2026_Actuary_RFP_AK4.pdf

REQUEST FOR PROPOSAL

FOR

ACTUARIAL CONSULTING

PACT PROGRAM

STATE TREASURER OF ALABAMA

Release Date: September 3, 2026

Proposal Due Date: September 30, 2026

BEASON-HAMMON ALABAMA TAXPAYER AND CITIZEN PROTECTION ACT COMPLIANCE

The Beason-Hammon Alabama Taxpayer and Citizen Protection Act (§§31-13-1 et. seq, Code of Alabama, 1975 as amended by Act 2012-491) regulates illegal immigration in the State of Alabama.

All contracts with the State or a political subdivision thereof must comply with that law.

For the purposes of this RFP and any responding Proposal, the following sections of that law impose specific requirements: Section 9 (a) of the Act provides “As a condition for the award of any contract, grant, or incentive by the state, any political subdivision thereof, or a state-funded entity to a business entity or employer that employs one or more employees, the business entity or employer shall not knowingly employ, hire for employment, or continue to employ an unauthorized alien within the State of Alabama.”

Section 9(b) of the Act requires “As a condition for the award of any contract, grant, or incentive by the state, any political subdivision thereof, or a state-funded entity to a business entity or employer that employs one or more employees within the State of Alabama, the business entity or employer shall provide documentation establishing that the business entity or employer is enrolled in the E-Verify program.”

As provided in the Act a “business entity” is any person or group of persons performing or engaging in any activity, enterprise, profession, or occupation for gain, benefit, advantage, or livelihood, whether for profit or not for profit and an “employer” is defined as any person, firm, corporation, partnership, joint stock association, agent, manager, representative, foreman, or other person having control or custody of any employment, place of employment, or of any employee, including any person or entity employing any person for hire within the State of Alabama, including a public employer. This term shall not include the occupant of a household contracting with another person to perform casual domestic labor within the household.

A Proposal must include a statement that the Proposer has knowledge of this law and is in compliance.

Before a contract is signed, the Contractor awarded the contract must submit a Certificate of Compliance using the form at Exhibit D to this RFP and, unless exempt because it has no employees in the State of Alabama, a complete copy of the Memorandum of Understanding issued by the United States Department of Homeland Security upon enrollment in the E-Verify Program. E-Verify enrollment can be accomplished at the website of the United States Department of Homeland Security at http://www.uscis.gov.

See Section 10 for additional language required by Section 9(k) of the Act to be included in the contract.

Rev.5-14-13

GENERAL INFORMATION

1. Overview

This Request for Proposal (RFP) has been issued by the Board of Trustees (“Board”) of the Prepaid Affordable College Tuition Program (“PACT”). The Board solicits proposals from qualified professional firms interested in providing actuarial consulting services (“the Firm”) to the Board.

This Request for Proposals (hereinafter “RFP”) is issued in accordance with the requirements of Section 41-4-133, Code of Alabama (1975). This RFP is not an offer to contract but seeks the submission of proposals from qualified professional firms that may form the basis for negotiation of an agreement. The Board reserves the right to reject any or all proposals and to solicit additional proposals if that is determined to be in the best interest of the Alabama PACT Trust Fund.

2. History of the PACT Program

PACT is a qualified 529 prepaid college tuition savings program whereby prepaid college tuition contracts were sold to purchasers to pay in advance college tuition and qualified fees for beneficiaries. The program is no longer open to enrollment. The PACT Trust Fund holds the program assets.

A class action settlement agreement was entered into between PACT Class Members and the PACT Board of Directors and Trustees in 2011 to establish a baseline monetary amount to be remitted in the future as payment of tuition and fees under PACT contracts. The settlement is expressly conditioned upon the appropriations of earmarked funds to the PACT Trust Fund as set forth in Act 2010-725.

The PACT Trust Fund has assets, as of June 30, 2026, of approximately $180 million in Fixed Income, Cash Equivalent, and Cash. Currently, Regions Bank is managing a fixed income portfolio to the Bloomberg Barclays 1-3 Year Government/Credit Index benchmark of approximately $42 million with a goal of transitioning 100% of this balance to cash equivalent funds over the next year. Regions also assists the PACT Board with performance review and investment policy.

Based upon actuarial reports, the Trust Fund is actuarially sound and is expected to remain so until 2032, which is the remaining expected life of the program.

Information about the PACT program including the current Investment Policy and actuarial reports are available at the Treasurer’s website www.treasury.alabama.gov.

http://www.treasury.alabama.gov/

3. Minimum Qualifications

In order to be considered for selection, the Firm must provide Exhibit C as documented proof that the following minimum qualifications listed below are met. The Firm has a continuing obligation to disclose information throughout the RFP process should any qualifications or situations change that might render the Firm as an unqualified candidate.

1. The Firm has been in business for at least eight years conducting similar services as described in this RFP, as of June 30, 2026.

2. As of June 30, 2026, the supervising actuary assigned to the account has at least five years’ experience as a supervising actuary in analysis and valuation assignments for prepaid tuition plans or similar systems with clients that have a minimum asset base of $100 million.

3. The Firm and its personnel have all authorizations, permits, licenses, and certifications as may be required under federal, state or local law to perform the services specified in this RFP at the time it submits a response to the RFP.

4. The Firm will comply with all state regulations to conduct business in the State of Alabama and will register with the Secretary of State if applicable. For more information, visit the Secretary of State website at www.sos.alabama.gov and click Business Services/Corporations.

5. The Firm will carry errors and omissions insurance or comparable instruments to cover negligent acts or omissions.

6. The Firm maintains sufficient procedures and capabilities to ensure the timely and accurate backup and full recovery for all computers and other data storage systems related to the PACT account.

7. The Firm has a company policy and practice of equal employment opportunity and non-discrimination based on race, creed or gender.

8. The Firm will comply with The Beason-Hammon Alabama Taxpayer and Citizen Protection Act.

4. Fees

The Firm shall be entitled to receive quarterly compensation in arrears. The proposal must state the fees charged for these services. Any charge for services not addressed in the Statement of Fees in your proposal will not be allowed during the course of the contract. It is expected that the successful proposal will result in a contract to provide these services for up to five years.

5. Proposal Required Information

Proposals should be as thorough and detailed as possible so that your capabilities to provide the required services can be properly evaluated.

Responses to this RFP must include:

http://www.sos.alabama.gov/

1. A brief transmittal letter to include a statement that the Firm has read this RFP and accepts the terms and conditions set out herein and that the Firm is aware of the requirements of the Beason- Hammon Alabama Taxpayer and Citizen Protection Act and will comply with that law.

2. Exhibit A, RFP Response;

3. Exhibit B, Statement of Fees;

4. Exhibit C, Minimum Qualifications;

5. Exhibit D, Certificate of Compliance;

6. Disclosure Statement. All proposals submitted in response to this RFP must include one original Disclosure Statement as required by Section 41-16-82, et seq., Code of Alabama (1975).

Copies of the Disclosure Statement, and information, may be downloaded from the State of Alabama Attorney General’s website at www.alabamaag.gov/forms-and-links/ .

6. Submission of Proposals

Issuing Office. The Office of State Treasurer, Young Boozer serves as Chairman to the Board and, in this capacity, is issuing the RFP on behalf of the Board.

Submission Deadline. It is the responsibility of the Firm to ensure that its proposal is timely uploaded electronically through Alabama Buys on or before 4:30 p.m. on September 30, 2026.

Electronic submissions must include a complete proposal uploaded in Alabama Buys. Electronic submissions are preferred; however, if an offeror is unable to submit an electronic proposal, requirements for physical submissions are outlined in the RFP Standard Terms and Conditions. If your response includes confidential trade secrets or proprietary information, also attach an electronic version with those sections redacted in the event a public information request for your response is received (see Section 11 for additional information). The Board will not consider proposals received after the date and time specified herein. It is the sole responsibility of the offeror to ensure submissions are received by the specified deadline.

Questions and Inquiries. The sole point of contact for purposes of this RFP is Anita Kelley.

Any questions or inquiries should be directed to anita.kelley@treasury.alabama.gov by September 10, 2026 at 5:00 PM to ensure a timely response. Questions with answers will be posted as an amendment to the RFP in Alabama Buys. Any oral communications shall be considered unofficial and nonbinding on the State.

Rejection of all Proposals. The Board reserves the right to reject any or all proposals and/or to solicit additional proposals if that is determined to be fiscally advantageous to the State or otherwise in its best interests.

http://www.alabamaag.gov/forms-and-links/ mailto:anita.kelley@treasury.alabama.gov

7. Efforts to Influence Selection Process Prohibited

The integrity of the Request for Proposals process is of primary importance and will not be compromised. Any written or oral communications beyond the RFP Response made by offerors, or others on their behalf, whether paid or unpaid, to influence the selection process, from the time the RFP is issued through its conclusion, made directly or indirectly to the Treasurer, Board members, or Treasury staff will be grounds for immediate elimination from the selection process.

8. Evaluation Factors and Criteria Scoring

The Treasurer will consider a variety of factors in its evaluation, including the thoroughness of the written responses. Incomplete responses or responses that fail to address the essence of the question posed will be deemed to be indicative of the service to be provided as Actuary.

An Evaluation Team will review the proposals and make a recommendation. The criteria listed below, and points assigned to each, will be used to evaluate the proposals for the purpose of ranking them in relative position based on how fully each proposal meets the requirements of this RFP.

20 Points 1. Experience with Prepaid Tuition Programs.

20 Points 2. Proven performance capability.

20 Points 3. Capability to factor behavioral and matriculation assumptions.

20 Points 4. Fees.

15 Points 5. Commitment to client service.

5 Points 6. Quality of the offeror’s proposal.

9. Evaluation

After the review and evaluation of the proposals, the Board may conduct interviews in person or by phone. Finalists chosen for interviews will be notified. The Board will recommend the Firm to the Chief Procurement Officer the Board determines, in its sole discretion, to be fully qualified and best suited among those submitting proposals to meet the needs of the Fund in a cost-effective manner.

The Board reserves the right, in its sole discretion, to award one or more contracts based upon the written proposals received without prior discussion or negotiations. In addition, the Board reserves the right to recommend awarding one or more contracts to the Chief Procurement Officer.

10. Agreement

All duties of the Actuary shall be set forth in a contract agreement between the Firm and the Board. Section 16-33C 5(6) states that all contracts awarded by the PACT Board may be for periods not exceeding five years. This contract will be for a five-year term. The contract will incorporate reference to the requirements of the RFP and the Firm’s proposal as negotiated. The contract must be signed by the Chief Procurement Officer, Alabama Legislative Oversight Committee, and Governor before it is effective.

You are charged with knowledge that there are certain terms standard to most commercial contracts in private sector use which the Board is prevented by law and policy from accepting.

These include (1) indemnification and hold harmless of the supplier or third parties, (2) consent to choice of law and venue other than the State of Alabama, (3) methods of dispute resolution other than negotiation and non-binding mediation, (4) waivers of subrogation and other rights against third parties and (5) some provisions limiting damages to the cost of goods or services.

In compliance with the Beason-Hammon Alabama Taxpayer and Citizen Protection Act (§31-13- 9(k), code of Alabama, 1975, as amended), the contract will include the following language:

“By signing this contract, the contracting parties affirm, for the duration of the agreement, that they will not violate federal immigration law or knowingly employ, hire for employment, or continue to employ an unauthorized alien within the State of Alabama. Furthermore, a contracting party found to be in violation of this provision shall be deemed in breach of the agreement and shall be responsible for all damages resulting therefrom.”

11. Public Information

All responses received will be subject to the Alabama Open Records Act, §36-12-40, Code of Alabama and may be subject to public disclosure upon request. The Open Records Act is remedial and should therefore be liberally construed in favor of the public. The Alabama Trade Secrets Act is §8-27-1 through §8-27-6, Code of Alabama. Offerors are cautioned to be familiar with these statutes. The burden is on the one asserting the trade secret to show that the information sought to be protected meets the definition of a Trade Secret as defined in the Act.

Any RFP response submitted that contains confidential, trade secrets or proprietary commercial information must be conspicuously marked on the outside as containing confidential information, and each page upon which confidential information appears must be conspicuously marked as such. Identification of the entire Proposal as confidential is not acceptable unless the Firm enumerates the specific grounds or applicable laws which support treatment of the entire material as protected from disclosure according to the foregoing statutes or other applicable Alabama law.

The owner of the confidential information shall indemnify and hold the State of Alabama, the State Treasurer, and Treasury staff harmless from all costs or expenses, including but not limited to attorney fees and expenses related to litigation concerning disclosure of said information and documents.

12. RFP Protest

Qualified offerors aggrieved in connection with the solicitation of the contract may protest to the Chief Procurement Officer. Please review §41-4-161, Code of Alabama, as amended, for information.

Exhibit A Proposal

Part I. Organization

1. Provide an overview of your firm, including corporate profile, firm experience, quality control procedures, ownership structure, financial condition, and overall business objective.

2. Provide a listing of all “related” or “affiliated” firms.

3. Provide a listing of all vendors or subcontractors your firm will partner with to provide services to the fund.

4. Is your firm a member of NAST (National Association of State Treasurers) or similar trade organizations?

5. Provide details of any claims, disputes, litigation or other legal proceedings where your firm is involved with the State of Alabama or any of its agencies, or has been involved, in the three preceding years.

6. With respect to your firm or any subcontractors you plan to engage, please indicate whether your firm, any subcontractor, or any of their respective principals, owner, directors, officers, or employees have been the subject of any of the following (answer “yes” or “no” and, if the answer is “yes”, please provide additional information) since January 1, 2021:

• Any past or pending regulatory restrictions, consent orders, stipulations or agreements arising from any regulatory, judicial proceeding or investigative agency that would apply to the delivery of any of the Services.

• Any pending regulatory proceedings, litigation, or investigations involving alleged or actual unfair, illegal, or unethical business practice, or any such regulatory proceedings or litigation.

• Any pending settled or adjudicated litigation, or any settled claim, or any currently threatened litigation, with or concerning any qualified tuition program or participant therein.

• Any litigation alleging the violation of fiduciary responsibility.

Part II. Personnel

Provide biographies of the person/persons/or team members who will be assigned to this account.

Part III. Account Management

1. Describe your pertinent experience in providing actuarial services to 529 Qualified Tuition Plans or similar programs. Were any of the Plans closed?

2. How long has your firm been providing actuary services? How many clients currently use this service?

3. Provide the following information on at least three clients (including contact persons for whom similar services as described in the RFP are provided):

• Company

• Address

• Contact

• Telephone Number

• Length of Relationship in Year

• Services Provided

Part IV. Scope of Services

A. General. In general, the Firm is expected to provide the following:

1. Provide expert advice and guidance regarding any actuarial and policy issues which may affect the actuarial soundness of PACT. Provide expert testimony to various authorities, including the State Legislature and Court, if the need arises.

2. Provide guidance and advice regarding any new actuarial issues that may affect PACT and which arise during the term of the contract. Inform the Board, Treasurer and staff on developments in federal legislation and/or regulations regarding college financing, tuition rates, etc.

3. Virtually or in person attend quarterly board meetings.

B. Actuarial Analyses

1. Perform quarterly actuarial valuation and analysis, or more often, if requested by the Board. Actuarial analyses shall contain sufficient explanatory text to permit a reasonable understanding of the actuarial assumptions and conclusions. This shall include, but not limited to the following:

a. Executive Summary

b. Assumptions and Methods

• Data and Assets

• Weighted Average Tuition

• Tuition Inflation

• Investment Return

• Payment of Tuition

• Cancellations

• School Choice

• Administration Expenses

c. Summary of Funding

d. Projected Cash Flow

Additionally, the annual report will be presented at the November meeting and should include more detailed information on the above topics and include appendixes to further detail funded status, trust assets, cash flow, asset and liability projection, active contracts and matriculation information.

2. Periodically review the form and content of data files maintained by PACT and make recommendations for modifications, additions or deletions.

3. Maintain a database in order to individually reconcile and sort data such as college enrollment, tuition, contract and investment data from year to year and to test the accuracy of the submitted data to be used to perform the cumulative analyses. PACT will provide copies of data files to the approved Firm; however, the Firm must keep this information confidential unless otherwise approved by PACT.

4. Provide recommendations and guidance regarding the actuarial soundness of the Program in order to increase the PACT benefits paid, and to provide associated scenarios.

5. Provide recommendations and guidance regarding actuarial assumptions (including non-economic), and document changes in assumptions with applicable written analysis.

Assumptions include, but are not limited to, college enrollment, tuition increases, PACT contract cancellations, potential bias for attendance at certain colleges, death and disability, and usage of benefits.

6. Quarterly, develop a thorough cash flow analysis of the program’s assets and liabilities, which includes a forecast of future financial obligations of PACT based on, but not limited to, the age or grade of the beneficiary, tuition rates, years remaining before benefit payment is due, investment returns, pricing strategy, etc.

7. Assess and recommend strategies for maintaining a fully funded status.

8. Analyze tuition and fee data for state public universities, college, and community/two-year colleges, and provide a determination of the Weighted Average Tuition rates, and Current Tuition Value, based on data provided by PACT.

9. By request, develop special analysis and provide various tables, scenarios, matrices, supporting documentation and other materials for reports, legislative testimony or other purposes. This can include multiple runs of data with varying assumptions.

10. Provide the calculation of contract cancellation refunds for contracts purchased prior to 1996, based on death/disability (calculation formula provided).

Please respond to the following:

1. Describe your experience in providing valuations of prepaid or similar types of plans.

2. Describe your method for determining assumption recommendations.

3. Describe your method for performing an actuarial analysis.

4. Describe the capability of your database system, the ownership control of this system and the facilities to be utilized in the performance of this contract.

5. Describe your ability and willingness to provide special reports and similar requested items.

6. Detail any items listed above that you are not able to provide.

7. Provide a sample actuarial report.

EXHIBIT B

STATEMENT OF FEES

Provide a proposed Fee Schedule for the services described in this RFP. Compensation is paid in arrears based on periodic invoices submitted and itemized in sufficient detail for a proper review and confirmation to be performed.

Any charge for services not addressed in the Fee Schedule in your proposal will not be allowed during the course of the contract. Provide fees for a 5-year contract term.

The Fee Schedule can propose a separate fee for any service not described in this RFP but which the Firm provides for other programs which might be beneficial.

EXHIBIT C

MINIMUM QUALIFICATIONS

1. The Firm has been in business for at least eight years conducting similar services as described in this RFP, as of June 30, 2026.

2. The Firm shall comply with all state regulations to conduct business in the State of Alabama and will register with the Secretary of State if applicable. For more information, visit the Secretary of State website at www.sos.alabama.gov and click Business Services/Corporations.

_____ Yes _____ No

3. The actuarial manager assigned to the Alabama PACT Trust Fund account has at least five years’ experience as a supervising actuary in analysis and valuation for prepaid tuition plans or similar systems as of June 30, 2026.

_____ Yes _____ No

4. The Firm carries errors and omissions insurance and fiduciary or professional liability insurance.

_____ Yes _____ No

5. The Firm and its personnel have all authorizations, permits, licenses and certifications as may be required under federal, state or local law to perform the services specified in this RFP at the time it submits a response to the RFP.

_____ Yes _____ No

6. The Firm has a policy and practice of equal employment opportunity and non-discrimination based on race, age, creed or gender.

7. The firm maintains sufficient procedures and capabilities to ensure a timely and accurate backup and full recovery for all computers and other data storage systems related to this account.

8. The Firm will comply with the Beason-Hammon Alabama Taxpayer and Citizen Protection Act.

http://www.sos.alabama.gov/

EXHIBIT D

Certificate of Compliance

CERTIFICATE OF COMPLIANCE WITH THE BEASON-HAMMON ALABAMA TAXPAYER

AND CITIZEN PROTECTION ACT (ACT 2011-535, as amended by Act 2012-491)

RE Contract/Grant/Incentive (describe by number or subject):

___________________________________________________________________by and between ___________________________________________________________ (Contractor/Grantee) and ___________________________________________________________(State Agency or Department or other Public Entity)

The undersigned hereby certifies to the State of Alabama as follows:

1. The undersigned holds the position of ________________________________with the Contractor/Grantee named above, is authorized to provide the representations that are set out in this Certificate as the official and binding act of that entity, and has knowledge of the provisions of THE BEASON-HAMMON ALABAMA TAXPAYER AND CITIZEN PROTECTION

ACT (ACT 2011-535 of the Alabama Legislature, as amended by Act 2012-491) which is described herein as “the Act”.

2. Applying the following definitions from the Section 3 of the Act, the Contractor/Grantee business structure is as indicated by my initials.

BUSINESS ENTITY. Any person or group of persons employing one or more persons performing or engaging in any activity, enterprise, profession, or occupation for gain, benefit, advantage, or livelihood, whether for profit or not for profit.

"Business entity" shall include, but not be limited to the following:

a. Self-employed individuals, business entities filing articles of incorporation, partnerships, limited partnerships, limited liability companies, foreign corporations, foreign limited partnerships, foreign limited liability companies authorized to transact business in this state, business trusts, and any business entity that registers with the Secretary of State.

b. Any business entity that possesses a business license, permit, certificate, approval, registration, charter, or similar form of authorization issued by the state, any business entity that is exempt by law from obtaining such a business license, and any business entity that is operating unlawfully without a business license.

EMPLOYER. Any person, firm, corporation, partnership, joint stock association, agent, manager, representative, foreman, or other person having control or custody of any employment, place of employment, or of any employee, including any including any person or entity employing any person for hire within the State of Alabama, including a public employer. This term shall not include the occupant of a household contracting with another person to perform casual domestic labor within the household.

______ a. The Contractor/Grantee is a business entity or employer as those terms are defined in Section 3 of the Act.

______ b. The Contractor/Grantee is not a business entity or employer as those terms are defined in Section 3 of the

Act.

3. As of the date of this Certificate, Contractor/Grantee does not knowingly employ an unauthorized alien, as that term is defined in Section 3 of the Act, within the State of Alabama and hereafter it will not knowingly employ, hire for employment, or continue to employ an unauthorized alien within the State of Alabama.

{Alien is any person who is not a citizen or national of the United States, as described in 8 U.S.C. § 1101, et seq., and any amendments thereto.}

{Unauthorized Alien is an alien who is not authorized to work in the United States as defined in 8 U.S.C. § 1324a

(h)(3).}

4. Contractor/Grantee is enrolled in E-Verify unless it is not eligible to enroll because of the rules of that program or other factors beyond its control.

Certified this ______ day of _____________ 20___.

Name of Contractor/Grantee/Recipient

By: ______________________________________________________

Its _______________________________________________________

The above Certification was signed in my presence by the person whose name appears above, on this _____ day of

_____________________ 20_____.

WITNESS_________________________________________________________

Print Name of Witness