6-RFQ Sec4a. Scope of Work.pdf

Agency for Community Transit 403(b) Retirement Plan Consulting Services No. 25-2-16001

SECTION 4. Scope of Work

4.1 Overview

The Contractor shall provide investment consulting services for Owner’s 403(b) retirement plan (Plan), assisting the Owner in the periodic review of the Plan’s Investment Policy Statement (IPS) to ensure it properly reflects the Owner’s tolerance for risk and helps the Owner meet its rate of return, funded status and administrative expense objectives.

Phase I Initial Plan Investment Review Phase II Monitoring Services and Administration

4.2 Phase I – Initial Plan Investment Review

The Contractor shall perform a comprehensive analysis and review of, and to make written recommendations with respect to, the Plan’s investment offerings, perform a quantitative and qualitative screening process, including the benchmarking of the Plan’s various investment offerings, a manager review, and a portfolio analysis of the current offerings, elimination of investment redundancies, a review of costs and fees, a review of the annual rate of return for each of the Plan’s current investment offerings, and a review of the service contracts and Plan documents.

Deliverable:

Draft initial plan investment review document. Due by January 31, 2026.

Final initial plan investment review document. Due by February 28, 2026.

4.3 Phase II – Monitoring Services and Administration

The Contractor should be familiar with defined contribution plan designs, administrative arrangements and low cost, high value providers. The Contractor will be expected to evaluate and offer appropriate suggestions regarding improvements in administrators (particularly regarding obtaining efficiencies in administrative cost) and investment platforms as well as elements of the Plan’s investment line up. The Contractor is expected to function in the capacity of a Section 3(21) investment manager. Accordingly, the Contractor should develop recommendations from the perspective of expecting that those recommendations normally will be implemented.

The Contractor will be expected to provide regular reviews of the performance of the investment options and investment platforms in the Plan’s investment line up and make recommendations concerning the maintenance or replacement of options in the Plan’s investment line up.

The Contractor’s regular review will consist of:

a. Evaluating the Plan’s overall performance and compare the investment performance of the total fund, asset classes, and individual funds to relevant benchmarks and peer groups;

b. Evaluating the appropriateness of the Plan’s default investment alternatives relative to the Plan’s demographics and general retirement needs;

c. Making recommendations regarding the selection of investment options and investment platforms to ensure that participants are positioned to create diversified portfolios with high-quality investment options that meet the various needs and investment objectives of the participants.

The Contractor will be expected to produce and present in person or virtually, on a quarterly basis, a detailed report to the Owner which will include, at a minimum:

a. comprehensive information regarding performance of all investment options in the Plan’s investment line up;

b. development of benchmarks for all of the Plan’s investment options;

c. comparison of performance of investment choices in the Plan’s investment line up with appropriate benchmarks and investment peers;

d. evaluation of qualitative changes in the investment funds for evaluation of the appropriateness of retention; general economic and financial market information ensuring expenses are held to a responsible and reasonable level to inform the Owner’s decision-making, utilizing a watchlist process;

e. specific recommendations regarding special monitoring, replacement or addition of investment options which the Contractor should expect to have implemented;

Agency for Community Transit 403(b) Retirement Plan Consulting Services No. 25-2-16001

f. monitoring and evaluation of administrative and recordkeeping cost, expenses and expense ratios to hold the Plan’s cost and investment expenses to a responsible and reasonable level.

Deliverables:

Quarterly investment management review and due diligence reports in PDF format. Quarters end on March 31, June 30, September 30, December 31. Due within 45 calendar days after the end of each quarter.

Conduct a quarterly 1-hour meeting, either virtual or in person, with the fiduciary committee to discuss the quarterly reports by providing an economic and market review, proposed improvements, and addressing any concerns or issues. Due within 60 calendar days after the end of each quarter.

4.4 Other Consulting Services

The Contractor may be asked to attend other meetings and hearings as determined to be appropriate and to prepare analyses on an as-needed basis, which the Owner does not anticipate being frequent or extensive. The Contractor will be expected to provide investment advisory services in a prompt and efficient manner.

The Contractor may be asked to review the Owner’s current contract with its then-current 3rd Party Plan Provider and/or educational advisor to assist the Owner in determining if the market warrants soliciting bids for new services. The Contractor will take into consideration costs, support services, and communication materials and educational services provided to the Owner’s employees. If the Owner elects to solicit bids, the Contractor will assist the Owner in the development scope of services language, help with contract selection and transition.

Should the Owner elect not to solicit new bids, the Contractor may be requested to assist the Owner in contract negotiations with the existing provider(s) to improve overall administration of the Plan.

Deliverable:

Other meetings, phone calls, emails, written communications, and analyses as needed.

4.5 Investment Policy Statement (IPS)

Refer to Exhibit 1.

4.6 Asset Statement

Refer to Exhibit 2.

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