HomeMy WebLinkAboutRFP - 7135 ACTUARIAL SERVICES AND POLICY REVIEW GENERAL EMPLOYEES RETIREMENT PLANC'+"
Financial Services
{• r O�
Purchasing Division
215 N. Mason St. 2n° Floor
F6rt
Collins
Box 580
Fort
Fort Collins, CO 80522
970.221.6775
Purchasing
970.221.6707
fcgov. com/purchasing
REQUEST FOR PROPOSAL
7135 ACTUARIAL SERVICES AND POLICY REVIEW
GENERAL EMPLOYEES' RETIREMENT PLAN (GERP or the "PLAN")
The General Employees' Retirement Committee ("GERC" or the "Committee") of the City of Fort
Collins is requesting proposals from qualified actuarial consultants to perform annual GERP
actuarial studies for a five-year period. The attached Scope of Work defines the background
and needs for the Committee.
Written proposals, eight (8) will be received at the City of Fort Collins' Purchasing Division, 215
North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals will be received before
3:00 p.m. (our clock), May 3, 2010. Proposal No. 7135. If delivered, they are to be sent to 215
North Mason Street, 2nd Floor, Fort Collins, Colorado 80524. If mailed, the address is P.O. Box
580, Fort Collins, 80522-0580.
Questions concerning the scope of the project should be directed to Director of Finance, Chuck
Seest, (970) 221-6795.
Questions regarding bid submittal or process should be directed to
James B. O'Neill, II, CPPO, FNIGP (970) (970)221-6779.
A copy of the Proposal may be obtained as follows:
1. Download the Proposal/Bid from the BuySpeed Webpage,
www.fcgov.com/eprocurement
2. Come by Purchasing at 215 North Mason St., 2nd floor, Fort Collins, and request
.a copy of the Bid.
The City of Fort Collins is subject to public information laws, which permit access to most
records and documents. Proprietary information in your response must be clearly identified and
will be protected to the extent legally permissible. Proposals may not be marked 'Proprietary' in
their entirety. Information considered proprietary is limited to material treated as confidential in
the normal conduct of business, trade secrets, discount information, and individual product or
service pricing. Summary price information may not be designated as proprietary as such
information may be carried forward into other public documents. All provisions of any contract
resulting from this request for proposal will be public information.
Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall have
a financial interest in the sale to the City of any real or personal property, equipment, material,
supplies or services where such officer or employee exercises directly or indirectly any decision -
making authority concerning such sale or any supervisory authority over the services to be
rendered. This rule also applies to subcontracts with the City. Soliciting or accepting any. gift,
gratuity favor, entertainment, kickback or any items of monetary value from any person who has
or is seeking to do business with the City of Fort Collins is prohibited.
IF YOU HAVE A SHORTFALL
If you have a shortfall at the age you would like to retire, you may choose to contact.a financial planner.
You may want to take the actions listed below to reduce a projected shortfall_ Contact kluman Resources for
information about 41 and 42.
1. Increase your contribution to the 457 Deferred Compensation Plan or your personal savings.
2. Reallocate your investments in the 457 Deferred Compensation Plan, the 401(a) Money Purchase Plan,
and/or personal savings (see page 4 for ICIviA RC fiend comparison).
3. Retire ata, later age or work part-time after retirement.
ASSUMPTIONS USED FOR PROJECTED FIGURES ON GRAPH (SEE PAGE 1)
Return on -Investments - The assumed annual return on the assets you have invested in the City of Fort Collins
457 Deferred Compensation and the 401(a) Money Purchase Plans is based on the following data:
Type of Investment
Allocation of Your Current
Contributions
Market -Based
I Expectations
Equities
50%
Refer to your ICMA RC
i
6.0% per year
Statement (Quarterly
Fixed Income and Cash
50%
Financial Report) for your
3.0"/o per year
fund allocations
Total
100%
These projections estimate your long-term annual return will be about 6% per year.
Social Security - if you were to continue working and were to retire at age 65, your monthly Social Security
benefit is estimated to be $1,000, based on your estimated Social Security contributions. This assumes that the
current law remains in effect unchanged until your retirement. Under the current law, unreduced benefits are
payable if you retire at age 67,
GERP Benefits - The GERP benefit is calculated based on the employee's life only. Optional forms of
payment with benefits for a spouse or beneficary will reduce the amount of the payment. The increases in
GERP benefits are due to increases in the number of years of service with the City.
Inflation - These projections assume inflation will be 2.5% per year. This is consistent with historical levels.
GERP BENEFITS (ASSUMING NO FUTURE SALARY INCREASES)
Age 65 Retirement Benefit- Your monthly benefit at age 65 is estimated to be $1,500, which you would
receive for the rest of your life. This benefit estimate assumes your FTE status at December 31, 2009 and
annual pay rate as of January, 2010 remain the same through age 65, and that you choose a benefit payable for
your life only.
If you retire at 55, your benefit would be $750.
Earned Benefits Based on Current Vesting Status - You have earned an approximate monthly benefit of
$800 based on 100% vesting for 10.00 years of credited service as of December 31, 2009. This amount is
calculated using pay you received and your years of credited service. It is the benefit you could receive at age
65 if you were to leave City employment now and elect a benefit payable for your life only.
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SOURCES OF RETIREMENT INCOME
Social Security - The current Social Security system allows you to begin receiving reduced benefits
at age 62. Social Security benefits are adjusted annually for changes in cost of living. For an estimate
of your Social Security benefit using your personal earnings history (which may include other previous
employment contributions), you can call the Social Security Administration at 1-800-772-1213 or visit
their website at www.ssa.gov to request a statement.
Employer -Provided Benefits -
A. The General Employees' Retirement Plan provides unreduced retirement benefits at normal
retirement age of 65. This is based on a formula using years of Credited Service x 1.5% x Final
Average Monthly Compensation (the 60 consecutive calendar months out of the last 10 years of your
eligible employment with the City. that produced the highest average). Reduced retirement benefits
may begin as early as age 55. Optional forms of payment and benefits for a spouse or beneficiary
will reduce the amount of payment.
B. The 457 Deferred Compensation Plan offers you the ability to save and invest income on a pre-
tax basis. This means that you do not pay federal or state taxes on any contributions to this plan
until the money is withdrawn at a later date. You may voluntarily contribute to the 457 Deferred
Compensation Plan. If you are not participating in the_401(a) Money. Purchase Plan, you maybe
eligible for a matching contribution to the 457 DCP of up to 3% from the City. The maximum
deferral to a 457 Deferred Compensation Plan is either 100% of includible compensation or $14,000
(effective January 1, 2005) per year, whichever is less. Plan benefits are based on the total amount
of money in your account at retirement.
C. The 401(a) Money Purchase Plan also offers you the ability to save and invest income on a pre-
tax basis. If you participate in the 401(a) Money Purchase Plan, both your contribution and the
City's contribution area fixed percentage of your salary. This cannot be changed. Planbenefits are
based on the total amount of money in your account at retirement.
Other - You may have other sources of retirement income, such as an Individual Retirement Account,
personal savings or investments, and/or benefits payable by a prior employer. These other sources are
not included in this Personal Retirement Planning Statement projection. Note: this statement does not
take into account any Domestic Relations Order.
Questions? Call Human Resources at (970) 221-6562
The projected benefits shown on this statement are only estimates and are not guarantees. You may
want to consult your personal f riancial advisor regarding these projections. If there is any inconsistency
between this statement and the Plans, the Plan documents will govern.
Page 3
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PLANNING YOUR ICMA RETIREMENT CORPORATION (RC) INVESTMENT STRATEGY
The ICMA-Retirement Corporation offers a broad range of funds specifically designed for public sector 401(a)
money purchase and 457 deferred compensation plans. Most investment professionals agree that allocating your
assets among several funds provides you with greater diversity, enhanced stability, and improved long-term returns.
For more complete information on these funds, see the ICMA Retirement Corporation's Retirement Investment
Guides available from the Human Resources Department.
For more information on your ICMA RC fund, call 1-800-669-7400, or visit the ICMA RC web site at
www.icmarc.orQ.
Fund Name
Degree of Market Risk*
Morningstar Rating
Equity Funds
Equity Income
Moderate
* +r k
Growth & Income
Average
Growth
Above average
Aggressive Opportunities
Significant
* #
International
Significant
N/A
500 Stock Index
Moderate
Broad Market Index
Moderate to above average
Mid/Small Company Index
Significant
Overseas Equity Index
Significant
Lord Abbett Large Company Value
Moderate
American Century Value
Moderate
Calvert Social Investment
Moderate to above average
Fidelity Contrafund
Moderate to above average
Fidelity Magellan
Moderate to above average
Gabelli Value
Moderate.to above average
MFS Large Company Growth
Moderate to above average
American Century Ultra
Significant
T. Rowe Price Small Cap Stock
Above Average
T. Rowe Price Small Cap Value
Above Average
* * * x
Invesco Small Company Growth
Significant
Balanced
Asset Allocation
Moderate
Funds
Fidelity Puritan
Moderate
Fixed Income
Money Market
Low
N/A
Funds
U.S. Government Securities
Low to moderate; subject to
changes in interest rates
Core Bond Index
Moderate; subject to
changes in interest rates
Pimco Total Return
Moderate; subject to
changes in interest rates
Pimco High Yield
Above Average
#
Cash Funds
PLUS
Low; principal backed by
companies issuing contracts
N/A
` ICMA uses historical asset class volatility to determine degree of market risk; and within each asset class the 3-vear standard deviation
is used to develop a risk order. After the risk order is calculated, based on asset class and standard deviation, the descriptive historical
volatility words are slotted into the ranking system: Low, Moderate, Average, Above Average, and Significant. Note that volatility
changes over time.
Page 4
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PROFESSIONAL SERVICES AGREEMENT
WORK ORDER TYPE
THIS AGREEMENT made and entered into the day and year set forth below by and
between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter
referred to as the "City" and
WITNESSETH:
, hereinafter referred to as "Professional".
In consideration of the mutual covenants and obligations herein expressed, it is agreed
by and between the parties hereto as follows:
1. Scope of Services. The Professional agrees to provide services in accordance
with any project Work Orders for , issued by the City. A blank sample of a work order is
attached hereto as Exhibit "A", consisting of ( ) pages and is incorporated herein by
this reference. The City reserves the right to independently bid any project rather than issuing a
Work Order to the Professional for the same pursuant to this Agreement.
2. The Work Schedule. The services to be performed pursuant to this Agreement
shall be performed in accordance with the Work Schedule stated on each Work Order.
3. Time of Commencement and Completion of Services. The services to be
performed pursuant to this Agreement shall be initiated as specified on each Work Order. Time
is of the essence. Any extensions of any time limit must be agreed upon in writing by the
parties hereto.
4. Contract Period. [Option. 1] This Agreement shall commence , 200 ,
and shall continue in full force and effect until , 200 , unless sooner terminated as
herein provided. In addition, at the option of the City, the Agreement may be extended for
additional one year periods not to exceed ( ) additional one year periods. Renewals
and pricing changes shall be negotiated by and agreed to by both parties. The Denver Boulder
Greeley CPIU published by the Colorado State Planning and Budget Office will be
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used as a guide. Written notice of renewal shall be provided to the Professional and mailed no
later than ninety (90) days prior to contract end.
5. Early Termination by City/Notice. Notwithstanding the time periods contained
herein, the City may terminate this Agreement at any time without cause by providing written
notice of termination to the Professional. Such notice shall be delivered at least fifteen (15)
days prior to the termination date contained in said notice unless otherwise agreed in writing by
the parties. All notices provided under this agreement shall be effective when mailed, postage
prepaid and sent to the following address:
Professional: City: With Copy to:
In the event of any such early termination by the City, the Professional shall be paid for services
rendered prior to the date of termination subject only to the satisfactory performance of the
Professional's obligations under this Agreement. Such payment shall be the Professional's sole
right and remedy for such termination.
6. Design, Project Insurance and Insurance Responsibility. The Professional shall
be responsible for the professional quality, technical accuracy, timely completion and the
coordination of all services rendered by the Professional, including but not limited to designs,
plans, reports, specifications, and drawings and shall, without additional compensation,
promptly remedy and correct any errors, omissions, or other deficiencies. The Professional
shall indemnify, save and hold harmless the City its officers and employees, in accordance with
Colorado law, from all damages whatsoever claimed by third parties against the City and for the
City's costs and reasonable attorney's fees arising directly or indirectly out of the Professional's
negligent performance of any of the services furnished under this Agreement. The Professional
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shall maintain commercial general liability insurance in the amount of $ combined single
limits and errors and omissions insurance in the amount of
7. Compensation. In consideration of services to be performed pursuant to this
Agreement, the City agrees to pay Professional on a time and reimbursable direct cost basis
designated in Exhibit "B", consisting of ( ) page(s), attached hereto and incorporated
herein by this reference. At the election of the City, each Work Order may contain a maximum
fee, which shall be negotiated by the parties hereto for each such Work Order. Monthly partial
payments based upon the Professional's billings and itemized statements are permissible. The
amounts of all such partial payments shall be based upon the Professional's City -verified
progress in completing the services to be performed pursuant to the Work Order and upon
approval of the Professional's direct reimbursable expenses. Final payment shall be made
following acceptance of the work by the City. Upon final payment, all designs, plans, reports,
specifications, drawings, and other services rendered by the Professional shall become the sole
property of the City.
8. City Representative. The City will designate, prior to commencement of work, its
project representative who shall make, within the scope of his or her authority, all necessary and
proper decisions with reference to the project. All requests for contract interpretations, change
orders, and other clarification or instruction shall be directed to the City Representative.
9. Project Drawings. Upon conclusion of the project and before final payment, the
Professional shall provide the City with reproducible drawings of the project containing accurate
information on the project as constructed. Drawings shall be of archival, prepared on stable
mylar base material using a non -fading process to provide for long storage and high quality
reproduction. "CD" disc of the as -built drawings shall also be submitted to the owner in and
AutoCAD version no older then the established city standard.
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10. Monthly Report. Commencing thirty (30) days after Notice to Proceed is given on
any Work Order and every thirty days thereafter, Professional is required to provide the City
Representative with a written report of the status of the work with respect to the Work Order,
Work Schedule and other material information. Failure to provide any required monthly report
may, at the option of the City, suspend the processing of any partial payment request.
11. Independent Contractor. The services to be performed by Professional are those
of an independent contractor and not of an employee of the City of Fort Collins. The City shall
not be responsible for withholding any portion of Professional's compensation hereunder for the
payment of FICA, Workers' Compensation, other taxes or benefits or for any other purpose.
12. Personal Services. It is understood that the City enters into this Agreement
based on the special abilities of the Professional and that this Agreement shall be considered as
an agreement for personal services. Accordingly, the Professional shall neither assign any
responsibilities nor delegate any duties arising under this Agreement without the prior written
consent of the City.
13. Acceptance Not Waiver. The City's approval of drawings, designs, plans,
specifications, reports, and incidental work or materials furnished hereunder shall not in any way
relieve the Professional of responsibility for the quality or technical accuracy of the work. The
City's approval or acceptance of, or payment for, any of the services shall not be construed to
operate as a waiver of any rights or benefits provided to the City under this Agreement.
14. Default. Each and every term and condition hereof shall be deemed to be a
material element of this Agreement. In the event either party should fail or refuse to perform
according to the terms of this agreement, such party may be declared in default.
15. Remedies. In the event a party has been declared in default, such defaulting
party shall be allowed a period of ten (10) days within which to cure said default. In the event
the default remains uncorrected, the party declaring default may elect to (a) terminate the
Agreement and seek damages; (b) treat the Agreement as continuing and require specific
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performance; or (c) avail himself of any other remedy at law or equity. If the non -defaulting
party commences legal or equitable actions against the defaulting party, the defaulting party
shall be liable to the non -defaulting party for the non -defaulting party's reasonable attorney fees
and costs incurred because of the default.
16. Bindina Effect. This writing, together with the exhibits hereto, constitutes the
entire agreement between the parties and shall be binding upon said parties, their officers,
employees, agents and assigns and shall inure to the benefit of the respective survivors, heirs,
personal representatives, successors and assigns of said parties.
17. Law/Severability. The laws of the State of Colorado shall govern the
construction, interpretation, execution and enforcement of this Agreement. In the event any
provision of this Agreement shall be held invalid or unenforceable by any court of competent
jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this
Agreement. ,
18. Prohibition Against Employing Illegal Aliens. Pursuant to Section 8-17.5-101,
C.R.S., et. seq., Professional represents and agrees that:
a. As of the date of this Agreement:
1. Professional does not knowingly employ or contract with an illegal alien
who will perform work under this Agreement; and
2. Professional will participate in either the e-Verify program created in
Public Law 208, 104th Congress, as amended, and expanded in Public Law 156,
108th Congress, as amended, administered by the United States Department of
Homeland Security (the "e-Verify Program") or the Department Program (the
"Department Program"), an employment verification program established
pursuant to Section 8-17.5-102(5)(c) C.R.S. in order to confirm the employment
eligibility of all newly hired employees to perform work under this Agreement.
b. Professional shall not knowingly employ or contract with an illegal alien to
perform work under this Agreement or knowingly enter into a contract with a
subcontractor that knowingly employs or contracts with an illegal alien to perform work
under this Agreement.
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C. Professional is prohibited from using the e-Verify Program or Department
Program procedures to undertake pre -employment screening of job applicants while this
Agreement is being performed.
d. If Professional obtains actual knowledge that a subcontractor performing work
under this Agreement knowingly employs or contracts with an illegal alien, Professional
shall:
Notify such subcontractor and the City within three days that Professional
has actual knowledge that the subcontractor is employing or contracting with an
illegal alien; and
2. Terminate the subcontract with the subcontractor if within three days of
receiving the notice required pursuant to this section the subcontractor does not
cease employing or contracting with the illegal alien; except that Professional
shall not terminate the contract with the subcontractor if during such three days
the subcontractor provides information to establish that the subcontractor has not
knowingly employed or contracted with an illegal alien.
e. Professional shall comply with any reasonable request by the Colorado
Department of Labor and Employment (the "Department") made in the course of an
investigation that the Department undertakes or is undertaking pursuant to the authority
established in Subsection 8-17.5-102 (5), C.R.S.
f. If Professional violates any provision of this Agreement pertaining to the duties
imposed by Subsection 8-17.5-102, C.R.S. the City may terminate this Agreement. If this
Agreement is so terminated, Professional shall be liable for actual and consequential
damages to the City arising out of Professional's violation of Subsection 8-17.5-102,
C.R.S.
g. The City will notify the Office of the Secretary of State if Professional violates this
provision of this Agreement and the City terminates the Agreement for such breach.
19. Special Provisions. Special provisions or conditions relating to the services to
be performed pursuant to this Agreement are set forth in Exhibit "C", consisting of
page(s), attached hereto and incorporated herein by this reference.
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THE CITY OF FORT COLLINS, COLORADO
M
James B. O'Neill II, CPPO, FNIGP
Director of Purchasing & Risk Management
Date:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Assistant City Attorney
[Insert Professional's name] or
[Insert Partnership Name] or
[Insert individual's name]
Doing business as [insert name of business]
IN
Title:
CORPORATE PRESIDENT OR VICE PRESIDENT
Date:
ATTEST:
Corporate Secretary
stdwopsa rev 03/10
19
(Corporate Seal)
Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal will be
rejected and reported to authorities as such. Your authorized signature of this proposal assures
that such proposal is genuine and is not a collusive or sham proposal.
The City of Fort Collins reserves the right to reject any and all proposals and to waive any
irregularities or informalities.
Sincerely,
James B. O'Neill II, CPPO, FNIGP
Director of Purchasing & Risk Management
where renewal is a way of life
1,
EXHIBIT "A"
WORK ORDER FORM
PURSUANT TO AN AGREEMENT BETWEEN
THE CITY OF FORT COLLINS
AND
DATED:
Work Order Number:
Purchase Order Number:
Project Title:
Commencement Date:
Completion Date:
Maximum Fee: (time and reimbursable direct costs):
Project Description:
Scope of Services:
Professional agrees to perform the services
identified above and on the attached forms in
accordance with the terms and conditions
contained herein and in the Professional Services
Agreement between the parties. In the event of a
conflict between or ambiguity in the terms of the
Professional Services Agreement and this work
order (including the attached forms) the
Professional Services Agreement shall control.
The attached forms consisting of _ (_) pages
are hereby accepted and incorporated herein, by
this reference, and Notice to Proceed is hereby
given.
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Professional
By:
Date:
City of Fort Collins
By:
James B. O'Neill ll, CPPO, FNIGP
Director of Purchasing and Risk Management
(over $60,000.00)
Date:
ME
User
REQUEST FOR PROPOSAL
CITY OF FORT COLLINS
7135 ACTUARIAL SERVICES AND POLICY REVIEW
GENERAL EMPLOYEES' RETIREMENT PLAN (GERP or the "PLAN")
INTRODUCTION
The General Employees' Retirement Committee ("GERC" or the "Committee") of the City of Fort
Collins is requesting proposals from qualified actuarial consultants to perform annual GERP
actuarial studies for a five-year period.
A. Scooe of Services
1. Perform an annual actuarial valuation of its General Employees' Retirement Plan
(GERP) including a summary of the valuation results, and information about all
significant assumptions and findings noted. The actuarial valuation as of January 1,
2010, should be completed no later than May 15, 2011.
2. The firm will be expected to meet with the GERC prior to commencement of the
annual actuarial valuation study to discuss the process, report format, scope, and
significant assumptions to be used during the course of the engagement. Significant
assumptions should include, but are not limited to the following:
• Evaluation of the Plan's actuarial cost method
• Valuation procedures
• Economic assumptions
• Demographic assumptions
• Actuarial value of assets
3. Perform on -going pension consulting services for the GERC.
4. The actuary shall, on an annual basis, provide all information needed by the
Committee and the City to meet the financial reporting guidelines of Governmental
Accounting Standards Board (GASB), including any assistance needed in the
drafting of financial statements, notes, and disclosures.
5. The actuary shall on an annual basis provide Personal Retirement Planning
Statements to members of the Plan by March 31 of each year. See Exhibit A for
sample format.
6. Meeting attendance: The expectation is that a minimum of one Council Finance
Committee meeting will require the actuary to present the past year's performance
and what the impact will be on the Plan going into the future. To the degree that
significant changes are being proposed, the actuary will also be expected to attend a
Regular City Council meeting, which are held in the evenings. Monthly GERC
meetings Committee are held on the first Thursday of each month at 1:15pm. The
actuary will provide on -going advice to the Committee to assist in its administration of
the Plan. The actuary will be expected to attend at least two meetings, and others as
requested. One in March to discuss the Plan member data and related actuarial
assumptions and one in April to deliver the draft report of Actuarial Report for the
GERC to accept and approve. The April GERC meeting would be followed by the
Council Finance Committee meeting, where the Council would be updated on the
Plan performance and long range funding requirements.
7. The City normally calculates benefit options for retirees. However, the actuary must
have software capable of calculating benefit options for retirees. Such software is to
be updated annually after implementation of pay adjustments within 30 days of
completion of such adjustments.
8. The actuary will be expected to be completely familiar with the Plan documents. If
needed, the actuary will assist the Committee in drafting changes to the Plan
documents.
9. From time -to -time, the Committee may request special reports, research, and
analysis of topics to be prepared by the actuary and discussed at one of its regular
monthly meetings. If needed, the actuary shall discuss such reports with appropriate
City personnel prior to such meeting and make revisions, if appropriate, prior to the
meeting. The actuary shall make such reports available to the GERC members no
later than one week prior to the meeting for which the report is scheduled.
10. The Committee and support staff may have questions of the actuary that need to be
answered on a timely (same day, within hours) basis.
B. City Responsibilities
The Finance and Human Resource Departments of the City will provide assistance to the
actuary on an on -going basis.
At a minimum, the following information will be provided to the actuary at the outset
of the engagement:
a. Copies of all Plan documents
b. General Employees' Retirement Plan Actuarial Valuation Report
c. General Employees' Retirement Summary Plan Description
d. Minutes of meetings of the GERC
e. Payroll and other employee information as needed
2. The City will not reimburse responding firms for any expenses incurred in preparing
proposals in response to this request.
3. Proposals submitted will be reviewed by an evaluation committee consisting of
representatives from the Committee, Plan support staff, and the Purchasing Division.
4. The City reserves the right to retain all proposals submitted and to use any ideas in a
proposal regardless of whether that proposal is selected. Submission of a proposal
indicates acceptance by the firm of the conditions contained in this request for
proposals, unless clearly and specifically noted in the proposal submitted and
confirmed in the contract between the City and the firm selected.
It is anticipated that the selection of a firm will be completed by June 1, 2005. It is expected
that a contract will be executed between both parties by June 15, 2005.
4
C. Proposal Reauirements
The proposals submitted shall include:
1. Three references of work similar to this project, preferably municipalities or public
agencies within Colorado.
2. Resumes of key personnel involved. Include information about credentials held,
professional organization memberships, involvement with Employee Retirement
Plans. Indicate who would provide backup if the primary actuary could not complete
the study.
3. A specific description of information, including electronic data formats, that the firm
would need from the City to complete the study and services.
4. A "not to exceed" cost estimate of the Actuarial Reports and an approximate time
frame to complete it after information is provided to you by January 31, 2011. Note:
The Committee needs a draft report by March 31, 2011 and a final report by May 15,
2011.
5. If possible, an "not to exceed" estimate of the cost of the Personal Retirement
Planning Statements should be provided. Note: Statements must be distributed to
Plan Participants by March 31.
6. Costs should also be provided for attendance of meetings and hourly rates for
special projects.
7. A sample actuarial report that your firm has completed within the last year covering
similar services to those requested in this proposal.
D. Standards for Supervising Actuaries
1. Fellow or Associate of the Society of Actuaries or Fellow of the Conference of
Actuaries in Public Practice or Member of the American Academy of Actuaries or
meet standards of a qualified actuary under the provisions of the Employee
Retirement Income Security Act of 1974.
2. Experience as a supervising actuary including consulting services, experience
analysis and valuation assignments for major retirement systems, with specific
reference to involvement with public retirement systems.
3. Experience in testifying before legislative and administrative bodies in support of
actuarial positions and the principles used in valuing the system or estimating the
cost of legislation.
4. Possess the ability to discuss, in laymen's terms, actuarial theory, basis for
assumptions, and other actuarial matters.
E. Term of Engagement
The original term of this agreement shall be from July 1, 2010 to May 31, 2011. In addition,
subject to the annual review of the General Employees' Retirement Committee and the
satisfactory negotiation of terms, the Agreement may be extended for additional one-year
periods not to exceed four (4) additional one-year periods.
5
F. Contact Persons
The consultant's principal contact with the City will be the Financial Officer of the City and
ex-officio Secretary of the Committee, who will coordinate the assistance to be provided by
the City to the actuary, including scheduling attendance at meetings.
The Committee currently engages the services of Milliman USA as actuary and consultant
for its General Employees' Retirement Plan (GERP). A copy of the actuarial report prepared
by Milliman USA for the plan year beginning January 1, 2008 is available at
http://www.fcgov.com/cityclerk/retirement.php.
G. Proposal Calendar
The following is a list of key dates up to and including the date oral interviews are
conducted:
Request for proposal issued April 12, 2010
Due date for proposals May 3, 2010
Ratings completed; short list developed May 16, 2010
Interviews; if needed of top firm May 23, 2010
Contract date July 1, 2010
501
H. Review and Assessment
Professional firms will be evaluated on the following criteria. These criteria will be the basis
for review of the written proposals and interview session. A review board will rank interested
firms based on their written proposals, using the ranking system set forth in the City's
procedure for acquisition of processional services. The three highest ranked firms may
receive an invitation to appear before the review board for further assessment of
qualifications. The successful firm may be selected without an interview.
The rating scale shall be from 1 to 5, with 1 being a poor rating, 3 being an average rating,
and 5 being an outstanding rating.
WEIGHTING
QUALIFICATION
STANDARD
FACTOR
2.0
Scope of Proposal
Does the proposal show an understanding of the
project objective, methodology to be used and
results that are desired from the project?
2.0
Assigned Personnel
Do the persons who will be working on the project
have the necessary skills? Are sufficient people of
the requisite skills assigned to the project?
1.0
Availability
Can the work be completed in the necessary time?
Can the target start and completion dates be met?
Are other qualified personnel available to assist in
meeting the project schedule if required? Is the
project team available to attend meetings as
required by the Scope of Work?
1.0
Motivation
Is the firm interested and are they capable of doing
the work in the required time frame?
2.0
Cost and
Do the proposed cost and work hours compare
Work Hours
favorably with the project Manager's estimate? Are
the work hours presented reasonable for the effort
required in each project task or phase?
2.0
Firm Capability
Does the firm have the support capabilities the
assigned personnel require? Has the firm done
previous projects of this type and scope?
7
Reference evaluation (Top Ranked Firm)
The project Manager will check references using the following criteria. The evaluation rankings
will be labeled Satisfactory/Unsatisfactory.
QUALIFICATION
STANDARD
Overall Performance
Would you hire this Professional again? Did
they show the skills required by this project?
Timetable
Was the original Scope of Work completed
within the specified time? Were interim
deadlines met in a timely manner?
Completeness
Was the Professional responsive to client
needs; did the Professional anticipate
problems? Were problems solved quickly and
effectively?
Budget
Was the original Scope of Work completed
within the project budget?
Job Knowledge
a) If a study, did it meet the Scope of Work?
b) If Professional administered a construction
contract, was the project functional upon
completion and did it operate properly?
Were problems corrected quickly and
effectively?
stdwopsa rev 03/10
= CI[-1flii"I
PERSONAL RETIREMENT PLANNING STATEMENT
City of C/enerat Emph)yves'ttetimmentPhm
215 111 Mason Street
CUL111
7'" Floor
PO Box 580
Fort Collns,C080522
.F6rt 970.221.6%2
970.221.6782 - fax
fcgcv.cum
PERSONAL RETIREMENT PLANNING STATEMENT
Prepared
especially for: Sample
Using data as of December 3/, 2009
Social Security Number:
5555
Date oFBirth:
X-larch 01, 1960
Date of Hire:
January 01, 1990
Adjusted Credited Service gate:
January 01, 1990
Normal Retirement Date:
March 01. 2025
Annual Pay Rate as of I/2010:
$40,000
Note: These statements are prepared only for members remaining
in the GERP after January 1, 2010. Retirement projections are
based on the pay rote shown above.
PURPOSE
ICMA Retirement Corporation Contributions
As of 12/31/2009
t2/31/2009
City Employee
Balance
457 Deferred
Compensation Plan
0.0% 0.0%
$40,000
401(a) Money
Purchase Plan
3.0% 3.0%
20,000
Total
3.0% 3.0%
$60.000
This Personal Retirement Planning Statement from the Gencral Employees' Retirement Committee and the
Human Resources Department provides you with a projection of your personal retirement income through
your employment with the City of Fort Collins. This projected income is compared to the estimated income
you will need at retirement. In some cases, your projected income may be inadequate at the age you would like
to retire, so steps to reduce any shortfall are suggested.
YOUR PROJECTED RETIREMENT INCOME
In order to maintain your standard of living, some financial experts estimate that you will need retirement
income equal to about 80% of your annual income just prior to your retirement, depending upon your
individual circumstances. Here is your projected retirement income based upon your participation in the
General Employees' Retirement Plan (GERP), Social Security, the 457 Deferred Compensation Plan
(457 DCP), and/or the 401(a) Money Purchase Plan (401(a) MPP), compared to the 80% target:
Y
l�01 ' tllt (x 6 J � til S Ka. 1yr th E-iLi
55 60 62 65 70
Projected Income Retirement Age
Available NIA N/A N/A N/A N/A
Shortfall N/A NIA N/A N/A N/A
l� 401(a) MPP and 457 DCP
f Social Security"
GMp
80°/aTarget
No Social Security is shown for ages 55 and 60 because age 62 is the earliest a benefit.is payable.
Salary assumption,; used in projecting the increases in benefits shown on the graph are based on an increase of 2.5%per year.
Sample
Location Code 502
9
stdwopsa rev 03/10