REQUEST FOR PROFESSIONAL SERVICE
EMPLOYEE RETIREMENT SERVICES & ADMINISTRATION
I. INVITATION
The City of Bellevue (“City”) is soliciting proposals for organizations qualified to perform, and interested in, providing services for the “City of Bellevue, Nebraska Retirement Income Plan” (“Plan”), commonly referred to as a money purchase pension plan or a 414(h) plan that will meet all the statutory requirements of the State of Nebraska.
Qualified service providerswho have demonstrated their ability at comparable work are invited to submit proposals. Sealed proposals will be accepted until 2:00 p.m., Friday, June 25th, 2010, and should be mailed or delivered to:
City of Bellevue
Attn: Kay Dammast, City Clerk
Civilian Retirement RFP
210 West Mission Avenue
Bellevue, NE 68005
Organizations shall submit two (2) originals and seven (7) copies of their proposal. Questions are to be in writing with regard to this RFP and should be emailed to Richard Severson, Finance Director at richard.severson@bellevue.net or faxed to (402) 293-3081.
II. BACKGROUND
Currently, all regular full-time civilian employees of the City are covered by the Plan, a defined-contribution qualified retirement plan, commonly referred to as a money purchase pension plan or a 414(h) plan. At December 31st, 2009, the Plan had 171 participants and a net asset value of over $13 million, net of loans.
The Plan:
· All full-time civilian employees participate in the Plan, entering quarterly (January 1, April 1, July 1, and October 1).
· All participants contribute 6% of pay each month.
· The City contributes matching funds of 6% to the Plan.
· The Plan has a 7 year vesting schedule except that participants become 100% vested if they reach early retirement age, die or become disabled while employed.
· Civilians normal retirement age is 65 with early retirement at 55 years old.
III. SCOPE OF SERVICES - BENEFITS
The City is seeking a service provider to perform a full range of services related to the design, implementation, improvement and communication of the group retirement program as well as the education of participants.
Specific responsibilities include, but are not limited to:
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Researching and advising City officials of any new developments in the law and retirement programs in the government sector. Providing comparative plan data for government sectors in the Midwest.
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Assisting the City in determining and recommending the most economical funding methods for employee retirement programs.
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Meeting with and delivering reports to City officials regarding benefit analysis, administration and communications services to ensure maximum benefit to the City. Identifying any trends or patterns that may indicate a problem or require change to the employee retirement plans.
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Interfacing and negotiating with investment companies as needed to assist the City in contracting for retirement programs on all issues including those related to plan design and special terms and conditions to hold investment managers accountable for their performance standards.
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Assisting City officials with the implementation and communication of new programs or changes to existing programs, which will include attending and presenting information at open enrollment meetings.
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Ongoing account management. Conduct pre-renewal review 120 days prior to the actual renewal date. Assisting in renewal negotiations, utilization reviews and employee contribution strategies.
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IV. SERVICE PROVIDER QUALIFICATIONS
Please provide responses to the following (in addition to any other proposal document submitted).
1. Please provide information about your company including, but not limited to:
a. The year it was founded.
b. The year the servicing office was established.
c. The total number of employees.
d. The total number of employees devoted to employee benefits.
e. A copy of your most recent annual report.
f. Current or pending litigation or administrative actions against your firm.
g. Financial rating of your company by Moody’s, Standard and Poors, A.M. Best and Fitch.
2. Provide information about your company’s experience with defined-contribution plans:
a. Number of 414(h) plans your company implemented in last five years.
b. Total number of 414(h) plans your company administers and the percentage the 414(h) plans are to all clients.
c. Total number of 414(h) plans administered in Nebraska.
d. Total number of participants in all defined-contribution plans currently administered by your organization.
e. Number of plans where your company provides participant record keeping. Number of trust/custody or recordkeeping system conversions planned in the next 12 months.
f. Provide a description of the investment education programs provided to participants.
g. Please provide three (3) references (include address and phone number) and any municipalities in Nebraska similar in size to Bellevue.
h. Discuss what distinguishes your firm from other service providers.
i. Will you provide a SAS 70 report?
3. Provide information about the experience and qualifications of the staff that would be assigned to the City, as well as any support staff. Areas that must be addressed are as follows:
a. Names and titles.
b. Years of industry experience.
c. Years of consulting experience.
d. Education
e. Staff turnover rates.
f. Number of specialized staff dedicated to implementation.
g. Provide a biographical profile of the administrative/record keeping contact(s).
h. Provide a biographical profile of the investment manager(s) assigned to our account.
4. Please provide answers to the following questions about your service offering:
a. Describe you enrollment procedures.
b. How often can participants change their investment choices?
c. What options are available to terminated/retired participants? (Can they remain in the plan?)
d. Describe in detail how you administer Qualified Domestic Relations Orders (QDROs).
e. How do you manage federal and state withholding on distributions?
f. Do you prepare and distribute all necessary IRS required documentation?
g. How, and with what frequency, does your firm conduct audits for the plan sponsor?
h. Explain the testing and other administrative work you provide and what work is our responsibility.
i. Describe your daily valuation record-keeping system.
j. How often are investment performance results communicated and in what format? Please provide examples. To what degree are the reports customizable? Can you calculate and report a personal rate of return for each participant?
k. Provide examples of the financial reporting tools, and reports to assist the City in understanding the cost of the retirement plan.
l. Please describe in detail your automated phone system and internet access system.
m. How often will the relationship manager meet with employees on-site?
n. Describe your privacy policy with regard to client and account information.
o. Describe the insurance carried, your carriers and limits related to your service (Errors and Omissions, Liability, etc.).
p. Describe your security and disaster recovery policies and procedures. Include information security information such as physical, software and network security.
q. What quality control systems do you have in place?
r. What type of investment vehicles do you provide for defined-contribution plans?
s. What is the maximum number of investment funds options for our plan? Are there any inherent limitations about the number or the kind of options?
t. Please provide a sample plan management report.
V. FEE INFORMATION
1. Please itemize any and all fees for services provided or otherwise requested. Identify whether the fee is one-time or on-going, and if it is sponsor-paid or participant-paid.
2. Explain any 12b-1 or other compensation received or that will be contained in our plan and how they will be used. (To reduce costs of our plan, etc.)
3. Itemize and explain any fees and/or commissions paid to your company, its employees or any related entity for services to our plan from sources other than the plan.
4. Explain any economic benefit your company, its employees or any related entity derive from any investment entities, intermediaries or service providers that are or will be involved in the plan.
5. Provide the start-up/conversion cost.
6. List any additional charges that may apply when changes are made to the plan by the administrator or are required due to regulatory changes.
7. Describe variables that have an effect on the fees.
8. If your company has a tiered fee structure that is correlated with the plan’s asset value, please describe.
9. To the extent that you offer alternative ways to provide service, please quantify the effect on your fees.
10. Please specify the notice period that you provide to plan participants for any fee increases.
VI. SCHEDULE FOR THE REQUEST FOR PROPOSALS
- Request for Proposals advertised May 26th, 2010
- Proposals due June 25th, 2010
- Notification of Selected Service Provider by July 30th, 2010
VII. SELECTION PROCESS
After review of proposals by the City, respondents may be requested to meet with a Selection Committee to expand on proposal qualifications and experience prior to a recommendation forwarded to the Bellevue City Council.
VIII. SELECTION CRITERIA
· Lowest cost, highest level of service consistent with the City’s objectives
· Experience
· Qualifications of staff dedicated to the City of Bellevue account.
· Ability to act in the best interests of the City without any obligation to any insurance, investment or financial institution.
· Quality of references