REQUEST FOR PROPOSAL

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1 REQUEST FOR PROPOSAL To Provide 401(a) Recordkeeping, Plan Administration, and Trust & Custody Services For County Retirement Income Security Program of Summit County (CRISP) Responses Due June 12, 2015

2 Table of Contents SECTION PAGE I. Background and Statement of Work... 3 II. RFP Questionnaire... 5 A. Organization... 5 B. Participant Services. 7 C. Plan Sponsor Services... 8 D. Investment Services E. Implementation Services F. Fees and Expenses. 12 III. Requested Attachments.. 12 A. 401(a) Plan Document B. Plan Level Balances C. Custom Model Allocations Additional Attachments 1

3 REQUEST FOR PROPOSAL County Retirement Income Security Program of Summit County (CRISP) 401(a) Recordkeeping, Plan Administration, and Trust & Custody Services Innovest Portfolio Solutions is managing the RFP process on behalf of CRISP. For all questions or inquiries, please contact Ryan Tucci, Manager at Innovest Portfolio Solutions: Phone: ext. 330 DUE DATE: June 12, :00 PM MST SUBMIT: One Electronic Copy to Innovest Portfolio Solutions Minimum Requirements to Respond: Responding firms must meet the following requirements (in no certain order) in order to be considered for this engagement: 1. Vendor must offer CRISP a full open architecture platform with the ability to maintain the existing investment menu, inclusive of the custom target date portfolios that have been created and are maintained by Innovest. 2. Vendor must be able to complete the conversion by or before November 1, Participants must be able to invest in any combination of core funds and/or multiple custom models. 4. Vendor must be able to accurately recordkeep the vesting schedule associated with the CRISP 401(a) Timeline of Request for Proposal Schedule of Activity Due Dates RFP Issued May 1, 2015 Written Inquiry Deadline May 11, 2015 Response to Written Inquiries May 13, 2015 RFP Submission Deadline June 12, 2015 RFP Analysis Presentation June 26, 2015 Finalist Presentations (if necessary) Week of July 10, 2015 (estimated) Vendor Selection Week of July 17, 2015 (estimated) Conversion Completed November 1,

4 I. BACKGROUND AND STATEMENT OF WORK Summit County is located in the Colorado Rockies, one hour West of Denver. Included within the county are six municipalities (Blue River, Breckenridge, Dillon, Frisco, Montezuma, and Silverthorne), four major ski resorts (Arapahoe Basin, Breckenridge, Copper Mountain, and Keystone), significant national forest and Bureau of Land Management lands, and two congressionally designated wilderness areas (Eagles Nest and Ptarmigan Peak). Summit County sponsors the CRISP 401(a) plan for the benefit of its employees. Summit County withdrew from the Social Security program on January 1, Therefore, the CRISP 401(a) acts as a Social Security replacement plan, and is intended to supplement the 401(a) and 457(b) plans offered by the State of Colorado. It is intended to provide employees with the long-term accumulation of retirement savings through employer contributions of 11.4% of compensation. As of March 31, 2015, the CRISP 401(a) plan balance was $45,099, The Summit County Retirement Board is seeking proposals from qualified vendors to provide a solution for recordkeeping and plan administrative services for the CRISP 401(a) Plan. The client s RFP goals include: Enhance both employee and plan sponsor services Gain an understanding of various providers capabilities in recordkeeping custom models Engage a provider with an experienced service team that can offer the Plan a detailed approach to daily administration, problem resolution, and plan-level reporting Consider the possibility of bundling Trust & Custody services with recordkeeping & plan administration Determine if the existing pricing model is in line with current market rates Administration: CRISP has one payroll system that is managed in-house. Payroll files are submitted online via CSV file on a bi-weekly basis. The incumbent recordkeeping provider is Milliman with Trust & Custody provided by Charles Schwab. Regular full-time and part-time employees are immediately eligible for participation. Structure: It is important to note that this plan consists of employer contributions only. As such, on-site participant education is not required and should not be included in pricing proposals. Prospective service providers should be aware that the CRISP 401(a) has a unique vesting schedule, which is provided below. Providers must be able to accurately recordkeep this vesting schedule. CRISP VESTING SCHEDULE 6 months-1 year 50% 1-2 years 67.5% 2-3 years 75% 3-4 years 87.5% More than 4 years 100% 3

5 Plan Balance/Growth Statistics Market Values 12/31/2011 $28,674,125 12/31/2012 $33,965,745 12/31/2013 $41,153,947 12/31/2014 $43,963,830 Average Participant Balance 12/31/2011 $50,661 12/31/2012 $59,485 12/31/2013 $68,704 12/31/2014 $72,428 Contributions & Distributions Loan Statistics as of 03/31/2015 # Outstanding Loans 72 Average Loan Balance $12, Participant Statistics Historical Net Cash Flows Contributions $2,532,404 $2,384,503 $2,488,314 Distributions $1,188,514 $1,954,134 $1,212,455 Net Total $1,343,890 $430,369 $1,275,859 Participants Actively Contributing 12/31/ /31/ /31/ /31/ Overall Participation as of 03/31/15 03/31/15 Plan Balance by Status Active with a Balance 436 $32,103,943 Terminated with a Balance 182 $12,995,205 Total 618 $45,099,148 4

6 II. QUESTIONNARIE A. Organization 1. Please provide Company s Primary Contact Information a. Company contact name: b. Company contact title: c. Company contact d. Company contact phone: e. Company contact fax: f. Company contact complete address: 2. Provide a brief firm history, including year founded and types of services offered. 3. Indicate whether any services will be subcontracted to another company or offered through a partnership and fully describe these services and the qualifications of the company that will provide the services. 4. Within the last 10 years, has your firm, any entity owning an interest in your firm, any subsidiaries, or any partners, professionals, local service representatives or member of your firm: (If yes, explain in detail) a. Been the subject of any disciplinary action by any security regulatory agency? b. Been the party to any litigation directly or indirectly related to the conduct of defined contribution plan business? c. Been the subject of any ethical inquiries, legal inquiries, or other disciplinary proceedings? 5. Total value of assets for which you provide recordkeeping services: 6. Total number of retirement plans for which you provide recordkeeping services: 7. Total number of participants in all defined contribution plans currently administered by your firm: 8. How many defined contribution plans do you currently administer in the following categories: Number of Participants Under 50 employees employees employees 501-1,000 employees 1,001-3,000 employees Over 3,000 employees 401(a) Plans 5

7 9. How many defined contribution plans do you currently administer in the following categories: Plan Assets Under $5 Million $5-$10 Million $10-$25 Million $25 - $50 Million $50-$100 Million Over $100 Million 401(a) Plans 10. Please answer with respect to the proposed Relationship Manager assigned to CRISP a. Name: b. Location: c. Education: d. Years experience: e. Years tenure at company: f. Number of other accounts serviced: g. Historical turnover rate for this position: h. Percent of compensation dependent on client satisfaction: 11. Please answer with respect to the proposed Daily Contact assigned to CRISP a. Name: b. Location: c. Years of experience in this role: d. Years of experience in industry: e. Years tenure at company: f. Number of other accounts serviced: g. Historical turnover rate for this position: h. Percent of compensation dependent on client satisfaction: 12. Please answer with respect to the proposed Conversion Manager assigned CRISP a. Name: b. Location: c. Years of experience: d. Years of tenure at company: e. Number of other accounts serviced: f. Historical turnover rate for this position: g. Percent of compensation dependent on client satisfaction: 13. How many clients have you gained in the last three years? 14. What was the total amount of assets gained over the last three years? 6

8 15. How many clients have you lost in the last three years? 16. What was the total amount of assets lost over the last three years? 17. Please provide three key items that differentiate your firm from other recordkeeping and administration providers when partnering with similarly-sized 401(a) plans. 18. Please describe any upcoming enhancements or changes to your current service offerings. B. Participant Services 1. Answer the following questions regarding your call center: a. What is the average wait time? b. What times are live operators available (MST)? c. What is the percent of hang-ups? d. What is the average usage volume relative to capacity? 2. Please describe your quality standard for providing participants with accurate plan information. a. How do you monitor this standard? b. What is the first call resolution rate? 3. Provide your participant website address and login information. 4. Do your firm's participant access systems offer the following functions via web, voice response system and/or Call Center Representative: CALL CENTER INTERNET VRU REPRESENTATIVE Plan specific information Enrollment Investment fund information & performance Account balances Current participant information Change of address or status Reallocation of existing account balances Withdrawals/disbursements 7

9 PIN code change Beneficiary designation Statement requests Prospectus orders Confirmation letter of any change Asset allocation modeling Account balance projections Loan modeling and application Retirement planning calculators Investment advice Personalized rate of return Distributions Retirement income projection 5. What materials and assistance will new hires receive from your firm? (please include a sample enrollment kit in the attachments section at the end of this response) 6. Please describe your offerings for participant account guidance and advice. a. If you offer investment advice to participants, who provides it, how is it delivered, how are plan sponsors indemnified by the advice, and what are the costs associated with these services. 7. Do participant statements include a retirement readiness, income replacement rate, gap analysis, or account balance projection for participant goal comparisons? If yes, please explain what is provided (please include a sample of your retirement projection/readiness materials with your response). C. Plan Sponsor Services 1. Confirm that you are able to administer the CRISP Plan according to the current plan document. (Plan Document attached) 2. What recordkeeping system does your firm use, and is it a proprietary system or purchased/leased from an outside vendor? 8

10 3. How long has your current recordkeeping system been in existence? 4. Do you expect any upgrades to the system within the next 12 months? If yes, please describe. 5. What was the dollar amount invested in recordkeeping systems over the last year and the last 5 years combined? 6. Please provide your plan sponsor website address and login information. 7. Answer the following questions regarding your plan sponsor website: a. What services do you provide specifically to plan sponsors via the Internet? b. Explain capabilities and tools for plan sponsors to process on-line enrollments, terminations, beneficiary designations, distributions, and other transactional functions if applicable. c. Will the Plan Sponsor have the ability to make demographic and/or status updates for participant accounts through the website? d. Will the Plan Sponsor have full access to view all information associated with the plan and individual participant accounts via the website? e. What information (forms, plan documents, communication pieces, etc.) are housed and available for reference to the Plan Sponsor and participants via website? f. Do you offer creation of one-time custom and standard recurring plan-level reports? 8. The CRISP 401(a) offers loans, however all participant loan requests require plan sponsor approval. a. With your firm, would this process require hardcopy forms or web-based requests? b. Describe your ability to assist the client in managing the loan approval process. 9. Please describe your process for monitoring participant and plan sponsor satisfaction. a. How are complaints and resolutions tracked, monitored, and reported to your clients? 10. Please describe the quality standard for relationship managers and daily contacts to return calls and s from Plan Sponsor s benefit staff. a. How do you monitor this standard? 11. Are you able to provide plan sponsors a report on the overall status of the plan? (i.e. plan demographics, average balances, etc.). a. If so, how often are such reports provided 12. Please include your most common and proposed service standards and the performance guarantees for non-compliance with those standards that may be included in a service agreement. 9

11 13. What controls are in place to ensure the timeliness and accuracy of plan-level and participant-level transactions? a. Please provide us with your current SSAE 16 report. D. Investment Services 1. Please confirm that you are able to offer CRISP a full open architecture platform with the ability to maintain the existing investment menu. 2. Please confirm that your firm is able to accommodate custom model portfolios created and maintained by Innovest. 3. Please indicate if your firm prefers to offer Trust & Custody as a bundled service, or if the current unbundled solution is preferred. If an outside custodian is utilized, please indicate whether your firm would continue the existing relationship with Charles Schwab or introduce a new custodian. 4. How many fund families are offered on your current platform? 5. What is the number of mutual funds offered on your current platform? 6. What are the restrictions for adding funds outside of your current platform? a. What is the process to add a fund? b. How long does it take? c. Is there a cost associated with adding funds to your current platform? 7. Please describe the structure of the custom models on your recordkeeping platform. The description should include how they constructed on your platform, how they trade, are they unitized or non-unitized and whether they are an all or nothing option for participants (can a participant invest in just a model or a model and other plan investments). If there is more than one method for constructing custom portfolios please describe all methods. 8. Are models limited to core investment menu options or may non-core funds unavailable for individual investment by participants be included in the models? a. Are models limited to mutual funds only or can CITs be used as an investment in the portfolios? 9. What is the process to change the allocation of the models or to change an underlying fund? a. How will this change affect participant accounts and what will participants see with a change? 10. Please provide information on the participant experience around investing in the custom portfolios: a. How they are seen when being selected on the web site as an investment election or for a transfer of assets? b. How they are seen when a participant views their account on the website? 10

12 c. How are they seen when viewed on a participant statement? d. How they are viewed as part of any hard copy educational or enrollment materials? 11. Regarding rebalancing portfolios, please describe the methods available such as on demand (when the mix has varied from the target allocation by a specific percentage) or regularly scheduled (quarterly, semi-annually). 12. Is there an additional cost to the plan or participants for custom models? If so, please describe. 13. Please describe the reporting available on the models and any differences in reporting if there are multiple methods of constructing models. a. Can the advisor and/or plan sponsor include models in custom reporting? 14. Can you easily identify the participants invested in models and the amount of assets in the models at any one time? 15. Are the model portfolios able to be utilized as a QDIA? a. If not, please provide the rationale as to why not. E. Implementation Services 1. Explain your conversion process, including time frame, based on the options currently available. 2. Is a "black-out" period required? If yes, how long is it and what is restricted or not available during that time? 3. What involvement will be required from the Plan Sponsor during the conversion process? 4. Do you provide a dedicated conversion team? 5. What conversion audit reporting do you provide? 6. Describe your process to ensure accurate conversion of all historical data. 7. Do you have any limitations as to the format/media of conversion records? 8. How are investments handled during the conversion process? 9. How does your system handle conversion/set-ups of pre-existing loans from another recordkeeping system? 10. How do you monitor the effectiveness and quality of your conversion process and team? 11

13 F. Fees and Expenses 1. Regardless of the fund lineup selected, what is your minimum revenue requirement to record keep and administer the plans? 2. Please provide fees, if applicable, for: a. One time plan set-up or related fees b. Loan origination c. On-going loan services d. Hardship distributions e. QDRO distributions f. Enrollment g. Rollover processing h. Distribution processing i. Trust & Custody services j. Investment advice k. Any additional fees which may be relevant to CRISP 3. Identify all fees related to contract termination. 4. For how long is your pricing guaranteed? 5. What is the proposed term length for this contract? III. REQUESTED ATTACHMENTS Please provide copies of the following documents as additional attachments to this RFP response: A. SSAE 16 B. Sample enrollment package C. Sample Plan summary/demographic report D. Sample Participant statement E. Copy of a standard contract for a similar plan 12

ADMINISTRATION FEE DETAIL 1,2 PROVIDER

PLATFORM SUMMARY ADMINISTRATION FEE DETAIL 1,2 Per Participant Pricing One-time initial setup cost Baseline total annual plan cost # of accounts included in baseline Per participant annual fee range Asset-based