REQUEST FOR PROPOSALS (RFP) FOR RFP No. 09-0014 REBID Retirement

REQUEST FOR PROPOSALS (RFP) FOR RFP No.: 09-0014 REBID Retirement Plan Administrator Refer ALL Inquiries to Procurement Officer Patty Davis, Procurement Officer Purchasing Department Citizens Property Insurance Corporation 2101 Maryland Circle Tallahassee, Florida 32303 (850) 521-8321 Phone (850) 575-0936 Facsimile E-Mail: bids@citizensfla.com TABLE OF CONTENTS SECTION 1 – INTRODUCTORY MATERIAL 1.1 STATEMENT OF PURPOSE 1.2 CITIZENS’ BACKGROUND 1.3 CALENDAR OF EVENTS 1.4 CONTACT INFORMATION SECTION 2 – PROCUREMENT INFORMATION 2.1 PROPOSAL INQUIRIES AND QUESTIONS 2.2 SOLICITATION DOCUMENTS AND ADDENDUMS 2.3 ENVIRONMENTAL POLICY 2.4 SUBMISSION OF PROPOSAL 2.5 PROPOSAL FORMAT AND CONTENTS 2.6 EXCEPTIONS 2.7 TIE BREAKING PROCESS 2.8 REVIEW AND EVALUATION PROCESS RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 1 of 42 SECTION 3 – SCOPE OF SERVICES 3.1 DEFINITIONS - SOLICITATION SPECIFIC 3.2 SCOPE OF SERVICES 3.3 PROGRAM ELIGIBILITY 3.4 CURRENT DEFERRALS 3.5 MATCH PLAN 3.6 DISTRIBUTIONS 3.7 VESTING SCHEDULE 3.8 EMPLOYEE EDUCATION ATTACHMENTS ATTACHMENT “A” – DECLARATION FORM ATTACHMENT “B” – PRICE SHEET ATTACHMENT “C” – LITIGATION CLAIMS OR REGULATORY ACTION ATTACHMENT “D” – DEFERRED COMPENDATION PLAN ATTACHMENT “E” – RETIREMENT PLAN REQUIRED WEBSITE FORMS AND DOCUMENTS: The below list of standard website documents and forms also pertain to this solicitation and are posted on Citizens’ Website in a folder titled “Standard Documents” for review and download. It is the vendor’s responsibility to submit all applicable forms with your response. Citizens’ Website https://www.citizensfla.com/about/purchasing-solicitations.cfm. competitive Purchasing review and address is Website Document No.: 01 – Vendor Conflict of Interest Disclosure Form (Form No.: 501b) Website Document No.: 02 – Business/Corporate References Form Website Document No.: 03 – Corporate Background Website Document No.: 04 – Standard Terms and Conditions Website Document No.: 07 – Citizens Contract – (DRAFT) Website Document No.: 08 – FSBE Declaration of Qualification Website Document No.: 09 – Code of Ethics Website Document No.: 10 - Confidentiality and Non-Disclosure Agreement (This Area Intentionally Left Blank) RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 2 of 42 SECTION 1 INTRODUCTORY MATERIALS CONTENTS 1.1 STATEMENT OF PURPOSE 1.2 CITIZENS’ BACKGROUND 1.3 CALENDAR OF EVENTS 1.4 CONTACT INFORMATION 1.1 STATEMENT OF PURPOSE: Citizens Property Insurance Corporation (Citizens) is seeking proposals from Vendors qualified to provide administration, record keeping, education, enrollment, and investment management services for Citizens’ retirement plans. The purpose of the plan is to allow eligible employees to provide for their retirement by deferring compensation 457(b) and providing the employees with additional incentives and retirement security by providing matching contributions 401(a) for their elective deferrals. The contract term is anticipated to be from January 1, 2010, to December 31, 2020 (ten (10) years), and, at the discretion of Citizens’ have two (2), 1-year renewal periods (two (2) renewal years total). Citizens’ intent is to partner with a vendor who can provide Retirement Plan Administrator Services , as indicated within this document and any addenda that may be issued via Citizens’ Website located at (https://www.citizensfla.com/about/purchasing-solicitations.cfm.). All Vendors must familiarize themselves with the general requirements before submitting a response. It is the Vendor’s obligation to check Citizens’ Website to ensure that any and all addenda are incorporated into their solicitation response. Note: This is a re-advertisement of a previous solicitation. All areas in green signify sections that have been revised from the original. 1.2 CITIZENS’ BACKGROUND: Citizens was created in 2002, when the Florida Legislature combined the Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and the Florida Windstorm Underwriting Association (FWUA). Citizens provides insurance to Florida homeowners who cannot find coverage in the open, private insurance market. Citizens is governed by section 627.351(6) of the Florida Statutes and operates pursuant to a Plan of Operation approved by the Financial Services Commission of the State of Florida. Citizens operates under the supervision of a Board of Governors comprised of eight (8) appointed members. Additional information is available at Citizens’ Website https://www.citizensfla.com/about/purchasing-solicitations.cfm.. RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 3 of 42 1.3 CALENDAR OF EVENTS: Listed below are the important actions and dates/times by which the actions will be taken or completed. CALENDAR OF EVENTS DATE: May 1, 2009 May 7, 2009 5:00 PM ET TIME: ACTIONS: Release Solicitation Last Day for Submission of Written Questions Answers to Questions Posted on Citizens’ Website Proposals Due May 18, 2009 May 28, 2009 5:00 PM ET 2:00 PM ET AFTER AWARD OF AGREEMENT: NON-CATASTROPHE SERVICES: January 1, 2010 January 1, 2010 and annually on this date thereafter January 1, 2010 and annually on this date thereafter January 1, 2010 and annually on this date thereafter New Contract Effective Provide Certificate of Insurance to Citizens Criminal Background Investigation Checks to be Submitted to Citizens Submit Annual Federal Corporate Tax Return to Citizens 1.4 CONTACT INFORMATION: Questions related to the procurement should be addressed to: Patty Davis, Procurement Officer Purchasing Department Citizens Property Insurance Corporation 2101 Maryland Circle Tallahassee, Florida 32303 (850) 521-8321 Phone (850) 575-0936 Facsimile E-mail: bids@citizensfla.com From the date this solicitation is issued until a notice of recommended award, rejection of all proposals or other notice is made, no contact related to the solicitation will be allowed between a Vendor and any other party for the purpose of influencing the award, including any member of the Board of Governors or Citizens staff, with the exception of the Procurement Officer or his/her designee. Any unauthorized contact may disqualify the Vendor from further consideration. RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 4 of 42 SECTION 2 PROCUREMENT INSTRUCTIONS CONTENTS 2.1 PROPOSAL INQUIRIES AND QUESTIONS 2.2 SOLICITATION DOCUMENTS AND ADDENDUMS 2.3 ENVIRONMENTAL POLICY 2.4 SUBMISSION OF PROPOSAL 2.5 PROPOSAL FORMAT AND CONTENTS 2.6 EXCEPTIONS 2.7 TIE BREAKING PROCESS 2.8 REVIEW AND EVALUATION PROCESS 2.1 PROPOSAL INQUIRIES AND QUESTIONS: Vendor(s) shall address all questions regarding this solicitation must be provided to the Procurement Officer identified in Section 1.4, Contact Information. Questions must be RECEIVED NO LATER THAN the time and date reflected in Section 1.3, Calendar of Events. Email inquiries are preferred. It is the responsibility of the Vendor to confirm receipt of the questions. However, Citizens in its’ sole discretion reserves the right to answer any questions received after the deadline. Questions and answers will be posted on Citizens’ Website in accordance with Section 1.3, Calendar of Events. 2.2 SOLICITATION DOCUMENTS AND ADDENDUMS: Solicitation documents and any and all addendums to the solicitation documents on Citizens’ Website. It is the Vendor’s obligation to check Citizens’ Website to review any and all addendums. ENVIRONMENTAL POLICY: Citizens is implementing a GO Green policy to promote sustainability. In our effort to do this, Citizens is identifying companies that it conducts business with, that have implemented policies that encourage environmental stewardship. Vendor is encouraged to identify in your proposal any green standards such as EnergyStar, Green Seal, and LEED among others that you promote or have implemented. SUBMISSION OF PROPOSAL: The purpose of the Proposal is to demonstrate a Vendor’s qualifications, competence and capacity to undertake services in conformity with the requirements of this solicitation. The Proposal should demonstrate the qualifications of the Vendor and of the particular staff to be assigned to this engagement. The submission of a response to this solicitation constitutes an acknowledgement by the Vendor that Citizens is not a state agency for purposes of Chapters 120 and 287, Florida Statutes, and that the procurement policies and procedures adopted by Citizens pursuant to Section 7(A)(12) of its Plan of RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 5 of 42 2.3 2.4 Operation prescribe the sole and exclusive remedy of an unsuccessful Vendor. Misrepresentation: All information provided by, and representations made by the Vendor are material and important and will be relied upon by Citizens in awarding the Contract. Any misstatement will be treated as a fraudulent inducement to award Vendor the Agreement, and a fraudulent concealment from Citizens of the true facts relating to submission of the solicitation. A misrepresentation will be punishable under law, including, but not limited to, Chapter 817 of the Florida Statutes. Furthermore, any misrepresentation will be immediate grounds for termination of any Agreement related to this solicitation and said Vendor will not be able to participate in future solicitations or other business opportunities with Citizens Property Insurance Corporation for the duration of this Contract term, including renewal period. The vendor shall supply one (1) originally signed Proposal, and six (6) additional copies for a total of seven (7) proposals. Further, each Vendor is to include with their original proposal one (1) complete electronic version of the proposal and supporting documentation on Compact Disc. The Proposal should be in a sealed package clearly marked “RFP No.: 09-0014, for Retirement Plan Administrator”. Failure to meet these responsiveness requirements may cause rejection of a proposal. The submission of a response to this competitive solicitation constitutes an acknowledgement by the Vendor that Citizens is not a state agency for purposes of Chapters 120 and 287, Florida Statutes, and that the procurement policies and procedures adopted by Citizens pursuant to Section 7(A)(12) of its Plan of Operation prescribe the sole and exclusive remedy of an unsuccessful vendor. PROPOSALS MUST BE RECEIVED AT CITIZENS PROPERTY INSURANCE CORPORATION, 2101 MARYLAND CIRCLE, TALLAHASSEE, FLORIDA 32303, AT OR BEFORE THE DUE DATE AND TIME AS SPECIFIED IN SECTION 1.3, CALENDAR OF EVENTS. 2.5 PROPOSAL FORMAT AND CONTENTS: This section prescribes the format in which the proposals are to be submitted. There is no intent to limit the content of the proposals. Additional information deemed appropriate by the Vendor may be included, but are required to be placed within the relevant section. Additional tabs beyond those designated in this section will not be evaluated. The following paragraphs contain instructions that describe the required format for proposals. Proposals are required to be limited to a page size of eight and one-half by eleven inches (8.5” x 11”). All proposals should contain the sections outlined below. Citizens is under no obligation to look for responsive information contained in incorrect tabbed sections. If responsive information is also contained in other sections, Vendor should specifically reference the tabbed section and corresponding page number(s) that responsive information and documentation can be found. A. TAB 1 – REQUIRED DOCUMENTS: Under Tab 1, the Vendor should RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 6 of 42 complete and return the following documents. Documents are posted on Citizens Website. • • • B. Attachment “A”, Declaration Form; Website Document No.: 01, Signed Vendor Conflict of Interest Disclosure Form; and Website Document No.: 03, Corporate Background Form. TAB 2 – PRICING: Under Tab 2 the Vendor must submit the completed Attachment “B”, Price Sheet. In addition, Vendor shall provide information listed below: • Please attach a schedule of all expenses covering each of the services and activities identified on the following listing. Also, please identify if the expense is: One time or ongoing; Performance adjustable charge; Breakpoint impacted; Discount oriented; Participant paid (direct or account adjustment); Plan sponsor paid (billed and billing frequency); Guaranteed (and length of guarantee); Absorbed in determining daily investment share/unit value; • • • • What are the start-up/conversion costs and the termination costs? For how long will you guarantee specific expenses? What are the factors you consider in determining future increases and when they are to occur? Are there additional charges made at the time of plan changes we initiate or legislated or regulated changes? Please address the differences should we use a prototype or individually designed plan; Describe what plan consulting services are included and related hourly charges and out-of-pocket expenses; How are expenses adjusted if a sizable number of participants are added or removed from the plan (such as either acquisition or divestiture or partial plan termination)? Do you offer any expense arrangement whereby we share in your firm’s upside potential as participants and plan assets increase over time? If you offer an alliance relationship, please identify any “offset” to expenses; and May 1, 2009 Page 7 of 42 • • • • RFP No.: 09-0014 REBID Retirement Plan Administrator Services • In addition to the expense schedule, please identify any other service or activity not covered on the “Service Activity” listing (e.g., postage, handling, supplies, servicing commissions). Please be specific. C. TAB 3 – PROPOSAL: Under Tab 3, provide information that demonstrates Vendor’s capabilities to provide the services listed. Additionally, Vendors must specify any area where Vendor either has not previously provided those services, or has no experience providing those services. TAB 4 – COMPANY PROFILE: Under Tab 4, provide information, requested below, that best describes the Vendor’s company: • Provide a brief overview of your company and history of your organization including an organizational chart of your retirement plan operations. Please describe any parent/subsidiary/affiliate relationships. Are you currently participating in any alliances or joint marketing efforts? If so, please describe in detail. Indicate how many years your company has been active in the defined contribution business (e.g., 401(k), profit sharing). Indicate the period of time for each service, if different, such as investment management for “X” years, recordkeeping for “Y” years, trustee services for “Z” years. Indicate the total value of assets in all defined contribution plans for which you provide recordkeeping services. What is the total number of participants in all defined contribution plans for which you provide recordkeeping services? Please provide a breakdown of the number of clients you service by plan type as a percentage of your total business. D. • • • • • E. TAB 5 – KEY PERSONNEL: Under Tab 5, provide qualifications and experience of Vendor’s firm and the proposed implementation team. The Vendor shall provide a description of capabilities, related to projects of similar size, complexity and business. Provide resumes and contact information of the Project Manager and technical project staff that will be assigned to this project. The Vendor may include any additional literature and product brochures. TAB 6 – BUSINESS/CORPORATION QUALIFICATIONS: • Website Document No.: 02, Business/Corporate References: The Vendor is required to furnish business/corporate references as F. RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 8 of 42 outlined below with their proposal, utilizing the form provided on the Citizens website, behind Tab 6. All references should contain a contact person, including their phone number and email address. The reference should include the type of services, service dates, the firm/agency name of the entity for which the services were provided. The reference should include a paragraph describing where services similar in magnitude and scope to those requested in the solicitation were provided. Product References – Minimum of three (3): These references should be specifically for the product (i.e. software) proposed. In order to ensure current expertise, services described by corporate references are required to be ongoing or have been completed within the thirty-six (36) months preceding the issue date of this solicitation. All three (3) references are required to have 2+ years experience with the proposed product. Support References – Minimum of three (3): These references should be specifically for ongoing support services after installation. In order to ensure current expertise, services described by support references should be ongoing or have been completed within the thirty-six (36) months preceding the issue date of this solicitation. All three (3) references should have 2+ years experience with Vendor’s support system. • Firm Experience: Vendor organization is required to provide the following information about firm experience: Length of time your organization has existed? List past mergers, acquisitions and reorganizations. Scope of operations, including products and services, with indication of areas of specialization. For the past five (5) years, by year, provide: ⎯ Client counts; ⎯ New client counts; ⎯ New product / service additions; ⎯ Changes to management structure or executive leadership; and ⎯ Changes to geographic footprint of facilities and marketing. Florida Operations: ⎯ Indicate Vendor’s presence and operations within the State of Florida; ⎯ Indicate how long Vendor’s Florida operations have been RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 9 of 42 in effect; and ⎯ Indicate the location and size of offices, including the identities of representatives that would be responsible for servicing Citizens’ relationship with your organization. • Florida Business Enterprises & Florida Small Business Enterprises: If applicable, the Vendor shall provide behind Tab 6 Website Document No. 08, Florida Small Business Enterprise Declaration Form in order to qualify as a Florida Small Business Enterprise (located on Citizens’ Website). If the notarized document is not provided with your proposal response you will not receive the five (5) evaluation points for FSBE qualification. Detailed information regarding Citizens FSBE requirements is provided in Website Document No. 04, Citizens’ Standard Terms and Conditions. Financial Documents: The Vendor shall provide behind Tab 6 all financial statements applicable to the firm as indicated below: Provide a copy of your 2006 and 2007 CPA prepared annual financial statements. If CPA prepared financial statements are not available, please submit 2006 and 2007 Corporate Tax Returns. A Dun & Bradstreet credit rating or a credit rating from another credit rating organization; and Evidence of a working capital line of credit or other committed capital resources to support ongoing operations. G. TAB 7 - LITIGATION, CLAIMS AND REGULATORY ACTION: The Vendor shall provide behind Tab 7 information whether the Vendor, your employees or independent contractors have or have not had any Litigation, Claims, or Regulatory action. Citizens will evaluate the significance of any such Litigation, Claims, or Regulatory actions based on its’ severity. Citizens will not score this section however the information will be used by Citizens in assessing Vendor’s responsibility and may be grounds for disqualification or rejection. Additionally, indicate on Attachment “C”, Litigation Claims or Regulatory Action Form, whether you, the vendor, your employees or independent contractors have had any Litigation, Claims, or Regulatory action. Behind Tab 7 provide detailed information relating to any circumstances and status including: • Any action, suit, proceeding or investigation before or by any state or federal court, agency or other authority currently pending against the Vendor that threatens the existence or current stability of the Vendor or its ability to provide any of the Component Services; • RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 10 of 42 • During the past five (5) years, any matter in which the Vendor, any control person, or any key personnel: (a) has been convicted, plead guilty, or plead no contest to any felony, or to misdemeanor involving dishonesty, breach of trust, or financial impropriety; (b) has had an insurance license, revoked by, or surrendered to, any insurance regulatory agency; (c) has been fined, penalized, sanctioned, or subject to any other disciplinary action by any state or federal court, agency or other authority, self-regulatory organization, or professional organization, as a result of such person or entity’s activities in the business of insurance, securities, banking, investment banking, real estate, or other licensed profession; and During the last five (5) years, any litigation that Vendor, any control person, or any key personnel has initiated against Citizens or has been initiated against you by Citizens. • H. TAB 8– CLIENT SERVICE/QUALITY ASSURANCE: The Vendor shall provide the following behind Tab 8: • Please describe the team that would deal directly with us during the transition and on an ongoing basis. Indicate staff size, experience and turnover rates. What is the average number of clients managed by the plan administrator for plans of this size? What type of training is required for new employees before they work on client plans? How many of your employees work on defined contribution plans? Provide breakdown by functional area. What are your client retention statistics for each of the last three years? For those who left, what percentage left due to issues pertaining to services provided by your organization? What is the average client relationship duration? Describe your organization’s commitment to quality and your philosophy/approach to client services. Describe your procedures for monitoring client satisfaction participant satisfaction. Describe your service/timing standards. Do you guarantee service performance? If so, please describe. What checks and balances do you have in place to assure plan administration integrity and accuracy, including participant account data? • • • • • • • • • RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 11 of 42 I. TAB 9 – RECORD KEEPING / ADMINISTRATION: The Vendor shall provide the following information behind Tab 9: • • • • • • Do you provide one main contact for the daily administrative needs of this plan? Do you provide daily valuation? Describe in detail how your system allocates earnings. What methods of data transmission are available? Describe in detail how your system processes contributions after receiving bi-weekly feeds from Citizens. Describe in detail, including timing, how your system processes withdrawals (e.g., in-service and hardship withdrawals). Describe in detail, including timing, how your system processes lump-sum distributions, systematic payments/installments, annuities, rollovers to another plan or an IRA, and required minimum distributions. What options are available to terminated/retired participants? Can funds be kept under the plan? Describe in detail how your system processes transfers/exchanges (including frequency/limitations). Are confirmations sent? Describe your process and methods of reallocation (percent and/or dollar). Can employer and employee contributions be tracked? Describe in detail your system’s vesting capability. different schedules can your system support? How many • • • • • • Describe in detail how your system handles Federal and State tax reporting (e.g., Form 1099R, W-2 for 457 plan). Do you provide tax form preparation and filing? Describe in detail how you administer qualified domestic relations orders (QDROs). What checks and balances do you have in place to ensure transactional integrity? Do you provide an administration manual? Will you record keep non-proprietary investment vehicles? Describe the process and systems used. Do you have an annual SASS70 report and if so, please include as Attachment. What other administrative services do you provide? May 1, 2009 Page 12 of 42 • • • • • • RFP No.: 09-0014 REBID Retirement Plan Administrator Services J. TAB 10 – LOANS: The Vendor shall provide the following information behind Tab 10: • Describe your capabilities for the following: Discrimination Testing ADP/ACP: 401(k) and 401(m); Annual addition limitations (25%/$45,000 limits): 415(c); Monitoring of elective deferrals: 402(g); Top-heavy testing: 416(c); Identifying HCEs: 401(a)17; and Coverage testing for controlled groups: 410(b). • • How do you address violations for any of the following testing: ADP/ACP, 415(c), 402(g), 416(c), 401(a)17 and 410(b)? Can you assist us in the following areas of plan documentation design? If so how? Customized plan document; Prototype plan document; Customized SPD; Prototype SPD; Qualification submission; and • • Describe the type of legal support included in your proposal and any fees that apply. Do you provide either or both of the following: Information to complete Form 5500; and A signature-ready 5500. • • • • • • • • • What fiduciary responsibility does your organization assume? How do you keep plan sponsors informed and updated on any regulatory and legislative changes? How will you ensure that our plan remains in compliance? How do you ensure that your recordkeeping system is in compliance with all regulations? Describe any past or pending litigation, within the last five (5) years, relating to the services you are proposing. Please provide a sample services agreement or contract. Loans (if applicable) Describe in detail your loan processing capabilities. Do you have paperless loan capabilities? If so, describe. RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 13 of 42 • • • • K. Describe the flexibility in your loan repayment processing (e.g., additional payments, multiple loans, missed payments). How do you handle delinquent and/or defaulted loans? What responsibility do we retain for initial and ongoing loan servicing? Describe any other features and/or limitations of the loan system not detailed above (e.g., loan modeling, amortization scheduling). The Vendor shall provide the following TAB 11 – REPORTING: information behind Tab 11: • • • • • • Describe the standard reporting package that you would provide us as well as the medium(s) used (provide samples). Describe any customized or ad hoc reporting capabilities including Internet capabilities. Describe your standard participant level statements and documents (provide samples). Describe your customization capabilities for participant level statements. Can reports/statements be produced on other media? describe. Please What is the standard time frame for providing each report after the reporting period ends? L. TAB 12 – VOICE RESPONSE UNIT, INTERNET ACCESS AND CALL CENTER: The Vendor shall provide information regarding the following information behind Tab 12: • Voice Response Unit (VRU): If Available, describe the services available through your VRU. Is this provided as part of the standard services offered or will this require additional service fees? How are transactions processed? How are transactions documented? Are confirmations sent? Describe how data is secured within the system (e.g., PIN, audit trail, confirmations). Describe the level of customization available within your VRU. What are the standard hours of operation? Are there any transactions that cannot be processed through the VRU? RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 14 of 42 Is the menu easy for participants to use? Does it include “help” information? Please describe the structure in detail. Can a participant elect to move from the VRU to a service representative? When and what services are available? How often is the data on the VRU updated? How does the VRU interface with the recordkeeping system? • Internet Access: Describe the account services and transaction capabilities available through your participant Website. How are transactions processed and documented? Are there any transactions that cannot be processed through your Website? Describe how data is secured within the system (e.g., PIN, audit trail, confirmations). Describe the level of customization available for clients using your Internet services. What are the standard hours of account access and transactional availability? If a participant elects to move from the Web site to a call center service representative, describe the interface between the Website and the service representative. How often is the data on the Web site updated? How does the Website interface with the recordkeeping system? Please identify your Website account access and transactional availability statistics (average availability per month as a percentage). • Call Center: Please identify your toll-free service center standards. Please include for each of the last three calendar quarters, statistics related to actual performance. ⎯ Number of calls; ⎯ Average length of calls; ⎯ Average response time; ⎯ Percentage of calls requiring follow up; ⎯ Call abort rate; ⎯ Percentage of incoming calls totally handled via VRU versus toll-free live service center representative assistance; and RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 15 of 42 ⎯ Percentage of service requests handled via Web site versus call center and VRU; What training is provided to toll-free service center representatives before they are allowed to handle incoming calls? Do you monitor and/or tape toll-free calls? What are your case management procedures for calls that have service issues? What information is available to toll-free service representatives to allow them to effectively answer participant questions? M. TAB 13 – COMMUNICATION AND EDUCATION: provide the following information behind Tab 13: • • The Vendor shall Briefly describe your background and experience in providing communication and education programs. Identify the key elements provided as part of a standard communication and education program package included in your proposal. Identify non-standard elements to a communication and education program you may provide for an additional charge. Describe separately your initial and ongoing communication and education program (including printed material, visits, training, etc.). If the program is tailored to a specific plan sponsor need, identify the critical issues to be determined in designing such a program. Can material be customized? Do you provide personnel resources as part of both the initial and ongoing communication and education program? Do you provide communication and education material in a foreign language? If so, what language(s) and what material? Do you create all of your communication and education material inhouse or through third parties? Describe the process you use to help plan sponsors measure the effectiveness of employee education efforts. Does your organization provide any services (e.g., personal questionnaires, software) that would help individual participants with financial planning? Describe any electronic education tools you provide, both software-based and Web-based. • • • • • • • • RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 16 of 42 • Describe your position on providing investment advice to participants. What fiduciary responsibility do you assume if advice is provided? If advice is offered, is it in-house or via a third party? Describe your process, mode and scope of advice. Describe education tools or programs designed to support IRA rollovers and/or retirement distributions. Provide samples of initial enrollment and ongoing communication and education materials. • • • N. TAB 14 – CONVERSION: The Vendor shall provide information related to the following information behind Tab 14: • • • • • • • • • • Explain your conversion process, including time frame, based on the options available (e.g., mapping). Is a “black-out” period required? If yes, how long is it and what is restricted or not available during that time? What involvement will be required from us during the conversion process? Do you provide a dedicated conversion team? What conversion audit reporting do you provide? Describe your process to ensure accurate conversion of all historical data. Do you have any limitations as to the format/media of conversion records? How are investments handled during the conversion process? How does your system handle conversion/setups of pre-existing loans from another recordkeeping system? How do you monitor the effectiveness and quality of your conversion process and team? O. TAB 15 – IMPLEMENTATION: The Vendor shall provide information related to the following information behind Tab 15: • Explain your implementation process including time frame. What is the minimum time frame needed to ensure a smooth implementation? What involvement will implementation process? be required from us during the • RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 17 of 42 • P. Do you provide a separate team apart from the ongoing team for implementation responsibilities? TAB 16 – SYSTEM CAPABILITIES AND HARDWARE: The Vendor shall provide information related to the following information behind Tab 16: • • Describe the hardware platform and software system you use to record keep and administer defined contribution plans. Was the software developed internally, leased, or bought from another provider? Who has the ultimate responsibility/authority to make sure the software remains current to laws, regulations, client needs, etc.? How often is the system upgraded? What system enhancements do you have planned over the next three (3) years for: Core recordkeeping system; and Service technology. • • Describe your documented disaster recovery plan. How often do you test your recovery system? Describe your maintenance and backup procedures including daily backups, retention timetable and off-site backup storage approach. Where are your off-site backup facilities located? Describe the method of maintaining plan sponsor and participant history on the system. Describe the valuation methods offered by your system. Are internal controls of your recordkeeping system audited by an independent accounting firm on an annual or more frequent basis? If so, please provide a copy of the most recent report. Does the system allow for plan sponsor customization/limits such as: Transfer frequency; Minimum/maximum contribution percentages; Withdrawal frequency; Investment election changes; and Other. • Describe your system’s maximum limits with regard to the following: Investment funds; Money types; • • • • • • RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 18 of 42 Loans; Transfers; and Other. • Q. Please provide ongoing transaction layouts if specific layouts are required. TAB 17 – INVESTMENTS: The Vendor shall provide information related to the following information behind Tab 17: • Discuss your organization’s ability to provide investment vehicles for defined contribution plans. Be sure to disclose if you are providing these vehicles in-house or through external managers. To the extent we wish to comply with 404(c), how can you assist us? Are there a maximum number of funds allowed in the plan? Are there fees associated with adding additional funds? How long have you been providing investment services? Please identify the number and types of investment vehicles you would make available to us. For each investment vehicle identified above, provide: The inception date; The name of the investment/portfolio manager; A biography of the manager; The investment vehicle objective; The investment philosophy; The expense structure (including any loads, load waivers, management fees, other expenses, 12b-1 fees, fee subsidies, etc.); The comparative index(s) used by the manager, and Withdrawal provisions (including restrictions on transfers). • For each investment vehicle, provide the annualized return for the 1, 3, 5 and 10-year (or since inception) periods ending on the last calendar quarter. For each investment vehicle, provide the standard deviation. Please include the most recent prospectus for all potential investment vehicles. For each balanced asset allocation and/or lifestyle investment vehicle, provide the asset breakdown by cash, stocks, and bonds as of the last three calendar quarters. May 1, 2009 Page 19 of 42 • • • • • • • • RFP No.: 09-0014 REBID Retirement Plan Administrator Services • For each income investment vehicle, provide the average maturity, average duration, average yield, and average quality as of the last three (3) calendar quarters. For the stable value investment with guaranteed interest, describe the current and minimum interest rate guarantees, how interest is credited, and the frequency of rate changes. Furthermore, provide the make-up of the underlying portfolio including asset type, grade and percentage breakdown. For the pooled stable value investment vehicle, provide the structure of the portfolio by sector and maturity distribution. Also provide the credit quality, credit quality minimum guarantee, average quality, average maturity, modified duration, liquidity percentage, and yield to maturity. For each investment vehicle, articulate the investment strategy used by the manager to add value to benchmark(s) identified. For each investment vehicle, identify the total defined contribution assets under management as of the end of each of the last three calendar years. Does your organization offer a self-directed brokerage window as a potential investment option? Please fully describe the service and fees associated with the administration of the brokerage accounts. If you have any additional information you would like to provide on the investment vehicles identified above, please do so as an appendix to your responses. Please explain the due-diligence process your firm undergoes on all investment options in the plan, including frequency and steps taken to hire new managers/funds, evaluate existing managers/funds and place managers/funds on probation and/or termination of underperforming managers/funds Provide a copy of your investment contract. For each equity investment vehicle, provide the top ten (10) holdings as of the last three calendar quarters. For each equity investment vehicle, provide the sector breakdown as of the last three calendar quarters. For each income investment vehicle, provide the sector breakdown as of the last three calendar quarters. For each international or global investment vehicle, provide the dollar-weighted average of the investment’s allocations in each country. For the money market investment vehicle, provide the seven • • • • • • • • RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 20 of 42 (7) day current yield as of the last three (3) calendar quarters. For each investment vehicle, where appropriate, provide the alpha, beta, R2, and Sharpe ratio. R. TAB 18 – TRUSTEE SERVICES: The Vendor shall provide information related to the following information behind Tab 18: • • • • • • • • • • • • • • • S. Will you allow us to self-trustee the plan? Will you act as or provide availability to trustee services? Will you work with an independent trustee? If you provide responsibilities? trustee services, what are your fiduciary Describe “checks and balances” employed in your trust accounting system. Will you trustee outside investment funds? What is your turn-around time on check issuance? Do you process individual state tax withholding? Do you provide information to plan participants regarding options on distributions? Do you have a limit on the number of checks/wires available to participants who roll over their distributions? Do you provide consolidated year-end ERISA reports for 5500 filings? Do you maintain all loan documentation (i.e., promissory notes) as part of your files? Is your trust accounting system integrated with your recordkeeping system? Provide a copy of your custodial trust agreement. Will you allow us to maintain an independent GIC portfolio with your trust as custodian of the contracts? If so, describe procedure. TAB 19 – CORPORATE CHANGE: A Vendor who is involved or undergoing a sale, purchase, merger, or other related acquisition (“Change”) that will in any way alter the Vendor’s legal entity, name, structure, financial status or business operations, shall submit a Proposal that: (1) contains a section disclosing all current entities involved in the Change, when the Change is anticipated to take place, and any information related to the Change that may affect the Proposal; and (2) RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 21 of 42 each area in Vendor’s Proposal (Tabs 1 – 18) should contain a separate section that discusses whether the Change will alter, modify or otherwise affect the Vendor’s Proposal. If this is not applicable to your Proposal, state “not applicable” behind Tab 19. Based upon Citizens’ interests, Citizens reserves the right and sole discretion to disqualify a Vendor from consideration that is involved in a Change, or fails to disclose a Change during the solicitation process as stated in this section. 2.6 EXCEPTIONS: Any and all proposed exceptions to this solicitation, including exception(s) to any Contract terms, shall be identified in the form of questions submitted in accordance with Section 2.1, Proposal Inquiries and Questions Citizens’ answers to the questions will indicate whether Citizens is agreeable to consideration of the proposed exception(s). For all of those exceptions where Citizens has indicated it is agreeable, Bidder shall identify the proposed exception(s) behind Tab 1 of the Solicitation. 2.7 TIE BREAKING PROCESS: In the event a tie occurs in price and / or score between two or more Vendors during a competitive solicitation, Citizens will use the following process to break the tie and Citizens shall determine the recommended Vendor for award based upon the following criteria: Citizens shall conduct a coin toss to determine the recommended Vendor for award. The tied Vendors will be informed of the tie, and if possible will be given the option of attending the coin toss. Citizens will document the coin toss results in writing, which shall be signed by the person conducting the coin toss and at least one witness. 2.8 REVIEW AND EVALUATION PROCESS: Citizens shall conduct a fair, comprehensive and impartial review and evaluation of all Proposals meeting the requirements of this Solicitation. Phase I – Review of Required Forms, Documents and Litigation: Only timely submitted proposals shall be reviewed by staff to determine if they comply with the responsiveness requirements listed in the solicitation. This will be a pass/fail review. Failure to meet any of these responsiveness requirements shall render a Proposal non-responsive and result in rejection of the entire Proposal. Further evaluation will not be performed. No points will be awarded for passing the responsiveness requirements. Phase II – Evaluation of Proposals: Only those Proposals which have met the requirements of Phase I will be considered responsive and will be delivered to the Evaluation Committee to be scored. For the purpose of review, evaluation, scoring and ranking, review categories have been divided into five (5) sections. The following reflects the Pass/Fail criteria and the maximum number of points that may be awarded by category: RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 22 of 42 TAB NO. 1. TAB NO. 2. Price PHASE I EVALUATION CRITERIA Submission of All Required Forms and Documents PHASE II EVALUATION CRITERIA PASS / FAIL Pass/Fail MAXIMUM POINTS 40 Participant Services: • Account Access: Telephone Service Center, Voice Response System, and Internet Access; Customization, other languages, information and transactions available, security, quality standards/timing, and hours and days available – up to 5 points; Communications and Reporting: Communications, Participant Reporting, and the day-to-day operation of a plan which involves basic services such as recordkeeping, accounting, and legal services – up to 5 points; 3. • 10 Plan Sponsor Services: • Implementation and Conversion Process: methodology associated with converting plan assets and black out periods, dedicated team members, loans, hardship withdrawals permitted during transition, training for plan sponsor personnel - up to 5 points; Recordkeeping Services: Processes; enrollment, loans, withdrawals, distributions, rollovers, paperless transactions. Systems; sufficient data security, regular back ups, formal disaster recovery plan. Accounting, Payroll/Contribution Transmission; electronic transmission, frequency of transmission, time frame for investment after reconciliation. Quality Assurance; standards/guarantee, accountability to client, performance standards – up to 5 points; Reporting and Communication Capabilities: Comprehensive reporting package, online inquiry and reporting, customized reports, plan sponsor website, communication materials for plan sponsors – up to 10 points Trustee/Compliance Services: • 4. 25 • • RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 23 of 42 nondiscrimination testing, tax reporting, consulting, reporting, customized plan documents, and customized SPD, - up to 5 points Investment Management: • Investment Options: History of investment 6. management, investment options, portfolio management, and outside investment options. - up to 15 points 15 Overall Account Management: • Firm History and Organization: Number of years in business, assets under management, independent company or subsidiary, number of locations, bundled or unbundled services – up to 5 points; Business/Corporate references: Product references, firm experience, and support references – up to 5 points; 10 • Total Points: 100 Points Before award, the Citizens reserves the right to seek clarifications, to request reply revisions, and to request any information deemed necessary for proper evaluation of Proposals. Vendors may be requested to make a presentation, provide additional references, provide the opportunity for a site visit, etc. The Citizens reserves the right to require attendance by particular representatives of the Vendor. Any written summary of presentations or demonstrations should include a list of attendees, a copy of the agenda, and copies of any visuals or handouts, and shall become part of the Vendor’s Proposal. Using the evaluation criteria specified above, Citizens shall evaluate and rank Proposals and, at Citizens’ sole discretion, proceed to award of a contract with the selected Vendor(s). RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 24 of 42 SECTION 3 STATEMENT OF WORK CONTENTS 3.1 DEFINITIONS - SOLICITATION SPECIFIC 3.2 SCOPE OF SERVICES 3.3 PROGRAM ELIGIBILITY 3.4 CURRENT DEFERRALS 3.5 MATCH PLAN 3.6 DISTRIBUTIONS 3.7 VESTING SCHEDULE 3.8 EMPLOYEE EDUCATION 3.1 DEFINITIONS – SOLICITATION SPECIFIC: • • “Citizens” – means Citizens Property Insurance Corporation; “Defined Contribution Plan” - means a plan in which is established and qualified under IRC Section 401 or 403, which provides for an individual account for each participant therein and for benefits based solely on the amount contributed to each participants account and any income and expenses or gains or losses (both realized and unrealized) which may be allocated to such accounts. “Deferred Compensation Plan” – means a tax exempt program made available to employees of state and federal governments and agencies in which a portion of an employee’s income is paid out at a date after which that income is actually earned. “Plan Year” – means each twelve (12) month period beginning on January 1 and ending on December 31. “Year of Service” – means a stated twelve (12) consecutive month period during which such employee worked at least one thousand (1,000) Hours of Service for Citizens. • • • 3.2 SCOPE OF SERVICES: The scope of services is categorized in two (2) separate areas of plan administration as outlined below: DEFINED CONTRIBUTION PLAN: The purpose of this Plan, 401(a) is to provide additional incentives and retirement security for eligible employees of Citizens by providing matching contributions for their elective deferral contributions. Contributions are made bi-weekly and are on the same feed as the 457(b) Plan. Cash flow in 2008 for this plan was $2,617,282. Expected 2009 cash flow will fluctuate based on company growth, participation, and contributions into the plan. DEFERRED COMPENSATION PLAN: The purpose of this Plan, 457(b) is to allow eligible employees to provide for their retirement by deferring compensation under the terms of this Plan. 3.3 PROGRAM ELIGIBILITY: Section 457 Plan covers eligible employees of May 1, 2009 Page 24 of 42 RFP No.: 09-0014 REBID Retirement Plan Administrator Services SECTION 3 STATEMENT OF WORK Citizens Property Insurance Corporation (hereafter referred to as “Citizens”). Over 1,040 employees are eligible for the deferred compensation account, with approximately 694 currently contributing. Eligibility begins on date of hire. Census information is available upon request. All participating employees are eligible for the 401(a) match plan. Employees are located in three (3) locations within Florida; Tampa, Jacksonville, and Tallahassee. The total employees by location are: Tampa – 206; Jacksonville – 566; and Tallahassee – 303. 3.4 CURRENT DEFERRALS: Citizens processes all payroll change requests. Participants currently defer a portion of their salary to twenty-two (22) different Investment Options via the current Vendor. Assets held by each Provider are shown in solicitation Attachment “D”, Deferred Compensation Plan and Attachment “E” – Retirement Plan. Over $113,629.00 is invested by participants in the Section 457 Plan each bi-weekly pay period. MATCH PLAN: Participants in the Plan who make elective deferral contributions to the Deferred Compensation Plan for a Plan Year shall receive an Employer matching contribution under this Plan for the Plan Year in the amount of 100% of the first 8% of elective deferral contributions to the Deferred Compensation Plan for the Plan Year. Citizens intent is to continue to calculate contribution matches internally. DISTRIBUTIONS: Terminated participants who invest are instructed to process distribution requests directly with the provider. Citizens Administrator signature or approval is required. Citizens anticipates continuing this practice with the successful Vendor. Currently, there are approximately thirty-five (35) terminated participants. There are no surrender charges, value adjustments, or restrictions to the best of our knowledge. Ideally Citizens would prefer to map current funds while limiting disruption to participants. Vendor recommendations will be entertained at time of final presentations. VESTING SCHEDULE: The vested portion of any Participant’s Retirement Account shall be a percentage of the total amount credited to his Participant’s Retirement Account determined on the basis of the Participant’s number of Years of Service according to the following schedule: • • • • 3.8 Less than 1 1 2 3 0% 33.33% 66.66% 100% 3.5 3.6 3.7 EMPLOYEE EDUCATION: Citizens provides program education to employees at their work site. The successful Vendor will be required to be available to conduct the educational session, answer employee questions and distribute materials. Educational sessions will be coordinated and facilitated through the Human Resources (HR) Administrator. RFP No.: 09-0014 REBID Retirement Plan Administrator Services May 1, 2009 Page 25 of 42