan for the past three years. Contributions Payroll Contributions Payroll Contributions Payroll Contributions 457(b) $10,261,568 $11,153,926 $10,841, (a) $0 $0 $ (a) General Employees $6,572,502 $5,292,890 $3,904,367 Defined Contribution OBRA (457) $637,444 $605,879 $587,517 JHA $0 $0 $0 2

4 6. Please provide the annual distributions by plan for the past three years. Distributions # of Dist # of Dist # of Dist. 457(b) $15,823, $12,181, $12,358, (a) $129, $126, $165, (a) General Employees Defined Contribution $3,635, $2,727, $2,586, OBRA (457) $277, $297, $258, JHA $2,931 1 $0 0 $20, It was noted that the contract term will be 5 years with two 2-year extensions. Will the extensions be agreed upon by both parties? Yes. 8. Will there be consolidation of the two inactive plans into the active plans? Not at this time. 9. How many plans should we assume to recordkeep going forward? The number of Plans included in this RFP. Pending further union negotiations, the fire and/or police employees may have a new 401(a) plan. 10. How many payrolls will there be annually? 26 payrolls 11. Do the plans currently utilize a self-directed brokerage option? If so, please provide the total assets in the program today. Yes. Assets: $1.5 million 12. Will there be a force-out of balances that are less than $5,000 before a conversion if a new provider is selected? Not necessarily. 13. Can additional information regarding the Housing Authority plan be provided? Is it a deferred compensation plan? Will it become active in the future? Any documentation regarding the status of the plan would be appreciated. JHA is a separate 457(b) plan. Effective 10/1/2009 all JHA contributions were directed to the City 457 plan. No contributions are currently going into the JHA plan. 3

5 14. What options other than the deferred compensation plan do Jacksonville employees have available to them, for example Florida Retirement System qualified accounts? City of Jacksonville Pension Plan 4

6 ICMA Questions: 1. Does Empower currently utilize a Managed Accounts Program for Jacksonville assets? Yes. No assumptions to be made as far as mapping of assets or utilization of the managed account program. 2. What are the total Jacksonville assets in the Managed Accounts Program? Assets: $23,975, What is the current asset allocation for the Deferred Comp Plan? Attached 4. What is the current asset allocation for the 401(a) Plan? Attached 5. What is the current asset allocation for the Defined Contribution Plan? Attached 6. What is the current asset allocation for the Housing Authority Plan? Attached 7. What were 2016 Contributions for the Deferred Comp Plan? 8. What were 2016 Contributions for Defined Contribution Plan? 9. What were 2016 Distributions for the Deferred Comp Plan? 10. What were 2016 Distributions for the 401(a) Plan? 11. What were 2016 Distributions for the Defined Contribution Plan? 5

7 12. What were 2016 Distributions for the Housing Authority Plan? 13. Is the unique participant total of 8,034 as of 12/31/15 or 12/31/16? 12/31/2015. It is 11,708 as of Q Does the unique participant total of 8,034 include OBRA Plan participants? Yes. Updated count of unique participants as of Q is 11, What is the unique participant total if participants from the OBRA Plan are excluded? 8, What are the year-end 2014, 2015, or 2016 participant totals for each plan? Participant Counts (b) 4,093 Active / 720 Term 4,103 Active / 685 Term 4,129 Active / 602 Term 401(a) 2,596 Active / 821 Term 2,732 Active / 831 Term 2,898 Active / 821 Term 401(a) General 1,267 Active / 190 Term 978 Active / 160 Term 708 Active / 73 Term Employees Defined Contribution OBRA (457) 3,065 Active / 603 Term 2,593 Active / 470 Term 2,372 Active / 397 Term JHA Active / 0 Term 11 Active / 0 Term 11 Active / 0 Term 17. What is the current revenue requirement that Empower is charging? The City will not disclose the current pricing at this time. 18. Please provide the latest quarterly plan-level review document. Not needed as the information required to accurately respond to the RFP is being provided. 19. How many one-on-one meetings has Empower representatives had with the City of Jacksonville employees in 2016? Individual meetings 3, How many group seminars were conducted for enrolled participants in 2016? Group 223 / Individual 3, How many group seminars were conducted for non-participants in 2016? Data above is only data available at this time. 6

8 22. What is the City s expectation for total number of representative service days in one year? Full time Representatives to be available as needed. Currently, the City has a full-time, on-site representative, and 2 other representatives that travel to various sites around the City. 23. In the Minimum Requirements for the Service Provider, Section 1.4, under requirement C, the City states the proposing company and all subcontractors must have, at a minimum, a current rating of A- or better as ranked by A.M. Best or other nationally recognized rating agency, such as Moody s, Fitch or S&P, as of December 31, 2016 or for the most current rating period. If a corporation is not rated by rating agencies, would the City still consider its bid to be responsive? 7

9 Mass Mutual Questions: 1. Are participant contributions remitted in percentage or flat dollar or both? Flat dollar amount 401a General Employees Defined Contribution plan percentage 457 OBRA percentage. 2. How many payroll locations will be remitting payroll contribution data? 4 divisions 3. Please provide copies of the plan documents. Attached. 4. Can you please provide the annual contributions and distributions for all plans? 5. Can you please provide the current investment menus (w/ ticker symbols) along with the asset breakdown into each investment? Attached. 6. If unable to provide the current investment menu and asset breakdown for each plan, can you provide the percentage of total assets in each plan allocated to the stable value/fixed account investment option? Information requested has been provided. 7. Can you please provide details about your stable value product (general account, separate account, pooled fund, etc.) and product information? Fund Status Crediting rate Assets GFF Frozen 3% $13,207,145 GGF Frozen 1.8% $1,102,084 GWSVF Active 1 yr return 1.43% $34,778, Are there any contract restrictions if the sponsor were to terminate their current contracts? No. 9. Is there any contingent deferred sales charge (CDSC)? If so what percentage and dollar amount (or schedule)? No. 8

10 10. Are there any restrictions on the transition of the Stable Value/Fixed Account assets: CDSC - % and/or $ Spread payout option termination payments over a period of time (example, 5 payments over 5 years)? Market Value Adjustment contractual formula or market value payout? If so, what is the current market value adjustment % and/or $? 12-month Put or other delay of distribution of book value of participant assets? Fund GFF GGF GWSVF Liquidity 20 Equal Q payments or MV with possible MVA MV Lesser of BV or MV 11. Please provide the current net crediting rate of the stable value fund. 1 year return: 1.43% 12. Would the City be interested in assistance removing terminated participant accounts under $5,000? If so, what is the terminated participant count with balances below $5,000? To be discussed and/or determined at a later time. 13. Does the City offer and Self-Directed Brokerage account today? If so, what are the assets currently and provide all associated fees? Yes. 14. Pending pension reform the DC plan may become the mandatory retirement program for all new City employees. Are there estimates of the anticipated assets, annual cash flow and participant counts? The City does not have any estimates as to what may happen after pension reforms, if asked 15. What was the total number of unforeseeable emergencies, QDROs, and distribution checks processed in 2016 for each plan? 45 unforeseeable emergencies; 0 QDROs, 1,617 total distributions Distributions Distributions # of Distributions 457(b) $15,823, (a) $129, (a) General Employees Defined Contribution $3,635, OBRA (457) $277, JHA $2,

11 16. Please provide the anticipated conversion date to the new vendor? Tentatively January Does the City currently offer a managed account program today? If so, how many participants are participating in the program and what is the total amount of assets invested in the program? If not, are you open to considering managed accounts? Yes. $23,975,053 and 2,296 participants No assumptions to be made as far as mapping of assets or utilization of the managed account program. 10

12 Nationwide Questions: 1. Please provide a breakdown of all Plan types by assets and by fund. Attached. 2. On page 3, Section 1.4.E. states the proposing company must submit a signed affidavit from their insurance provider stating they can provide all required coverage at the levels required by the RFP. Will a Certificate of Insurance form provided by the insurance provider satisfy this requirement? A current certificate of insurance will be adequate 3. Please provide a history of participant counts, deferrals and distributions for the years 2016, 2015 and Please provide the plan documents and administrative agreements for all Plan types. Attached. 5. Does the City desire to maintain their current investment lineup? Yes. 6. Does the City require the use of a Jacksonville Small Emerging Business as a component of the proposing company s offer? This RFP is under the Encouragement Plan See Section 1.5 and Attachment C of the RFP. 7. Please provide the unique Defined Contribution Plan designs and formulas included in the proposed legislation. Unknown at this time. 8. Please provide the estimated enrollments and contributions for the proposed Defined Contribution Plan for the next 5 years. Unknown at this time. 11

13 Voya Questions 1. What is the name and assets of your current Stable Value product? Fund Assets GFF $13,207,145 GGF $1,102,084 GWSVF $34,778, What is the structure of the product (i.e. General Account, Separate Account or Synthetic Guaranteed Investment Contract)? The plan s active capital preservation option is a stable value fund. 3. Is there a Guaranteed Minimum Interest Rate? If so, what is it? Fund Status Crediting rate GFF Frozen 3% GGF Frozen 1.8% GWSVF Active 1 yr return 1.43% Not guaranteed 4. If Synthetic Guaranteed Investment Contract or Separate Account Product: a. What is the market/book ratio? b. What are the exit provisions? c. Who are the providers of the book value guarantee (i.e. wrappers)? d. Who manages the underlying assets? e. What is currently the underlying duration and average credit quality? f. What is the benchmark for the underlying manager? The current guaranteed or separate account products in the Plan are frozen to new contributions. The exit provisions are listed below. The market/book ratio, manager, underlying assets, duration and benchmark information not available at this time. Fund GFF GGF GWSVF Liquidity 20 Equal Q payments or MV with possible MVA MV Lesser of BV or MV 12

14 5. What is the plan trying to achieve with its Stable Value option? Offer participants a competitive capital preservation option, with industry standard termination provisions at a reasonable cost. 6. Is a higher crediting rate or lower recordkeeping costs more critical? Both are important. 7. If a General Account Product : a. What are the termination provisions? b. What is the current crediting rate? 8. Please provide a minimum of three years of cash flow history, including contributions, withdrawals, transfers in and transfers out? 9. Please provide the asset demographic data for the Stable Value fund broken down by ages (10 year increments, if possible) as well as by active versus inactive (terminated/retired employees)? The assets in the stable value fund is provided above and in the attached document. The balance in the fund detailed by age or status is not available at this time. 10. Please provide the contributions for the active plans listed in the RFP for at least 2016, but for 2014 and 2015 if possible. Please provide annual distribution information as well, if available. 11. Please provide information on how the funds are currently allocated in each of the plans. Information on how much is in managed accounts by plan, if offered, would be preferable as well. Assets Attached. Managed account assets: $23,975,053. No assumptions to be made as far as mapping of assets or utilization of the managed account program. 12. The letter dated March 28, 2017 addressed to the consultant from Gregory Pease states copies of the firm s financial statement (if required) may be submitted. Please confirm if copies of a financial statement are required for this RFP. Yes 13

15 13. Attachment E- RFP Questionnaire addresses sections # 1, #2, and #8 of Attachment B- Evaluation Matrix. Please confirm if the City wants a response to all sections (1-10) of Attachment B- Evaluation Matrix. No; only the questions in Attachment E Questionnaire. 14. Would the City entertain use of Vendor s service agreement as long as the City required provisions noted in Attachments D, F and G were incorporated? No 15. How likely it is that contributions to the 401(a) Plan would be resumed in the future? Or is this plan considered to be frozen? The plan is currently frozen. 16. Did the Defined Contribution Plan replace the 401(a) Plan? No. The defined contribution plan is offered to those employees that opt-out of the City s pension plan. 17. For the Deferred Comp Plan, the Defined Contribution Plan how many active participants are currently contributing to the plan? How many employees are eligible to participate in the plan? 18. What section of the Internal Revenue Code is the Housing Authority plan subject to? The Jacksonville Housing Authority plan is a 457 (deferred compensation plan). 19. Which firm or firms are the current vendor of the plans. Is the City willing to provide a breakdown of the current value of plan assets by investment option by provider or vendor offered under the plan. The plans included in this RFP are serviced by Empower. Asset details for each plan is attached. 20. Recognizing that no assumptions are to be made with respect to mapping of existing plan assets; should the City choose to have current plan assets transfer to a new vendor, would there be any transfer restrictions and/or charges (deferred sales charges, market value adjustments) that will apply upon termination of the current provider's contract? If so, please describe. The only restrictions that apply correspond to the fixed assets. Those restrictions are listed above. 21. Do any of the plans include individual life insurance policies? No. 14

16 City of Jacksonville Deferred Compensation Plan Investment ID Investment Name Balance LIHAX BLACKROCK LIFEPATH INDEX 2045 INVESTOR A $4,702, LIJAX BLACKROCK LIFEPATH INDEX 2035 INVESTOR A $16,539, LIKAX BLACKROCK LIFEPATH INDEX 2040 INVESTOR A $5,984, LILAX BLACKROCK LIFEPATH INDEX 2025 INVESTOR A $9,762, LINAX BLACKROCK LIFEPATH INDEX 2030 INVESTOR A $12,283, LIPAX BLACKROCK LIFEPATH INDEX 2050 INVESTOR A $1,955, LIQAX BLACKROCK LIFEPATH INDEX 2020 INVESTOR A $9,873, LIRAX BLACKROCK LIFEPATH INDEX RETIRE INV A $6,398, LIVAX BLACKROCK LIFEPATH INDEX 2055 INVESTOR A $3,127, OAKIX OAKMARK INTERNATIONAL I $5,406, RSLEX AMERICAN FUNDS SMALLCAP WORLD R4 $1,252, PSSPX PRINCIPAL SMALLCAP S&P 600 INDEX R5 $3,634, VSSCX JPMORGAN SMALL CAP CORE R5 $2,206, SMBYX CLEARBRIDGE MID CAP CLASS I $3,372, VEXAX VANGUARD EXTENDED MARKET INDEX - ADMIRAL $2,942, TFFYX TOUCHSTONE FOCUSED Y $4,794, VG-500 VANGUARD 500 INDEX FUND $10,295, PACLX T. ROWE PRICE CAPITAL APPRECIATION ADV $3,135, LSBDX LOOMIS SAYLES BOND INSTL $711, TGTRX TEMPLETON GLOBAL TOTAL RETURN A $146, WATFX WESTERN ASSET CORE BOND FUND I $3,448, GFF GREAT-WEST GUARANTEED FIXED FUND $13,430, GGF GREAT-WEST GUARANTEED GOVERNMENT FUND $1,122, GWSV00 GREAT-WEST STABLE VALUE FUND $30,050, AMRTMM TD AMERITRADE SDB SWEEP PROGRAM $157, AMRTMR TD AMERITRADE SDB SWEEP PROGRAM ROTH $25, AMRTSC TD AMERITRADE SDB SECURITIES $1,261, AMRTSR TD AMERITRADE SDB SECURITIES ROTH $41, $158,067,245.62