4/9/19 VILLAGE OF FOX LAKE ACTUARIAL SERVICES REQUEST FOR PROPOSAL (RFP) I. INTRODUCTION AND INSTRUCTION FOR SUBMISSION OF PROPOSALS The Village of Fox Lake, along with the Village of Fox Lake Police Pension Board, are soliciting proposals from actuarial firms to perform actuarial studies for the four (4) fiscal years ending April 30, 2019 through April 30, 2022. The actuarial studies to be completed are as follows: 1. Actuarial Valuation of the Fox Lake Police Pension Fund 2. Actuarial Valuation of the Fox Lake Police Pension Fund GASB 67/68 Reporting 3. GASB 74/75 Valuation Village of Fox Lake Postretirement Health Plan (3 Years Only Starting with Fiscal Year 2020) Village of Fox Lake is an Illinois Municipality, further information and background of the organization is available at www.foxlake.org. All firms submitting proposals should have a strong background in the preparation of actuarial studies for municipalities and Illinois police pension funds. A. All proposals must be submitted no later than Wednesday, May 8, 2019 at 4:00 p.m. to: Anne Marrin Village Administrator Village of Fox Lake 66 Thillen Drive Fox Lake, IL 60020 B. Ten (10) copies of proposals are required to be submitted. C. The selection of the actuary will be based upon responses received to the criteria included in Part V of this request for proposal and your proposed cost of services. D. Director of Finance Julie McManus will be coordinating proposals and can be reached at (847) 587-3968 should you require additional information. II SCOPE OF THE ACTUARIAL STUDIES The Village of Fox Lake is structured based upon separate fiscal years. Annual reports are required for the following: Village of Fox Lake Financial Auditing Services RFP Page 1 of 5
4/9/19 1. Actuarial Valuation of the Fox Lake Police Pension Fund 2. Actuarial Valuation of the Fox Lake Police Pension Fund GASB 67/68 Reporting 3. GASB 74/75 Valuation Village of Fox Lake Postretirement Health Plan (Starting FY2020) Annual actuarial studies must be in accordance with generally accepted actuarial principles and practices. The examination shall also be made in compliance with federal and state laws and GASB standards/regulations, particularly GASB Statement Nos. 67/68 and 74/75, or later pronouncements that affect pensions and/or postretirement benefit plans. The actuary is expected to be available to answer questions throughout the year relating to the subject studies. All of the above services should be included in the general costs for services. III. INFORMATION REQUESTED FROM THE PROPOSER A. Title Page. List name of firm; firm address, telephone number and contact person. B. Table of Contents. List all material included in proposal with page number. C. Letter of Transmittal. Proposers may use this section to present any information that they consider essential to the proposal. D. Profile of the Proposing Firm - Provide a description of the firm's practice at the proposing office to include at least the following detail: 1. List of current governmental and/or Police Pension clients and length of service for each client. 2. Membership in professional organizations. 3. Describe prior governmental actuarial experience in Illinois. 4. Describe supervision and review procedures within your firm. E. Service of the Proposer - Provide the following information for the servicing office. 1. Provide the number and employee classification/title of your professional actuarial staff that will be assigned to the contract. 2. Describe you firm's general actuarial plan or approach. 3. The proposer is asked to identify additional recommendations beyond what the Village of Fox Lake has listed that are offered by his/her firm that would enhance the service provided to Village of Fox Lake and the Village of Fox Lake Police Pension Board. In order for Fox Lake to compare proposals, these additional recommendations must be identified and priced separately and should outline how they would add value to our program. 4. Provide details of all professional staff who would be assigned to the Fox Lake Village of Fox Lake Financial Auditing Services RFP Page 2 of 5
4/9/19 account including resumes, billing rates and other pertinent information of each person. IV. CONFERENCES AND TIMING A. Prior to the beginning of the actuarial study, the actuary will be furnished with all relevant benefit information, a current employee census, and other information as requested by the actuary for the completion of the studies. B. Prior to commencement of the study, the actuary will be required to meet with Fox Lake's Director of Finance/Treasurer for a pre-study conference at which time we will agree upon the work schedule for completion of the Fox Lake studies. C. By August 5th, the actuary will provide to Village of Fox Lake s staff a draft of all annual studies for review. Village of Fox Lake staff and/or the Police Pension Board members will provide suggested changes, if necessary, to the actuary within 10 days of the receipt of the draft. D. The actuary will provide final and complete studies no later than September 5th each year. E. The actuary may be required to meet with Fox Lake's Village Board and/or the Village of Fox Lake Police Pension Board for post-study conferences to review the results of the studies. F. Reports Required: 1. An Actuarial Valuation of the Fox Lake Police Pension Fund providing for a funding status and contribution recommendation for the plan. 2. An actuarially certified report based upon the Actuarial Valuation for the Fox Lake Police Pension Fund that provides supplemental information as required by the Governmental Accounting Standards Board to assist in the preparation of the Annual Financial Report, including relevant disclosures for GASB 67/68. 3. A GASB 74/75 Valuation for the Postretirement Health Plan sponsored by the Village of Fox Lake that provides information as required by the Governmental Accounting Standards Board to assist in the preparation of the Annual Financial Report, including relevant disclosures, starting in FY2020 through FR2022. 4. Other reports considered necessary to aid in the proper and accurate management of and reporting for the subject benefit plans, provided to the Village of Fox Lake management staff and/or the President of the Police Pension Board, as appropriate. G. Pursuant to Part II of this RFP, please provide not to exceed service fees for each year, including expenses broken down by relevant study, and include the hourly rates of the professional staff. I. The proposer shall make every effort to avoid conflicts of interest or the appearance of a conflict of interest. The proposer shall make full disclosure of any existing or potential Village of Fox Lake Financial Auditing Services RFP Page 3 of 5
4/9/19 conflict of interest that may or could exist between itself, its current clients and the Village of Fox Lake. This includes any future conflicts that may develop during the term of this contract. V. EVALUATION OF THE PROPOSER The evaluation of a professional service requires more than a comparison of service fees. It is the intention of Fox Lake to evaluate the following criteria of each proposing firm: A. Maximum fee proposed for both individual and multi-year proposals. B. Responsiveness of the written proposal to the purpose and scope of the project. C. The proposed firm, local office, and actuarial team's governmental experience. D. The actuarial team's size, make-up, and experience in developing actuarial studies for Police Pension plans in Illinois and for Postretirement Health Plans. E. The estimated time for completion of the actuarial studies. F. The firm's reputation in the professional community and affiliation with professional organizations. VI. LOCATION OF RECORDS Journals and ledgers, supporting data, and permanent records are maintained in the Village of Fox Lake offices at the following location: Village of Fox Lake 66 Thillen Drive Fox Lake, IL 60020 VII. OTHER INFORMATION A. Proposals will be initially reviewed by the Fox Lake staff, and in the case of the Police Pension studies the assigned member(s) of the Village of Fox Lake Police Pension Board. The staff will then prepare the appropriate documentation to be distributed to the Director of Finance/Treasurer with recommendations. Following a preliminary evaluation of the recommendations by the Village Administrator and Director of Finance/Treasurer, one or more of the top firms may be required to attend an interview, particularly as it pertains to the Police Pension fund studies. A final recommendation will be submitted to the Village of Fox Lake Village Board, and in the case of the Police Pension studies to the Police Pension Board or assigned designee for approval, and the successful firm shall be notified in writing by the Village by Friday May 24, 2019. B. Actuarial workpapers shall remain the custody of the actuary. However, Fox Lake staff shall be given access to the workpapers and shall have the right to copy such workpapers Village of Fox Lake Financial Auditing Services RFP Page 4 of 5
4/9/19 pertaining to the last audit worked on by the firm. This provision shall remain in force for up to four (4) years after the last completed audit. C. This contract, being of a personal service nature, is not assignable without the specific approval of Fox Lake. D. Fox Lake reserves the right to cancel the actuarial contract upon giving the actuary firm thirty (30) days written notice. Procedures by which works-in-progress are to be completed shall be determined by Fox Lake. E. The agreement for actuarial services described in Parts II and IV constitute the scope of actuarial services to be provided by the firm. However, the agreement shall not be an exclusive one. The Village of Fox Lake and the Village of Fox Lake Police Pension Board reserve the right to assign similar work to other parties if so desired. F. Although a proposal has been solicited for four (4) years, Fox Lake reserves the right to contract for each year separately. VIII. REFERENCE MATERIAL For your convenience, the following material is attached: 1. FY 2018 Actuarial Valuation of the Fox Lake Police Pension Fund 2. FY2018 Actuarial Valuation of the Fox Lake Police Pension Fund GASB 67/68 Reporting 3. FY2018 GASB 74/75 Valuation Village of Fox Lake Postretirement Health Plan Please visit the Village of Fox Lake Web Page at www.foxlake.org for additional general information. Village of Fox Lake Financial Auditing Services RFP Page 5 of 5