Clay County Utility Authority
3176 Old Jennings Road Middleburg, Florida 32068-3907 Telephone (904) 272-5999 Facsimile (904) 213-2429
Working together to protect public health, conserve our natural resources, and create long-term value for our ratepayers.
REQUEST FOR PROPOSALS (RFP) For Retirement Plan Administrator RFP No: 08/09-A8
Table of Contents: Section 1 - Title and Overview Section: 1.1 Name and address 1.2 Objective 1.3 Clay County Utility Authority background 1.4 Contact Information and submittal instructions 1.5 Calendar of Events Section 2 – Scope of Services: 2.1 Definitions – Solicitation Specific 2.2 Scope of Services 2.3 Current Deferrals 2.4 Distributions 2.5 Vesting Schedule 2.6 Employee Education Section 3 - Proposal: Tabs: 1) Organization History 2) Record Keeping and Administration 3) Regulatory Services 4) Reporting 5) Voice Response Unit, Internet Access and Call Center 6) Communication and Education 7) Conversion 8) System Capabilities and Hardware 9) Investments 10) Trustee Services 11) Corporate Change 12) References 13) Expenses Section 4 – Evaluation Process Section 1: Title and Overview Section
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1.1 Name and address: Clay County Utility Authority, 3176 Old Jennings Road Middleburg, Fl. 32068 1.2 Objective: Clay County Utility Authority (the Authority) is seeking proposals from Vendors qualified to provide administration, record keeping, education, enrollment, and investment management services for the Authority’s retirement plans. The purpose of the plans is to allow employees to prepare for their retirement. The Authority provides retirement benefits for all employees through the Clay County Utility Authority Employees Plan, a defined contribution plan. The Authority also offers a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The Authority intends to partner with a vendor who can provide Retirement Plan Administrator Services, as indicated within this document for a contract term anticipated to be from October 1, 2009 to September 31, 2019 and, at the discretion of the Authority have two, 1-year renewal periods. 1.3 Clay County Utility Authority background: The Authority was created on October 1, 1994 as an Independent Special District in the State of Florida to manage the water and sewer systems in Clay County Florida and adjacent areas. The Authority is governed under Chapter 94-491 of the Florida Statutes and operates under the supervision of a Board of Supervisors which is comprised of seven appointed members. Additional information is available at http://www.clayutility.org. The Authority contributes a set percentage of all employee gross wages (excluding any IRS mandated fringe benefit inclusion) to the current retirement money purchase plan, a defined contribution plan. We currently have 139 employees. The employee determines the investment allocation. We also have a deferred compensation plan, which is administered by two separate companies; available to all employees (approximately 38% participate). 1.4 Contact Information and submittal instructions- Four copies of the proposal should be sent to address indicated in section 1.1above. AttentionPatricia Barthlow. Questions will be taken until July 22nd at 5pm. All questions should be submitted via email: pbarthlow@clayutility.org . The transmitted subject line must read as follows to get through our security: RFP for Retirement Plan Administrator 08/09-A8. Questions and answers will be posted by July 28, 2009 at 5pm to our home page
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http://www.clayutility.org/projects/bids/Q&A for all parties to view. 1.5 Calendar of Events: Listed below are the important actions and dates/times by which the actions will be taken or completed.
Date: 7/16/2009 7/22/2009 7/28/2009 7/31/2009 Time: 5:00PM 5:00PM 5:00PM Calendar of Events Actions: Release Solicitation Last Day for Submission of Written Questions Answers to Questions Posted on the Authority's website Proposals Due
Section 2: Scope of Services 2.1 Definitions – Solicitation Specific: • “The Authority” – means Clay County Utility Authority • “Defined Contribution Plan” – means a plan 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, expenses, 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 October 1 and ending on September 30. • “Year of Service” – means a stated twelve (12) month period during which such employee worked at least one hour of service for The Authority. 2.2 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 employees of the Authority by contributing a percentage of the participants’ compensation (excluding fringe benefits required by the IRS to be included in wages). Contributions are made biweekly and are on the same transmittal as the 457(b) plan contributions. Cash flow in 2008 plan year for this plan was $667,224. Expected 2009 cash flow will be less due to the economic condition demanding reduced overtime.
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• Deferred Compensation Plan: The purpose of this Plan, 457(b) is to allow employees to provide for their retirement by deferring compensation under the terms of this Plan. Eligibility begins on the date of hire. Participation is on a voluntary basis. The Authority currently has 139 employees, with approximately 25 currently contributing. 2.3 Current Deferrals: The Authority processes all payroll change requests. Participants currently defer a portion of their salary to 57 different Investment options via the current Vendors. Assets held by each Provider are shown in solicitation Attachment A, Retirement Plan and Attachment B and C, Deferred Compensation Plans. Approximately $4,900.00 is invested by participants in the Section 457(b) plan each bi-weekly period. 2.4 Distributions: Terminated participants who invest are instructed to process distribution requests directly with the provider. However, the Authority’s trustee, or assigned designee, signature is required for approval to process. The Authority anticipates continuing this practice with the successful Vendor. There are 13 previously terminated employees that are still in the plan. 2.5 Vesting Schedule: The vested portion of any Participant’s Retirement account shall be: • 0-4 years 0% • 5 years 100% 2.6 Employee Education: The Authority relies on the current Vendors to educate employees at the work site. The successful Vendor will be required to be available to conduct the education session, answer employee questions and distribute materials. Education sessions will be coordinated and facilitated through the Human Resources (HR) Administrator. Section 2: Proposal Please submit this section in tabular form for quick reference during the evaluation process. Tab 1 – Organization History: Please provide the following: 1) Overview of Company – provide a brief overview of your company and history, including the organization chart of your retirement plan operations. Please describe any parent/subsidiary/affiliate relationships. a) How long have you been in this business? b) How many money purchase and 457b plans do you administer and what
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c) d) e) f) g) h) i)
percentage is this of all clients? Indicate the # of years for each service (i.e. investment management, record keeping, trustee, etc.) How many of these plans did you administer this year? How many clients left this year and why? 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 defined contribution plans. Most recent credit rating by applicable agency.
2) Qualifications - Provide qualification and experience of the firm, plan adminstrator and the proposed implementation team. Describe 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. Indicate turnover rates. What is the average client relationship duration? Describe procedures to monitor client and participant satisfaction. Provide the following information for the past five years, by year: • Client counts; • New client counts; • Lost clients; • New product/service additions; • Changes to management structure or executive leadership; and • Changes to geographic footprint of facilities and marketing 3) Litigation, Claims and Regulatory Action – The proposed plan vendor shall provide the following information for itself, it officers and/or any key personnel for actions specified below in the past five years: • Convicted, plead guilty, plead no contest to any felony or misdemeanor (excluding traffic violations for which a fine or penalty of $200.00 or less was paid). Provide the date, place, nature of offense and the disposition. Tab 2 - Record Keeping and Administration: The Vendor shall provide the following information: a) Is your administrative staff “certified” by any organization and if so, what credentials do they have? b) Do you provide one main contact for the daily administrative needs of this plan? c) Do you provide daily valuation? Describe in detail how your
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system allocates earnings. d) What methods of data transmission are available? e) Describe in detail how your system processes contributions after receiving bi-weekly input from the Authority, including the timing of credit to each employees account. f) 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. g) What options are available to terminated/retired participants? Can funds be kept in the plan? h) Describe in detail how your system processes transfers/exchanges (including frequency/limitations). Are confirmations sent? i) Can employer and employee contributions be tracked? j) 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? k) Describe in detail how you administer qualified domestic relations orders (QDROs) l) What checks and balances do you have in place to ensure transactional integrity? m) Do you provide an administration manual? n) Do you have an annual SASS70 report and if so, please include as attachment. o) What other administrative services do you provide? Tab 3 – Regulatory Services. Provide the following information: 1. What fiduciary responsibility does your organization assume? 2. How do you keep plan sponsors informed and updated on any regulatory and legislative changes? 3. How will you ensure that your recordkeeping system is in compliance with all regulations? 4. Describe the type of legal support included in your proposal and any fees that apply. 5. Describe any past or pending Regulatory litigation, within the last 5 years, relating to the services you are proposing. 6. Please provide a sample services agreement or contract. Tab 4- Reporting. Provide the following information with applicable samples: 1. Describe the standard reporting package that you would provide us as well as the medium/media used. 2. Describe any customized or ad hoc reporting capabilities including internet
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3. 4. 5. 6. 7.
capabilities. Describe your standard participant level statements and documents. Describe your customization capabilities for participant level statements. Can reports/statements be produced on other media? Please describe. What is the standard time frame for providing each report after the reporting period ends? Are expenses reflected separately on the statement?
Tab 5 – Voice Response Unit, Internet Access and Call Center: The Vendor shall provide information regarding the following: 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? • Please describe the VRU menu functions 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 transactions 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?
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• If a participant elects to move from the Website to a call center service representative, describe the interface between the Website and the service representative. • How often is the data on the Website 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). • Has the security firewall ever been compromised? If so, provide details to include dates and the estimated investor impact ($). 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. o Number of calls o Average length of calls o Average response time o Percentage of calls requiring follow-up o Call abort rate o Percentage of incoming calls totally handled via VRU versus toll-free live service center representative assistance. o Percentage of service requests handled via website versus call center and VRU o What training is provided to toll-free service center representatives before they are allowed to handle incoming calls? o Do you monitor and/or tape toll-free calls? o What are your case management procedures for calls that have service issues? o What information is available to toll-free service representatives to allow them to effectively answer participant questions? Tab 6 – Communication and Education: The Vendor shall provide the following information. • 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.
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• 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? • 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. • 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 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. Tab 7 – Conversion: The Vendor shall provide information related to the following: • 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/setups of pre-existing loans from another recordkeeping system? • How do you monitor the effectiveness and quality of your conversion process and team?
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• Will existing participant investments be converted to new investment options, at the discretion of the participant, with no financial cost or penalty to the existing participants? Tab 8 – Systems Capabilities and Hardware: The Vendor shall provide information related to the following: • Describe the hardware platform and software system you use to record 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 years for: o Core recordkeeping system o 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. • Describe your system’s maximum limits with regard to the following: o Investment funds; o Money types o Loans o Transfers; and o Other Tab 9 – Investments: The Vendor shall provide information related to the following: • 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.
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• What is the maximum number of investment funds options our Plan can have? Are there any inherent limitations about this number or the kind of options we can have? How many were assumed in the fee quote? What is the cost per fund in excess of your quote? • What information will we receive about investment options? Provide copies of all reports that are available. Also state the following: o Inception date o Name of investment/portfolio manager o Biography of the manager o Investment vehicle objective o Expense structure (include loads, load waivers, management fees, other expenses, 12b-1 fees, fee subsidies, etc) o Do you receive any 12b-1 or other compensation from any mutual funds that are or will be contained in our plan? If so, will it be used to reduce our costs? o Comparative index(es) used by the manager o 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. • For each balanced asset allocation and/or life style investment vehicle, provide the asset breakdown by cash, stocks and bonds as of the last three 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. • 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.
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• Provide a copy of your investment contract. o For each equity investment vehicle, provide the top ten (10) holdings as of the last three calendar quarters. o For each equity investment vehicle, provide the sector breakdown as of the last three calendar quarters. o For each income investment vehicle, provide the sector breakdown as of the last three calendar quarters. o For each international or global investment vehicle, provide the dollar-weighted average of the investment’s allocations in each country. o For the money market investment vehicle, provide the seven day current yield as of the last three (3) calendar quarters. Tab 10 – Trustee Services: The Vendor shall provide information related to the following behind Tab 10: • Will you work with an independent trustee? • If you provide Trustee Services, what are your fiduciary responsibilities? • Describe “checks and balances” employed in your trust accounting system. • Do you maintain all loan documents 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 evaluate our plan periodically to determine if there are better less expensive plans available? If so, how often? Tab 11 – Corporate Change: A Vendor who is involved in 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) each area in the Proposal (Tabs 1-10) should contain a separate section that discusses whether the Change will alter, modify or otherwise affect the Vendor’s Proposal. If Corporate Change is not applicable to your Proposal, state such behind Tab 11. Based upon the Authority’s interests, we reserve 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. Tab 12 –References: Please provide the following:
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• Three references of current clients who have similar plan demographics. At least 1 of the 3 should have converted within the last year. Please provide client name, contact name, address, phone number, services provided, and year they became a client. • Three references of former clients who had similar plan demographics. At least 1 of the 3 should have left within the last year. Please provide former client name, contact name, address, phone number, services provided, and year they became and the year they ceased to be a client. Tab 13 – Expenses: Please attach a schedule of all expenses covering each of the services and activities identified in the Proposal. Use the specific information provided in Section 3 about our current plan to determine and illustrate your expenses. If assumptions are necessary, please fully explain your assumptions and quote the related expenses on a unit cost basis, if possible. Also, please identify if the expense is: • One time or on-going • Breakpoint impacted • Participant paid (direct or account adjustment) • Guaranteed (length of guarantee) • Performance adjustable charge • Discount oriented • Plan Sponsor paid (billed and billing frequency) • Absorbed in determining daily investment share/unit value
Section 4: Evaluation Process The Authority shall conduct a fair, comprehensive and impartial review and evaluation of all Proposals meeting the requirements of the solicitation. There are four members on the RFP committee that will evaluate the proposals. Step 1 – Determine Status. The Controller will initially determine whether each proposal is “responsive” or “non-responsive.” A “responsive” proposal conforms in all material respects to the RFP. A proposal may be deemed “non-responsive” if any of the information is not provided that the RFP committee deems essential to an informed decision. If a proposal is determined to be “non-responsive,” it will not be considered further. The investing committee will make the final determination of responsiveness.
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Step 2 – Score Proposals. Only the Proposals which have met the requirements of Step 1 will be considered responsive and will be scored. Committee members will individually score the proposals based on the criteria established in the RFP. Proposals will be evaluated solely on the stated criteria listed in the RFP. Only material presented in the written proposals and vendor demonstrations can be considered in the evaluation. An evaluation matrix will be used to rank the requested information by category on a scale of 0-5 (Five being the highest). Once the evaluations are complete and tallied by individual members, the entire committee will meet to discuss the proposals and arrive at the final scoring. Step 3 – Discuss Proposals. The committee may tally the final point assignments by the following methods: (1) consensus score, (2) a total of all of the points given by individual committee members, or (3) an average of the individual scores. Any method or combination thereof is acceptable. Step 4 – Interview. This step is optional. If interviews are deemed necessary, the Controller will contact the vendor/vendors to give a presentation. This is an opportunity for both sides to clarify any issues that are not clear from the vendor/vendors proposal. Step 5 – Recommendation. The committee will make a written recommendation to the Board of Supervisors as to whom the contract should be awarded. The written recommendation will contain scores, as well as justification and rationale for the decision if necessary.
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