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Home My WebLink AboutAddenda - RFP - P943 PENSION SERVICES POUDRE FIRE AUTHORITYADDENDUM No. 1 SPECIFICATIONS AND CONTRACT DOCUMENTS Description of Bid: P943 Pension Provider for Poudre Fire Authority OPENING DATE: 2:00 P.M. June 30, 2004 Questions and Answers 1. Under the Investments section of "Statement of Plan Services", Item #3, you ask that we price the plan to "assume the final line up will look as close to the current line up as possible". Since we will require some level of proprietary investment revenue to bid on this plan, could you provide any more guidance for us here? Poudre Fire may want to keep as many funds as possible. If you require some degree of proprietary funds, you may make recommendations as to which funds would have to be replaced if you were selected. Having said that, please note that investment flexibility is a key area the board is looking for in selecting a vendor. 2. Could you provide us the ticker symbols for all current funds, so we may determine the level of revenue sharing these funds provide, if any. Specifically, we are curious about the Pridex Account, Core Equity Account and MIDCAP Account. The PRIDEX, Core Equity and MIDCAP Account are separate accounts run by Prudential. The winning vendor is not expected to keep these accounts and they could be rolled into existing funds or other mutual funds. 3. Are there any surrender charges or asset based fees associated with mapping over the Guaranteed Interest Account? 20 4. Under the "Recordkeeping" section of the RFP, Question 3, you ask us to review Poudre Fire Authority's current payroll and indicative file layouts. Could we get a copy of these to review, as they do not seem to be on the website? The FILE LAYOUT FOR Prudential is attached. The successful vendor would be responsible to pay up to $2,000 for any changes needed to work with their systems. 215 North Mason Street • 2°'' Floor • I'.O. Box 580 * Fort Collins, CO 80522-0580 • (970) 221-6775 • Fax (970) 221-6707 www.fcgov.com P943 Addendum 1: Questions and Answers (cont.) i a s }':Mall •PCMAt� TWOWMALB, ferft Invowmnts ,.., Semmon PA Gonftuftns7„ q Am 10 P943 Addendum 1: Questions and Answers (cont.) Poudre YaNey Ocliv P,roteciim Plan : W6771 ... - _ y. ,! ♦. 'e r `..y 1�l ,1 le='.i♦ • . t= !„ ..11'_a • er,. _ y1, i�_ Y 1..! CI!' •.ir ! i.. / ! tr#' ♦ i= fs..f>_k !- 1.t'1 L I(=< ♦• 1• MOM w r A 1-3 9(3) TP-ANSACMN ss 4-6 ., SEQUENCE•c16-23 9(g) PARMCFAW ID X(12) XM X q(Tv" X(2) x Q(T) x(12) SO) X(S) X(30) t • � 11 P943 Addendum 1: Questions and Answers (cont.) " i f8:.' � ir't lr- .;.. >y �".y • " � I5 ..ar�ly ...� • :i:.. � r'. e 1 '_ xf it ii r A '- dr. y -• <i e. a .� t is ' ,y a Sl # .a R. • ^. �� {t Y �� i i... . y • if 1e.; f a. .l;t b '.yeY E €.. • rs a- i6-�11_ a+'. tog -aR •I. WII .i 1 { 1 Yk' i .. 1. 9 - • `. 9 IF'_" 1.. •'. �i1 0 �. l i 1 f, .-d' e. _ 'A '��. �.".f � � a .r PM.41..14 ..: • i � �f i 'A # �' 1 ♦ � iR icy. • { y-., Y •�(•., ,#i w f .,.:4 9f tifi- Sr ,Y _4 :Y iS it i<' Y:.I ♦Y 4Y I 12 P943 Addendum 1: Questions and Answers (cont.) ascn (iXt +ten or spa* % Wh*, d ('.prn) RMe stibrrAt ft using 3 V2 hwh diskWo- TMs N • y a{ POBox 06 Vftes-Owrs, PA i W •' R - .. 9 f' LAZTEXT-721xim . PnxWv4l*l InvesbMnts 30 Scrantm 014ft Pa* Swenton. ., o ; ProoeWrtg A] RECEIPT OF THIS ADDENDUM MUST BE ACKNOWLEDGED BY A WRITTEN STATEMENT ENCLOSED WITH THE BID/QUOTE STATING THAT THIS ADDENDUM HAS BEEN RECEIVED. 13 P943 Addendum 1: Questions and Answers (cont.) 5. What is the projected conversion date? January 1, 2005 6. What are the gross contributions, split between the New Hire and Old Hire 401(a) plans? What have the annual distributions been, split for the New Hire and Old Hire 401(a) plans (for each year over the last 3 calendar years)? Contributions New Hire 2003 - $1,371,159.37 Contributions Old Hire 2003 - $243,790.38 Distributions: New Hire 2003 - $40,547.31 Old Hire 2003 - $1,064,229.24 New Hire 2002 - $3,864.79 Old Hire 2002 - $458,207.03 New Hire 2001 - $573,982.92 Old Hire 2001 - $538,425.62 7. Are the 401(a) plan assets with Prudential subject to Contingent Deferred Sales Charges (CDSC's)? If yes, what is the approximate sales charge that would be imposed? No. 8. Is the Prudential Guaranteed Interest Account investment in the New Hire and Old Hire plans subject to Market Value Adjustments (MVA's)? If yes, what are the approximate MVA's that would be imposed on each of the plans? Yes, but there is no market value adjustment at the current rates or assuming a 0.50% or 1.00% increase. 9. Are there any other potential restrictions on the New Hire and Old Hire 401(a) plan's assets that could prevent the plan's from a free transfer of assets to a new plan provider? No. 2 P943 Addendum 1: Questions and Answers (cont.) 10. What is the current rate of return being paid on the Prudential GIA investment option? Are the Prudential GIA rates blended, or is there a new current money (deposit) rate and an old money (pooled) rate? If there is an old money rate, what is the rate being paid on it? The effective annual rate of interest guaranteed to be credited to amounts deposited in the Guaranteed Interest Account during the second quarter of 2004, which ends June 30, 2004, is 3.00%. 11. Would you like us to make any alternative fund suggestions or should we just stick with the current fund line up offered through Prudential? No. At this point we would like you to stick to the current fund lineup. 12. Can you identify any problems that Poudre Fire Authority is having with their current plan or vendor that they are trying to resolve with this RFP or is this part of the normal bid cycle? They are interested in looking at what other services are available in the market place as well as what cost savings opportunities they may be able to take advantage of. 13. What is the current plan pricing? Are there currently any revenue sharing arrangements in place? Prudential shares back with the plan $7,500 annually for other plan expenses. It is expected that this number would increase significantly for a winning bidder. 14. What is the current cost for loan set up and annual maintenance? No cost. 15. Can you explain the current service structure? a. Number of Field Reps assigned to the plan One financial advisor located in Denver. b. Are the Field Reps full time, on -site and dedicated to only this plan? No c. Are the Field Reps local or from out of town? Out of town 3 P943 Addendum 1: Questions and Answers (cont.) d. How many individual meetings were conducted in the last 12 months? Individual meetings conducted between Prudential and individuals when requested, often employer is not notified, therefore do not know. e. How many group meetings were conducted in the last 12 months? Currently 1 to 2 Prudential Representatives from out-of-state attend 4 annual Boards of Trustees meetings. Education and orientation provided to all new hires. Printed material provided by Prudential when new investment options presented or when investment line up altered. No group meetings in the last 12 months, none were requested. 16. Would it be possible to see a copy of the current printed marketing materials and participant communication materials so that we can be sure to offer something comparable? PFA is interested in reviewing marketing materials and participant communication materials of each vendor. The Authority will assess and compare these materials during the evaluation phase of the RFP process. The Authority does not expect vendors to provide anything comparable, nor expect a critique of existing provider's materials. 17. Does Poudre Fire Authority currently offer a participant level investment advice service or network of CFP's? If so, who provides these services? Prudential offers individual investment advice through an advisor located in Denver. 18. Does Poudre Fire Authority currently off a self directed brokerage account to participants? If so, who provides this service? No. Prudential can provide this option, and it may be an option that plan participants may want to consider in the future. 19. Do you have specific service/performance guarantee amounts and criteria that you would like us to build into our proposal? Not at this time. This will be part of the contract negotiation process. 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