SOUTH WHITEHALL TOWNSHIP

REQUEST FOR PROPOSALS (RFP) 2026-01

Pension Plan Administration, Investment Advisory, Actuarial, and Custodial Services

Police and Non-Uniform Pension Plans

Issued By: South Whitehall Township, Lehigh County, Pennsylvania

RFP Issue Date: April 9, 2026

RFP Number: RFP #2026-01

Proposal Due Date/Time: April 29, 2026 i

NOTICE TO PROPOSERS

REQUEST FOR PROPOSALS #2026-01

Pension Plan Administration, Investment Advisory, Actuarial, and Custodial Services

Police and Non-Uniform Pension Plans

South Whitehall Township, Lehigh County, Pennsylvania (“Township”), is seeking proposals from qualified and experienced professional firms to provide pension plan administration, investment advisory, actuarial, custodial, and related fiduciary services for the Township’s municipal pension plans.

The Township administers multiple retirement plans for public employees and is responsible for ensuring the prudent stewardship of public pension assets in accordance with Pennsylvania law, including compliance with Act 205, Act 600, applicable IRS regulations, and Auditor General reporting requirements.

The Township seeks to engage professional service providers capable of delivering:

• High-quality fiduciary guidance.

• Institutional-grade investment oversight.

• Accurate actuarial and administrative services.

• Transparent reporting and performance measurement.

• Strong governance and compliance support.

The Township intends to award one or more contracts to firms that demonstrate exceptional qualifications, municipal pension expertise, strong governance practices, and competitive fee structures.

All proposals should be submitted through PennBid by 10:00 a.m. on April 29, 2026, https://pennbid.bonfirehub.com. Paper proposals will not be accepted. All documents and solicitation details are available online at no cost except for any fees that the successful bidder may be responsible for paying directly to PennBid – https://pennbid.bonfirehub.com.

On April 29, 2026 at 10:00 a.m., South Whitehall Township will receive the sealed proposals and open them online, with results being made public via PennBid.

The Township reserves the right to award contracts for bundled services, individual service categories, or a hybrid service model, depending upon the proposals received and the best interests of the Township.

South Whitehall Township reserves the right to reject any and all proposals, or to award to the

Vendor who, in the sole discretion and judgment of the Township, makes the most advantageous proposal. The Township also reserves the right to waive or permit the curing of any informalities or irregularities in a proposal as permitted by law.

https://pennbid.bonfirehub.com/ ii

1. BACKGROUND AND PURPOSE

2. ISSUING OFFICE / CONTACT INFORMATION

3. QUESTIONS/CLARIFICATIONS

4. RFP SCHEDULE

5. STRATEGIC OBJECTIVES OF THE TOWNSHIP

6. PENSION PLANS INCLUDED IN THIS RFP

7. SCOPE OF SERVICES REQUESTED

8. PERFORMANCE MEASUREMENT, RISK METRICS & REPORTING STANDARDS

9. REGULATORY COMPLIANCE & FIDUCIARY STANDARDS

10. GASB & ACT 205 REPORTING RESPONSIBILITIES

11. TOWNSHIP PLAN INFORMATION (BASELINE)

12. PROPOSER QUALIFICATIONS

13. REQUIRED PROPOSAL CONTENT

14. EVALUATION CRITERIA

15. SUBMISSION REQUIREMENTS

16. GENERAL TERMS AND CONDITIONS

17. CONTRACT TERM

18. REQUIRED DISCLOSURES

19. INSURANCE REQUIREMENTS

20. INDEMNIFICATION

21. FIDUCIARY STATUS & SEC REGISTRATION

22. EXPECTATIONS FOR PROFESSIONAL SERVICE PROVIDERS

23. INVESTMENT GOVERNANCE POLICY REQUIREMENTS

24. INVESTMENT MANAGER DUE DILIGENCE STANDARDS

25. ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) DISCLOSURE

26. BUSINESS CONTINUITY AND DISASTER RECOVERY

27. CONFLICTS OF INTEREST POLICY

28. PROFESSIONAL STANDARDS

29. CYBERSECURITY & DATA PROTECTION STANDARDS

30. TRANSITION PLAN REQUIREMENTS

31. MUNICIPAL CLIENT EXPERIENCE REQUIREMENTS

32. FEE TRANSPARENCY & TOTAL COST DISCLOSURE

iii

33. APPENDIX A – PLAN DATA TABLE

34. APPENDIX B – REQUIRED QUESTIONNAIRE

35. APPENDIX C – PROPOSAL SIGNATURE PAGE

36. APPENDIX D – PRICING SHEET (TEMPLATE)

37. APPENDIX E – INTERVIEW SCORECARD (OPTIONAL)

38. APPENDIX F – REQUIRED CERTIFICATIONS CHECKLIST

1. BACKGROUND AND PURPOSE

South Whitehall Township serves a growing community in Lehigh County, Pennsylvania, and administers multiple pension plans for eligible employees across several departments. The Township is committed to maintaining financially sound, well-governed retirement programs that protect both employee retirement security and taxpayer resources.

The Township currently sponsors several pension plans including defined benefit plans governed under Pennsylvania Act 205 and Act 600, as well as a defined contribution plan for certain employee groups.

The Township receives annual Commonwealth Pension State Aid and is responsible for meeting Minimum Municipal Obligation (MMO) funding requirements. Maintaining accurate actuarial reporting, prudent investment management, and compliance with statutory requirements is essential to the Township’s financial management responsibilities.

For reference:

2025 State Aid Received: $959,856.33

Total 2025 Minimum Municipal Obligation (MMO): $3,120,889.00

Through this Request for Proposals, the Township seeks to partner with experienced firms that can provide institutional-quality pension services, support responsible governance practices, and assist the Township in maintaining the long-term financial sustainability of its retirement systems.

The Township places a high value on:

• Professional expertise in municipal pension administration

• Transparent and objective investment advice

• Accurate actuarial reporting and funding projections

• Comprehensive performance measurement and benchmarking.

• Strong regulatory compliance and audit readiness.

2. ISSUING OFFICE / CONTACT INFORMATION

Tom Petrucci, Township Manager

South Whitehall Township

4444 Walbert Avenue

Allentown, PA 18104

3. QUESTIONS/CLARIFICATIONS

Any requests for clarification concerning the requirements and conditions set forth in this

Request for Proposal must be made in writing and submitted to Tom Petrucci, Township

Manager, online via Pennbid - https://pennbid.bonfirehub.com and by using the “questions tab” supplied by Pennbid. Responses to such requests will be provided to ALL bidders in addition to the bidder making the request and will be posted on the Pennbid site. Such response shall not constitute an Addendum unless issued with the title “Addendum.” Any requests for clarification or modification by a bidder must be submitted at least five (5) business days prior to the bid submission date. Bidders will be unable to submit questions and/or clarifications after the submittal deadline.

4. RFP SCHEDULE

The following schedule is provided for informational purposes. The Township reserves the right to modify the schedule at its discretion.

Milestone Date

RFP Issued April 9, 2026

Deadline for Written Questions April 22, 2026 @ 4:00 pm

Addendum Issued (if needed) April 24, 2026

Proposal Submission Deadline April 29, 2026 @ 10:00 am

Interviews (optional) Interviews to be scheduled accordingly

Board Award May 20, 2026

Contract Start Date (Preferred: July 1, 2026)

July 1, 2026 (to be confirmed)

5. STRATEGIC OBJECTIVES OF THE TOWNSHIP

Through this procurement, South Whitehall Township seeks service providers that will assist the Township in achieving the following objectives:

Strong Fiduciary Oversight

• Ensure that pension assets are managed in accordance with best-practice fiduciary standards and applicable regulatory requirements.

Long-Term Funding Stability

• Provide actuarial analysis and funding projections that support sustainable pension funding strategies and responsible budgeting.

Institutional Investment Governance

• Provide independent investment advice, asset allocation analysis, and manager monitoring consistent with institutional investment management standards.

Transparency and Accountability

• Deliver clear, timely, and comprehensive reporting to Township officials and the Pension Committee.

Regulatory Compliance

• Support full compliance with Pennsylvania Act 205, Act 600, Auditor

General reporting requirements, and applicable federal regulations.

Operational Efficiency

• Provide modern administrative systems, secure data management, and responsive service to plan participants and Township staff.

6. PENSION PLANS INCLUDED IN THIS RFP

This RFP includes services related to the following South Whitehall Township pension plans:

• Police Defined Benefit Pension Plan (Act 600 Defined Benefit Plan)

• Office Defined Benefit Pension Plan

• Public Works Defined Benefit Pension Plan

• Office/Public Works Defined Contribution Pension Plan (Combined; Custodian:

Charles Schwab)

7. SCOPE OF SERVICES REQUESTED

The Township seeks proposals from firms capable of providing institutional-grade pension support services. Proposers may submit responses under one of the following structures:

• Option 1 – Comprehensive Service Provider: A single firm providing bundled services across multiple categories.

• Option 2 – Specialized Service Provider: Firms proposing services in one or more individual service categories.

• Option 3 – Hybrid Service Model: Coordinated service approach involving multiple specialized providers.

Proposers must clearly indicate which service categories they are proposing and demonstrate their firm’s experience and qualifications in each applicable area.

The Township expects all service providers to operate under high fiduciary standards, transparent reporting practices, and strong internal control procedures.

A. Pension Plan Administration Services

Defined Benefit Plan Administration includes, but is not limited to:

• Benefit calculations (normal retirement, early retirement, disability, vested, death benefits).

• Service credit verification and payroll history validation.

• Retirement counseling and participant communications.

• Processing retiree payments and benefit adjustments (if applicable).

• Beneficiary administration and survivor benefit processing.

• Maintenance of participant database and historical records.

• Support for audits, litigation, Right-to-Know requests, and pension inquiries.

• Support for pension board meeting preparation and documentation.

• Compliance support for Act 205, Act 600, IRS rules, and applicable laws.

Defined Contribution Plan Administration includes, but is not limited to:

• Participant account administration support.

• Employer contribution calculations and reconciliation.

• Vesting tracking and recordkeeping.

• Forfeiture accounting and distribution support.

• Support for year-end ordinance-required one-time employee distributions.

B. Investment Advisory / Fiduciary Consulting Services

• Investment Policy Statement (IPS) creation, review, and updates.

• Asset allocation analysis and recommendations.

• Manager selection and due diligence assistance.

• Fund monitoring and quarterly performance reporting.

• Fee benchmarking and cost reasonableness analysis.

• Risk and volatility assessment.

• Peer benchmarking comparisons.

• Board-ready presentations and meeting attendance.

C. Actuarial Services (Defined Benefit Plans)

• Act 205 actuarial valuation reports.

• Annual MMO calculations and certification.

• GASB 67/68 reporting support as required.

• Funding projection models (5-year and 10-year).

• Experience studies as needed.

• Cost impact analysis for plan amendments.

• Support for AG-385 reporting guidance and state aid allocation methodology.

D. Custodial and Trust Services (If Proposed)

• Asset custody and safekeeping.

• Trade settlement and reconciliation.

• Online portal and reporting access.

• Monthly/quarterly statements.

• Cash flow and distribution processing.

• Audit-ready financial reporting.

• Transition planning if recommending custodian change.

E. State Aid / MMO Support Services

• Review annual Auditor General notifications and state aid allocations.

• Verify AG-385 unit reporting.

• Ensure deposits occur within required deadlines.

• Confirm MMO compliance and documentation.

• Provide audit-ready reporting for state aid and MMO deposits.

8. PERFORMANCE MEASUREMENT, RISK METRICS & REPORTING

STANDARDS

In light of prior independent performance reviews of the South Whitehall Township

Pension Plans, the Township requires enhanced performance transparency, benchmarking, and risk analytics from any proposer.

A. Performance Benchmarking Requirements

• Quarterly and Annual Time-Weighted Returns (1, 3, 5, 7, and 10 Years;

Since Inception).

• Gross and net of fees performance reporting.

• Comparison to appropriate market benchmarks for each asset class.

• Comparison to blended policy benchmark.

• Peer group percentile ranking (public plan universe).

• Disclosure of top quartile / bottom quartile positioning.

B. Risk Metrics (Mandatory)

• Standard Deviation

• Sharpe Ratio

• Information Ratio

• Alpha

• Beta

• R-Squared

• Up Market Capture Ratio

• Down Market Capture Ratio

• Maximum Drawdown (Trailing 5 Years)

• Rolling 3-Year Risk/Return Scatterplots

Risk metrics must be reported relative to benchmark, peer group, and for each plan as well as the aggregate Township portfolio.

C. Asset Allocation Transparency

• Detailed asset allocation by asset class and sub-asset class.

• Five-year historical allocation shifts.

• Drift analysis versus Investment Policy Statement (IPS) targets.

• Concentration analysis (manager, sector, style bias, and market cap exposure).

D. Performance Accountability Standards

• Written analysis required for 4 consecutive quarters of underperformance.

• Written analysis required for bottom quartile peer ranking over rolling 3-year period.

• Corrective action plan if risk-adjusted metrics materially trail benchmark.

• Watchlist and manager replacement recommendations when appropriate.

E. Peer Group Reporting Requirements

• Public plan peer universe comparison.

• Risk vs. return scatter plots.

• Peer percentile rankings.

• Comparative funded status benchmarking (if available).

F. Style & Exposure Analysis

• Morningstar-style box analysis.

• Factor exposure analysis (value, growth, size, quality, etc.).

• Rolling style consistency evaluation.

• Market cycle capture analysis.

G. Fee Transparency & Impact Analysis

• Full disclosure of advisory, manager, custodial, and trading costs.

• Revenue sharing disclosure (if any).

• Net-of-fee performance impact analysis.

• Fee benchmarking versus similar municipal plans.

H. Reporting Format Standards

• Board-ready executive summary.

• Performance dashboard and risk dashboard.

• Asset allocation dashboard.

• Watchlist status updates.

• Reports delivered within fifteen (days) of quarter end.

• Delivery of reports at quarterly Pension Committee meetings.

I. Data Ownership & Portability

• All performance data, historical reports, and analytics shall remain the property of South Whitehall Township and must be transferable in usable electronic format upon termination of contract.

9. REGULATORY COMPLIANCE & FIDUCIARY STANDARDS

Any proposer providing investment advisory services must:

• Be registered as a Registered Investment Adviser (RIA) with the SEC or applicable authority.

• Provide current Form ADV Parts 1 and 2.

• Acknowledge fiduciary status in writing.

• Disclose any soft-dollar or revenue sharing arrangements.

• Confirm compliance with SEC Rule 206(4)-5 (Pay-to-Play Rule).

• Demonstrate experience supporting GASB 67 and GASB 68 reporting.

10. GASB & ACT 205 REPORTING RESPONSIBILITIES

Actuarial proposers must:

• Prepare Act 205 actuarial valuation reports.

• Certify annual MMO calculations.

• Provide GASB 67/68 schedules and documentation.

• Coordinate with Township external auditor.

• Support AG-385 reporting and Auditor General audit responses.

11. TOWNSHIP PLAN INFORMATION (BASELINE)

The following baseline plan information is provided from the Township’s 2025 State

Aid and MMO documentation.

Plan Units (AG-385) 2025 MMO 2025 State Aid

Allocation

Police Defined

Benefit

82 $1,337,009.00 $546,584.85

Office Defined

Benefit

6 $761,391.00 $123,728.83

Public Works

Defined Benefit

9 $779,177.00 $59,991.02

Office/Public

Works Defined

Contribution

47 $243,312.00 $229,551.63

Total MMO (2025): $3,120,889.00

Total State Aid Received (2025): $959,856.33

12. PROPOSER QUALIFICATIONS

• Minimum five (5) years of experience providing municipal pension services.

• Experience with Pennsylvania Act 205 compliance and Auditor General reporting.

• Experience with Act 600 police defined benefit plans preferred.

• Ability to support multiple plans under one municipal sponsor.

• Demonstrated record of accuracy, responsiveness, and audit support.

• Strong cybersecurity and data security practices.

13. REQUIRED PROPOSAL CONTENT

Proposals must include the following sections:

• Executive Summary.

• Firm Profile.

• Relevant Experience.

• Proposed Staffing Plan.

• Scope of Services Response.

• Technology and Data Security.

• Discussion of significant usage of Artificial Intelligence (AI) in investment decisions and stratagies.

• Fee Proposal.

• References (minimum of three municipal references).

• Sample Reports.

14. EVALUATION CRITERIA

The Township will evaluate proposals using weighted criteria including:

Category Weight

Qualifications and relevant experience 25%

Technical approach and service model 25%

Knowledge of PA pension compliance

(Act 205 / Act 600 / AG reporting)

20%

Cost and fee transparency 15%

Quality of reporting and technology 10%

References and performance history 5%

15. SUBMISSION REQUIREMENTS

All proposals should be submitted through PennBid by 10:00 a.m. on April 29, 2026, https://pennbid.bonfirehub.com. Paper proposals will not be accepted. All documents and solicitation details are available online at no cost except for any fees that the successful bidder may be responsible for paying directly to PennBid – https://pennbid.bonfirehub.com.

On April 29, 2026 at 10:00 a.m., South Whitehall Township will receive the sealed proposals and open them online, with results being made public via PennBid.

https://pennbid.bonfirehub.com/

16. GENERAL TERMS AND CONDITIONS

• The Township is not responsible for proposal preparation costs.

• The Township may waive minor irregularities.

• All proposals become public records subject to Pennsylvania Right-to-Know

Law.

• The Township reserves the right to negotiate contract terms.

• Award is contingent upon final Board of Commissioners approval.

• Each proposer shall submit a Non-Collusion Affidavit certifying that the proposal has been prepared independently and without collusion in accordance with Pennsylvania law.

• Proposer certifies that it is not currently suspended, debarred, or otherwise ineligible to perform work for any federal, state, or municipal entity.

• Proposer shall certify compliance with the Commonwealth of Pennsylvania Iran

Free Procurement Act (73 P.S. §1641.1 et seq.), if applicable.

• The Township reserves the right to reject any or all proposals and to waive minor irregularities in the proposal process.

17. CONTRACT TERM

The Township anticipates an initial contract term of three (3) years, with optional annual renewals at the Township’s discretion.

18. REQUIRED DISCLOSURES

• Conflicts of interest.

• Compensation arrangements with fund managers, brokers, custodians.

• Revenue sharing arrangements.

• Whether the firm receives commissions or finder’s fees.

• Disclosure of any litigation or regulatory action related to pension work.

• Proposers must clearly identify confidential or proprietary information. The

Township will evaluate such requests in accordance with Pennsylvania Right-to-Know Law (65 P.S. §67.101 et seq.).

• Act 44 of 2009 Disclosure Form

19. INSURANCE REQUIREMENTS

The selected contractor shall maintain:

• Professional Liability (E&O): Minimum $3,000,000 aggregate.

• Cyber Liability: Minimum $2,000,000.

• Commercial General Liability: $1,000,000 per occurrence.

• Fidelity Bond (if custodial services): Adequate to cover assets held.

Certificates of Insurance must be provided prior to contract execution.

20. INDEMNIFICATION

The Contractor shall indemnify, defend, and hold harmless South Whitehall Township, its officials, employees, and agents from claims arising from:

• Professional negligence.

• Fiduciary breach.

• Regulatory violations.

• Data breaches caused by Contractor systems.

21. FIDUCIARY STATUS & SEC REGISTRATION

If proposing investment advisory services, proposer must:

• Be registered as an SEC Registered Investment Adviser (RIA).

• Provide current Form ADV Parts 1 and 2.

• Acknowledge fiduciary status in writing.

• Disclose all soft-dollar or revenue-sharing arrangements.

• Confirm compliance with SEC Rule 206(4)-5 (Pay-to-Play Rule).

22. EXPECTATIONS FOR PROFESSIONAL SERVICE PROVIDERS

The Township expects selected firms to demonstrate the highest standards of professionalism, transparency, and fiduciary responsibility. Successful providers will:

• Maintain proactive communication with Township officials and the Pension

Committee, including the attendance of all scheduled Pension Committee meetings.

• Provide clear, decision-ready reporting and analysis.

• Assist the Township in identifying emerging risks or regulatory developments.

• Support long-term financial planning for pension obligations.

• Respond promptly to inquiries from Township staff and auditors.

Service providers should view their role as a long-term strategic partner to the

Township, assisting in the responsible management of public pension assets and the continued financial stability of the Township’s retirement programs.

23. INVESTMENT GOVERNANCE POLICY REQUIREMENTS

Proposers providing investment advisory or fiduciary consulting services must demonstrate the ability to support and strengthen the Township’s pension governance framework.

The selected investment advisor shall assist the Township in establishing and maintaining strong investment governance practices consistent with institutional public pension standards.

Responsibilities may include, but are not limited to:

A. Investment Policy Statement (IPS)

The advisor shall assist the Township with:

• Development and periodic review of the Investment Policy Statement.

• Defining asset allocation targets and allowable ranges.

• Establishing investment objectives and performance benchmarks.

• Defining risk tolerance and diversification standards.

• Establishing manager evaluation and termination criteria.

• The IPS shall be reviewed no less than annually.

B. Governance Support

The advisor shall support the Township and its Pension Committee by:

• Providing board education on investment topics and fiduciary responsibilities.

• Preparing investment reports suitable for presentation to elected officials.

• Assisting with investment-related decisions including asset allocation changes, manager selection, and policy revisions.

• Advising the Township on emerging investment risks and market developments.

C. Fiduciary Responsibilities

• Any firm proposing investment advisory services must acknowledge in writing that it will act as a fiduciary to the Township and its pension plans.

• The firm must confirm compliance with all applicable fiduciary obligations under federal and state law.

24. INVESTMENT MANAGER DUE DILIGENCE STANDARDS

Proposers providing investment advisory services must demonstrate a comprehensive due diligence process for evaluating investment managers.

The Township expects advisors to perform institutional-level investment manager research and oversight.

A. Manager Selection Process

The advisor shall assist the Township with:

• Identification and evaluation of investment managers.

• Analysis of investment strategy, performance history, and risk characteristics.

• Evaluation of organizational stability and ownership structure.

• Review of portfolio construction methodology.

Fee analysis and negotiation support.

B. Ongoing Monitoring

The advisor shall monitor all investment managers and provide periodic reporting on:

• Performance relative to benchmark and peer universe.

• Risk characteristics and portfolio composition.

• Organizational changes within the managing firm.

• Compliance with stated investment strategy.

C. Manager Watch List

The advisor shall maintain a manager watch list identifying managers that exhibit concerning performance trends or organizational changes.

Written analysis must be provided when:

• A manager underperforms benchmark for four consecutive quarters.

• A manager ranks in the bottom quartile of peer group over a rolling three-year period.

• Significant organizational or investment strategy changes occur.

The advisor shall provide recommendations regarding manager retention, replacement, or restructuring.

25. ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) DISCLOSURE

While the Township does not currently maintain a formal ESG investment mandate, proposers must disclose their firm’s policies and practices related to Environmental, Social, and Governance considerations.

Proposers must describe:

• Whether ESG factors are incorporated into investment research or manager evaluation.

• Whether the firm maintains responsible investment policies.

• Whether the firm is a signatory to the UN Principles for Responsible

Investment (PRI) or similar initiatives.

• Any ESG screening or integration methodology utilized.

If the proposer recommends investment managers, the proposer must disclose whether

ESG considerations are incorporated into the manager due diligence process.

The Township reserves the right to consider ESG-related risks as part of its broader investment risk management framework.

26. BUSINESS CONTINUITY AND DISASTER RECOVERY

Proposers must maintain a written Business Continuity Plan (BCP) and Disaster

Recovery Plan (DRP) designed to ensure the continued provision of services in the event of operational disruption.

Proposers must describe their:

• Business continuity procedures.

• Disaster recovery infrastructure.

• Data backup procedures and redundancy.

• Remote operations capabilities.

• Cybersecurity incident response plan.

The proposal must confirm that critical pension services can continue during events including:

• Natural disasters.

• Technology failures.

• Cybersecurity incidents.

• Workforce disruptions.

The Township may request additional documentation regarding the proposer’s business continuity and disaster recovery capabilities.

27. CONFLICTS OF INTEREST POLICY

Proposers must disclose any actual or potential conflicts of interest that could influence their ability to provide objective and independent advice to the Township.

This includes, but is not limited to:

• Financial relationships with investment managers or custodians.

• Revenue-sharing arrangements.

• Soft-dollar arrangements.

• Referral or placement fees.

• Ownership interests in recommended investment vehicles.

Proposers must disclose:

• Whether the firm receives compensation from investment managers.

• Whether the firm recommends proprietary investment products to the

Township.

• Whether the firm or its affiliates receive commissions related to investment transactions.

Firms providing investment advisory services must demonstrate that they maintain internal policies designed to identify, disclose, and mitigate conflicts of interest.

The Township reserves the right to request additional disclosure regarding potential conflicts at any time during the procurement or contract period.

28. PROFESSIONAL STANDARDS

The Township expects all service providers to adhere to recognized professional standards applicable to their respective fields, including:

• CFA Institute Standards of Professional Conduct.

• American Academy of Actuaries professional standards.

• SEC fiduciary standards for Registered Investment Advisers.

• Government Finance Officers Association (GFOA) best practices.

Service providers shall maintain all required professional licenses and regulatory registrations necessary to perform the services proposed.

29. CYBERSECURITY & DATA PROTECTION STANDARDS

Given the sensitive nature of pension plan data and financial information, the Township requires all proposers to maintain robust cybersecurity and data protection programs consistent with recognized industry standards.

A. Information Security Framework

Proposers must maintain a comprehensive information security program designed to protect confidential data and financial information. Programs should align with recognized frameworks such as:

• NIST Cybersecurity Framework

• ISO 27001 standards

• SOC 1 Type II and SOC 2 Type II compliance

Proposers must describe their firm’s cybersecurity governance structure and oversight processes.

B. Data Protection Requirements

Proposers must demonstrate that their systems provide:

• Encryption of sensitive data both in transit and at rest.

• Multi-factor authentication for administrative access.

• Role-based access controls.

• Continuous monitoring of network activity.

• Secure data storage and backup procedures.

C. Incident Response

Proposers must maintain a formal Cybersecurity Incident Response Plan.

The selected contractor must notify South Whitehall Township of any suspected or confirmed data breach involving Township data within forty-eight (48) hours of discovery.

Notification must include:

• Description of the incident.

• Scope of potentially affected data.

• Remediation measures taken.

• Steps to prevent future occurrences.

D. Third-Party Vendor Security

• Proposers must disclose whether subcontractors or third-party vendors have access to Township data.

• The proposer must ensure that all subcontractors maintain equivalent cybersecurity protections.

30. TRANSITION PLAN REQUIREMENTS

The Township requires proposers to provide a detailed transition plan in the event that the Township selects a new service provider.

The objective of the transition process is to ensure continuity of operations, preservation of historical data, and uninterrupted pension administration services.

A. Transition Plan Description

Proposers must describe their transition methodology, including:

• Data transfer procedures.

• Timeline for implementation.

• Coordination with incumbent service providers.

• Participant record verification processes.

• System testing and validation procedures.

B. Transition Timeline

The proposal must include a proposed transition timeline, including key milestones such as:

• Contract execution.

• Data transfer and validation.

• System configuration and testing.

• Initial reporting setup.

• Full operational readiness.

C. Historical Data Preservation

The Township requires the preservation and transfer of all historical pension data.

The selected contractor must be capable of receiving or providing data in machine-readable formats, including:

• CSV.

• Excel.

• Secure database exports.

Historical participant records must be preserved for no less than ten (10) years, or longer if required by law.

D. Cooperation with Incumbent Providers.

The selected contractor must cooperate with any incumbent provider to ensure a smooth transition of services.

The Township expects transition activities to be completed without disruption to:

• pension benefit payments.

• investment reporting.

• actuarial reporting.

• regulatory compliance.

31. MUNICIPAL CLIENT EXPERIENCE REQUIREMENTS

Because municipal pension systems operate under unique statutory and regulatory requirements, the Township requires proposers to demonstrate direct experience serving municipal pension plans, particularly those subject to Pennsylvania law.

A. Municipal Pension Experience

Proposers must describe their experience providing services to:

• Pennsylvania municipal pension plans.

• Act 205 defined benefit pension plans.

• Act 600 police pension plans.

• Municipal defined contribution plans.

Proposers should identify the number of municipal clients served and the approximate assets under advisement or administration for municipal pension plans.

B. Pennsylvania Regulatory Experience

Proposers must demonstrate familiarity with:

• Pennsylvania Act 205 pension funding requirements.

• Act 600 police pension regulations.

• Auditor General reporting requirements (including AG-385).

• Commonwealth pension state aid allocations.

• Minimum Municipal Obligation (MMO) calculations.

C. Municipal References

Proposers must provide at least three (3) municipal client references that are comparable in size and scope to South Whitehall Township.

For each reference, provide:

• Municipality name.

• Contact person and title.

• Contact phone number and email.

• Description of services provided.

• Length of client relationship.

The Township reserves the right to contact references and request additional information regarding service performance.

32. FEE TRANSPARENCY & TOTAL COST DISCLOSURE

A. Proposers must clearly disclose all direct fees charged for services, including but not limited to:

• Pension plan administration fees.

• Actuarial service fees.

• Investment advisory or consulting fees.

• Custodial and trust service fees.

• Recordkeeping fees for defined contribution plans.

• Implementation or transition fees.

Fees should be presented in a clear format identifying whether charges are:

• Flat annual fees.

• Asset-based fees.

• Per-participant charges.

• Hourly consulting rates.

• Project-based fees.

B. Investment Management Fees

If the proposer recommends investment managers or investment funds, the proposal must disclose the underlying investment management fees associated with those investment vehicles.

This disclosure must include:

• Management fees.

• Administrative fees.

• Fund operating expenses.

• Performance-based fees (if applicable).

The proposer must indicate whether lower-cost institutional share classes or similar cost-efficient investment vehicles are available.

C. Revenue Sharing & Indirect Compensation

Proposers must disclose whether the firm receives any form of indirect compensation, including:

• Revenue-sharing arrangements.

• Soft-dollar arrangements.

• Marketing or referral payments.

• Placement fees.

• Commissions from investment managers or custodians.

If such compensation exists, the proposer must explain:

• The nature of the compensation.

• The entities providing the compensation.

• Whether such payments influence investment recommendations.

D. Proprietary Investment Products

Proposers must disclose whether they recommend or utilize proprietary investment products managed by the proposer or an affiliated entity.

If proprietary products are recommended, the proposer must disclose:

• All fees associated with those products.

• Whether alternative non-proprietary options were evaluated.

• Any additional compensation received by the proposer or its affiliates.

E. Transaction and Trading Costs

If applicable, proposers must disclose any trading or transaction costs that may be incurred in the management of pension assets, including:

• Brokerage commissions.

• Transaction spreads.

• Custodial transaction charges.

Where possible, proposers should describe practices designed to minimize trading costs.

F. Total Cost Illustration

Proposers must provide a comprehensive illustration of total estimated annual costs for the Township’s pension plans based on the current plan data provided in this RFP.

The cost illustration should include:

• All advisory or consulting fees.

• Estimated investment management costs.

• Custodial fees.

• Administrative costs.

The Township reserves the right to request additional fee disclosures during the evaluation process.

G. Fee Benchmarking

The Township may evaluate the proposed fee structure against industry benchmarks for similar sized municipal pension plans. Proposers should demonstrate that their fee structure is competitive and reasonable relative to the services provided.

33. APPENDIX A – PLAN DATA TABLE

The following information is provided for proposer reference:

State Aid Received (2025): $959,856.33

Total MMO (2025): $3,120,889.00

Unit Value (2025): $6,665.6690

34. APPENDIX B – REQUIRED QUESTIONNAIRE

1. Describe your experience with Act 205 and Act 600 municipal pension plans.

2. Provide your experience working with Auditor General reporting (AG-385).

3. Describe how your firm supports MMO compliance.

4. Describe your process for benefit calculation verification.

5. Describe your standard quarterly reporting package.

6. Explain your fee structure and any indirect compensation.

7. Provide your client retention rate over the last 5 years.

8. Identify your proposed account team and their credentials.

9. Describe your transition process from an incumbent provider.

10. Confirm your ability to attend physically pension meetings and Board meetings.

11. Describe how you handle forfeiture accounting for defined contribution plans.

12. Describe your cybersecurity program and data breach protocols.

35. APPENDIX C – PROPOSAL SIGNATURE PAGE

The undersigned certifies that the information contained in this proposal is true and correct and that the proposer is authorized to submit this proposal and bind the firm.

Firm Name: ____________________________________________

Authorized Representative: ______________________________

Title: _________________________________________________

Signature: _____________________________________________

Date: __________________________________________________

36. APPENDIX D – PRICING SHEET (TEMPLATE)

Proposers shall complete the following pricing template:

Service Category Annual Fee / Cost Notes / Assumptions

Plan Administration (DB) ____________________ ____________________

Plan Administration (DC) ____________________ ____________________

Investment Advisory ____________________ ____________________

Actuarial Services ____________________ ____________________

Custodial Services ____________________ ____________________

Other (Specify) ____________________ ____________________

37. APPENDIX E – INTERVIEW SCORECARD (OPTIONAL)

The following scorecard may be used by the Township during interviews and evaluations:

Category Score (1-10) Comments

Experience /

Qualifications

Understanding of

Township Needs

Act 205 / Act 600

Compliance

Knowledge

Reporting Quality _____ ______________________________

Technology /

Cybersecurity

Cost / Fee

Transparency

Responsiveness /

Service Model

38. APPENDIX F – REQUIRED CERTIFICATIONS CHECKLIST

Proposer must include:

☐ Proposal Signature Page (Appendix C – executed by authorized representative)

Required Pennsylvania Act 44 of 2009 Disclosure

☐ Non-Collusion Affidavit

Certification that the proposal was prepared independently and without collusion in accordance with Pennsylvania law.

☐ Debarment / Suspension Certification

Certification that the firm is not suspended, debarred, or otherwise prohibited from doing business with any federal, state, or municipal entity.

☐ Iran Free Procurement Act Certification

Certification of compliance with the Commonwealth of Pennsylvania Iran Free

Procurement Act (73 P.S. §1641.1 et seq.), if applicable.

☐ Conflict of Interest Disclosure Statement

Disclosure of any actual or potential conflicts of interest related to the services proposed.

☐ Litigation and Regulatory Disclosure Statement

Disclosure of any material litigation, arbitration, regulatory investigations, or enforcement actions within the past five (5) years relating to pension administration, actuarial services, or investment advisory services.

☐ Fee Disclosure Statement

Complete disclosure of all direct and indirect compensation arrangements, including advisory fees, investment management fees, custodial fees, revenue-sharing arrangements, and any other forms of compensation.

☐ Fiduciary Acknowledgment (Required for investment advisory services)

Written confirmation that the firm will act as a fiduciary to South Whitehall Township and its pension plans.

☐ SEC Form ADV Parts 1 and 2 (Required for Registered Investment Advisers)

☐ Pay-to-Play Compliance Certification

Certification of compliance with SEC Rule 206(4)-5 (Pay-to-Play Rule) regarding political contributions related to investment advisory services.

☐ Proof of Required Insurance Coverage

Including certificates evidencing:

• Professional Liability (Errors & Omissions) Insurance

• Cyber Liability Insurance

• Commercial General Liability Insurance

• Fidelity Bond coverage (if custodial services are proposed)

☐ SOC 1 Type II Report

☐ SOC 2 Type II Report

(or most recent equivalent third-party controls report)

☐ Cybersecurity Policy Summary

Including description of:

• cybersecurity governance structure

• data protection standards

• incident response procedures

☐ Business Continuity and Disaster Recovery Summary

Description of firm’s business continuity plan and disaster recovery capabilities.

☐ Municipal Client References

Minimum of three (3) municipal clients with contact information as required in the RFP.

☐ Transition Plan Summary

Overview of the firm’s proposed transition process if selected as the service provider.