Attachment_C.2_ATSS_Environment_and_Requirements.pdf

RFP# 16PBGC19R0007

Attachment C.2 Environment and Requirements

Contents C.2 Actuarial Technology Support Services (ATSS) Environment and Requirements

2.1 Introduction/Background

2.2 Systems Stakeholders

2.3 Systems Overview

2.3.1 Integrated Present Value of Future Benefits (IPVFB)

2.3.1.1 IPVFB Technology Stack

2.3.1.2 IPVFB Diagrams

2.3.2 Benefit Calculation Valuation (BCV)

2.3.2.1 BCV Technology Stack

2.3.2.2 BCV Diagrams

2.3.3 Systems Data

2.4 ATSS-Specific Requirements

2.4.1 Hours of Support

2.4.2 IPVFB Actuarial Expertise

2.4.3 Travel

C.2 Actuarial Technology Support Services (ATSS) Environment and Requirements

2.1 Introduction/Background

ATSS is comprised of two major systems: Integrated Present Value of Future Benefits (IPVFB) and Benefit Calculation Valuation (BCV).

IPVFB

The Pension Benefit Guaranty Corporation (PBGC) regularly produces financial statements for which it utilizes computer software and control procedures to calculate, analyze, and report liabilities and related items. The computer systems are collaboratively managed by the Office of Benefits Administration (OBA) and the Office of Information Technology (OIT). The Present Value of Future Benefits (PVFB) is the estimated liability for future pension benefits that PBGC is, or will be, obligated to pay participants of covered Single-Employer pension plans and to provide financial assistance to Multiemployer plans. Each fiscal year PBGC calculates the PVFB as of four dates:

December 31st, March 31st, June 30th, and September 30th. The September 30th valuation is the most important of the four because it aligns with the fiscal year end valuation. The December 31st valuation is not as extensive as the other valuations. PBGC conducts all valuations under strict and often demanding schedules (including weekends) that PBGC must meet. The calculation of the PVFB includes the use of actuarial knowledge, PBGC’s IPVFB application, and any other information and/or data required to properly calculate the PVFB. In October of each year, PBGC IPVFB calculations undergo a detailed extensive audit as auditors perform numerous tests to verify the IPVFB calculations, data and assumptions are correct.

For over 20 years, the Pension Benefit Guaranty Corporation (PBGC) has used the IPVFB application to calculate the Present Value of Future Benefits (PVFB). The IPVFB system values eligible pension plans using seriatim (individual participant) data from the PBGC payment database. PBGC values the remaining pension plans at the pension plan level using a non-seriatim database maintained by actuaries within Actuarial Service Division (ASD). The IPVFB system combines the pension plan valuations to obtain PBGC's total liability for the PVFB.

BCV

PBGC uses the legacy BCV suite and TRMD (Technology Risk Management Division) tools to build valuation databases, calculate benefits and DOPT (Date of Plan Termination) liabilities, generate benefit statements for the Benefit Determination packages, and produce estimated and actual retirement output that supports benefit administration. The existing legacy BCV suite and TRMD Tools are built on unsupported, outdated technology. The legacy BCV uses a single-tier client architecture that is unable to support online estimates, data traceability and synchronization, current security, auditing and enterprise requirements. However, the existing system is the only solution that provides PBGC with the flexibility required to calculate retirement benefits, determine DOPT liabilities for the pension plans that PBGC trustees, and generate benefit statements for communicating benefit entitlements to PBGC customers.

2.2 Systems Stakeholders

Office of Benefits Administration (OBA)

PBGC requires information technology (IT) services to support the Actuarial Technology Support Services (ATSS) Suite. OBA utilizes the ATSS suite to perform its critical business processes to achieve Corporate goals. These systems allow PBGC’s Office of Benefits Administration (OBA) to manage the termination process for defined benefit plans, provide participant services that includes calculation and payment of benefits for PBGC-trusteed plans, provide actuarial support for PBGC, and carries out PBGC's responsibilities under settlement agreements. OBA also carries out PBGC's responsibilities under settlement agreements. When it is necessary to terminate a defined benefit pension plan, OBA values plan assets and liabilities and collects, evaluates, and performs participant and plan financial audits making decisions on participant benefit entitlements and plan worth. OBA manages the pension calculation and valuation application that will be used by plan actuaries to determine participant benefits and calculate corporate liabilities for plans PBGC will trustee. The application will also be used by benefit administrators to calculate actual retirement benefits for our existing 1.5 million participants in some 4,200 trusteed plans and will provide online self-service benefit estimates to a substantial percentage of legacy plan participants and all future participants.

OBA’s Actuarial Services and Technology Department (ASTD) is the key stakeholder and business sponsor for the ATSS suite. The primary functions of ASTD is to provide actuarial oversight and expertise supporting PBGC benefit calculation, valuation, and administration as well as provide programmatic management, technical support, and quality assurance for the OBA systems. The Actuarial Services Division (ASD) within ASTD are the primary users of IPVFB system. The ASD provides actuarial expertise and support in the development, operation, and evaluation of PBGC insurance programs; develops actuarial principles, policy, and techniques to calculate and value Termination Benefits under Title IV of ERISA and determine post-termination and probable plan reserve calculations of plan liabilities; provide actuarial expertise in training; conduct quarterly valuations for PBGC financial statement purposes, conduct experience studies of the PBGC's actuarial assumptions; and support other divisions and departments of the PBGC. The actuarial services branch conducts quarterly valuations of PBGC financial statement purposes, services and conduct experience studies of PBGC actuarial assumptions, and provide actuarial technology support for benefit administration. The Technology and Risk Management Division (TRMD) provides programmatic management, oversight and quality assurance for the OBA actuarial and benefit administration systems. TRMD also provides technical services and support for plan processing and oversee the planning, organizing and coordinating of OBA's security strategy, risk management plan, and management of security system assets. The BCV system suite is primarily used and managed by

TRMD.

The Information Security Monitoring Team (ISCM) within the TRMD is responsible for ensuring the protection of OBA's data which often includes sensitive and/or Personally Identifiable Information (PII) type data. The ISCM Team processes and procedures ensure compliance with management organization directives, policies, guidelines, and other requirements. The OBA ISCM Team has defined information security boundaries that are led by an Information System Owner (ISO) or Information Owner (IO). The ISO / IO working with the IT and business project managers ensures the day-to-day activities are aligned with the approved ISCM plan and project schedule. The ISO / IO is https://pbgcgov.sharepoint.com/OBA/ASTD/Pages/default.aspx responsible for ensuring accurate, comprehensive analysis, and timely completion of security related tasks and documentation.

OBA’s ASTD rely on the ATSS suite to achieve the following PBGCs strategic goals, strategic objectives and performance measures:

PBGC Strategic Goals:

Goal 1: Preserve Plans and Protect Pensioners Goal 2: Pay Pension Benefits on Time and Accurately Goal 3: Maintain High Standards of Stewardship and Accountability

PBGC Strategic Objectives:

o Promote exceptional customer service to pensioners o Provide accurate and timely benefit calculations o Meet or exceed the financial and ethical standards that apply to PBGC as a major financial and government agency o Maintain secure, flexible, and scalable technology to support effective and efficient business operations (in partnership with OIT) o Preserve plans during bankruptcy and other corporate transactions o Restore PBGC’s finances

PBGC Performance Measures:

o Average time (years waiting) to issue benefit determinations (between trusteeship and benefit determination issuance) o Estimated benefits within 10 percent of final benefit determination o Benefit applications approved within 45 days o Compliance with Improper Payments Elimination and Recovery Act o Material weaknesses and significant deficiency o Financial statement audit

Business Innovation Services Department (BISD) / Participant Management Services Division (PMSD) and Program Management

The Business Innovation Services Department (BISD) provides IT support to PBGC departments throughout the Corporation. BISD leverages best practices and state of the art technology to deliver IT innovation to PBGC business operations and customer service. BISD provides IT program management, IT project management, and IT contract oversight services while establishing and utilizing proven implementation approaches to further business area goals. Within BISD, the Participant Management Services Division (PMSD) provides overall IT Project Management support and oversight of IT contracts for the core OBA systems covered under the ATSS contract. The CORs provide contract oversight and technical direction to the ATSS contractor and act as PBGC’s liaison with the contractor.

With the support of the ATSS contractor, the IT and business program/project managers and CORs from BISD’s Participant Management Services Division (PMSD) and ASTD’s Technology and Risk Management Division (TRMD) ensure that PBGC and OBA’s goals and objectives are achieved. The IT and business program managers manage the full lifecycle of the program from planning, execution, monitoring, and control and budgeting in order to present the program status to senior leaders at the monthly CIO-CBA executive leadership meeting. The IT and business program managers partner with the Chief Enterprise Architect to conduct Business Needs Analysis (BNA) for the program components in accordance with Enterprise Architecture (EA) standards. The BNAs support OMB’s Architect-Invest-Implement paradigm and provides recommendations that drive performance improvements and IT investment planning. It also provides support to the Participant Management IT Program Plan funding and prioritizations. The outcomes of BNA assist the program managers to establish a program roadmap for the Participant Management Program (PMP) and for planning budget formulations/prioritizations for outyears.

The budget prioritizations are presented at the CIO-CBA leadership briefing for approvals before getting incorporated in to the budget submission for the IT Program Review Board (ITPRB) which is chaired by the Chief Information Officer (CIO). When the ITPRB approves the program budget, a detailed roadmap for systems and planned projects is laid out for the upcoming fiscal years.

The planned projects are submitted to the Change Control Board (CCB) for review, prioritization, and approval. Upon CCB’s approval, the program roadmaps are updated with the projects and detailed project schedules are created. The IT and business project managers work with the ATSS contractor in managing the entire system and project life cycle, providing efficient system operations.

The IT project managers and the ATSS contractor also assist the TRMD business project managers in reviewing and prioritizing all system changes and submits them to the CCB for review and approval.

The program managers monitor the progress of all projects/deliverables and report them at the CIO- CBA monthly executive briefing and ensure that all program measures are met. The Integrated Project Team (IPT) comprises of IT/business project managers, EA and security representatives, and key business stakeholders who also conduct the Alternatives Analysis (AA) under guidance from the IT/business program managers and the Chief Enterprise Architect. The AA process is used to identify, compare, and assess viable information technology alternatives to address a given business need or performance gap. The AA process also determines and recommends the best alternative and documents the associated rational for systems covered under the PMP. The selected alternative is presented at the CIO-CBA executive briefing for approval. Any tool, technology, or solution that is part of the selected alternative is then presented to the Technical Review Board (TRB) by the IT project manager for TRB’s review and approval and EA’s Technical Reference Model (TRM) is updated accordingly with the approved tools and technologies.

PBGC expects the ATSS contract project manager to partner with PBGC IT and business project managers in the successful planning and execution of all projects; supporting the above-mentioned activities and providing efficient operations of all systems. The ATSS contract program manager/leadership team is expected to work closely with PBGC’s program managers and executives to ensure the success of the program and conduct a monthly Program Management Review (PMR) to provide a detailed snapshot of all program activities and status.

2.3 Systems Overview

2.3.1 Integrated Present Value of Future Benefits (IPVFB)

The IPVFB system combines the pension plan valuations to obtain PBGC's total liability for the PVFB. The general steps necessary to conduct a valuation are as follows:

Obtain Valuation Data

The Future Benefits Valuation Tool conducts two types of valuations: seriatim and non-seriatim.

Before either valuation can be completed, the necessary data must be obtained.

• For the seriatim processing, the valuation data is extracted from PBGC's corporate plan and participant payment database from which it is extracted by the Tool.

• The non-seriatim data isn’t extracted from a single system as of a certain date but rather from multiple sources (e.g., other systems, Actuarial Valuation Reports, Internal Revenue Service (IRS) Form 5500, and Actuarial Case Reports). The data from these various sources must be collected and entered into the system for every plan that is valued using the non-seriatim method and maintained within a non-seriatim database.

• Financial statement calculations are performed on a quarterly basis. FOD (Financial Operation Department) sends a list of Terminated Plans to ASD electronically (TAS system).

The Termination List includes approved terminations and trusteeships. CWG and NRAD send the list of Probable Plans for the quarter. The MWG sends a list of the ME (Multiemployer) Plans. The ASD Actuaries use the system to perform valuations for the Probable terminations, terminated plans and ME plans. The results are transferred to FOD electronically (TAS system). As a part of the Quarterly process, ASD/IPVFB system interacts with following departments or systems:

o Spectrum and IPVFB: Spectrum and IPVFB systems manage Individual participant information, benefit details and supplemental data information for PVFB calculation.

o Case Management System (CMS): CMS is a suite of applications that support the workflow, case and sponsor information, milestone processing, TPD (Trustee Processing Division) case processing team assignment, and other functions related to PBGC’s trusted case processing.

o Trust Accounting System (TAS): The Fiscal Year (FY) File process is performed in TAS during the preparation of PBGC’s quarterly and annual financial statements. After the FY File process is completed, reports from TAS can be generated that provide information related to terminated plan assets and liabilities at DOPT (Date of Plan Termination). The FY File process is performed in TAS every quarter with DOPT liability information that’s provided by ASD.

o Multiemployer Program Division (MEPD): MEPD provides the Actuarial Valuation Reports (AVR), which has the relevant plan data that includes liabilities for retirees and beneficiaries, inactive participants, residual assets, and administrative expenses.

o Premium Practitioner System (PPS): Form 5500 filings data provided by the Department of Labor through PPS system allows ASD to import and value ME plans.

o Negotiations Restructuring Actuarial Division (NRAD): NRAD provides the Small Plan Bulk Reserve (SPBR) during the quarterly process.

Valuation Method Determination

Each valuation is controlled by an Inventory Control File (ICF) which represents the inventory of plans that must be valued within the Tool. The ICF acts as the central control point for valuations and reconciliation to prior valuations. A valuation run setup begins with the user determining which plans to value and whether each of these plans are to be valued using the seriatim or the non-seriatim method.

Valuation Assumptions

Enter the required valuation parameters and update all applicable reference databases. These parameters and databases determine, among other items, the valuation and extract control dates, whether the audit function is enabled, the interest rate assumptions to be used to calculate the present values, the type of error detail reporting to be performed, the mortality tables to be used, and the expense liability assumptions.

Valuation Execution

Once the data are obtained, the valuation method for each case has been determined, and the valuation assumptions are set, the actual valuation processing can begin. The valuation is a series of “batch” type programs that process the input data and, according to PBGC procedures and generally accepted actuarial methods, calculate the PVFB on a per-person basis for plans valued using seriatim data and on a case basis for plans valued using non-seriatim data.

Reporting

Both the seriatim and non-seriatim valuations provide results databases which, when combined, create the combined results database from which the final actuarial tables and reports are produced.

2.3.1.1 IPVFB Technology Stack

The IPVFB system was recently modernized and is currently an Enterprise Java Web application running on an Oracle WebLogic Application Server. IPVFB system extracts data using the Oracle Data Integrator (ODI), transform and cleanses data using Oracle Enterprise Data Quality (EDQ) and stores data in Oracle 11g database. IPVFB application components are written in Java.

Oracle stored procedures and reports are developed in Oracle BI Publisher.

The ATSS O&M team shall be familiar with the following technologies that make up the system.

Also see Attachment C.2.a TRM AD Tools, for a list of active directory tools currently used.

Environment Software CDE-T Apache MyFaces 2.2.4 CDE-T Computer Associates International Inc. Erwin 8.2 CDE-T Eclipse Foundation Eclipse Classic 4.14

CDE-T

CDE-I

Hummingbird Exceed 2008

CDE-T Oracle JDeveloper 11g All Oracle Java Runtime Environment (JRE) 1.7 CDE-T Oracle Java 2 Standard Edition (J2SE) 1.6 All Microsoft Internet Explorer 11 All Microsoft Office 2013 / Office 365 CDE-T Oracle Application Development Framework 11g All Oracle Business Intelligence Publisher Enterprise 11.1.1 All Oracle Database 11g All Oracle Database (Client) 11g All Oracle Enterprise Data Quality 11g All Oracle Data Integrator 11g CDE-T Oracle TopLink 2.5.2 All Terracotta, Inc. Quartz Enterprise Job Scheduler 1.6.5 All Oracle WebLogic Server 11g

CDE-T

CDE-I

ITC

Hewlett-Packard (HP) Quality Center 12.2

All Hewlett-Packard (HP) Service Manager 9.3 CDE-T JUnit 4

CDE-T

CDE-I

ITC

Quest Software/Dell Toad 12

CDE-T Apache Ant 1.8 CDE-T Plumtree Portal 7.5.1 All Microsoft SharePoint 2010 All Serena Software Inc. PVCS Version Manager 8.5 CDE-T Tortoise SVN 1.8 CDE-T Jenkins 1.651.1

2.3.1.2 IPVFB Diagrams

Architectural Diagram

2.3.2 Benefit Calculation Valuation (BCV)

The BCV Legacy Suite is used by the Office of Benefits Administration (OBA) for calculating and valuating benefits in plans trusteed by the PBGC. The suite is composed of a number of client and web-based applications.

The client applications consist of five main components containing nine modules:

1. Leo

2. ACT (ValTool, DRS, Design, and Runtime)

3. ATPBGC Add-in (Microsoft Excel 2010)

4. ADT Utility

5. Archive (Access and Utility)

The web-based applications consist of two components:

1. Payment Adjustment Calculation System (PACS)

2. Batch PACS

Client Applications

1. Leo: Leo, a Microsoft Office Access application is used by the Office of Benefits Administration

(OBA) to improve the database construction process by eliminating database building in Excel spreadsheets, providing data services, source traceability, data certification (e.g. ‘data review’ or ‘audit’), and providing users with self-service technology. Leo is a staging area, a proving ground for data before the data is delivered to ACT. Leo’s final deliverable is the Actuarial Calculation

IPVFB System Diagram

Edit Average

Seriatim Valuation Gain/Loss

Participant Scatter

NS

Valuation

Final Actuarial Reports

Genesis

CAS

Data Extract

Val Results

FOD

Inventory

Imputation

Nonseriatim Data

Actuarial Assumptions

Combined Results

What-if

Nonseriatim ResultsForm 5500, UBL

AVR,..etc.

Cash Flow

ACT/

Archive

Toolkit (ACT) database. Many of Leo’s reports and outputs are used to document the database building process; however, the data itself is a transitory record. Leo’s data is purged when a case transits to ongoing administration.

2. Actuarial Calculation Toolkit (ACT): The ACT Applications (Runtime, Design, ValTool, and DRS) and the ATPBGC Add-in are client-based applications and are compatible with PBGC Standard Desktop Configuration (Windows 10/IE11/Office 2016 environment). The ACT applications are distributed to users’ workstations on the PBGC network through the Microsoft System Center Configuration Manager (SCCM). Other contractors access ACT Applications via a PBGC SharePoint website. Actuarial Calculation Toolkit (ACT), is used by actuaries to define how a plan must be valued and how benefit statements for that plan should be generated. ACT also allows the actuary to define how a plan’s benefit estimation calculation is to be conducted, prior to final valuation. Actuaries use ACT to take basic data from the Participant Data Audit and perform the valuation. Once the valuation is complete, the following three activities will be performed: 1) ACT data is provided to other systems such as ADT (Automated Data Transfer) and Datahub, to load the data into the paying database. 2) Benefit statements for each customer are loaded into ALG (Automated Letter Generation) system, so that Benefit Determination letters can be sent to customers. 3) All files related to that particular plan are archived and are made available through the Archive system.

ACT includes the following tools:

• Runtime Tool - BET (Benefit Estimation Tool) and BSRS (Benefit Statement and Recalculation System).

• Design Tool - BET (Benefit Estimation Tool) and BSRS (Benefit Statement and Recalculation System). The BET Design Tool allows the actuary to design data entry screens by which the PLS or FBA can calculate estimated benefits for customers who retire after trusteeship, but before the valuation is final. This tool also allows the actuary to define how data in the statements are to be displayed.

• ValTool - The Valuation Spreadsheet Tool. The Valuation Spreadsheet Tool (ValTool) application is an interface by which the actuary can import customer data from MSAccess 97 tables into a MSExcel 97 spreadsheet, calculate and value the customers benefits, and then export the newly calculated data back to the MSAccess 97 tables. This tool can be used to create both valuation/recalculation and estimation spreadsheets

(BSRS/BET).

• DRS - The DOPT Report System. The DOPT Report System (DRS) application is a report writing tool by which the actuary can design tables of customer data for inclusion in the Actuarial Case Report. Reports can be generated for all customers or a custom group of customers. Reports generated by this tool can be printed and saved.

The ACT Suite is used by actuaries to:

• Calculate and value benefits (develop/construct the plan’s benefit calculation formula(s)).

• Design and produce the plan’s Benefit Determination (BD) statements, benefit statements, recalculation and Optional Forms of Annuity (OFA) Statements.

• Produce listings for the actuarial case report.

• Develop BSRS/BET programs for use by benefit administration staff via Archive Access.

ACT-Runtime: Users use the Runtime module to produce benefit statements using the Benefit Estimation Tool (BET) or the Benefit Statement and Recalculation System (BSRS) files. This module allows the EBLS or FBA/PVA users to enter data in the Participant Data Entry (a.k.a.

Base Data entry) screen, developed by the actuary in ACT-Design, to generate an estimated benefit statement, a final benefit statement or a recalculation benefit statement (i.e. a statement, worksheet(s) and OFA statements). ACT-Runtime utilizes the valuation or estimation spreadsheet that the actuary creates within the ACT-ValTool module and the statement and Optional Form Annuity (OFA) configuration files developed within ACT-Design.

ACT-Design: Actuaries use ACT-Design module to develop the layout of the plan’s benefit statements and allows the actuary to select the elements that will appear in the ACT-Runtime module’s Participant Data Entry screen.

ACT-ValTool: ACT-ValTool is the Valuation Spreadsheet Tool. This module is an interface by which the actuary can import customer data from MS Access tables into an Excel spreadsheet, calculate and value the customer benefits, and export the calculated results back to the MS Access tables. This tool can be used to create both valuation/recalculation and estimation spreadsheets

(BSRS/BET).

The primary processes performed by ACT-ValTool are:

• Retrieve input data from the ACT tables into the V1.XLSX or VE.XLSX sheets as input data to the Excel formulas used to perform the valuation calculations.

• Apply the formulas in the Excel spreadsheet to the input data for each participant in the ACT tables to perform the valuation calculations.

• Write the results of the calculations to the ACT tables to be used by various modules of ACT and ADT.

• Updates and changes to the ACT tables are made through ACT-ValTool only. This guarantees that the actuaries will always have the same participants included in each customer level table for their case and calculated values in the database can be traced back to a formula in the spreadsheet.

ACT-DRS: The DOPT Report System (DRS) is a report writing module by which the actuary can design tables of customer data for inclusion in the Actuarial Case Report. Reports can be generated for all customers or a custom group of customers. Reports generated by this tool can be printed and saved as PDF.

3. ATPBGC Add-in: The ATPBGC Add-in is an Excel add-in that provides PBGC custom actuarial functions for Excel. Actuaries use these functions when programming cases in the ACT system and in spreadsheets outside of the ACT system. The ATPBGC Add-in model consists of four Dynamic Link Libraries (DLLs) written in C++, a VBA module (ATPBGC2007.xlam) that wraps the DLLs so Excel can call them, and a Microsoft Access database (ATPBGC97.accdb) that contains data used in the calculations such as mortality tables and interest rates. SCCM deploys the ATPBGC Add-in to authorize users’ workstations and it is loaded automatically every time Excel opens.

The ATPBGC97.accdb is a Microsoft Access database updated at least once a month by TRMD.

It is read by some of the ATPBGC Excel Add-in functions. Some examples of the data stored in ATPBGC database are:

• Information for determining the Maximum Insurance Limit

• Mortality Tables

• Monthly Annuity and Lump Sum Interest Rates

• Information for determining the XRA

4. Automated Data Transfer Utility: ADT Utility is a Visual Basic 6.0 (VB6) application that uses both Data Access Objects and the advanced Active X features inherent to the VB6 (SR 3) architecture. The input for ADT is a completed valuation Database ([PlanNumber].accdb) created by actuaries from Trusteeship Processing Divisions (TPDs) or contract actuarial organizations. It contains both plan level and participant level information along with input data and calculated results.

5. Archive Access and Archive Utility: The Archive applications store all case-related files, including the actuarial calculation spreadsheets, MS Access databases, and the Statement and OFA configuration files (BET and BSRS programs) for each case. All files related to a plan are archived through Archive Utility. Archived case files are made available to FBAs, PVAs, TPDs, RSD, ASD and Appeals through Archive Access, which allows users to open or download documents, perform benefit estimations and recalculations, and generate statements.

Archive applications are client applications built using a Microsoft Visual Basic 6 technology stack.

Web Based Applications

1. PACS: The Payment Adjustment Calculation System (PACS) incorporates three functions within one business application. For ease of access, as well as for similarity of the resulting final products, all three functions are combined into one application. All three functions calculate different aspects of the customer benefits described below.

• Back payment/Recoupment – This function is one in which the user enters actual payment streams, as well as correct entitlement streams, in order to determine whether a participant has been paid too much or too little over the period in question. If the participant was underpaid, a back payment is calculated which includes the principal and interest due, and if the participant was overpaid, a monthly deduction is calculated for recouping the overpayment.

• Lump Sum Calculation – This function calculates the total interest due for a single lump/one-time payment (e.g. return of employee contributions, or de-minimums lump sum). With lump sums, there are no payment streams.

• Optional Benefit Forms – This function is one in which the user enters actual retirement information from the benefit(s), calculated in the plan normal form(s) of annuity, in order to calculate the benefit amounts payable in the PBGC optional forms of annuity (OFA). The inputs for this function are generally obtained from the plan’s BET/BSRS program’s output.

Batch PACS: Batch PACS allows a user to perform bulk processing from a MS Access database created for Back payment/Recoupment and Lump Sum/One-time type of calculations. The MS Access database used as input for this process contains two tables, CensusData and PaymentData.

The existing BCV architecture leads to Personal Identifiable Information (PII) data distributed across desktops and remote locations. The modernized BCV system currently architected using Oracle, .Net, SharePoint, and Microsoft Office technologies. For managing and tracking BCV System data, Oracle Workspace manager features must be used.

The current architecture is neither scalable nor easily extensible. Integration often requires manual processes, dependent upon specific tools, technology, desktop configurations and does not fully satisfy all strategic goals. In addition, these aged systems can present potential data integrity and security concerns.

The BCV System accommodates complex calculations including, but not limited to:

• Industry-specific provisions, e.g., steel, automobile, airlines

• Free Surviving Spouse Benefits (FSSB)

• Cash balance and hybrid plans

• Non-level benefits and supplements

• Grow-ins for ongoing employers

• Employee contributions (mandatory and voluntary)

• Death and disability benefits

• Transfers between plans

• Offsets and partially purchased annuities

• Eligibility requirements

• Top-heavy plans

• Multiple benefits administered separately in the same plan

• Rules that govern plans with Adjusted Funding Target Attainment Percentage (AFTAB) values that are below required amounts

The BCV System accommodates factors requiring adjustments to benefit calculations, including, but not limited to:

• Prior distributions

• Accrued at Normal Limitation

• Maximum Guarantee-able Benefit

• Phase-ins

• Majority Owner benefits

• Adjustments for plan that terminate while in bankruptcy

• Aggregate Limit of Benefits Payable by PBGC (“Aggregate Maximum”)

• 4044 asset allocation and 4022(c) allocation

• Determination of PC3 and PC6 eligibility and calculation of PC3 and PC6 benefits

• Estimation of missing data using standard techniques

2.3.2.1 BCV Technology Stack

The ATSS O&M team shall be familiar with the following technologies that make up the system.

Also see Attachment C.2.a TRM AD Tools, for a list of active directory tools currently used.

Software Version Runtime Visual Basic 6.0 Design Visual Basic 6.0 ValTool PowerBuilder 12.6 DRS PowerBuilder 12.6 Microsoft Office Tools 2016 Sybase Powerbuilder 12.6 GNU GhostScript 9.18 Adobe Acrobat Pro 2015 HP PCL 5 Universal Driver 5 Far Point Spread Controls 3.0.05 Compenent One VS Controls 8 Sheridan 3D controls 2 ComponentSource Wise Package Studio 8 BeCubed Controls 5 Sheridan 3D controls 2 Adobe ColdFusion 11 Microsoft Windows Server 2012 R2 SP1 Visual Studio.Net 2015 Oracle Workspace Manager 12c

ODP.NET 12

2.3.2.2 BCV Diagrams

Leo Data Load – Diagram

BATCH PACS High Level Architecture

2.3.3 Systems Data

The data provided in the table below are historic numbers and are provided for context to enable the offeror to better understand the requirements.

PWS Section Reference IPVFB BCV

Program/Project Management

4.1.1 C. Peak period of

performance

Each fiscal year PBGC calculates the PVFB as of four dates: December 31st, March 31st, June 30th, and September 30th. The September 30th valuation is the most important of the four, because it is the fiscal year end valuation. Peak period of performance for each PVFB date ramps up two weeks before and two weeks after. For September 30th valuation, the peak period of performance begins September 15th and ends around November 15th (e.g.

meetings with auditors).

Note, when these days fall on a weekend, the contractor shall provide weekend support.

Historically our peak period of performance is the fiscal 4th quarter (July – September).

4.1.2.1 Issue and Risk

Mgt reporting

Issues and Risks are reported in P3M during daily stand ups.

Issues and Risks are reported in P3M during daily stand ups.

4.1.2.3 IPT and CCB

frequency

At minimum, one IPT/CCB conducted per release; ASD allows for at least two releases per year.

BCV: At minimum, one IPT/CCB conducted per release; ASD allows for at least two releases per year.

4.1.2.6 Tech writing ASD allows for at least two releases

per year; ITSLCM documentation is required per release.

ASD allows for at least two releases per year; ITSLCM documentation is required per release.

Execution

4.2.2.14 Training ASD allows for at least two releases

per year; product/user training (e.g.

demo) is required per release.

ASD allows for at least two releases per year; product/user training (e.g. demo) is required per release.

Operations

4.2.3.1 Tier 3 tickets

data

30 calls/emails per month, 80 service desk tickets per month

Average 53 Service desk tickets per month for FY2018.

4.2.3.3 Infrastructure

Impact Analysis

IPVFB Application/Servers 16 patches/year; DevOps 80 patches/year;

IPVFB applications test new patches installed by ITIOD approximately 17 Patches per year [e.g.: IE11 testing - 4 (CDE-T, CDE-I ITC and Prod), OAM

FY2017 the team supported 8 infrastructure and other projects.

FY2018 we have currently supported or are supporting 9 infrastructure and other projects.

PWS Section Reference IPVFB BCV

– 8 (2 release 4 environments), Windows 2012 and VDI - 5)].

In addition, we attend 4 different systems IPT meeting.

4.2.3.6 Data Call and

Audit Support

Data Call: 250 to 300 hours Audit Support: 120 to 150 hours

Data Call: 100 to 150 hours Audit Support: 50 to 100 hours

4.2.3.9 Ad Hoc

Reporting

Historically: 1 per week

Examples of type report:

Deduction pay source count reduced over 18,000 records. Why did the deduction pay source reduce?

3 to 4 a year. (e.g. EA requests for information on the Legacy BCV systems)

Extract of all customers with employee contributions from Final plans.

2.4 ATSS-Specific Requirements

2.4.1 Hours of Support

The hours listed below are to provide an understanding of the environment and overall requirements.

A full complement of contractor personnel is not needed on-site or to staff each area during all of these hours. The contractor is to propose its staffing levels.

All Hours are East Coast

System Core Hours of Support (Monday – Friday) After Hours Support

IPVFB 7:00 am – 7:00 pm 4-6 times per year for weekend release and COOP BCV 7:00 am – 7:00 pm

Operations support personnel should be available during Core Hours and for tier-3 on-call needs.

Program/Project Management and Execution staff are not required on a regular basis after 5:30 PM.

The contractor shall follow FAR and PBGC policy regarding holidays and inclement weather in coordination with the COR.

2.4.2 IPVFB Actuarial Expertise

IPVFB requires actuarial expertise to support execution services (maintenance, enhancement, or modernization) and operation and disposition services. As a result, PBGC requires a combination of actuarial and information technology systems proficiency to sustain business operations and modify the system as business and operational needs dictate.

The contractor shall use a combination of IT and Actuarial expertise in:

• Analyzing existing processes and recommending a risk-based actuarial framework for actuarial processes, including the annual and quarterly assumptions review.

• Incorporating and applying program and project management principles into actuarial processes.

• Providing any support necessary for the continued maturation of the actuarial program, including planning, scheduling, maintaining documentation, and coordination of actions to reach program goals.

• Bringing actuarial innovation and best practices to support efficiency and accuracy of the actuarial systems.

• Providing steady state support of the existing actuarial technology systems, which includes sustaining the operational efficiency of the actuarial systems.

• Sustaining business operations in the development (coding changes), operation and evaluation of actuarial systems, detailed analysis of actuarial data and actuarial calculations, and related tasks.

2.4.3 Travel

Travel is periodically required to both the COOP and Field Benefit Administration (FBA) sites.

Travel normally occurs following system releases that introduce new functionalities where the user community must be trained. Other instances for travel may include annual COOP exercises or site visits to evaluate system performance and user satisfaction. Based on historical estimates, an average of 3 trips are taken annually.