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Home My WebLink AboutRESPONSE - RFP - P748 ACTUARIAL PENSION CONSULTING SERVICES04/10/2000 10:47 3037620109 D R WHITNAH PAGE 01 3490 S, Cloyton Blvd., Englewood, CO 80110 Telephone: 303.918.4658 emaN: whitnoh(jPcompuserve.com WHITNRH CONSULTING, llC To: James a. O'Neill II, CPO Phone: 970-221-6775 Foxe 970-291.6707 Cc: 303.762.0109 Dote: 4/10/00 10,01 AM Number or pages includi Cover sheet. From: Proposal for Actuarial and Policy Review No. P-748 Please consider this proposal for actuarial services for the General Ei Ten originals and a sample actuarial report and benefit statement will Thank you for your time and consideration. F.S.A. 5 e Retirement Plan. by mail. 47 3037620109 D R WHITNAH PAGE 02 Actuarial Services 3490 S Software Development April 10, 2000 City of Fort Collins Purchasing Division 256 West Mountain Avenue Fort Collins, CO 80251 Subject: Proposal for Actuarial and Policy Review No. Dear Sir or Madam: Blvd., Englewood, CO 60110 Tel. 303.918,4658 Fox 303,762,0109 whltnah(a]compaserve.com Thank you for your inquiry about actuarial services for the Ger eral Employee Retirement Plan for the City of Fort Collins. I am pleased to present this proposal to serve as the Plan's actuary for the 2001 plan year, with posslb le renewal for up to five years. Introduction You may find this proposal unique among those you receive b cause I am an actuary in sole practice, i founded Whitnah Consulting LLC in 1994 aftE r eleven years of experience with major benefits consulting firms. Whitnah Consulting uc is a limited liability corporation registered in the state of Colorado, I rely on a network of actuaries, attorneys, communications specialists and others for support, referrals, peer review, and business planning. For this proposal, I have requested the peer review support of Mammel & Associz tes, a regional benefits consulting firm in Omaha, NE. This firm employs five consulting actuaries among a staff of 100 benefits professionals, and serves as actuary for niany municipal systems including the state-wide police retirement system for the state f Iowa. Proposal I have reviewed the detailed information in the Request for Proposal and I feel I understand the scope of the assignment. I have performed actuarial valuations and studies, consulted with retirement boards and city councils, prepared individual participant benefit statements, and developed benefit calculation programs for clients in the Rocky Mountain region for over 15 years. You would receive all services directly from me, although I wot Id obtain peer review from another actuary on all substantive advice. I look forward o the opportunity to meet the Committee and demonstrate my ability to make actu rial numbers valuable and meaningful as you make real decisions. Please consider the detailed proposal for the specific services Ito be provided, on the following page. 04/10/2000 10:47 3037620109 D R WHITNAH PAGE 03 City of Fort Collins April 10, 2000 Page 2 Detail of Proposed Bid Services Hours Fs* Meet with the Committee to establish 3 $450 process, report format, scope and assumptions Prepare actuarial valuation and report, 60+ 11,000 and obtain peer review Provide all GASB disclosures 3 450 Prepare Personal Retirement Planning 30 4,500 statements by March 31 Attend monthly meetings of the 36 5,400 Committee Provide personal computer software 45 6,750 capable of calculating benefit options Total 177+ $28,550 Of the services above, the actuarial valuation is the most defied in scope. Monthly meetings with the Committee are simply three hours per mon at an hourly rate of $150. The quote for benefit statements is based on a one -page sta ant in black ink on provided letterhead, including accrued and projected benefits m GERP only. Employers provide employees with a wide variety of information and formats, so this quote is subject to revision if the scope changes significantly. Similarly, benefit calculation programs differ significantly in sophistication and features. This proposed fee is to provide a Windows -based benefit talc lation program in Microsoft Office Professional (Excel and Access) en compas 11 g the following: • Keep a database of employee work history and compens ion (assumed from the requirement to update the program within 30 days of annual pay adjustments). • Calculate the employee's accrued pension benefit and opt onal forms of payment. • Provide a printed worksheet summarizing the calculation end showing all benefit options. Annual updates of the program for pay adjustments would cot $1,200. In addition, the request for proposal asks for ad hoc services i icluding special studies, working with City personnel to prepare reports for the Commi ee, and same -day questions about administration of the plan. Once the baseline valuation has been completed, fees for a study on a significant benefit revision would be around $3,000 including meeting with staff and presenting to the Committee. Maximum fees for studies or special reports would be agreed in advance. All additional consulting services would be provided at an hourly rate of $150, billed b the quarter-hour on a detailed invoice. WHITNHH CONSULTING «c 04/10/2000 10:47 3037620109 D R WHITNAH PAGE 04 City of Fort Collins April 10, 2000 Page 3 Resume Whitnah Consulting iLc was formed In 1994 to provide acts communications. In five years of operation, 1 have served funds, government agencies, non-profit associations, and firms. I am a sole practitioner, relying on a network of Indi support and peer review. I am a Fellow of the Society of Actuaries (1991, highest edw actuaries) and a member of the American Academy of ActuE policy and professional standards). I have been accredited I Treasury as an Enrolled Actuary since 1989, with continuing standing. Prior to establishing my own firm, I was a consulting actuary William M. Mercer, Inc. from 1986 to 1994. 1 led a team of a fifty clients including statewide pension systems for fire, poli( employees. My initial training as an actuarial analyst was at Group (formerly Bankers Life) and Watson Wyatt (formerly i References Actuarial valuations: Denver Police, actuarial valuations since 1995 Retirement Benefit Fund and Retiree Health Fund Captain Kelly Carpenter, committee chair Denver Police Protective Association 2105 Decatur Denver, CO 80211 303-433-8247 The Diocese of Colorado Springs, actuarial valuations in Salaried Pension Plan and Priest's Retirement Plan Robert G. Doerfier, Jr. Finance Officer Office of Pastoral Administration 29 West Kiowa Street Colorado Springs, CO 80903 (719) 636-2345 Benefit Statements: Exabyte Corporation, consolidated benefit statements since Patty Clemans 1685 31P Street Boulder, CO 303-442-4333 services and employee loyers, union retirement benefits consulting tent contractors for ional credential for is (since 1987, public the U.S_ Department of lucation in good th the Denver office of arial analysts serving and government ie Principal Financial Wyatt Company). .` WHITNRH CONSULTING uc 04/10/2000 10:47 3037620109 D R WHITNAH PAGE 05 City of Fort Collins April 10, 2000 Page 4 Data Requirements Your request for proposal recognizes the need for the consult! expert on the plan, able to respond to varied questions from a would request extensive background material in order to stud) history of the plan and become a valuable resource for you: 1. The current Plan document and prior documents or amenc provisions for the past five years. 2. A brief summary of the history of the plan, reflecting major provisions. 3. Employee booklets or other communications to employee; plan. 4. Any administrative manuals or forms used In administering 5. Minutes of the Committee reflecting any changes to the pL amendment. 6. Five years of actuarial reports 7. Five years of audited financial statements including incom balance sheets 8. An electronic file of the valuation census data from the prig accrued and projected benefits shown on the 2000 statem 9. An electronic file of the December 31, 2000 census of eml members with deferred benefits. A specific list of data regi after an initial review of the prior actuary's valuation and tt Virtually any file format for data is acceptable, from spreac text files. 10. Samples of retirement calculations showing calculation of determination of average pay. 11. Sample benefit statements. Thank you for the opportunity to submit this proposal to provic you have any questions, please do not hesitate to call. Sincerely, I / �+�.. Daniel R. Whltnah, F.S.A. Fellow of the Society of Actuaries Enclosures: Denver Police actuarial valuation Exabyte consolidated benefit statement ig actuary to become an Depth of background. I the operation and reflecting the plan changes in plan about provisions of the the plan. n still pending formal statements and actuary, including iyees, retirees, and ad would be prepared plan documents. Teets or databases to forms and actuarial services. If WHITNRH CONSULTING uc