KENT COUNTY LEVY COURT
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KENT COUNTY LEVY COURT KENT COUNTY LEVY COURT Document Transcript

  • KENT COUNTY LEVY COURT REQUEST FOR PROPOSALS: ACTUARIAL CONSULTING SERVICES AUGUST 15, 2008 Prepared By: KENT COUNTY LEVY COURT PERSONNEL OFFICE 555 BAY ROAD DOVER, DELAWARE 19901 (302) 744-2310 www.co.kent.de.us TABLE OF CONTENTS I. INTRODUCTION
  • Kent County Levy Court Actuarial Consulting Services RFP Page 2 A. Purpose B. Background II. SCOPE OF SERVICES A. Specified Services III. TECHNICAL PROPOSAL AND FORMAT A. Basic Information B. Financial Condition C. Personnel Assigned D. Actuarial Experience E. Project Timetable F. Proposal Structure G. Insurance IV. COST PROPOSAL AND FORMAT V. GENERAL INFORMATION AND INSTRUCTIONS FOR BIDDING A. Issuing Office B. Scope of Engagement C. Addendum to RFP D. Cost of Preparing Proposal E. Submissions of Proposals F. Independent Price Determination G. Preparation H. Errors in Proposal Preparations I. Evaluations of Proposals J. Appearance Before KCLC K. Awards L. Payments M. Political Involvement N. Availability for Questions VI. EXHIBITS A. Cost Proposal Form B. Kent County Retirement Program ordinance C. Kent County Retiree Benefits Program ordinance D. Kent County Health Care Premium historical data table E. January 1, 2007 actuarial valuations SECTION I: INTRODUCTION A. Purpose The purpose of this Request for Proposal ("RFP") is to procure professional actuarial and administrative services to assist the Kent County Levy Court ("KCLC") in administration of its Employees Retirement Program ("PLAN") and Retiree
  • Kent County Levy Court Actuarial Consulting Services RFP Page 3 Benefits Program (“RETIREE BENEFITS”). If you offer plan design services you may include information on those services as an optional service. B. Background Kent County Levy Court (KCLC) is the governing body for one of the three counties comprising the State of Delaware. Kent County is centrally located and is home of the State capital -Dover, which is also the county seat. The current population is estimated to be 155,000. The PLAN is classified as a Defined Benefit Plan. Participation in the PLAN is mandatory for eligible employees. Employee contributions into the PLAN are not permitted. The PLAN as of July 1, 2008, consisted of 536 total participants. The distribution breakdown includes 300 active (presently employed) participants, 138 retired participants, 98 deferred, vested participants, and no disabled. The actuarial present value of future benefits as of January 1, 2006 was approximately $19,745,000 and the June 30, 2008 market value was $22,686,329. The plan year for the PLAN is a consecutive twelve month period beginning July 1 and ending June 30. All actuarial accounting and valuation analysis is based according to the calendar year. The RETIREE BENEFITS program was established by ordinance in 2006 to fund future medical benefits for retirees in compliance with GASB 45. The program has approximately $8,391,500 invested with the Delaware Local Government OPEB Pool through the Delaware State Pension Office. Although funds to achieve GASB 45 compliance were first set aside in 2001 (with annual contributions since then), KCLC has not yet begun to pay any costs associated with retiree health care benefits from the fund and does not expect to until July 1, 2009, at the earliest. As of July 1, 2008, retiree health care benefits, including a Medicare supplement, are paid from the general fund and totals about $377,500 annually for 75 retirees plus 14 spouses. The projected liability of future benefits as of January 1, 2006 was approximately $11,500,000. The plan year for the program is a consecutive twelve month period beginning July 1 and ending June 30. All actuarial accounting and valuation analysis is based according to the calendar year. Section II. SCOPE OF SERVICES A. Specified Services The Actuarial Consultant will be expected to provide the following applicable services separately for each program (plan & retiree benefits): 1. Verification of appropriate KCLC contribution levels for current and previous plan year; 2. Develop and submit by March 1, 2009 Budgets (Recommended Contribution) for next two (2) plan years based on information provided by KC LC and then
  • Kent County Levy Court Actuarial Consulting Services RFP Page 4 every two years; 3. Develop analysis to determine if any unfunded actuarial accrued liability exists in the PLAN; 4 Develop PLAN participant data; 5. Prepare individual pension certifications for terminating or retiring employees using a form/format acceptable to KCLC; 6. Respond to audit inquiries as directed by KCLC; 7. Advise KCLC concerning Federal, State or other regulatory compliance issues; 8. Keep KCLC abreast of Actuarial and Pension Benefit design trends and options; 9. Maintain an active role in assuring the PLAN is running efficiently; 10. Participate, as requested, in informational meeting with KCLC employees to discuss or promote the PLAN; (ie, plan amendments or changes) 11. Develop additional reports related to the PLAN, as requested, for the KCLC; (ie, COLAs, EROs PLAN Design or PLAN Amendments); and At option of KCLC: 12. Prepare individual employee benefit statements biennially for all active participants in the PLAN using a form/format acceptable to KCLC. 13. Prepare an ERISA compliant Pension Plan information handbook for County employees using a form/format acceptable to and reproducible by KCLC. 14. Prepare a Retiree Benefits Plan information handbook for County employees using a form format acceptable to and duplicable by KCLC. SECTION III. TECHNICAL PROPOSAL AND FORMAT All proposals shall respond to all questions and requirements listed in this RFP. A. Basic Information 1. State the name of your firm, address, telephone and telefax numbers and
  • Kent County Levy Court Actuarial Consulting Services RFP Page 5 the name and title of the person with electronic mail address who will serve as the KCLC's key contact with your firm with respect to your proposal. 2. Provide a general description of the firm, including size, number of employees, primary business (consulting, pension planning, insurance, etc.), other business or services, type of organization (franchise, corporation, partnership, etc.), and other descriptive material. 3. Provide a description of computer equipment and a statement of ownership and location of equipment which will be utilized in the performance of the contract. B. Financial Condition 1. Has your firm experienced any significant financial difficulties or other problems which could negatively affect its ability to carry out its duties and responsibilities to KCLC? If yes, please specifically identify the problem(s) and discuss why such problems should be disregarded. 2. Are there any pending or threatened investigations, litigation or pending litigation by the United States Securities and Exchange Commission, other Federal Agency, or any other regulatory body or court (local, state or federal) or other state agencies regarding the conduct or business conduct of your firm or its management. Could any of these directly or indirectly affect your role as actuarial consultant to the KCLC as described in this RFP? Have there been any such investigations or litigation or threats thereof within the past three years? If so, describe thoroughly. 3. Assess your firm's future commitment in the retirement/benefit field. Does you firm have any pending plans that will affect the commitment of resources to the KCLC? 4. Provide a copy of your firm's most recent annual report including the audited financial statements. C. Personnel Assigned 1. Identify the partner/senior manager of your firm who will serve as project manager/client representative for this engagement, ie. the person who will have the direct reporting and administrative responsibility to the KCLC. Please indicate the status of this individual within your organization and his/her professional background and experience. Provide other relevant information regarding this individual. Furnish current references including names, titles, affiliations and telephone numbers of clients with whom this individual has had senior management responsibility. 2. Provide name, title, and professional qualifications for all associates and other personnel who will be involved with the engagement.
  • Kent County Levy Court Actuarial Consulting Services RFP Page 6 3. Describe your organizational approach to this engagement; utilize if appropriate, an organizational table. Explain how the various professionals and staff will be organized and managed. D. Actuarial Experience 1. Describe your firm's actuarial experience gained over the last three years. Highlight those engagements which involved Delaware and nearby entities. 2. Provide a list of public employee retirement systems for which the firm currently provides actuarial consulting services (included in the services performed must be the review of the System's actuarial assumptions and resulting recommendations), including the System name, approximate number of participants and number of years the firm has been retained. 3. Attach samples of Research and Legislative Bulletins or similar publications provided to clients and interested parties on a routine basis. 4. Attach sample(s) of actuarial valuation report, individual pension certificate, annual individual employee benefit statement, and similar type reports. E. Project Timetable Submit a detailed project timetable setting forth a suggested commencement date and completion date for the project. The successful firm must be prepared to undertake commencement of the project immediately upon award of contract. All work is targeted to be completed and the final report submitted to KCLC by March 1, 2009, so estimated costs may be considered for inclusion during the annual budgeting process. F. Proposal Structure Proposals are limited to 24 double sided pages, excluding cover letters and appendices. Proposals should not contain extraneous promotional materials. Proposals will be evaluated on the basis of information presented by the interested consulting firm and evaluation criteria listed in this RFP. G. Insurance The Consultant shall be responsible for maintaining during the length of the contract the following types of insurance with minimum acceptable limits as set forth below: TYPE LIMITS OF LIABILITY Workers Compensation Statutory
  • Kent County Levy Court Actuarial Consulting Services RFP Page 7 Employers Liability $100,000 Each Acc. , Bodily Injury $100,000 Each employee, Disease $500,000 Policy Limit, Disease Commercial General Liability $1,000,000 Each Occurrence Limit $1,000,000 General Aggregate Limit Business Auto Liability $1,000,000 Each Accident Errors & Omissions $1,000,000 Each Occurrence $1,000,000 Aggregate The Consultant shall supply a certificate of insurance evidencing such required insurance coverage prior to commencement of contract. SECTION IV: COST PROPOSAL AND FORMAT The cost information shall be provided in a tabular format in a flat fee or time and materials basis as provided in Exhibit A. Failure to provide all cost information and in the order specified may result in the rejection of the proposal. SECTION V: GENERAL INFORMATION AND INSTRUCTIONS FOR SUBMISSIONS A. Issuing Office This request for proposals is being issued by the Personnel Office in conjunction with the County Administrator and Finance Department of Kent County Levy Court. Unless otherwise specified, the KCLC Personnel Office is the sole point of contact for the purposes of the RFP and subsequent responses will be in writing. B. Scope of Engagement KCLC is requesting proposals to provide professional actuarial services for a three (3) year period with possible extension for an additional three (3) years at the option of KCLC. C. Addendum to RFP The KCLC reserves the right to amend the RFP prior to the due date of responses. If it becomes necessary to revise any part of the RFP, an addendum shall be provided to all respondents who have been sent a copy of this RFP. All respondents shall include acknowledgment of all addenda as part of this proposal. Failure to acknowledge addenda may be grounds for disqualification of the proposal. D. Cost of Preparing Proposal
  • Kent County Levy Court Actuarial Consulting Services RFP Page 8 The cost of developing and submitting the proposal is entirely the responsibility of the responding firm and shall not be recovered as part of the Cost Proposal. This includes costs to determine the nature of this engagement, preparation of proposal, submission of proposal, negotiation for the contract, and all other costs associated with this RFP and responses thereto. All responses will become the property of the KCLC and may be a matter of public record subsequent to award of the contract or rejection of all proposals. E. Submissions of proposals Five (5) copies of each respondent's proposal(s) shall be submitted in a sealed package marked AACTUARIAL SERVICES PROPOSAL@ to Allan Kujala, Personnel Director, Room 213, Kent County Levy Court, 555 Bay Road, Dover, DE 19901 no later than 4:00 p.m., prevailing time, on Friday, September 26, 2008. and One (1) electronic copy of each respondent's proposal(s) is requested to be submitted and referenced as AACTUARIAL SERVICES PROPOSAL@ to allan.kujala@co.kent.de.us no later than 4:00 p.m., prevailing time, on Friday, September 26, 2008. All submitted proposals become the property of KCLC as public documents and are available for review by the public as provided by Law. F. Independent Price Determination A proposal will not be considered for award if the fees were not arrived at independently and without collusion, communication or agreement as to any matter related to such prices with any other vendor, competitor or public officer. The vendor must include a certified statement in the proposal transmittal letter certifying that the price was arrived at without any conflict of interest. G. Preparation Responses should provide a straightforward, concise description of respondent's capabilities to satisfy the requirements of this RFP. Emphasis should be on completeness and clarity of content. Repetition of the terms and conditions of the RFP, without additional explanation, will not be considered sufficiently responsive. H. Errors in Proposal Preparation The KCLC has the right to rely on any price quotes provided by respondents. The respondents may be responsible for any mathematical error or incorrect extension of any calculations leading to the respondent's price quotes. The KCLC reserves the right to reject
  • Kent County Levy Court Actuarial Consulting Services RFP Page 9 proposals which contain errors. I. Evaluation of Proposals All proposals submitted in response to the RFP will be evaluated by the KCLC, with consideration focused toward, but not limited to, the following: 1. Respondent’s qualifications and experience to provide the required service as defined in Section II – Scope of Services of the RFP. 2. Personnel qualifications to provide the required services as defined in the RFP. 3. Cost of services, including projected hours for each project specified in the proposal. 4. Respondent's understanding of the KCLC's PLAN and RETIREE BENEFITS. 5. Compliance with the terms, conditions and other provisions of the RFP. 6. Adequacy and completeness of the proposal with regard to the information specified in the RFP. J. Appearance Before KCLC Committee Any or all respondents may be required to appear before one or more KCLC Committee(s) to explain the respondent's understanding and approach to the project and/or respond to any questions in regard to the proposal submitted. The project manager shall make any requested oral presentations before the KCLC Committee(s). K. Awards Awards will be made by the Kent County Levy Court consistent with 29 Del. C. '6924 and based upon the best potential interest of Kent County. The KCLC reserves the right to reject any or all responses to the RFP, for whatever reason deemed by it to be appropriate, and shall not be obligated to return any material in connection with this request. A satisfactory contract of agreement must be fully negotiated and executed by the successful respondent and presented for execution by KCLC within 60 days of award. If a satisfactory agreement cannot be reached in a timely manner, KCLC reserves the right to negotiate an agreement with another respondent. The KCLC further reserves the right to seek “a best and final” offer from any or all of the respondents before making an award.
  • Kent County Levy Court Actuarial Consulting Services RFP Page 10 L. Payments Payments to successful respondent(s) shall be contingent upon negotiation of fees and acceptance of the proposal and will be made in accordance with mutually agreeable terms by the KCLC. Invoices must contain sufficient details to meet KCLC Finance Department performance verification standards. M. Political Involvement As this RFP has established specific criteria for evaluation of all proposals, respondents and their representatives may not contact elected officials directly or indirectly to lobby or otherwise secure undue support for a specific or general proposal(s) submitted. If such activity occurs, the proposal will be disqualified from further consideration. N. Availability for Questions Personnel Director Allan Kujala is generally available to answer relevant RFP related questions during normal business hours via telephone (302) 744-2311 or electronic mail allan.kujala@co.kent.de.us , but will be out-of-town and unavailable to answer any questions from Wednesday, September 10 through Thursday, September 25, 2008. Please be advised that questions and informational requests must be submitted well in advance of Friday, September 5, 2008 in order to receive a timely response. NOTE: This RFP and some exhibits are available in electronic format upon request. Submit request by calling (302) 744-2310 during regular business hours or e-mail your request to personnel@co.kent.de.us. Please provide correct e-mail address to insure proper delivery. KCLC EXHIBIT AA@ ACTUARIAL CONSULTING SERVICES COST PROPOSAL FIRM NAME __________________________________________ DATE ________________ Item A Pension Fund Actuarial Valuation Report:* Individual Hours Rate Total 1. 2. 3. 4. 5.
  • Kent County Levy Court Actuarial Consulting Services RFP Page 11 TOTAL ITEM A $___________ *Proposal should reflect cost for 15 copies of final report and any draft(s) in format acceptable to KCLC. Item B Individual Pension Certificate:** Individual Hours Rate Total 1. 2. 3. 4. 5. TOTAL ITEM B $ __________ **Proposal should reflect cost for ONE (1) pension certificate in format acceptable to KCLC. Item C Miscellaneous Charges (List) 1. 2. 3. TOTAL ITEM C _____ $ ____________ FIRM NAME _________________________________________DATE _________________ Item D Retiree Benefits Actuarial Valuation Report#: Individual Hours Rate Total 1. 2. 3. 4. 5. TOTAL ITEM F $_____________ #Proposal should reflect cost for 15 copies of final report and any draft(s) in a format acceptable to KCLC. Item E Additional Services (COLA's, ERO's PLAN Design or PLAN Amendment):
  • Kent County Levy Court Actuarial Consulting Services RFP Page 12 Overall Billable Rate $______________ Minimum Number of Hours ___________ (if applicable) Item F Individual Pension Benefit Statements: (At option of KCLC) *** Individual Hours Rate Total or Flat Rate 1. 2. 3. 4. 5. TOTAL ITEM E $___________ *** Proposal should reflect cost for benefit statements in a form format acceptable to KCLC. Item G Pension/Retiree Benefits Handbooks:(At option of KCLC)## TOTAL ITEM G1 (pension handbook) $ _____________ TOTAL ITEM G2 (benefits handbook) $ _____________ ##Proposal should reflect cost for 1 master copy each for duplication in an acceptable format.