ADDENDUM NO. 2
CITY OF FREDERICK
111 Airport Drive East
Frederick, MD 21701
January 28, 2010
TO: All Potential Proposers
SUBJECT: RFP - # 10-H ACTUARIAL SERVICES
Please find attached addendum #2 and Submitted RFI’s and City Response
This addendum is made part of the Bidding Documents to the same extent as though it was
originally included therein. In the event of conflict with the original Contract Documents, the
Addendum shall govern all other contract documents to the extent specified. Subsequent
Addendum's shall govern over prior addenda only to the extent specified.
The Bidder shall be required to acknowledge receipt of the Informational Addendum by
signing the Addendum and including it with the Bid Proposal. Failure of a bidder to include a
signed Informational Addendum in its Bid Proposal shall deem its Bid non-responsive
provided, however, that the City may waive this requirement in its best interest. The City
will not be responsible for any other explanation or interpretation made verbally or in writing
by any other city representative.
We look forward to receiving your bids.
CITY OF FREDERICK
Kandi Fullerton, CPPB, Purchasing Manager
The City of Frederick
ACKNOWLEDGEMENT OF RECEIPT
The undersigned acknowledges that Addendum No.2 for RFP - # 10-H ACTUARIAL
SERVICES has been received by the undersigned and will be incorporated in all copies of
said Bid in the possession of the undersigned.
It is understood that all proposals submitted in response to this project will be presumed to be
based upon full knowledge of the contents of Addenda No.2.
Please sign and date this “Acknowledgement of Receipt” and return via
facsimile to The City of Frederick, Purchasing Department at (301)
600-3871, Attention: Ms. Kandi Fullerton.
RFI’s Received and City Response in red
Kenneth M. Pliszka
Harbridge Consulting Group, LLC (a BPAS Company)
One Lincoln Center, 12th floor, Syracuse, NY 13202
Toll Free: 1.866.401.5272 x 8987 | Direct: 315.703.8987 | Mobile: 203.232.2363
email@example.com | www.bpas.com
Wednesday, January 27, 2010 4:21 PM
Harbridge Consulting Group is interested in providing a quotation for the City’s actuarial
services and looks forward to submitting our proposal. At this point, we are in the midst of
our review and pricing of each service and have the following questions which will help us
finalize our proposal:
1· On the GASB 45 plan, you list three medical plan options (POS Low, POS High
and Open Access Plus) and indicate they are partially self funded and partially fully
funded. I assume that as an eligible retiree/surviving spouse I can elect any of these
three plans. Can you please confirm this? Correct. In addition, can you explain in
more detail how the plan is funded (i.e. self funded or fully insured).
City Response: Split funded minimum premium plan - The City pays
administrative fees and funds claims.
2· On the GASB 45, for both the medical and dental, can you please outline the
contribution requirements in more detail? The RFP is a bit confusing in that it
indicates the cost to the retiree may vary depending on their date of hire, but then
moves on to say the City pays the entire cost of the plan. And then once they reach
age 65, if they select the Medicare Advantage plan, they are required to pay
$30/month. Can they remain in another plan and not contribute anything? How, if
at all, do the contributions vary by date of hire? As this affects the complexity of
the valuation, I’m trying to understand the overall contribution schedule.
City Response: Currently, there is no requirement that employees/retirees who
become Medicare eligible (usually age 65) leave the City's group health/dental
Eligible Employees hired prior to July 1, 2003 who have 10 vesting years of
service are eligible for medical insurance. Current City policies state that
"premiums for these employees and their dependents shall be paid in full by the
Eligible Employees who are hired on or after July 1, 2003 AND who have 10
vesting years of service with the City are eligible for medical coverage. Current
City policy states that..."premiums for these employees and their depends may
involve a monthly cost share." NOTE: This group of retirees currently make 0%
contributions to the premiums for medical and dental coverage. The City still pays
100% of premiums for this population at this time.
Eligible Employees who are hired on or after July 1, 2005 AND who have 15
vest years of service with the City are eligible for medical (and dental) coverage.
Current City policy states that..."premiums for these employees and their dependents
may involve a monthly cost share." NOTE: This group of retirees (and their
dependents) currently make 0% contributions to the premiums for medical and
dental coverage. The City still pays 100% of premiums for this population at this
3· On the GASB 45, it appears some of the retirees, if retired prior to 7-1-03, receive a
$3,000 life plan. Is this the only retiree group that receives Life Insurance and is
this the only other OPEB benefit (and are there any other employees eligible for this
City’s Response: Only retirees hired prior to July 1, 2003 are eligible for the
retiree life insurance benefit of $3,000 at no cost to the retiree. Term Life Insurance
is not offered to any other
group of retirees.
4· On the GASB 45, can you please outline the eligibility requirements for the retiree
OPEB benefits and indicate how they may differ, by employee group?
City’s Response: Other Post-Employment Benefits including retiree medical,
dental, group term life are available to eligible retirees as specified above in bullet
#2. Eligible retirees may choose to stay in the City's Group Health Plan where their
premium costs are currently paid in full by the City for them and for eligible
dependents. Alternately, retirees who become Medicare eligible (usually age 65)
who have elected Medicare Parts A & B may choose to elect the Medicare
Advantage Plan. The current monthly premium cost is $30 per enrollee. If the
retiree reaches age 65 and s/he has a spouse and/or dependents not Medicare
eligible, then the spouse and/or dependents may remain in one of the City's group
health plans (currently at no cost to these individuals).
5· For the Medicare Part D plan, please indicate the number of Rx plans in place (or
are the ones outlined under each medical plan it?). Are all of those plans with the
same provider and funded on the same basis as the medical plans?
City’s Response: If the retriee chooses to stay in the City's group health insurance
coverage, each of the three plans (currently with Cigna) includes prescription
coverage. For those retirees (Medicare eligible) who elect the Medicare Advantage
Plan (currently Aetna), this plan also provides prescription coverage within the plan.
6· For the pension plans, I believe we understand them fine. We will provide 3
separate valuations for each plan. Please confirm this is the case.
City’s Response: One valuation for each of three plans