4-RFP - Pension Investment Mngmt 2026.docx

Request for Proposal For Lehigh and Northampton Transportation Authority Employees’ Pension Plans Investment Management Services and Custodial/Trustee Services

RFP Release Date: June 22, 2026 RFP Closing Date: August 7, 2026

TABLE OF CONTENTS

(NOTICE TO PROPOSERS)

REQUEST FOR PROPOSAL (RFP)

The Lehigh and Northampton Transportation Authority (LANTA) Employees’ Pension Plans Investment Management Services and Custodial/Trustee Services

LANTA is seeking proposals for the investment and administration of both the Non-Union and Union pension plans. The LANTA Union Plan comprises approximately $37.6 million of assets and the NON-Union Plan $10.8 million. There are approximately 410 participants in the Union Plan; and 120 participants in the Non-Union Plan.

Even though these are recognized as two separate Plans with two separate actuarial valuations, it is the Committees’ desire that the assets of the Plans be managed in the same way with almost identical allocations and Investment Policy Statements.

LANTA requires for this RFP, that submitted proposals included a proposed provider for both Investment Management AND the Custodial and Trustee services. Proposals for one and not the other will be considered non-responsive.

It is LANTA’s intention to enter into a five (5) year contract with the selected provider.

Proposals will be submitted through the PennBid process and should be submitted by: August 7, 2026, 4pm.

If proposers have any questions LANTA will only respond to those questions submitted via PennBid process.

Proposals must be submitted and signed where acknowledged on the forms provided.

All proposals shall be subject to all applicable state and federal laws as found on the forms included in the packet. An acknowledgement of these forms is necessary to propose for the RFP.

LANTA reserves the right to postpone, accept, reject, any and all proposals, in whole or in part, or to waive any and all informalities, as it deems in its best interest. LANTA also reserves the right to seek clarification from any and all proposers as it deems necessary. Any person on the list of ineligible contractors for federally assisted projects is not an eligible proposer.

Anticipated Schedule for RFP (subject to change)

Proposals advertised June 22, 2026

Proposals Due and Opened August 7, 2026

Proposers are selected for interview/presentations September 2026

Award of Contract October 2026

Proposal Submittal and Selection Procedures

The Plans’ Committees are solely responsible for the selection process. The procedures for receiving and evaluating applicants to determine the most qualified include but are not limited to; a review of the applicant’s qualifications, experience, expertise and fees to be charged. Note that the contract will not necessarily be awarded to the lowest bidder. Upon review of the RFP documents that are received, the Committee may request that all, some or none of the applicants, submit to an in-person interview/presentation. The Committee reserves the right to reject any bid automatically for requested information omitted or for submission past the deadline. If the Committee is not satisfied with the bids received, the Committee shall either (1) place a second advertisement with any revisions deemed appropriate or (2) cancel the solicitation of services.

The Committee requires all bids to be placed through PennBid so as to expedite the flow of information and save time and expense.

The successful bidder will be engaged as soon as possible to provide their services to the Committees and the Plans. It is also understood that the fees for anticipated services other than those listed will be quoted to the Committee before commencement.

Submitted proposals must be received no later than: August 7, 2026 and shall be submitted through PennBid.

No proposal shall be accepted after the above stated date and time. All proposals become the property of the Committee and will not be returned. All costs incurred by the respondents in the preparation and submission of a proposal shall be the sole responsibility of the respondent. The information submitted in the proposal may be subject to public disclosure pursuant to the federal and state laws.

Respondents may make inquiries for clarification of technical or administrative information to the designated contact for the Committee through July 24, 2026. No other questions or forms of communication are authorized between the Committee, its officials, and employees and any individual or entity associated with the applicant. This does not preclude the designated contact from contacting the applicant to request additional information to manage the RFP process.

A Proposal Review Committee will review all proposals received and will establish a competitive price range for the proposals. There will be an objective scoring system to evaluate and rank the proposals received. Proposers may be asked to participate in an in-person interview as part of the review process.

Proposals will first be reviewed for completeness and inclusion of the components specified in this RFP document. LANTA reserves the right to waive minor irregularities in any proposal. The absence of any required information will result in exclusion from further analysis. Proposals that contain the required components will be evaluated based on the following criteria and weightings:

1. UNDERSTANDING/ 30% of the proposed project. What and how your service model works and the specifics of technical expertise with pension plans.

2. Reasonableness of price/30% of the proposed project. Specifically, fees and expenses for work and services provided.

3. Relevant Professional experience/25%.

4. Acceptability of the proposed project schedule/15%. Transition of assets and coordination with previous provider and LANTA personnel.

It is LANTA’s intention to enter into a five (5) year contract with the selected provider.

Protest Procedures—Please see Addenda I.

Errors and Omissions etc.—Please see Addenda II.

The designated contact for the Committee is:

LANTA’s Senior Director of Administration: Jason Polster-Abel

Scope of Services I. Investment Management.

1. Perform investment management of LANTA’s two pension portfolios.

2. Assist the Pension Committee in the review of the Plan(s) IPS on a periodic basis.

3. Determine the best asset allocation and benchmarks that will be followed to measure performance and long-term goals of both Plans in conjunction with the IPS.

4. Reallocate assets based on the IPS and the parameters set by the Pension Committee with advice from the Investment Manager.

5. Provide, at least quarterly, performance reporting for the Committee with GIPS compliant performance reporting.

6. Provide face to face meetings at a minimum of twice per year. Other meetings may be provided by conference.

7. In the event of wide market fluctuations or corrections, provide access via conference call or meeting with the Pension Committee.

8. Have access to an Investment Manager who represents our Plan’s single point of contact for the Plan Administrator or Committee members.

II. Custodial/Trustee Services

1. Serve as the Plans’ corporate Trustee, fiduciary; and work closely with the investment manager.

2. Provide custody and safekeeping of all investments; settle trades; and collects and reinvests all interest, dividends, and capital gains in the portfolios.

3. Provide periodic and annual trust accounting statements to LANTA and any other designated professional advisors such as; actuary, auditors, or plan consultants.

4. Provide year-end detailed report of all payments made to retiree/beneficiaries and terminated participants.

5. Perform processing of all 1099-R forms for any pensioner who received a distribution from the Plan(s.)

6. Maintenance of all Plan participant records: vesting/retirement status, legal withholdings and authorized deductions.

7. Conduct periodic mortality verification and new address determinations for Plan participants.

8. Submission of annual ACT 44 (of 2009) disclosures.

9. Access to a single point of contact at the Custodian for questions from either Plan Administrator or participants of the Plan(s.)

10. Interact and facilitate administrative and regulatory requests from professional advisors and State Auditor General’s Office, if requested.

Proposal Requirements

I. COVER LETTER

1. Provide a cover letter identifying your firm’s name and address. The cover letter should be signed by an individual authorized to bind the firm to the proposal. The cover letter should identify the length of time during which the proposal is the letter should identify any proposed subcontractors as well as the proposed provider of Custodial/Trustee services.

II. FIRM BACKGROUND AND INFORMATION – INVESMTENT MANAGEMENT SERVICES

Provide the following information for the prime contractor proposed to provide investment management services and any proposed investment management subcontractors.

1. Provide a brief history of your firm including the year the firm was founded.

2. Provide a history of:

a. Assets under management and an explanation for any significant year-to-year changes.

b. Accounts managed and average size of accounts managed.

c. Any client relationships and/or PA Transit Authorities or other PA municipal authorities?

3. If your firm is an SEC registered advisor, provide your most recent Form ADV Parts 1 and 2A. If your firm is exempt from registration, please provide an explanation.

4. Describe your organization’s experience in managing funds for pension plans, retirement funds, or non-ERISA retirement Plans.

5. Provide a description of the investment products and services your firm offers, including for each product:

a. Investment strategy/objectives.

b. Assets under management

c. Performance for one, three, five, and ten year periods.

d. Benchmark(s) that you use to compare/measure performance.

6. Have there been any judgements against the firm or any of its employees in the last five years? Is there any litigation pending against the firm or any of its employees? Are any governmental agencies or other regulatory bodies investigating the firm or any of its employees? If so please explain.

7. Does your firm carry errors and omission insurance? Does your firm carry any form of bonding insurance or fiduciary insurance?

8. What is your firm’s minimum size requirement for a separate account?

9. Provide the name(s) of your employee(s) who will be responsible for managing our portfolio. Please provide Form ADV Part 2B or biography of the responsible person.

10. If your firm plans to employ sub-advisors or other third-party contractors to perform any services you are proposing, describe the functions that you are proposing to out-source and your approach to supervising the performance of your sub-advisors and/or other third parties.

III. FIRM BACKGROUND AND INFORMATION – CUSTODIAL/TRUSTEEE SERVICES

Provide the following information for the contractor proposed to provide investment management services and any proposed subcontractors.

1. Provide a brief history of your firm including the year the firm was founded.

2. Provide a history of:

d. Assets under management and an explanation for any significant year-to-year changes.

e. Accounts managed and average size of accounts managed.

f. Any client relationships and/or PA Transit Authorities or other PA municipal authorities?

3. Describe your organization’s experience in providing custodial/trustee services for pension plans, retirement funds, or non-ERISA retirement Plans.

4. Have there been any judgements against the firm or any of its employees in the last five years? Is there any litigation pending against the firm or any of its employees? Are any governmental agencies or other regulatory bodies investigating the firm or any of its employees? If so, please explain.

5. Does your firm carry errors and omission insurance? Does your firm carry any form of bonding insurance or fiduciary insurance?

6. What is your firm’s minimum size requirement for a separate account?

7. Provide the name(s) of your employee(s) who will be the primary contact person(s) for our accounts and identify their roles.

8. If your firm plans to employ sub-advisors or other third-party contractors to perform any services you are proposing, describe the functions that you are proposing to out-source and your approach to supervising the performance of your sub-advisors and/or other third parties.

IV. ASSET ALLOCATION

1. Describe your capabilities and recent experiences in reviewing and/or working with your clients to prepare investment policy statements (IPS) and investment guidelines.

2. Provide a sample(s) of asset allocation for the proposed portfolio if the goal is a long-term return of 6-6.5% on portfolio assets.

V. INVESTMENT PROCESS

1. Describe your firm’s investment philosophy and strategy. Your response should include, but not be limited to, your research efforts (external vs. internal), portfolio construction guidelines, risk control techniques, and sell/rebalancing disciplines.

2. How long has your firm followed your investment philosophy?

3. Describe any changes or enhancements that have been made to the investment process over the last three to five years.

4. Describe your internal communication between research and investment management and portfolio managers.

5. Detail the policies and procedures you have established to ensure compliance with your clients’ IPS and guidelines to assure quality control of the portfolio management process. i.e. If there is an asset allocation “collar” on an asset class how and when do you “rebalance” back to allocation parameters?

VI. ADDITIONAL INFORMATION

1. With regard to your reporting of information to us:

a. Provide a brief description of the reporting process.

b. Provide samples of all of the reports you propose to provide.

c. Indicate the frequency with which you are proposing to provide each report.

d. Confirm that the cost for all reporting is included in your fee quote.

2. Communication with the Pension Committee(s) of the Board of Directors:

a. Provide a brief description of the communication process.

b. Indicate the frequency with which you expect communication.

c. Confirm that cost is included in fee quote.

3. Communication with other providers to the Pension Plans:

a. Discuss your relationship and communication with actuaries and auditors and custodians/Trustees of the Plans.

b. Do you work directly with other providers to resolve potential and current problems that might arise with the Plans?

4. Provide any additional information you believe is relevant.

VII. FEES AND EXPENSES.

1. Provide your standard fee schedule for Investment Management services, indicating if you have a minimum fee and your fees are negotiable.

2. Provide your fee schedule for the proposed provider of Custodial/Trustee services.

3. Identify any proposed changes to the fee structure over a five-year contract period.

4. Please calculate your annual fee by assuming a $48.5 million portfolio, comprised of assets based on the current IPS.

5. How and where is the CASH position held as an asset of the portfolio.

6. Provide details about any other fees, mutual fund internal expense cost, for example.

7. Even though these are two separate Plans for administration, audit and actuarial services, the investment management for both Plans is expected to be the same. If you are planning to purpose on a “bundled” approach to administration and investment management, including Trustee/Custodian services, please include these as separate expense calculations.

8. If asked to participate in an interview, the bidder should come prepared to present, with a trusted partner or an organization with which it has worked, for administrative and Trustee/Custodian services. The bidder should include a member(s) of the administrative and custodial team with them.

PENNSYLVANIA and FEDERAL DOCUMENTS

Please review and acknowledge by signing where indicated.

PROPOSER’S CHECKLIST

Check-off

Cover Letter _________

Information from the Proposal Requirements _________

Commonwealth of PA Contract Requirements _________

Attachment A—Standard Federal Requirements _________

ADDENDA I

Protest Procedures

A. Protests Prior to Submittal of Proposals.

Any protests, prior to the submittal of proposals, must be submitted in writing and received by LANTA at least seven (7) business days prior to the submittal due date for the proposal pursuant to this RFP. All protests must be in writing and supported by sufficient justification for the protest to be considered. No protest will be considered if LANTA determines that such protest is not received within the specified time period. Any such protests must be submitted to:

Jason Polster-Abel, Senior Director of Administration, at:

jpolster@lantabus-pa.gov.

LANTA’s response to protests shall be in writing and shall set forth the reasons for its response. LANTA’s decision is final, unless determined by a court of competent jurisdiction to have been fraudulent, capricious, arbitrary, or so grossly erroneous as necessary to imply bad faith, or not supported by substantial evidence.

B. Protests After Submission of Proposals.

Any protests received by LANTA subsequent to the proposals, must be submitted in writing and will be considered only with regard to issues which were not apparent before the submission of proposals. No protests of technical specifications, drawings, scope of work or evaluation criteria that are received subsequent to proposal submission will be considered. Any such protests must be submitted to: Jason Polster-Abel, Senior Director of Administration, at:

jpolster@lantabus-pa.gov.

The written protest received after proposal submission, including a protest of contract award, must be received by LANTA within five (5) business days of the action being protested. No other form other than a written protest will be considered. After the time of protest of award has expired, these protest procedures shall be considered inapplicable and any disputes will be resolved by LANTA under contract provisions or other remedies, if available.

Protests submitted to LANTA shall:

i. Include the name and address of the protestor

ii. Clearly identify the procurement under which the protest is being submitted.

iii. Identify the action being protested and provide sufficient detailed documentation to support the protest action.

iv. Indicate the action, ruling, or relief desired from LANTA.

ADDENDA II.

A. Errors & Omissions:

a. The supplier will not be allowed to take advantage of any errors or omissions in the specification. Full instructions to correct errors and omissions will be given to the supplier should they be called to the attention of LANTA.

B. Covenants Against Gratuities:

a. If awarded the contract, the Contractor shall warrant that he or she has not offered or given gratuities (in the form of entertainment, gifts or otherwise) to any official or employee of LANTA, with a view toward securing favorable treatment in the awarding, amending, or evaluating performance of contract.

C. Conflict of Interest:

a. No member, officer, or employee of the Public Body, Transit Authority, or locality during his/her tenure or one year thereafter shall have any interest direct or indirect, in the Contractor, the Contract or proceeds thereof. Throughout the proposal review process and subsequent contract negotiations, proposers shall not discuss seek specific information about this project with members, officers, agents, or employees, other than LANTA’s Sr. Director of Administration, Jason Polster-Abel, or his designee.