05_Exhibit_1_-_Requirements_and_Scope_of_Work.pdf

Exhibit 1: Requirements and Scope of Work

VENDOR QUALIFICATIONS

As provided for in 74 O.S. § 452.15, the actuary or firm selected shall:

1) Be a member of the American Academy of Actuaries, an Associate or Fellow of the Society of Actuaries or an enrolled actuary; and

2) Have substantially provided actuarial services for large, public retirement systems.”

3) In addition, the actuary or firm shall disclose any current contractual arrangements with any public pension system regulated by the state of Oklahoma.

4) Additionally, preference will be given to an actuary or firm that:

a. Has provided actuarial services for a minimum of five consecutive years immediately preceding the date of this solicitation.

b. Currently serves, or has served within the past three years, as actuary of record for a public pension system with total plan assets or membership comparable to or greater than Oklahoma’s public retirement plans.

VENDOR REQUIREMENTS

1) VENDOR shall be bound by the information and representations contained in any proposal submitted. The proposal is deemed to be a binding offer on the part of

VENDOR.

2) VENDOR shall treat all information related to services rendered under the contract as confidential and shall not disclose such information to third parties as required by law or authorized in writing.

3) Upon selection, LSB and VENDOR shall enter into an agreement ("AGREEMENT") for services. VENDOR must agree that any resulting AGREEMENT and services will be subject to and interpreted by Oklahoma law. Further, VENDOR must agree that this RFP and VENDOR's submitted proposal will be incorporated by reference to any resulting AGREEMENT.

4) VENDOR must fully disclose any proposed subcontracting of any required services.

5) VENDOR shall not assign any rights, duties or obligations agreed to under the AGREEMENT in whole or in part without the express written consent and approval of

LSB.

6) VENDOR shall make available at least one primary staff contact and one secondary staff contact to which LSB, the Oklahoma State Senate and the House of Representatives staff may direct questions and seek assistance as needed. The primary and secondary contacts should be readily accessible by telephone or e-mail within one (1) working day.

7) VENDOR must agree that upon request and at a time mutually agreed upon to make available to LSB any and all records pertaining to the duties and responsibilities under such AGREEMENT.

8) VENDOR may be requested by LSB or legislative committee to discuss the services provided pursuant to such AGREEMENT. VENDOR shall be given such reasonable time to comply with the request. Reimbursement for any travel expenses will be as agreed by LSB and VENDOR.

9) VENDOR shall not attend the retirement committees of the Senate and House of Representatives without being requested by the chair or co-chairs of such committees.

10) VENDOR shall reasonably cooperate with LSB, the Oklahoma State Senate and the House of Representatives staff in all matters relating to such AGREEMENT and the operations of the plans.

11) VENDOR must agree that all certifications, actuarial investigations, any other applicable materials and all work product generated for LSB under such AGREEMENT shall be the sole property of LSB. LSB must be given reasonable access to all such work product or data compiled by VENDOR in the performance of such AGREEMENT.

VENDOR RESPONSIBILITIES

1) VENDOR shall provide actuarial services as a Legislative Actuary in accordance with the terms of this RFP.

2) VENDOR shall perform all services in a professional and workmanlike manner in accordance with applicable professional standards and shall reperform any work not in compliance with this warranty brought to its attention within a reasonable time after the work is performed, at no cost to LSB. LSB, at the direction of House of Representatives or the Senate, may request the replacement of any individuals assigned to this project in the event the House of Representatives, the Senate, or LSB is dissatisfied with the work product or working relationship with those individuals.

3) VENDOR shall provide actuarial services to the Oklahoma Legislature in compliance with the Oklahoma Pension Legislation Actuarial Analysis Act ("OPLAAA") and per the terms of this RFP. Some services must be performed periodically, while other services must be performed on an ad-hoc basis.

SCOPE OF WORK PROVIDED BY VENDOR

Services required by the Legislative Actuary shall be as follows:

1) Preliminary Fiscal/Non-Fiscal Certification Statements

Under OPLAAA, all proposed retirement legislation must be presented to the Legislative Actuary for a determination and written certification of whether the legislation is retirement legislation having a fiscal impact or is non-fiscal retirement legislation, as defined in the Act.

Proposed legislation shall be submitted by assigned House of Representatives or Senate staff to the VENDOR via email as soon as practicable for analysis. VENDOR shall present the statement of certification in writing to assigned House of Representatives or Senate staff within two (2) weeks or as soon as practicable. Such certification shall identify the legislation by its retirement bill number (RB#).

In addition, VENDOR shall determine if committee amendments and floor amendments to retirement legislation shall cause a fiscal impact to the affected retirement system. Amendments to retirement legislation shall be submitted by assigned House of Representatives or Senate staff via email to the VENDOR upon such amendments being made. VENDOR shall certify in writing whether or not the amendment causes a fiscal impact to the affected retirement system. Certifications should be sent by VENDOR to assigned House of Representatives or Senate staff within three (3) working days from receipt of the amendment.

2) Actuarial Investigations Upon Request

A legislative committee may request a detailed actuarial investigation of retirement legislation. Upon request, VENDOR shall perform a written actuarial investigation that shall include, but not be limited to, the following factors as are relevant to the retirement legislation under consideration:

a. The dollar amount of the unfunded actuarial accrued liability that will result from the legislation for the retirement system affected by the legislation;

b. The dollar amount of the annual normal cost that will result from the legislation for the retirement system affected by the legislation;

c. A statement of the employer contribution rate currently in effect for the retirement system affected by the legislation;

d. A statement of the employer contribution rate necessary for the retirement system to receive the required annual employer contributions consistent with the most recently available valuation report prepared by the actuary employed by the retirement system affected by the legislation;

e. A statement of the dollar amount of the increase in the annual employer contribution, if an existing retirement system is affected by the legislation, or a statement of the total annual employer contribution, if a new retirement system is established by the legislation, that will be necessary to maintain the retirement system affected or established by the legislation in an actuarially sound condition thereby creating no increase in unfunded liability as defined by the most recent actuarial evaluation of an existing system; and

f. A statement of the effect on the funded ratio for the retirement system affected by the legislation.

Each report shall contain sufficient explanatory text to provide a reasonable understanding of the actuarial assumptions, methods, trends and conclusions. Such actuarial investigations shall be performed and delivered to assigned House of Representatives or Senate staff by not later than December 1 of the year in which it is requested.

However, if legislation that VENDOR performed an actuarial investigation as provided above is amended in the following legislative session then VENDOR - upon the request of assigned House of Representatives or Senate staff - shall certify if the amendment is a non-fiscal amendment or conduct an actuarial investigation if the amendment would reduce costs to the system.

The deadline for such actuarial investigation, however, will not be December 1.

Assigned House of Representatives or Senate staff will send the amendment information to VENDOR via email. VENDOR shall provide its certification to assigned House of Representatives or Senate staff within three (3) working days or its actuarial investigation to assigned House of Representatives or Senate staff within one (1) week from the date of receipt.

In an emergency or unforeseen circumstance that needs to be addressed immediately, retirement legislation may be introduced, considered and enacted in any year. VENDOR shall perform an actuarial investigation during the regular session as requested for such emergency legislation and the December 1 deadline shall not apply. Assigned House of Representatives or Senate staff will send the legislation information to VENDOR via email. VENDOR shall provide its actuarial investigation to assigned House of Representatives or Senate staff within one (1) week of the date of receipt or as agreed to by the parties.

If the committee assigned to retirement legislation converts fiscal retirement legislation to non-fiscal retirement legislation then assigned House of Representatives or Senate staff shall send such amendment to VENDOR via email.

VENDOR shall determine whether such legislation is non-fiscal retirement legislation and certify in writing its determination. Such certification shall occur and be delivered to assigned House of Representatives or Senate staff within three (3) working days from receipt.