Defined_Benefit_Pension_SOW.docx

SECTION 1

RFP NUMBER 19NS5019R0001

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 Suriname’s DB Plan serviced by MetLife/ALICO (contract # 90108). 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 plan at the time of vender servicing asset 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 Local Compensation Plan (LCP) in which the employee or employer contributed to the plan.

C. Pensionable Salary: The participant’s annual basic salary in the last year prior to retirement or termination of employment. For participants who are employed on a part-time basis for all of any part of the last five years prior to retirement or termination of employment, the average of the applicable annual basic 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 21.7% of basic salary earned by the participant each pay period. Employee contribution is 3.0%. 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.

E. Currency: Contributions to the plan and payments at separation will be made in the U. S. dollars.

F. Plan Manager/Administrator: The Plan Manager/Administer, 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 law G. Embassy Oversight: The Embassy, through the Management Officer, Finance and HR Sections, ensures that the servicing vender maintains separate accounts for each participant.

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 voluntarily withdraw from the Plan while employed by the policyholder J. Retirement Age: Current retirement age is 60.

K. Vesting: A participant must participate at least 5 years to be fully vested and receive a retirement benefit.

L. Contingent Annuitant: Legal Spouse or domestic partner and/ or unmarried dependent children under the age of 21.

M. Benefits: N/A

N. Retirement Benefits:

1. NORMAL RETIREMENT BENEFIT:

The annual Normal Retirement Benefit payable upon Normal Retirement Date shall be equal to 2.0 percent of the Pensionable Salary for each year of Pensionable Service, not to exceed 40 years of Pensionable Service.

2. EARLY RETIREMENT BENEFIT:

With the consent of the Policyholder, a Participant may retire earlier than his Normal Retirement Date. 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 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. 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 VII of the current Plan Rules document, a Participant, who has completed 5 or more years of Pensionable Service and who shall have become, from some unavoidable cause, totally and permanently medically disabled, shall be entitled to a Disability Retirement Benefit regardless of age and provided the evidence produced is satisfactory. The amount of the Disability Retirement Benefit shall be equal to 1.1 percent of the Pensionable Salary for each year of Pensionable Service, not to exceed 40 years of Pensionable Service, based on Pensionable Salary and Pensionable Service as of the date of Disability Retirement.

5. MAXIMUM RETIREMENT BENEFIT:

The Maximum Retirement Benefit payable for any type of retirement will be 80 percent of the Participant’s Pensionable Salary.

6. BENEFITS AT TERMINATION OF SERVICE:

a. LESS THAN FIVE YEARS OF CREDIBLE SERVICE A Participant terminating his service with the Policyholder prior to completing 5 years of Pensionable Service will be entitled to a refund of his contributions plus interest.

b. AT LEAST FIVE YEARS OF SERVICE A Participant terminating his service with the Policyholder after completing 5 years of Pensionable Service, but before qualifying for normal or disability retirement will be entitled to a choice of either: (A) a refund of his contributions plus interest, or (B) a deferred Retirement Benefit payable at Normal Retirement Date in the same manner as his Normal Retirement Benefit, and based on Pensionable Salary and Pensionable Service as of the date termination or 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 Normal Retirement Date, the n The spouse or domestic partner Contingent Annuitant shall be entitled to a lifetime annuity of 75% of the Participant’s accrued Normal Retirement Benefit as of his date of death. The dependent child/orphan is entitled to 70% of the Participants accrued Normal Retirement Benefit and shall be paid until the child turns age 21 or marries. If there is more than one child the 70% benefit must be split among the dependent children.

1. Contingent Annuitants:

Legal Spouse or the participant.

A Domestic Partner must have maintained a household for at least five years preceding the death of the participant. (Suriname General Pension Act of 2014)

2. Dependent Child:

The legitimate, legitimized or adopted children born form the marriage of the deceased participant, or the minor living-in foster children who are provided for by the participant. (Suriname General Pension Act of 2014)

The natural, acknowledged children born outside of a marriage or minor living-in foster children who are provided for by the participant. (Suriname General Pension Act of 2014)

b. POST-RETIREMENT DEATH BENEFIT:

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

O. Unclaimed Benefit: N/A

P. Death in Service: See Section 7a

Q. Benefit Option Upon Retirement Eligibility: A participant shall be entitled to elect an actuarially determined annuity in accordance with Rule 6.02 of the current plan rules.

1. Lump Sum Payment: N/A

2. Annuity Options: See Rule VI of current plan.

R. Administrative Charges: See Article III, Section 3 of current service contract.

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

SECTION 2 – PROPOSAL / SOLICITATION PROVISIONS

(Edits to this section should be made as needed.)

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

(Edits to this section should be made as needed.)

· 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 U.S. Mission Suriname 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 Suriname locations;

· ability to provide information / documents in English / Dutch

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

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