RFP_for_Defined_Contribuition_Pension_Plan_-_Haiti.pdf

SECTION 1

RFP NUMBER 19HA7019R0001

SCHEDULE OF SUPPLIES/SERVICES

DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

Defined Benefit Pension Plan

Section 1: Description of Defined Benefit Pension Plan

Type of Plan: Defined Benefit (DB) Pension Plan.

Objective – The main objective of this Plan is to provide retirement benefits for LE Staff who are current participants of the U.S Embassy in Haiti’s DB Plan serviced by MetLife/ALICO (contract # 50306). The new contract must have the same benefit levels. The U.S. Department of State will consider a Deposit Administration Fund or another type of funding vehicle able to provide plan servicing during the account accumulation phase with an annuity benefit payment upon retirement eligibility.

This is a service contract to administer Department assets of approximately $3 to $12 million dollars and purchase annuities from an insurer or administer annuity payments from the fund. A financial institution (bank, insurance company, pension provider, or financial services plan administrator) may service this contract. The service contract will be based on fees for administering Department assets, which may include any of the following if applicable:

• Accounting fees

• Banking fees

• Investment fees

• Annuity insurance purchase fees

• Per participant fees

• Annual fees

Definitions:

A. Applicability: All LE Staff who participate in the MetLife/ALICO plan at the time of vendor servicing transfer who are (1) working on a full-time or part-time basis, temporary direct hire appointments, or personal services agreements/contracts and (2) paid under the terms of the Local Compensation Plan.

B. Creditable Service: Includes all verifiable service under a direct-hire appointment or personal services agreement/contract deemed creditable in the LCP in which the employee or employer contributed to the plan.

C. Pensionable Salary: the average of a participant’s annual basic salaries in the last five year(s) prior to his retirement or termination of employment. For participants who are employed on a part-time basis for all or any part of the last five years prior to retirement or termination of employment, the average of the applicable annual salaries for a full-time (40 hour workweek) at the participant’s grade and step will be used in computing benefits.

D. Contributions: The USG will contribute 3.54% of basic salary earned by the participant each pay period. The Embassy may increase the employer contribution up to 12% if authorized by the USG at a later date. The employee contribution is 7.0%. Contributions by both the USG and the participant will cease when the participant separates from service. Basic salary is exclusive of allowances, bonuses, premium pay, one-time payments, or any other separate payment. The USG will not contribute unless the employee contributes to the plan. Additional cost for life insurance or survivor pension elections will be at the expense of the employee.

E. Currency: Contributions to the plan and payments at separation will be made in US Dollars.

F. Plan Manager/Administrator: The Plan Manager/Administrator, with oversight by the Embassy and in coordination with local legal counsel, will independently review the Plan’s policy or contract to ensure compliance with the local pension regulatory authorities.

G. Embassy Oversight: The Embassy, through the offices of the Minister Counselor for Management, the Director of the Financial Management Center and the Supervisory Human Resources Officer, ensures that the Plan Manager maintains separate accounts for each Participant, opens accounts for new Participants review statements and periodically audit the plan.

H. Investment Policy Statement: The Plan should include an investment policy statement that is in compliance with local law, if applicable.

I. Withdrawals from the Plan: A Participant may not withdraw funds from the Plan while still employed and eligible to participate unless authorized by the Department of State under special circumstances or an open season to join another Embassy retirement plan.

The participant may withdraw no monies from the Plan prior to final separation unless the Department of State authorizes such. No loans or advances from the Plan are permitted.

J. Retirement Age: 65 years of age or minimum retirement age to become eligible for benefits without tax penalty or a reduction in benefits based on local law.

K. Vesting: 10 years of credible service and eligible for Normal Retirement, Early Retirement or Disability Retirement.

L. Benefits: Payment of benefits are paid at separation from USG service in Haiti, retirement or death of the employee.

M. Retirement Benefits:

1. NORMAL RETIREMENT BENEFIT:

Upon reaching age 65 with at least 10 years of service, the annual Normal Retirement Benefit payable upon Normal Retirement Date shall be equal to 2 percent of the Pensionable Salary for each year of Pensionable Service, not to exceed 30 years of Pensionable Service.

2. EARLY RETIREMENT BENEFIT:

With the consent of the Policyholder, a Participant may retire earlier than his/her Normal Retirement Date, provided he/she has attained age 55 and has completed 10 years of Pensionable Service. The Early Retirement Benefit shall be based on Pensionable Salary and Pensionable Service at the time of early retirement. The Early Retirement Benefit will be actuarially reduced and will commence on the first day of the month following receipt of written notice to the Insurance Company that the Participant is to retire.

3. LATE RETIREMENT BENEFIT:

With the consent of the Policyholder, a Participant may retire later than his/her Normal Retirement Date. The Late Retirement Benefit· shall be based on Pensionable Salary and Pensionable Service at Normal Retirement Date. The Late. Retirement Benefit will be actuarially increased and will commence on the first day of the month following receipt of written notice to the Insurance Company that the Participant is to retire, or after the maximum deferment period, whichever is earlier. No further Participant contributions, if any, will be required or permitted after Normal Retirement Date.

4. DISABILITY RETIREMENT BENEFIT:

With the consent of the Policyholder and as further outlined in Rule VII of the Plan Rules a Participant who has completed 10 or more years of Pensionable Service and who shall have become, from some unavoidable cause, totally and permanently medically disabled, shall be entitled to an Early Retirement Benefit regardless of age and provided the evidence produced is sat isfactory. The amount of the Disability Retirement Benefit shall be equal to 2 percent of Pensionable Salary for each year of Pensionable Service, not to exceed 30 years of Pensionable Service, based on Pensionable Salary and Pensionable Service as of the date of disablement.

5. MAXIMUM RETIREMENT BENEFIT:

The Maximum Retirement Benefit payable for any type of retirement will be 60 percent of the Participant's Pensionable Salary.

6. BENEFITS AT TERMINATION OF SERVICE:

a. LESS THAN TEN YEARS OF CREDIBLE SERVICE

A Participant terminating his/her service with the Policyholder prior to completing 10 years of Pensionable Service will be entitled to a refund of his contributions plus interest.

b. AT LEAST TEN YEARS OF SERVICE

A Participant terminating his/her service with the Policyholder after completing 10 years of Pensionable Service, but before qualifying for Normal, Early or Disability Retirement will be entitled to a choice of either: (A) a refund of his/her contributions plus interest, or

(B) a deferred Retirement Benefit payable at Normal Retirement Date in the same manner as his/her Normal Retirement Benefit, and based on Pensionable Salary and Pensionable Service as of the date of termination of service.

7. DEATH BENEFITS:

a. PRE-RETIREMENT DEATH BENEFIT:

In the event of the death of a Participant while still in the Service of the Policyholder, including a Participant who has voluntarily continued in service past his/her Normal Retirement Date, his/her designated Beneficiary shall be entitled to a refund of the Participant's contributions plus interest.

b. POST-RETIREMENT DEATH BENEFIT:

In the event of death of a Participant who has retired under the Plan, the death benefit, if any, shall be as provided in Rule VI.

N. Unclaimed Benefits: Amounts unclaimed by a Participant or heir within thirty years following separation shall revert back to the plan and be used to offset future USG contributions. In the case of claims to recurring payment amounts unclaimed by a Participant or heir shall revert back to the plan after three years.

O. Death in Service: Payment to beneficiaries or heirs will be either a lump sum of the eligible benefit, a life insurance, or survivor pension based on the employee election selected if applicable.

P. Benefit Option Upon Retirement Eligibility:

1. Lump Sum Payment:

If eligible for Normal, Disability, Early or Late Retirement an employee may elect a lump sum payment of employee and employer contribution plus interest in lieu of an annuity. **Note: this is a new benefit option that is not currently in the plan rules.**

2. Annuity Options:

a. Life Annuity

b. Life Annuity with 10 Year Certain Period

c. Contingent Annuitant Option

Q. Administrative Charges: Reasonable and customary administrative fees and charges shall be deducted from the employer’s contributions, as appropriate, or from the fund itself where applicable.

R. Please use the attached current Plan Rules Document and service contract for a detailed description of plan rules.

SECTION 2 – PROPOSAL / SOLICITATION PROVISIONS

Instructions to Offeror. Each proposal must consist of the following:

1. List of clients over the past 10 years, demonstrating prior experience with relevant past performance information and references (provide dates of contracts, places of performance, value of contracts, contact names, telephone, fax numbers and email addresses). If the offeror has not performed comparable services in The United States and Caribbean, then the offeror shall provide its other international experience. Offerors are advised that the past performance information requested above may be discussed with the client’s contact person.

In addition, the client’s contact person may be asked to comment on the offeror’s:

Quality of services provided under the contract;

Compliance with contract terms and conditions;

Effectiveness of management;

Willingness to cooperate with and assist the customer in routine matters, and when confronted by unexpected difficulties; and Business integrity / business conduct.

The Government will use past performance information primarily to assess an offeror’s capability to meet the solicitation performance requirements, including the relevance and successful performance of the offeror’s work experience. The Government may also use this data to evaluate the credibility of the offeror’s proposal.

2. Evidence that the offeror/quoter can provide the necessary personnel, equipment, and financial resources needed to perform the work;

3. The offeror shall address its plan to obtain all licenses and permits required by local law. If offeror already possesses the locally required licenses and permits, a copy shall be provided.

4. The offeror’s strategic plan for a Deposit Administration Fund Defined Benefit Plan to include but not limited to:

(a) A work plan taking into account all work elements in Section 1, Scope of Work Statement.

(b) Plan of ensuring quality of services including but not limited to contract administration and oversight.

SECTION 3 - EVALUATION FACTORS

• The Government intends to award a contract resulting from this solicitation to the lowest priced, technically acceptable offeror/quoter who is a responsible Contractor.

• The decision will be made based on the lowest priced (see Section 1: R Administrative Charges), technical acceptable, responsible offeror.

The offeror shall submit a complete proposal according to Sections 1 and 2.

• The Government will determine offeror acceptability by assessing the offeror's compliance with the terms and conditions of this RFP.

The evaluation process shall include the following:

(a) COMPLIANCE REVIEW. The Government will perform an initial review of proposals/quotations received to determine compliance with the terms of the solicitation.

The Government may reject as unacceptable proposals/quotations that do not conform to the solicitation.

(b) TECHNICAL ACCEPTABILITY. Technical acceptability will include a review of past performance and experience as defined in Section 2, along with any technical information provided by the offeror with its proposal/quotation.

(c) PRICE EVALUATION. The lowest price will be determined by offered prices for administrative fees and charges. The Government reserves the right to reject proposals that are unreasonably low or high in price.

(d) RESPONSIBILITY DETERMINATION. The Government will determine Contractor responsibility by analyzing whether the apparent successful offeror complies with the requirements of the scope of work requirements, including:

• adequate financial resources or the ability to obtain them;

• ability to comply with the required performance period, taking into consideration all existing commercial and governmental business commitments;

• satisfactory record of integrity and business ethics;

• necessary organization, experience, and skills or the ability to obtain them;

• necessary equipment and facilities or the ability to obtain them; and

• otherwise qualified and eligible to receive an award under applicable laws and regulations;

• license to offer Retirement Plan or Financial Services in Haiti or the Caribbean ;

• experienced with the Defined Benefit Plans.

• ability to provide roll-out plan for “Defined Benefit Plans ”, incl. educational information material and seminar offer for all U.S. Mission Haiti locations;

• ability to provide information / documents in English / French;

• ability to provide employee access to insurance data via internet;

• designated POC (Point of Contact) for U.S. Embassy.