4609_Deferred_Comp_RFP_FINAL.pdf

CITY OF CHANDLER

NOTICE OF REQUEST FOR PROPOSAL HR3-953-4609

SOLICITATION TITLE: Deferred Compensation 457 Plan and Retirement Health Savings Plan Administration, Investment and Trust Services

SOLICITATION NO.: HR3-953-4609

PROPOSAL DUE DATE: June 13, 2023

PROPOSAL DUE TIME: 4:00 pm local Arizona time

SUBMIT TO: Via email to:

christina.pryor@chandleraz.gov Email and attachments may not exceed 50 MB

PRE-PROPOSAL CONFERENCE: May 24, 2023 11:00 am local Arizona time

CONFERENCE ATTENDANCE: Dial in number: 415-655-0001

Event number: 2595 575 8345

CONTACT: Christina Pryor, CPPO Procurement and Supply Senior Manager Phone: (480) 782-2403 Email: christina.pryor@chandleraz.gov

ISSUE DATE: May 12, 2023

Proposals for the commodity or service specified will be received by the Purchasing Division, City of Chandler, via email to christina.pryor@chandleraz.gov, until the time and date cited above.

Proposals must be received in the email inbox of the responsible Procurement Officer on or prior to the exact time and date indicated above.

Instructions for preparing proposals are provided on the following pages.

RFP Summary: The City is requesting proposals from qualified offerors to provide the City with Deferred Compensation 457 Plan and Retirement Health Savings Plan Administration, investment and trust services pursuant to the attached agreement.

INFORMATION AND INSTRUCTIONS TO PROPOSERS

1. Vendor Registration. Proposers must register via the on-line vendor registration system to automatically receive notification of addenda to this solicitation or notice of other solicitation opportunities. Visit https://www.chandleraz.gov/business/vendor-services/purchasing, select Vendor Registration and Management.

2. Addendum. This RFP may only be modified by a written addendum. Proposers are responsible for obtaining all addenda. A Proposer must not rely on verbal responses to inquiries. A verbal reply to an inquiry does not constitute a modification of the solicitation.

3. Late Proposals. Late proposals will not be accepted. It is the sole responsibility of the

Proposer to ensure that its proposal is received at or prior to the exact date and time indicated on the Notice Page. The time stamp of the City’s email system will govern timeliness of submission.

4. Cost of Proposal Preparation. The City will not reimburse any Proposer the cost of responding to a solicitation.

5. Duty to Examine. It is the responsibility of each Proposer to examine the entire solicitation, seek clarification and make inquiries, and examine its proposal for accuracy before submitting it. Lack of care in preparing a proposal will not be grounds for modifying or withdrawing the proposal after the due date and time, nor will it give rise to any claim.

6. Inquiries. Any inquiry related to this solicitation, including any requests for or inquiries regarding standards referenced in the solicitation must be directed solely to the Procurement Officer listed on the cover page of the solicitation. Proposers will not contact or direct inquiries concerning this solicitation to any other City employee unless the solicitation specifically identifies a person other than the Procurement Officer as a contact.

All inquiries, except those at the Pre-Proposal Conference, should be submitted in writing and refer to the appropriate solicitation number, page and paragraph. The City will consider the relevancy of all inquiries but is not required to respond in writing.

Any inquiry must be submitted as soon as possible and should be submitted at least ten days before the proposal due date and time for review and determination by City. Failure to do so may result in the inquiry not being addressed in a solicitation addendum.

7. Remote Attendance at Pre-Proposal Conference. The City may offer remote attendance at the Pre-Proposal Conference via a City-hosted dial-in meeting. If remote attendance is offered, meeting details will be provided on the Notice Page. Interested Offerors attending remotely may be required to register and provide, at a minimum, attendee name and company name.

Remote attendance is provided as a courtesy. Attendees are responsible for all aspects of their attendance. The City will not provide technical support for remote attendance.

8. Exceptions to the Solicitation. Any exception to the solicitation must be submitted as soon https://www.chandleraz.gov/business/vendor-services/purchasing as possible and should be submitted at least ten days before the proposal due date and time for review and determination by City. Failure to do so may result in the exception not being addressed in a solicitation addendum.

9. Proposal Amendment or Withdrawal. A proposal may be withdrawn at any time before the due date and time. A proposal may not be amended or withdrawn after the due date and time except as otherwise provided by applicable law.

10. Unit Price Prevails. In the case of discrepancy between the unit price or rate and the extension of that unit price or rate, the unit price or rate will govern.

11. Non-Collusion and Non-Discrimination. By signing and submitting the proposal, the

Proposer certifies that the Proposer did not engage in collusion or other anti-competitive practices in connection with the preparation or submission of its proposal; and the Proposer does not discriminate against any employee or applicant for employment or person to whom it provides services because of race, color, religion, age, sex, national origin, or disability, and that it complies with all applicable Federal, state and local laws and executive orders regarding employment.

12. Waiver and Rejection Rights. The City reserves the right to waive any immaterial defect or informality; or reject any or all proposals, or portions thereof; or reissue the Request for Proposal; and will be the sole judge of the merits of the proposals received.

13. Proposal Opening. Proposals will be opened as indicated on the Notice Page, unless amended in writing by the Procurement Officer issuing the solicitation. The name of each Proposer will be public information following the proposal opening. No other information will be publicly disclosed at that time.

14. Public Record. All proposals submitted in response to this solicitation and all evaluation related records will become property of City and will become a matter of public record for review, subsequent to publication by the City of the proposed award in the agenda for the City Council Meeting, or upon award by the appropriate approving authority or as otherwise required by law.

15. Confidential Information. A request for nondisclosure of data such as trade secrets or other proprietary information must be submitted with the proposal and must contain the basis for the request. Any information included in the request must be submitted as a separate file. Price is not confidential and will not be withheld. A blanket statement of confidentiality will not be considered. It is the Proposer’s responsibility to identify and segregate the information in the proposal provided to the City.

The City will review all requests for confidentiality and may approve or deny all or portions of the request. Information denied confidentiality will be released as public information. In the event of a public records request for information granted confidentiality, the City will endeavor provide 48-hours’ notice before releasing materials in order for the Proposer to apply for a court order blocking the release of the information.

16. Proposal Acceptance Period. All proposals will remain valid for 120 days after the day of the opening of proposals. The City may, at its sole discretion, release any proposal and return any security (as applicable) prior to that date. No Proposer may withdraw a proposal during this period without written permission from the City. Should any Proposer refuse to enter into an agreement, under the terms and conditions of the procurement, the City may retain any security (as applicable) as liquidated damages.

17. Discussions with Proposers and Revisions to Proposals. Discussions and additional investigations may be conducted with responsible Proposers who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Proposers will be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final proposals.

In conducting discussions, there will be no disclosure of any information derived from proposals submitted by competing Proposers. The purposes of such discussions will be to:

determine in greater detail such Proposer’s qualifications; explore with the Proposer the scope and nature of the project, the Proposer’s proposed method of performance, and the relative utility of alternate methods of approach; determine that the Proposer will make available the necessary personnel and facilities to perform within the required time; agreeing upon compensation, which is fair and reasonable, taking into account the estimated value of the required services, and the scope, complexity and nature of such services.

18. Clarifications. City reserves the right to obtain Proposer clarifications where necessary to arrive at full and complete understanding of Proposer’s product, service, and solicitation response. Clarification means a communication with a Proposer for the purpose of eliminating ambiguities in the proposal and does not give Proposer an opportunity to revise or modify its proposal.

19. Agreement Negotiations. City reserves the right to conduct exclusive or concurrent negotiations with responsible Proposer(s) for the purpose of agreeing to the conditions, terms and price of the proposed agreement unless prohibited. Proposers will be accorded fair and equal treatment in conducting negotiations and there will be no disclosure of any information derived from proposals submitted by competing Proposers. Exclusive or concurrent negotiations will not constitute an agreement award nor will it confer any property rights to the successful Proposer. In the event the City deems that negotiations are not progressing, the City may formally terminate these negotiations and may enter into subsequent concurrent or exclusive negotiations with the next most qualified Proposer(s).

20. Payment. Proposers may agree to accept the City Procurement Card (Mastercard) for payment. Proposers should indicate on the Proposer Information and Offer Section of this RFP, their willingness to accept City Procurement Card payments. The inability to accept payment by City Procurement Card will not disqualify a Proposer’s response.

Proposers may also agree to accept other traditional payment methods, including automated clearinghouse (ACH). Payment terms for traditional payment methods are Net 30 upon receipt of an accurate invoice. Proposers may propose additional discounts for early payment within their proposal.

21. Local Business Consideration. Where the Chandler Administrative Regulation MS-16 Local Business Consideration is applicable, any applicable Chandler Transaction Privilege Tax will be deducted from the net cost for the purpose of evaluation.

22. Protests. A protest must be in writing and be filed with the Purchasing Division. Filed means delivery to the Procurement Officer or Procurement and Supply Senior Manager, whichever is applicable. A time and date of receipt will be documented in a verifiable manner for purposes of filing.

A protest must include:

a. The name, address, telephone number and email address of the protester;

b. The signature of the protester or its representative;

c. Identification of the solicitation or contract number;

d. A detailed statement of the legal and factual grounds of the protest including copies of relevant documents; and

e. The form of relief requested.

A protest based upon alleged improprieties in a solicitation that are apparent before the solicitation due date must be filed not less than five calendar days before the solicitation due date.

A protest of a proposed award requiring City Council approval must be filed within five calendar days of the first posting of the award recommendation on the Purchasing Division website or the City Clerk’s website, whichever occurs first. If the deadline for filing a protest occurs on a weekend or holiday, the protest must be filed the next business day.

A protest of an award not requiring City Council approval must be filed within ten days after the protester knows or should have known the basis of the protest.

23. Award. Unless otherwise provided in this solicitation, the City reserves the right to make multiple awards, award by item, group or as a total, as is deemed most advantageous to the City.

24. Execution of Agreement. Within ten days of notice that Proposer is the recommended awardee, Proposer will execute and return the Agreement to Purchasing.

25. Persons with Disabilities. Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by contacting the Procurement Officer.

Requests must be made as early as possible to allow time to arrange the accommodation.

PROPOSAL CONTENT

Proposers must submit one copy of the proposal via email to the responsible Procurement Officer.

The REQUEST FOR PROPOSAL TITLE, NUMBER AND OFFEROR NAME should be in the subject line of the email. Emails and attachments may not exceed 50 MB in size. Attachments should be in .pdf format and named with the RFP number and Offeror name. A single email is preferred, however multiple emails are permissible provided that all are received prior to the due date and time.

Proposals should include the following information in the order listed:

1. Completed Proposer Information and Offer Section. Complete and submit the Proposer Information and Offer Section in the format provided in this solicitation. Failure to do so may result in the proposal being rejected as non-responsive. The Proposer Information and Offer Section within the solicitation must include a signature by a person authorized to sign the proposal. The signature must signify the Proposer’s intent to be bound by its Proposal and the terms of the solicitation and that the information provided is true, accurate and complete.

2. Responses to Proposal Evaluation Criteria. Submit information requested in the Evaluation Criteria Section provided in this solicitation. Forms, such as pricing forms, must be completed in the format provided in the solicitation. Failure to do so may result in the proposal being rejected as non-responsive.

3. Exceptions to Agreement. The City’s standard Agreement is included as a part of this solicitation. By submitting a proposal, the Proposer acknowledges having reviewed the Agreement. Any exceptions to the Scope of Work or Specifications or to Agreement terms and conditions must be included with the proposal and be clearly identified. Exceptions not included in the proposal may not be introduced in the future. Any exceptions to the Scope of Work, Specifications or the Agreement language will be considered and included in City’s evaluation of the proposal. A proposal that takes exception to a material requirement of any part of the Scope of Work, Specifications or Agreement language may be rejected as non-responsive.

4. Disclosure. If the Proposer has been debarred, suspended or otherwise lawfully precluded from participating in any public procurement activity, including being disapproved as a subcontractor with any Federal, state or local government, or if any such preclusion is currently pending, the Proposer must make disclosure. In the proposal, the Proposer must include information including the name and address of the governmental entity, the effective date and duration of this suspension or debarment, and the relevant circumstances. The City reserves the right to reject a proposal received from a Proposer, including each of its principals, who is currently debarred, suspended or otherwise lawfully prohibited from any public procurement activity.

PROPOSER INFORMATION AND OFFER SECTION

Company Name

Business Type (Corporation, Partnership, etc.)

State of Incorporation (if applicable)

Federal Tax I.D. No.

Address

City, State, Zip

Authorized Signature

Name and Title

Contact Name

Title

Telephone

E-mail

Chandler Transaction Privilege Tax (TPT) No. (if applicable) Date of issue:

Is proposed purchase subject to TPT? _______yes _______no

Will you accept a City Procurement Card (MasterCard) for payment of invoices? _______yes _______no

If you accept a MasterCard for payment, do you charge a fee?

_______yes _______no If yes, what is the fee?______

Will you accept automated clearinghouse (ACH) for payment of invoices? _______yes _______no

Prompt Payment Terms Offered _______% Net _________ days

Disclosure of Debarment or Suspension

_______yes _______no

(If yes, please attach description of the circumstances)

Exceptions Taken

_______yes _______no

(If yes, please attach a clearly identified section)

Date Addendum #1 Acknowledged/Received

Date Addendum #2 Acknowledged/Received

SCOPE OF SERVICES

BACKGROUND

The City of Chandler maintains a deferred compensation plan in accordance with Internal Revenue Code Section 457 (the “457 Plan”). The City has also established three Retirement Health Savings Plans (the “RHS Plans”). One RHS Plan covers all full-time employees and benefit-eligible part-time employees. A second RHS Plan covers City Council members. A third RHS Plan covers retirees eligible for Medical Expense Reimbursement Plan payments. Administrative, investment and trust services for all plans are currently provided by MissionSquare Retirement.

The City is seeking proposals from qualified offerors for Deferred Compensation 457 Plan and Retirement Health Savings Plan administration, and investment and trust services, in accordance with the Scope of Services below. Interested offerors must propose to provide services for all plans, the 457 Plan and the three RHS Plans.

In responding to this RFP, you must address all plans (the 457 Plan plus all three RHS Plans).

General information about the plans is as follows:

General Information (as of 12/31/2022)

457 Plan RHS Plan 1 RHS Plan 2 RHS Plan 3 Eligible employees 1,648 1,648 7 93 Participants

• With current contributions 1,598 1,800 0 0

• Receiving periodic distributions 356 N/A N/A N/A

• With balances 2,220 2,671 2 35

Trailing 12 months contributions (excluding rollovers) $10,235,622 $2,764,977 0 $0 Trailing 12 months rollovers in $1,103684 N/A N/A N/A Trailing 12 months withdrawals/distributions $9,406, 860 N/A N/A N/A Trailing 12 months medical reimbursements N/A $1,883,330 N/A $18,822 Trailing 12 months new loans $1,441,497 N/A N/A N/A # of new loans – trailing 12 months 81 N/A N/A N/A # of outstanding loans 546 N/A N/A N/A # of new enrollments – trailing 12 months 206 240 0 0 # of distributions – trailing 12 months 769 N/A N/A N/A

# of medical reimbursement claims – trailing 12 months N/A 7,033 N/A 18 Payroll software TRAC TRAC TRAC TRAC

# of payroll files per year sent to recordkeeper 26 26 N/A N/A Contribution frequency Bi-weekly Bi-weekly Bi-weekly N/A Number of Investment Options Available 21 32 32 32

Operational Information (as of 04/01/2023)

457 Plan Eligibility All employees of the City of Chandler are eligible to participate on the first day of the month following the hire date and the execution of a deferral agreement.

Plan year 1/1-12/31 Participation Participation in the 457 Plan is voluntary Vesting All accounts are 100% vested Valuation Daily Contributions (pre-tax, catch-up)

Employee- IRS dollar limits, catch-up allowed. The City of Chandler wants to add a Roth 457 account feature.

Rollovers Allowed, EGTRRA expansion but no after-tax money.

Plan-to-Plan Transfers

Transfers from other eligible deferred compensation plans maintained by a governmental or tax-exempt organization are accepted. Transfers to other eligible deferred compensation plans maintained by a governmental or tax-exempt organization are permitted. Transfers to a governmental defined benefit plan (as defined in IRC Section 414(d)) for the purpose of purchasing a permissive service credit are allowed.

Loans Allowed – A maximum of five (5) outstanding loans per participant (loan provisions written in accordance with DOL/IRS regulations). No more than one loan may be made to any participant in one calendar year.

Distribution options Lump sum distributions and rollovers to an IRA or another qualified plan are allowed. Also allowed are:

• Equal monthly, quarterly, semi-annual or annual payments in an amount chosen by the participant

• Approximately equal monthly, quarterly, semi-annual or annual payments calculated to be paid for a period certain that is chosen by the participant

• Annual payments equal to the Required Minimum Distribution according to IRC Section 401(a)(9)(G) over the life expectancy of the participant or over the joint life expectancy of the participant and a beneficiary

Investments There are currently fifty investment options (including Stable Value).

The City of Chandler wants to establish a Self-Directed Brokerage option.

RHS Plan for Employees Eligibility This, the largest RHS Plan, covers all full-time and benefit-eligible part-time employees.

Participation Participation in the RHS Plan is automatic beginning the 1st day of the month following the hire date.

Plan year 1/1-12/31 Contributions All RHS contributions are credited to participant accounts on a pre-tax basis and are not subject to Social Security, Medicare, or income taxes.

The following types of contributions exist under the Plan:

Direct Employer Contributions – The City of Chandler contributes $15.00 per pay period for the Plan Year. Upon retirement from employment with the City, employees may elect to have the City contribute an amount equal to 50% of their accrued sick pay into the RHS plan. Also upon retirement from employment with the City, the City contributes $800.00 per 12-month year of City of Chandler service, prorated for any partial year, provided the employee has a minimum of five (5) years of employment at the City. Effective July 1, 2023, this amount is going up to $900 per 12-month year of service.

Employee Leave Contributions – Subject to an election by the employee, the City of Chandler makes annual contributions of accrued vacation leave over 240 hours (up to a maximum of 95 hours)

There is no plan-defined limit on the percentage or dollar amount of earnings that may be contributed on behalf of an employee.

Vesting period Direct Employer Contributions are 100% vested upon the completion of 5 years of service or upon the death of the employee while in service. Employee Leave Contributions are always 100% vested.

Forfeitures Forfeitures of non-vested accounts are used to reduce future City of Chandler contributions or to pay expenses, as determined by the City of Chandler. If a participant dies without a surviving spouse or surviving eligible dependents, vested accounts will be reallocated among remaining plan participants on a per capita basis.

Eligibility for benefits Employees become eligible to receive medical expense benefits immediately upon retirement from the City of Chandler into the Arizona State Retirement System or Public Safety Personnel Retirement System. An employee who separates from the City prior to retirement will be eligible to receive vested benefits upon attainment of age 50. Employees also become eligible to receive medical expense benefits in the event of permanent and total disability (as defined by the Plan).

Investments There are currently 21 investment options.

RHS Plan for City Council Members Eligibility The Plan covers City Council members and the Mayor Participation Participation in the RHS Plan is automatic beginning the 1st day of the month following the hire date.

Plan year 1/1-12/31 Contributions All RHS contributions are credited to participant accounts on a pre-tax basis and are not subject to Social Security, Medicare, or income taxes.

The following types of contributions exist under the Plan:

Direct Employer Contributions – Upon retirement, the City contributes $800.00 per 12-month year of City of Chandler service, prorated for any partial year, with a minimum of 1 term served on the City of Chandler’s City Council. Effective July 1, 2023, this amount is going up to $900 per 12-month year of service. In addition, half of the employee’s remaining sick leave is paid into this account at retirement.

There is no plan-defined limit on the percentage or dollar amount of earnings that may be contributed on behalf of an employee.

Vesting period Direct Employer Contributions are 100% vested upon the completion 5 years of service. Designated beneficiaries will also become 100% vested upon the death of the City Council member.

Forfeitures Forfeitures are used to reduce future City of Chandler contributions or to pay expenses, as determined by the City of Chandler. If a participant dies without a surviving spouse or surviving eligible dependents, vested accounts will be reallocated among remaining plan participants on a per capita basis.

Eligibility for benefits Members become eligible to receive medical expense benefits immediately upon retirement from the City of Chandler and commencing their pension benefit with the Elected Officials Retirement System or the Arizona State Retirement System. An councilmember who separates from the City prior to retirement will be eligible to receive vested benefits upon attainment of age 50.

Investments There are currently three investment options.

Investments As of March 31, 2023, the 457 Plan had $177.2 million in assets invested in the following fund options:

Options Plan Assets % of Plan

Asset Class Totals

% of Plan

Fidelity Investments Money Market Funds Government Portfolio $1,427,745.55 0.81% MissionSquare PLUS Fund $18,888,375.33 10.66% Total Assets in Stable Value/Cash Funds $20,316,120.88 11.47% Fidelity Contrafund® $18,562,458.28 10.48% Hartford MidCap Fund $269,269.41 0.15% Janus Henderson Venture Fund $1,453,557.41 0.82% MFS Value Fund $979,607.82 0.55% T Rowe Price® Small-Cap Value Fund $2,572,555.15 1.45% Vanguard Institutional Index Fund $26,260,960.72 14.82% Vanguard Mid-Cap Index Fund $7,175,355.27 4.05% Vanguard Selected Value Fund $1,649,069.58 0.93% Vanguard Small-Cap Index Fund $2,516,182.62 1.42% Total Assets in U.S. Equity Funds $61,439,016.26 34.67% PIMCO High Yield Fund $1,493,719.71 0.84% PIMCO Total Return Fund $2,970,643.71 1.68% Vanguard Total Bond Market Index $3,530,322.53 1.99% Total Bond Funds $7,994,685.95 4.51% American Funds New World Fund $904,501.75 0.51% Oakmark International Fund $3,013,908.19 1.70% Vanguard Total International Stock Index Fund $4,736,946.21 2.67% Total International Funds $8,655,356.15 4.88% Vanguard Real Estate Index Fund $1,227,101.70 0.69% Total Real Estate Fund $1,227,101.70 0.69% MissionSquare Brokerage $24,994,321.59 14.11% MissionSquare Roth Brokerage $4,618.78 0.00% Total Brokerage $24,998,940.37 14.11% MissionSquare Retirement IncomeAdvantage Fund $1,214,936.66 0.69% Total IncomeAdvantage Fund $1,214,936.66 0.69% Vanguard Target Retirement 2020 Fund $3,747,858.99 2.12% Vanguard Target Retirement 2025 Fund $7,263,156.21 4.10% Vanguard Target Retirement 2030 Fund $5,348,862.26 3.02% Vanguard Target Retirement 2035 Fund $10,626,291.09 6.00% Vanguard Target Retirement 2040 Fund $6,722,201.95 3.79% Vanguard Target Retirement 2045 Fund $5,661,678.08 3.20% Vanguard Target Retirement 2050 Fund $4,497,080.29 2.54%

Vanguard Target Retirement 2055 Fund $2,017,413.18 1.14% Vanguard Target Retirement 2060 Fund $1,562,290.80 0.88% Vanguard Target Retirement 2065 Fund $937,160.54 0.53% Vanguard Target Retirement Income Fund $2,963,323.04 1.67% Total Target Date Funds $51,347,316.43 28.98%

As of March 31, 2023, the RHS Plan covering full-time and benefit-eligible part-time employees had $33,093,770.93 million in assets invested in the following fund options:

MISSIONSQUARE PLUS FUND $2,703,545.98

MISSIONSQUARE RETIREMENT TARGET 2060 FUND $142,380.30

MISSIONSQUARE RETIREMENT TARGET 2015 FUND $2,662,282.12

MISSIONSQUARE RETIREMENT TARGET 2020 FUND $4,643,444.12

MISSIONSQUARE RETIREMENT TARGET 2025 FUND $4,041,658.37

MISSIONSQUARE RETIREMENT TARGET 2030 FUND $3,933,280.31

MISSIONSQUARE RETIREMENT TARGET 2035 FUND $3,137,860.14

MISSIONSQUARE RETIREMENT TARGET 2040 FUND $2,184,561.25

MISSIONSQUARE RETIREMENT TARGET 2045 FUND $1,407,819.19

MISSIONSQUARE MODEL PORTFOLIO GLOBAL EQUITY

GROWTH FUND $384,098.87

MISSIONSQUARE RETIREMENT TARGET 2050 FUND $779,752.77

MISSIONSQUARE RETIREMENT TARGET 2055 FUND $316,533.40

MISSIONSQUARE GROWTH FUND $398,111.50

MISSIONSQUARE SELECT VALUE FUND $126,075.80

MISSIONSQUARE EQUITY INCOME FUND $364,254.49

MISSIONSQUARE SMALL CAP DISCOVERY FUND $35,395.55

MISSIONSQUARE AGGRESSIVE OPPORTUNITIES FUND $406,426.00

MISSIONSQUARE CORE BOND INDEX FUND $295,195.01

MISSIONSQUARE OVERSEAS EQUITY INDEX FUND $274,956.91

MISSIONSQUARE 500 STOCK INDEX FUND $1,331,919.24

MISSIONSQUARE MID/SMALL COMPANY INDEX FUND $338,987.78

MISSIONSQUARE INTERNATIONAL FUND $193,409.98

MISSIONSQUARE GROWTH & INCOME FUND $287,828.45

MISSIONSQUARE RETIREMENT TARGET INCOME FUND $1,271,999.14

MISSIONSQUARE BROAD MARKET INDEX FUND $567,642.39

MISSIONSQUARE EMERGING MARKETS FUND $24,387.83

MISSIONSQUARE INFLATION FOCUSED FUND $224,981.94

MISSIONSQUARE MODEL PORTFOLIO CONSERVATIVE

GROWTH FUND $78,052.08

MISSIONSQUARE MODEL PORTFOLIO TRADITIONAL GROWTH

FUND $167,214.64

MISSIONSQUARE MODEL PORTFOLIO LONG-TERM GROWTH

FUND $218,270.04

MISSIONSQUARE LOW DURATION BOND FUND $92,079.68

MISSIONSQUARE HIGH YIELD FUND $59,365.66

VANTAGEPOINT MODEL PORTFOLIO SAVINGS ORIENTED

FUND $0.00

Total $33,093,770.93

As of March 31, 2023, the RHS Plan covering City Council members had $8,462.51 in assets invested in the following fund options:

MISSIONSQUARE RETIREMENT TARGET 2015 FUND $7,972.75

MISSIONSQUARE RETIREMENT TARGET 2040 FUND $489.76

MISSIONSQUARE RETIREMENT TARGET INCOME FUND $0.00

Total $8,462.51

As of March 31, 2023, the RHS Plan covering retirees eligible for Medical Expense Reimbursement Plan payments had $482,238.79 in assets invested in the following fund options

MISSIONSQUARE PLUS FUND $54,878.56

MISSIONSQUARE RETIREMENT TARGET 2015 FUND $87,081.30

MISSIONSQUARE RETIREMENT TARGET 2020 FUND $48,383.94

MISSIONSQUARE MODEL PORTFOLIO GLOBAL EQUITY

GROWTH FUND $23,249.25

MISSIONSQUARE GROWTH FUND $21,016.12

MISSIONSQUARE EQUITY INCOME FUND $7,604.65

MISSIONSQUARE AGGRESSIVE OPPORTUNITIES FUND $3,646.34

MISSIONSQUARE OVERSEAS EQUITY INDEX FUND $0.44

MISSIONSQUARE 500 STOCK INDEX FUND $21,540.44

MISSIONSQUARE MID/SMALL COMPANY INDEX FUND $0.96

MISSIONSQUARE INTERNATIONAL FUND $6,624.14

MISSIONSQUARE GROWTH & INCOME FUND $1.06

MISSIONSQUARE RETIREMENT TARGET INCOME FUND $162,064.11

MISSIONSQUARE BROAD MARKET INDEX FUND $46,147.48

Total $482,238.79

Stable Value Fund The plan currently utilizes a stable value product. The City of Chandler prefers to continue using a stable value or other ‘Separate Account’ option as its core ‘interest bearing’ fund offering.

SCOPE OF SERVICES

1. The initial fees and contract terms must be guaranteed at minimum effective January 1, 2024, through December 31, 2026.

2. The Contractor will provide administrative and trust services for the 457 Plan, including the following:

a. Ability for new hires to enroll themselves directly on providers website in all the plans.

Provide welcome package and enrollment kit containing instructions how to enroll, beneficiary designation instructions

b. Communicate to participants information regarding their rights and elections under the plan

c. Provide enrollment and new participant account setup reports on a secure website.

Manage participant roll-overs into and out of the plan

d. Bi-Weekly and monthly contribution, loan repayment and participant indicative data update files from the City. Allow both dollar amount and percentage amount contributions.

e. Bi-Weekly contribution changes and loan repayment data (new loan starts and repayment stops) to the City

f. On-line loan modeling

g. Ability for employees to start a new loan directly through the vendor and have a direct connection to City of Chandler HRIS system to add, change, update loan amount

h. Daily account valuation and transaction processing

i. Maintain participant accounts reflecting amounts deferred, income, gain, or loss credited, and amounts distributed as benefits

j. Ability for employees to make changes to their 457, Roth, and catch-up contributions directly on the vendors site and vendor provide city a weekly/biweekly report with changes.

k. Administration of Catch-up contribution eligibility

l. Self Service Transactions – On-line account access to a secure website for purposes of making contribution rate changes, contribution investment changes and inter-fund transfers/balance reallocations. Notify City of changes, provide reports of changes.

m. Online loan, withdrawal and distribution processing per plan rules

n. Process service purchase agreements with local state retirement systems per plan rules

o. Process insurance premium direct payments for retired public safety officers per plan rules

p. On site representative(s) to conduct group enrollment, investment guidance and retirement planning educational meetings (number of meetings to be determined), and attendance at periodic benefits fairs, also one-on-one meetings, with individual participants, and attend monthly new employee orientation meeting (by appointment, minimum one day per month)

q. Trust and Custody services

r. Self-directed brokerage account to include a broad universe of mutual funds and any individual securities available on NYSE and NASDAQ (currently contracted with Innovest)

s. Provide Employee Fund Detail Sheets/Prospectuses

t. QDRO services (account holds and QDRO qualifications)

u. QDRO account split/distribution calculations and new account setups

v. Hardship withdrawal management based on safe harbor requirements

w. Electronic consent for legally required materials

x. Investment Management integration (‘Guided Choice’ managed accounts or model portfolios based on on-line risk tolerance questionnaire)

y. Management of participant beneficiary designations (beneficiary designations to be made and maintained on-line on a secure website)

z. Annual investment monitoring and notification of fund manager changes (currently 50 funds)

aa. Participate in quarterly meetings and provide reports to City Benefits personnel illustrating new enrollment activity, contribution and loan repayment activity, new loans (number and total dollar value), distributions (number and total dollar value), and reconciliations of all investment fund options (including Clearing Account, if applicable)

bb. Legislative Changes, Compliance Services, DOL Fee Disclosure

3. The Contractor will administer the three Retirement Health Savings (RHS) plans (or comparable product offered by the Contractor) and provide claims reimbursement services for those plans in accordance with the City of Chandler’s in-force practices, policies and procedures.

4. Performance of tax withholding and reporting in conjunction with the employer for each RHS account

5. Provide annual 1095C services for RHS or comparable product.

6. The Contractor will provide Investing for Retirement Goals, newsletters and other communications.

7. The Contractor will provide all Summary Plan Descriptions, Summary Benefit Booklets, newsletters and other customized communications (i.e. fliers, postcards, etc.) at no additional cost to the City.

8. The Contractor will provide any professional service representatives the City requires to understand, analyze, and/or plan for any plan changes including but not limited to general account servicing, legislative developments and operational support.

9. The Contractor will participate in any open enrollment, benefits fair, or special enrollment activities as specified by the City and shall provide materials and staff support as required at no additional cost to the City.

10. The Contractor agrees that the City may at any time request a change in key personnel assigned to service the client account. In addition, should there be a change in key assigned personnel, the City will be immediately notified and replacement personnel will be replaced with personnel of substantially equal ability and qualifications as established at the time of the award.

11. The Contractor will provide an annual audit of its internal administrative operations at no additional cost to the City. Results will be delivered to the City no later than 90 days after the completion of the plan year.

12. Contractor must adhere to all performance guarantee requirements mutually agreed by the Contractor and the City.

13. The contractor shall provide and pay for all claim forms and checks, certificates of insurance announcement forms and any other forms required for proper administration of all plans

14. Employer shall have exclusive responsibility for the Plan’s investment options, including the selection of the applicable mutual fund share class.

15. The Contractor shall be responsible for drafting and printing of all communications materials, statements of accounts, transaction confirmation, benefit and reimbursement checks, and any other fulfillment materials related to the administration of plans.

EVALUATION CRITERIA

A. Key Considerations, Firm Overview, and Personnel Questions 20% B. Participant Education and Communication 15% C. Administrative and Plan Sponsor Services 15% D. Investment Services and Transition Services 15% E. Service Level Agreements/Performance Guarantees and Cyber Security 15% F. References G. Fees and Expenses 20%

Contact Information Provide contact information for the primary representative for this proposal.

Company Name

Company Address

Contact Name

E-mail address

Mailing address

Phone number

A. KEY CONSIDERATIONS, FIRM OVERVIEW, AND PERSONNEL QUESTIONS

Key Considerations

1. Explain what differentiates the firm from other recordkeepers when partnering with plans similar to the City.

2. Based on your understanding of this proposal and the client, why should the City select the firm?

3. What are the three biggest concerns every plan sponsor needs to review with their retirement plans?

4. List any subcontractors, the services they provide, and the percentage of recordkeeping revenue allocated to the subcontractor.

5. If selected to work with the City of Chandler, how would your company organize the resources that provide deferred compensation plan services? Please describe the specific teams(s) that would work with the City during the transition, implementation, and on an ongoing basis. Please indicate where these individual/teams are located.

Firm Overview

6. Please provide the information requested:

Year Founded

Brief History

Services Provided (e.g., recordkeeping, life insurance, custodial/trustee, etc.)

Years company has been active in deferred compensation business.

How many of your employees are dedicated to 457(b) recordkeeping and administration services? Where are they located?

Has your organization been rated by a third party publication regarding your level of service and standing in the industry? If yes, please provide a copy of the report.

Parent/Subsidiary/ Affiliate Relationships

Ownership (publicly traded, privately held) Please list any subcontractors which may provide services to the plan(s). Indicate firm names and types of services.

For the last five years, describe legal and ethical inquiries, disciplinary actions, and/or litigation against the firm, owning interests, parents/subsidiaries/ affiliates/ subcontractors, and/or employees.

Type (Inquiry, Litigation, Disciplinary Action, etc.)

Status (Fine, Settlement, Ongoing, etc.)

Agency (Government agency, if applicable) Type Status Agency Description

Year 2022 2021 2020 2019 2018 Percent of Firm’s Total Revenue Earned from Recordkeeping

Recordkeeping Assets

Number of Employees Plans Percentage of Total Less than 100

100-499

500-999

1,000-4,999

5,000 -10,000

More than 10,000

Total

A.M. Best

Standard & Poor Moody Fitch

Rating

Assets Plans Percentage of Total Less than $5 million

$5 - $25 million

$25 - $50 million

$50 - $250 million

$250 million - $1 billion

More than $1 billion

Plan Type Assets Participants Plans

401(k) 401(a) 403(b) 457(b) Taft-Hartley

NQDC

MEP

Other

Provide the total number of plans gained and lost

1/1/2022 - 12/31/2022

1/1/2021 - 12/31/2021

1/1/2020 - 12/31/2020

Number of Plans Gained

Dollar Value of Plans Assets Gained

Number of Plans Lost

Dollar Value of Plans Assets Lost

Personnel Provide information about the for the Service Team assigned to this plan as requested below.

Relationship Manager

Day-to-day Administrative

Contact Participan t Educator

Communicati ons

Consultant Name & Title Description of role and responsibilities Location Education Professional Credentials

Tenure with the company

Years of retirement plan experience

Years of 457 retirement plan experience

Number of clients Number of 457 clients Number of RHS Plan clients

Compensation Structure

Transition Manager (if not applicable please respond with

“N/A”) Name & Title Description of role and responsibilities

Location Education Professional Credentials Tenure with the company

Years of retirement plan experience

Number of transitions completed

Number of 457 plan transitions completed

Compensation Structure

B. PARTICIPANT EDUCATION AND COMMUNICATION

7. Briefly describe your philosophy to participant education.

8. Which of the following resources does your firm rely on to educate participants on their retirement plan?

Resource Yes/No Additional Fee?

(Yes/No) Personnel

Group Participant Education Individual Participant Education Virtual (Webinar) Participant Education Phone-Based Participant Education Online Prerecorded Videos Prerecorded Audio Targeted/Personalized Email Social Media Financial Wellness Articles Questionnaires Investment Advice Tool Managed Accounts Retirement Calculators Budgeting Tools Print Postcards Direct Mail Flyers Newsletters Education Booklets Enrollment Booklets Phone In-Bound Call Centers Out-Bound Call Centers Text Messaging

9. Briefly describe any other method used to educate participants that is not disclosed in the above chart. Do not describe any methods listed as “Yes” above.

10. Provide educational topic capabilities as requested below.

In-person Call Center Website Basic budgeting Saving (e.g., major purchases, college)

Managing debt (e.g., credit cards, student loans)

Estate planning Home buying Insurance Social Security Other (Please list) New to public sector investment (457b vs. 401K)

11. Provide online tool capabilities as requested below.

Yes/No Retirement income projections with gap analysis and suggested actions.

Projection of monthly retirement income in dollar amounts Budgeting tools Retirement healthcare cost tools Ability to include Social Security in estimates/projections Ability to exclude Social Security in estimates/projections Ability to manually add external account information (e.g., defined benefit plan, savings accounts, credit cards)

Ability to automatically pull in external account information (e.g., defined benefit plan, savings accounts, credit cards)

Spend down projections using different market risk Other (provide details)

12. Identify the services currently available to participants via the website, mobile devices, and call center (Yes/No).

Website Mobile Call Center

Plan specific information

Enrollment Enrollment or change in managed account option

Investment fund information & performance

Account balances

Current participant information

Reallocation of existing account balances

Withdrawals/disbursements

Termination Distributions

Loan Initiation

Loan Modeling

Password Change

Beneficiary designation

Statement requests

Prospectus orders

Confirmation letter of any change

Asset allocation modeling

Account balance projections

Investment advice

Personalized rate of return

Retirement Planning Calculators

Retirement Goal Projections

Other (specify)

13. Are the same services as described above available to retirees? (Yes/No)

14. How do you measure the success of your communications and educations?

15. Does your firm provide participant-specific investment advice? (Yes/No) If yes, briefly describe how the participant receives the advice.

16. Is advice delivered to participants in-person, on the phone or online?

17. Does the client need to make your proprietary Managed Account solution available to receive participant-specific advice? (Yes/No)

18. Does your firm, or the participant-specific advice provider, assume fiduciary responsibility for the advice given? (Yes/No)

19. What licenses do the individuals providing advice hold? (e.g. Series 7, 65, 66, CFP, etc.)

20. Breakout the percent of the Participant Educator’s compensation as requested below.

Salary Client Satisfaction Improvement in Plan Participant Rates Improvement in Plan Assets Number of Participant Meetings Held Managed Account Utilization Investment Product(s) Utilization Other (Please specify)

21. Does the Participant Educator integrate the following into their education?

Outside Retirement Accounts Outside Non-Retirement Investment Accounts Social Security Spousal Assets

22. Based on the City’s demographic information and your education experience, provide the information requested below.

Number of onsite education service hours per year included in your price

Number of onsite education service days per year included in your price

23. Provide your customization capabilities as requested below. If an additional fee is required, please include here.

Client

Name?

(Yes/No/

Client Logo?

(Yes/No/

Client- Requested Imagery?

Custom Messages?

(Yes/No/

Follow client brand standards? i.e., Additional Fee)

Additional Fee)

(Yes/No/ Additional

Fee)

Additional Fee) font and colors (Yes/No/

Additional Fee) Participant Website

Mobile App

Participant Forms

Education Booklets

Enrollment Booklets

Flyers Emails Posters Other (Please List)

(Yes/No/Additional Fee) Custom URL Custom Phone Number

24. Is your participant website mobile responsive (i.e., designed for smart phones and tablet devices and same capacities on web browser and mobile application)? (Yes/No)

25. Provide information about Participant Statements as requested below.

Account Information Account Balance by Money Source Vested Balance Estimated Defined Benefit HSA Account Balance Total Assets Beneficiary Name & Address Total Portfolio Information Portfolio Allocation by Percentage Portfolio Allocation by Dollar Monthly Portfolio Performance Quarterly Portfolio Performance 1-Year Portfolio Performance 3-Year Portfolio Performance 5-Year Portfolio Performance 7-Year Portfolio Performance 10-Year Portfolio Performance

Since Inception Portfolio Performance Does Performance Consider Cash Flows Recordkeeping Fee Expressed as Percent Recordkeeping Fee Expressed as Dollar Individual Fund Information Monthly Fund Performance Quarterly Fund Performance 1-Year Fund Performance 3-Year Fund Performance 5-Year Fund Performance 7-Year Fund Performance 10-Year Fund Performance Since Inception Fund Performance Fund Expenses Expressed as Percent Fund Expenses Expressed as Dollar Contributions for Period Investment Earnings for Period Dividends for Period Retirement Projections Projected Account Value at Retirement Projected Monthly Income at Retirement Loan Information Outstanding Loan Amount Loan Repayment Information Customization Client Name? (Yes/No/ Additional Fee) Client Logo? (Yes/No/Additional Fee) Custom Message? (Yes/No/Additional Fee)

Number of

Business Days How many days after quarter end are statements mailed?

How many days after quarter end are statements available online?

How long are statements available?

26. Provide your enrollment capabilities as requested below.

Plan Sponsor Assistance

Needed (Yes/No) Online Mobile Paper Phone In-Person

27. Do you provide comprehensive financial planning through a CERTIFIED FINANCIAL PLANNERTM? (Yes/No) If yes, please complete the following chart with their capabilities and provide a sample Financial Plan as an appendix to your proposal.

Investment Planning Insurance Planning Retirement Planning Estate Planning Education Planning Other (Please list)

28. If you provide comprehensive financial planning through a CERTIFIED FINANCIAL

PLANNERTM, how often will they be available to meet with participants each year?

29. If you provide comprehensive financial planning through a CERTIFIED FINANCIAL

PLANNERTM, please describe all costs to the plan sponsor and/or participants for their services.

30. Please provide login credentials for the participant website demo.

C. ADMINISTRATIVE AND PLAN SPONSOR SERVICES

31. Will you fully support all SECURE 2.0 administrative and documentation requirements and options? Please note any exceptions.

32. State your familiarity with the City’s payroll, Oracle EBS. How many of your clients use this payroll?

33. Can your systems provide 360 communication with the above payroll system regarding eligibility, enrollment, and election data feeds? (Yes/No)

34. Describe administrative reporting capabilities. Please provide a list of standard reports.

35. Is there an additional fee for custom build reports requested by the City? (Yes/No).

36. Describe the requirements for payroll, data format requirements, including layout, method to transfer data.

37. What type of edits and error checks do you perform on the data? How would you work with the City of Chandler to resolve discrepancies?

38. What is your process if there is an out-of-balance occurrence in payroll due to a contribution error?

39. Describe your loan administration process in detail.

40. Per IRS guidelines, for City’s current RHS program, we are required to provide a 1095C form to all retirees. Will you provide these services or any required services for your retirement plan?

41. Describe any new administrative programs or features that are in development.

42. Describe the hardware platform and software system you use to administer deferred compensation plans and if there are any…