07_Contractor Questions Government Responses_PIMS Peer Review.pdf
PDF 430 KB Posted
- Solicitation number
- 16PBGC22Q0020
- Issued by
-
Pension Benefit Guaranty Corporation
About this file
This document contains questions and answers regarding a solicitation for the Pension Benefit Guaranty Corporation's PIMS Peer Review Interest Rate and Asset Return Modeling Assessment. The solicitation seeks a contractor to perform all services listed in the statement of objectives for the fiscal year 2021 Pension Insurance Modeling System Peer Review data input assessment. Key details include that this is a new contract with no incumbent, pricing information must be submitted within Volume II of the proposal, and the contractor's quality assurance surveillance plan and process for replacement of personnel should be described within the Management Approach factor of the proposal. The document provides additional context regarding PBGC's interest rate and asset modeling approaches.
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| File | Type | Posted |
|---|---|---|
| 06_RFP - 16PBGC22Q0020.Final.pdf |
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Text version
Question No.
Solictation Document or
Attached Reference (or state "General")
Solicitation Page No./Paragraph No.
Question Received PBGC's Response
1 General
Is (was) an incumbent contractor performing these services, or if this is a brand new contract? This is a new contract.
2 General
If there is an incumbent, could you please provide the current / previous contract number? N/A
Solicitation Document
17/3.3.1, bullet 3 Please confirm all price information must be submitted in Volume II (not Volume III as stated here). Pricing must be submitted within Volume II.
Solicitation Document
15/3 and 5 (bullet 1)
A description of the Offeror’s process for replacement of personnel is listed as a requirement in both Factor 2: Technical Approach and Capabilities and Factor 3:
Management Approach. Please clarify which factor should include this information. Include this information in the Factor 3 Management Approach.
Solicitation Document
20/1 and 2 Please clarify whether the Offeror’s QASP should be described in Factor 2 or Factor 3. Include this information in the Factor 2 Technical Approach.
General
What economic variables does PBGC use to derive rate paths, and what relationships are assumed between those variables and rates as well as between rates and the ERP?
The median rate of projected inflation is based on the Intermediate Assumptions from the most recent OASDI Trustees Report. The 30-year Treasury yields are modeled to have a median spread over inflation that reverts over time to an assumed expected spread.
16PBGC22Q0020 - PIMS Peer Review Interest Rate and Asset Return Modeling Assessment (Targeted) Questions & Answers
General
Does PBGC model other asset classes like corporate bonds off the 30-year treasury rate and U.S. aggregate stock returns, or are all pension assets placed in either stocks or
General If PBGC does model other asset classes, what are they and how do you model them of rates and the ERP (stocks)?
PBGC models corporate bond returns, but only use them for projecting PBGC’s asset returns (and not in projecting plan returns).
Corporate bonds returns are modeled with a mean, variance and correlations with stock returns and Treasury bonds. Additional capital gains/losses are modeled on corporate bonds based on an expected adjustment of the spread on Corporates (over Treasuries) at the starting point of the simulation to an assumed long-term equilibrium spread.
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