Attachment B - Statement of Work.pdf

STATE OF FLORIDA

DEPARTMENT OF MANAGEMENT SERVICES

ATTACHMENT B

STATEMENT OF WORK

FOR

STATE UNIVERSITY SYSTEM OPTIONAL RETIREMENT PROGRAM

(SUSORP) 403(B)

and

SENIOR MANAGEMENT SERVICE OPTIONAL ANNUITY PROGRAM

(SMSOAP) 401(A)

DMS-24/25-199

SUSORP/SMSOAP Page 2 of 41

TABLE OF CONTENTS

SECTION 1. OVERVIEW

SECTION 2. DEFINITIONS

SECTION 3. SCOPE OF WORK

3.1 GENERAL

3.2 IMPLEMENTATION

3.2.1 Implementation Plan Meetings

3.2.2 Preliminary Implementation Plan

3.2.3 Final Implementation Plan

3.2.4 100% Operational Deadline

3.3 PERSONNEL

3.3.1 Account Manager

3.3.2 Account Representatives

3.3.3 Investment Analyst

3.3.4 Personnel Requirements

3.4 MEMBER SERVICES

3.4.1 SUSORP

3.4.2 SUSORP and SMSOAP

3.5 COMMUNICATIONS

3.5.6 Communications Review and Approval

3.5.7 Annual Marketing Plan

3.5.8 American Disabilities Act (ADA)

3.6 ANNUAL MEMBER SURVEY

3.6.2 Distribution

3.6.3 Analyze Results

3.6.4 Survey Results Report

3.7 WEBSITE

3.7.2 Website Features

3.7.3 General Requirements

3.7.4 Technical Requirements

3.7.5 Security Requirements

3.7.6 Website Updates

3.8 TOLL-FREE NUMBER

3.8.2 Interactive Voice Response (IVR) System

3.8.3 Hours and Days of Operation

3.9 CALL CENTER

3.10 REQUIRED NOTIFICATIONS

3.11 AUTHORIZED PRODUCTS

3.12 TRANSACTION PROCESSING

3.12.1 Department Responsibilities

3.12.2 Service Provider Responsibilities

3.12.3 Contributions

3.12.4 Suspense Account

3.12.5 Member Distributions

3.12.6 Member Overpayments (Unauthorized Distributions)

3.12.7 Member Social Security Number Discrepancies

3.12.8 Member Contract Exchanges

3.12.9 Member Termination Violation

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3.12.10 Member Forfeiture

3.12.11 Member Rollovers

3.12.12 Non-member Account Resolution

3.12.13 Information Sharing

3.13 REPORTING REQUIREMENTS

3.13.1 Weekly Distribution Report

3.13.2 Quarterly Reports and Due Dates

3.13.4 Quarterly Assets Under Management Report

3.13.5 Quarterly Authorized Product Performance and Fee Report

3.13.6 Quarterly Performance Measures and Deliverables Report

3.13.7 Quarterly Reconciliation Report

3.13.8 Quarterly Per Member Fee Assessment Report

3.13.9 Annual SUSORP and SMSOAP Reports

3.13.10 Report Format and Details

3.13.11 Ad-hoc Reports

3.14 ANNUAL ADMINISTRATIVE REVIEW

3.15 AD-HOC MEETINGS

3.15.1 Meetings

3.15.2 Agenda

3.15.3 Meeting Minutes

SECTION 4. TRANSITION AND TERMINATION OF SERVICES

4.1 TRANSITION PLANS

4.1.1 Proposed End of Contract Transition Plan

4.1.2 Revised End of Contract Transition Plan

4.1.3 Final End of Service Transition Plan

4.2 TRANSITION PLANS CONTENT

4.3 TRANSITION ASSISTANCE

4.4 COMPENSATION FOR TRANSITION ASSISTANCE

SECTION 5. DELIVERABLES

5.2 Review of Deliverables

5.3 Non-Acceptance of Deliverables

SECTION 6. PERFORMANCE MEASURES

SECTION 7. FINANCIAL CONSEQUENCES

SECTION 8. DEPARTMENT OTHER RESPONSIBILITIES

SECTION 9. SILENCE OF SPECIFICATIONS

SECTION 10. DISASTER PREPAREDNESS; DISASTER RECOVERY PLAN AND

RETURN TO SERVICE

SECTION 11. DATA SECURITY

SECTION 12. ADDITIONS/DELETIONS/SUBSTITUTIONS

SECTION 13. SURVIVABILITY

SUSORP/SMSOAP Page 4 of 41

SECTION 1. OVERVIEW

The Service Provider shall comply with the provisions of Chapter 121, Florida Statutes (F.S.), and the rules promulgated thereunder in Chapters 60U and 60V, Florida Administrative Code (F.A.C.), as related to the SUSORP and the SMSOAP.

For the SUSORP, the Service Provider also agrees to comply with Attachment A – SUSORP Plan Document, which may be modified upon written agreement of the Parties without the execution of a formal written amendment to the Contract.

The Department will provide the Service Provider direction and/or interpretation relating to Plan term and provisions, when required.

SECTION 2. DEFINITIONS

For the purposes of this attachment, the following words or terms shall have the indicated meaning:

Account - The account maintained by the Service Provider for the benefit of any Member or beneficiary under an annuity contract or a custodial account.

Account Balance - The present total benefit to which a Member or the Member’s beneficiary is entitled to receive under an annuity contract or a custodial account taking in account all contributions made to the Member’s Account and all earnings or losses (including expenses) that are allocable to the Member’s Account, any rollover contributions or transfers held under the Member’s Account and any distribution made to the Member, the Member’s beneficiary, or any alternate payee.

Account Representative - A qualif ied employee of the Contractor that solicits investment products to Members eligible to participate in the Plan.

Authorized Products - The investments approved by the Department pursuant to the terms of this Contract to be sold or offered for sale by Service Provider to Members of the SUSORP or the SMSOAP. This includes products sold under a prior contract. A current list of products is included in Attachment M – List of Authorized Products.

Beneficiary – The designated person, organization, estate, or trust fund entitled to receive Benefits under the Plan, as provided in section 121.021(46), F.S., after the death of a Member, subject to such additional rules as may be set forth in individual agreements with a Service Provider.

Benefit – A distribution requested by the Member or surviving beneficiary funded in part or in whole by employer and employee contributions, plus earnings, and includes rolling a distribution over to another qualif ied plan.

Business Day - Monday through Friday, inclusive, except for those holidays specified in section 110.117, F.S., from 8 a.m. to 5 p.m., Eastern time, unless indicated otherwise in this Statement of Work.

Calendar Day - Any day in a month, including weekends and holidays.

Contributions - Employer and Member contributions provided by the Department to the Service Provider for investing in the SUSORP or the SMSOAP.

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Correction - A subsequent adjustment in the amount of contributions provided to the Service Provider.

Corrective Action Plan - A written report which summarizes an issue, problem, non-compliance or underperformance of the Contract and a set of actions to correct and prevent the identified issue, problem, non-compliance, or underperformance from occurring in the future.

Contract – The formal written agreement that is executed by the awarded Contractor and the Department containing all terms and conditions applicable to services rendered.

Contract Exchange - Movement of Member investments from one Service Provider’s Authorized Product to another Service Provider’s Authorized Product within either the SUSORP or the

SMSOAP.

Deliverable - A tangible or intangible object produced as a result of this Contract that is intended to be delivered or provided to the Department.

Department – The state of Florida Department of Management Services; referred to herein as “Department” or “DMS.”

Disaster – Means any unplanned occurrence, whether caused by natural forces or due to action or inaction by the Contractor or any other person, that disrupts, damages, or otherwise negatively impacts the Contractor’s service delivery under Contract.

Distribution – Payments that are made to a SUSORP or SMSOAP Member or a Beneficiary through a partial or lump sum payment, partial or lump sum rollover, annuity payment, or as otherwise provided in sections 121.055(6)(e) or 121.35(5), F.S. A Distribution does not include Contract Exchanges, or Qualif ied Domestic Relations Order (QDRO) payments.

Employer - For SMSOAP, any agency of the State of Florida, and for SUSORP the Department of Education, the State University System, or FRS Employers.

Event of Default - A breach of material obligation under the resultant Contract.

Financial Consequences - Amount owed to the appropriate SUSORP or SMSOAP trust fund, if the Service Provider fails to comply with the terms of the Contract.

Final Implementation Plan – The document approved by the Department of the scheduled actions (e.g., goals, scope, timeline and resources, etc.) required for successful implementation of the services identif ied in this Statement of Work.

Incident - Any event that causes an interruption to, or a reduction in, the quality of Services resulting in noncompliance with Attachment C – Deliverables and Performance Measures..

Interactive Voice Response (IVR) System – An automated telephone system technology that enables callers to receive or provide information, or make requests using voice or menu inputs , including transferring a call to an available agent.

Member - An employee in an eligible position who has elected or is required to participate in the SUSORP or the SMSOAP and has elected to deposit contributions in the Service Provider’s Authorized Products.

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Open Architecture – A financial institution's ability to offer Members both proprietary and external products and services.

Performance Measures - The minimum acceptable level of service expected from each Service Provider, as detailed in Attachment C – Deliverables and Performance Measures.

Plans - The State University System Optional Retirement Program (SUSORP) and the Senior Management Service Optional Annuity Program (SMSOAP).

Preliminary Implementation Plan – A document that outlines the necessary steps for executing the services described in this Statement of Work. It identif ies goals, scope, timeline and resources required for successful implementation.

Required Minimum Distribution (RMD) - The calculated amount set by the Internal Revenue Code, requires a Member to withdraw annually from an employer sponsored retirement plan or traditional individual retirement account.

SBA - The Florida State Board of Administration.

Services - The services to be provided by the Service Provider as described in Section 3 - Scope of Work, of this Attachment B - Statement of Work.

Service Provider –A company that provides individual contracts or individual certif icates issued for group annuity or other contracts, which may be fixed, variable, or a combination thereof .

Note: The terms Service Provider and Contractor are intended to be used interchangeably. The lower case use of the terms shall refer to the subsequent awarded vendor(s) upon termination or the end of the active Contract.

State - The State of Florida.

State Data - The data of a Member (including, but not limited to, their relatives or beneficiaries) involving unique personal information (such as name, address, phone number, email address, social security number, driver’s license number, financial information, date of birth, account number, and user names) or other personal information in the custody or control of the Service Provider in the course of providing services under this Contract, regardless of whether it is a public record or considered confidential under any state or federal law.

Subcontractor - Any third party, agent, or independent Service Provider who the Service Provider engages to provide or assist in providing the Services under this Contract and has direct or indirect access to State Data. Subcontractor also includes any third party, agent or independent Service Provider hired by a Subcontractor who provides or assists in providing services under this Contract and has direct or indirect access to State Data.

Surrender Charges – Any charge, exaction, discount rate, formula, method of calculation or contractual term which reduces the Account Balance available for withdrawal upon transfer of a Member’s account value to another Department-approved Service Provider or direct distribution to the Member or Member’s beneficiary.

Senior Management Service Optional Annuity Program (SMSOAP) – A defined contribution plan qualif ied under section 401(a) of the Internal Revenue Code administered by the Department. See weblink provided below.

SUSORP/SMSOAP Page 7 of 41 https://www.dms.myflorida.com/workforce_operations/retirement/optional_retirement_pr ograms/senior_management_service_optional_annuity_program

State University System Optional Retirement Program (SUSORP) – A defined contribution plan qualif ied under section 403(b) of the Internal Revenue Code administered by the Department. See Attachment A – SUSORP Plan Document and the weblink provided below.

https://www.dms.myflorida.com/workforce_operations/retirement/optional_retirement_pr ograms/state_university_system_optional_retirement_program

Suspense Account – A separate account for the SMSOAP and SUSORP programs designed to hold the administration of gains and losses resulting from Corrections made to a Member’s account.

Termination Date – The date this Contract expires.

SECTION 3. SCOPE OF WORK

3.1 GENERAL

The Contractor shall provide and ensure a successful implementation and long-term support of all services described herein. The Contractor shall warrant that all services described herein will meet or exceed all customary, reasonable, and prudent industry standards, and shall perform all services in a professional manner.

3.2 IMPLEMENTATION

3.2.1 Implementation Plan Meetings

The Contractor shall participate in both face-to-face meetings and/or conference calls with the Department and relevant parties following Contract execution for purposes of coordinating implementation activities, as required by either Party.

3.2.2 Preliminary Implementation Plan

3.2.2.1 The Contractor shall meet with the Department within ten (10)

Calendar Days of Contract execution to discuss the Contractor’s proposed Preliminary Implementation Plan submitted with its Reply.

3.2.2.2 The Preliminary Implementation Plan meeting will serve to discuss anticipated timeframes and to determine information and other resources needed to complete a Final Implementation Plan.

3.2.3 Final Implementation Plan

3.2.3.1 The Contractor shall submit a Final Implementation Plan for

Department review and approval within ten (10) Calendar Days after the Preliminary Implementation Plan meeting.

3.2.3.2 The Final Implementation Plan shall include, but not be limited to, the following:

https://www.dms.myflorida.com/workforce_operations/retirement/optional_retirement_programs/senior_management_service_optional_annuity_program https://www.dms.myflorida.com/workforce_operations/retirement/optional_retirement_programs/senior_management_service_optional_annuity_program https://www.dms.myflorida.com/workforce_operations/retirement/optional_retirement_programs/state_university_system_optional_retirement_program https://www.dms.myflorida.com/workforce_operations/retirement/optional_retirement_programs/state_university_system_optional_retirement_program

SUSORP/SMSOAP Page 8 of 41

a. The position titles of key personnel responsible for implementation;

b. Specific dates and/or timeframes;

c. Activities/tasks;

d. Task assignments for implementation by the Department and

Contractor;

e. Identif ication of task assignment dependencies and implementation activities;

f. Identif ication of critical activities;

g. Key milestones;

h. Data Security Plan; and

i. Any additions and/or any mutually agreed upon changes to the

Contractor’s current processes and/or systems, if applicable, as determined necessary by the Department after the post-award Preliminary Implementation Plan meeting with the Department.

3.2.3.3 The Department shall review the Final Implementation Plan and either approve or reject the plan within ten (10) Business Days of receipt. Rejection shall be in writing to the Contractor with the reasons for rejection and any required revisions clearly stated.

3.2.3.4 If revisions are required, the Contractor shall have five (5) Calendar

Days to submit a revised Final Implementation Plan addressing all required revisions for approval by the Department in writing.

3.2.3.5 The revised Final Implementation Plan will be reviewed by the

Department within two (2) Business Days of receipt. If approved, the revised Final Implementation Plan shall become final, effective the date of written approval by the Department. If rejected, the revision process above shall be completed again.

3.2.3.6 Implementation deadlines and time frames may be changed by mutual consent by of the Contractor and the Department. Such mutual consent shall be in writing via email.

3.2.4 100% Operational Deadline

The Contractor shall be one hundred percent (100%) operational by 5:00 p.m. EST on the 30th Calendar Day after written approval of the Final Implementation Plan by the Department.

3.3 PERSONNEL

The Contractor shall provide, at minimum, the following positions:

3.3.1 Account Manager

3.3.1.1 The Contractor shall employ, assign, and maintain an Account

Manager to serve as the primary point-of-contact for the resultant Contract.

SUSORP/SMSOAP Page 9 of 41

3.3.1.2 The Contractor shall ensure the assigned Account Manager is afforded the time and resources needed to successfully manage the Contract and to ensure that services are provided in accordance with this Scope of Work.

3.3.1.3 The Account Manager shall be available for frequent telephonic, email, and possibly on-site consultations, when required by the Department.

3.3.1.4 The Account Manager shall respond to all written, telephonic, and e-mail communications from the Department within one (1) Business Day of receipt.

3.3.2 Account Representatives

3.3.2.1 The Service Provider shall employ, assign, and maintain a minimum of five (5) full-time equivalent (FTE) Account Representatives dedicated to servicing Members of the Plan (i.e., to handle all SUSORP/SMSOAP accounts). Service Provider shall be responsible for all initial training of its Account Representatives.

3.3.2.2 The Service Provider shall provide the Department with a list of its

Account Representatives and their respective university assignments in its Final Implementation Plan. The list shall include, at a minimum, each on-site representative’s name and contact information. An updated list shall be provided to the Department within two (2) Business Days each time a change in personnel occurs.

3.3.2.3 The Service Provider shall utilize the same Account Representatives throughout account relationships should the Service Provider be contracted with other State of Florida retirement plans, including, but not limited to:

a. State of Florida Deferred Compensation Plan;

b. State of Florida FICA Alternative Plan;

c. individual university FICA Alternative plans; or

d. Tax Sheltered/Deferred Annuity plans (including Roth options).

3.3.2.4 The Service Provider shall employ Account Representatives primarily for the purpose of servicing the Plan or other similar government plans and shall have no other lines of competing business.

Should any Member identify a need for or through fiduciary obligation of the Service Provider or its affiliate, or otherwise have a need for additional services outside the Authorized Products offered through this Contract, the Service Provider shall notif y the Department in writing of the referral to a Service Provider’s subsidiary, partner, or other entity.

SUSORP/SMSOAP Page 10 of 41

Notwithstanding the foregoing, nothing in this paragraph shall either limit or require reporting to the Department of the independent solicitation of a Member by an affiliate of Service Provider that is not providing services hereunder, provided that such solicitation does not utilize Member information obtained by the Service Provider in the performance of its obligations hereunder.

3.3.2.5 The Service Provider shall prohibit its Account Representatives from offering non-Plan services to Members, unless related to the State of Florida Deferred Compensation Plan or State of Florida FICA Alternative Plan, individual university FICA Alternative plans; or Tax Sheltered/Deferred Annuity plans (including Roth options).

3.3.2.6 The Service Provider shall require its Account Representatives to attend Department led continuing training once annually. Training will be held in Tallahassee, Florida, in person, unless otherwise agreed to by the Department.

The Department will provide the Contractor no less than 30 Calendar Days advance notice of such training in writing. Training can be rescheduled at the mutual agreement of the parties.

3.3.2.7 The Service Provider shall not permit Account Representatives to be independent contractors but rather paid employees of the Service Provider, and not a third party, such as subcontracted personnel.

Account Representatives shall not be compensated by product sales commission.

3.3.2.8 The Service Provider shall require Account Representatives to enroll new Members, and service existing Members in efforts to increase participation in the Plan. This may be accomplished through a variety of methods, including employer education seminars, on-site employee education workshops, mailings, and one-on-one employee counseling.

3.3.2.9 The Service Provider shall assign Account Representatives to

Members on a geographical basis, such that Members may meet in person with an Account Representative within their locality or virtually.

Despite any such geographical assignment, an Account Representative shall have the ability to service any Plan Member, regardless of location.

3.3.3 Investment Analyst

Service Provider shall employ, assign, and maintain an investment analyst available to the Department during business hours. This role shall provide, but not be limited to, support to the Plan related to investment performance, monitoring, and reporting.

SUSORP/SMSOAP Page 11 of 41

3.3.4 Personnel Requirements

3.3.4.1 The requirements in this section are applicable to all positions employed by the Contractor, i.e., for any and all services required under this Contract, including, but not limited to, call center personnel.

3.3.4.2 All personnel engaging in regulated activities, where applicable, shall be duly credentialed, trained, and/or licensed. The Contractor shall ensure licensure is up to date, where applicable, and provide the Department a written certif ication, upon written request, within three (3) Business Days.

3.3.4.3 Positions shall be maintained for the entire term of Contract including renewals, unless otherwise approved in writing by the Department.

3.3.4.4 Vacant Position(s)

a. Positions shall not remain vacant for more than ten (10) Calendar Days.

b. Should a position become vacant unexpectedly, the Contractor shall notify the Department in writing within 24 hours. The written notice shall include the staff members’ name, role served and position end date.

c. Should the Service Provider anticipate a vacancy, the Contractor shall notify the Department in writing as soon as notice is provided to the Contractor by its staff member.

3.3.4.5 Contractor shall comply with employee and Subcontractor security requirements, including performing background checks described in Section 19., Background Screening, Record Retention, and Warranty of Security, of the Contract.

3.3.4.6 The Contractor warrants and represents that all personnel assigned to this Contract shall be employees of the Contractor or authorized subcontracted personnel, where applicable, and shall be fully qualified to perform the work required herein.

3.3.4.7 Positions may be added that do not materially change the Scope of

Work. This action will be handled in writing and will not require an amendment to the Contract.

3.4 MEMBER SERVICES

The Service Provider shall, but not be limited to, the following:

3.4.1 SUSORP

3.4.1.1 Seek each Employer’s on-site requirements within 20 Calendar

Days of Contract execution.

SUSORP/SMSOAP Page 12 of 41

3.4.1.2 Provide each Employer’s on-site requirements to the Department within three (3) Calendar Days upon receipt of the Employer’s on-site requirements.

3.4.1.3 Comply with on-site requirements. If an Employer notif ies the

Department of a non-compliance, the Service Provider may be subject to financial consequences, upon review of the non-compliance.

3.4.1.4 Provide a minimum of 26 dedicated SUSORP meetings or on-site visits annually (July–June, prorated for any partial year) to each university for eligible faculty and staff .

The intended schedule for SUSORP meetings is once every other week to a university campus location, at the direction of each of the 12 state universities or the Department. The total number of meetings or on-site visits shall be no less than 312 annually, assuming each university schedules a meeting every other week.

Any financial consequence is contingent upon the university providing a full schedule of visits, the university may opt for a schedule that is not every other week. See locations listed in Exhibit 1 – Plan Demographics and Employer Information .

3.4.2 SUSORP and SMSOAP

3.4.2.1 Provide in person or virtual meetings, as needed, for the Members.

3.4.2.2 Educate Members by, but not limited to, the following:

a. distributing educational materials;

b. providing free retirement planning financial and educational tools;

c. providing financial advice;

d. advising on contribution limits;

e. advising on distribution options; and

f. offering financial planning education on matters such as investment diversification, investment risks, investment costs, and proper asset allocation.

Investment advice shall consist of thorough and balanced education based on the individual needs of Members.

3.4.2.3 Authorized Product and Performance Fees

a. By December 31st of each contract year, the Service Provider shall provide, at a minimum, the following, to Members:

1) list of all Authorized Product performance and fees;

2) current Plan balance;

3) investment allocations;

4) income replacement;

SUSORP/SMSOAP Page 13 of 41

5) corrections; and/or

6) opportunities to increase or otherwise modify their contributions.

b. Information shall be included in a Quarterly Member Statement or otherwise made available through a secure online portal.

c. Whichever method the Service Provider decides to utilize to make the information available by or before the deadline, it shall notify the Department in writing no less than 30 Calendar Days in advance.

3.4.2.4 Quarterly Member Statements

Within 30 Calendar Days after the end of each quarter, the Service Provider shall provide a Quarterly Member Statement to all Members through a secure online portal. The Quarterly Member Statement should conform to industry best practices and, at a minimum, report the quarterly ending balance and transactional activities.

3.5 COMMUNICATIONS

3.5.1 Communications to Members must effectively advertise and promote interest in the Plans by accurately communicating risks and benefits and explaining the considerations necessary for financially reasonable retirement planning.

3.5.2 The Service Provider shall work with the Department to create, implement, and manage a motivational and educational program directed towards universities, and other approved governmental entities, to accurately inform eligible employees about the Plans.

3.5.3 Educational materials must be prepared in a way that will assist Members with no investment experience or knowledge understand investment information.

3.5.4 The Service Provider shall prepare, print, and/or provide written web materials (including forms) on all its investment products and services to Members.

3.5.5 The Service Provider shall bear all costs associated with the printing and mailing of communication materials, including addressing the envelopes, inserting communication pieces, and postage.

3.5.6 Communications Review and Approval

All marketing plans, and/or other communication materials or methods, regardless of medium utilized, must be approved by the Department prior to dissemination or publication in accordance with the following:

3.5.6.1 Draft Communications

The Contractor shall provide all draft materials (e.g., marketing, promotional, educational, or any other materials, or written communication) regardless of medium utilized, to the Department

SUSORP/SMSOAP Page 14 of 41 for review by the date and time identif ied in writing by the Contract Manager.

3.5.6.2 Revisions to Draft Communications

If revisions are requested by the Department, the Contractor shall have five (5) Calendar Days to submit a revised draft of the material addressing all required revisions for approval by the Department in writing.

3.5.6.3 The revised draft material will be reviewed by the Department within two (2) Business Days. If approved, the revised draft material shall become final and effective by the date of written approval by the Department.

3.5.6.4 The Contractor shall provide all printed material in electronic format with final versions submitted to the Department in PDF file format. The final versions shall not differ from those approved by the Department.

3.5.6.5 Upon Department request, the Contractor shall provide Members printed materials in a medium widely accepted for the hearing and/or visually impaired.

3.5.6.6 Deadlines and time frames may be changed by mutual consent of the Contractor and the Department. Such mutual consent shall be in writing via email.

3.5.7 Annual Marketing Plan

Communication about the Plans will be performed by the Service Provider directly and by the Department on an as-needed basis. In coordination with the Department, the Service Provider shall create and execute an annual marketing plan, covering topics and initiatives approved by the Department.

This marketing plan shall be delivered to the Department by January 31 st each contract year.

The Service Provider may be required to increase the scale of marketing activities as needed.

3.5.8 American Disabilities Act (ADA)

The Service Provider shall meet or exceed all ADA requirements, specifically as it relates to all forms of communications and/or assistance provided to Members required under this Contract.

3.6 ANNUAL MEMBER SURVEY

Each contract year, the Service Provider shall conduct an annual member survey that includes, but is not limited to, the following activities:

3.6.1 Drafting

Department will provide the Service Provider with a layout of the survey and questions no later than September 30 th, the question in 3.6.4, c., shall always be included in this survey.

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3.6.2 Distribution

Service Provider shall distribute the annual survey by mail or e-mail to Plan members randomly and sufficiently to receive unique responses that meet or exceed a 95% confidence interval based on its member population as of September 30th.

NOTE: It shall be at the Service Provider’s discretion to determine required timeframes to meet deadline identif ied in Section 3.6.4., a.

3.6.3 Analyze Results

a. Review and sort data collected.

b. Clean data by removing incomplete or incorrectly completed responses.

c. Note patterns that emerge across different groups or demographics.

d. Summarize key findings.

3.6.4 Survey Results Report

a. The Service Provider shall provide the Department with an annual Member survey results report on December 31st, each year of the Contract.

b. Detailed information on the survey report shall include dates the survey was distributed, dates available, membership counts, number of responses, number of no responses, etc.

c. Service Provider shall be rated above 90% (overall rating) to the following question: Overall, how satisfied are you with <company> as a Service Provider? Available answers are extremely satisfied, somewhat satisfied, neutral/no opinion, somewhat dissatisfied, and extremely dissatisfied.

Satisfaction shall be the total of extremely satisfied and somewhat satisfied responses.

3.7 WEBSITE

3.7.1 The Service Provider shall provide the Member and the Department with a website that identif ies all promotional materials for its Authorized Products.

3.7.2 Website Features

The website must provide, but not be limited to, the following:

a. Secure online portal messaging;

b. Secure chat;

c. An events calendar;

d. A frequently asked questions section;

e. Secure Member account information;

f. Session timeouts after fifteen (15) minutes;

g. Multi-factor authentication with both user id and password verification and an additional level verif ication; and

h. Access to data for deliverable and performance measures verification by the Department and/or a weblink where information can be verified.

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3.7.3 General Requirements

The website, at a minimum, must:

a. Support current Windows.

b. Contain a bilingual option for the Member to view in both English and

Spanish and otherwise be compliant with the Americans with Disabilities Act (ADA).

3.7.4 Technical Requirements

At a minimum, the website must meet the following technical requirements:

a. Be fully hosted and managed in a secure environment.

b. Be available for use twenty-four (24) hours per day, seven (7) days per week, and three-hundred sixty-five (365) days per year.

c. Be inclusive of on-going operating system updates, security updates, enhancements and bug fixes supporting Windows.

3.7.5 Security Requirements

At a minimum, the website must meet the following security requirements:

a. Utilize Transport Layer Security (TLS) Version 1.2, or latest upgraded version.

b. Provide account provisioning, authentication, and authorization.

c. Any solution developed or provided must meet the statutory requirements outlined in Rule 60GG-2, Florida Administrative Code, and with NIST Cyber Security Framework 2.0, NIST CSF compliant.

3.7.6 Website Updates

The Contractor shall notify the Department, no less than seven (7) Business Days in advance, in writing, whenever the website will be down for updates or other system modifications/maintenance.

3.8 TOLL-FREE NUMBER

3.8.1 The Contractor shall maintain a toll-free number for Members to call. The number shall be reflected on the website and all other communications issued by the Contractor to Members.

3.8.2 Interactive Voice Response (IVR) System

The Contractor shall have an IVR System associated with the toll-free number for Members. The IVR System must provide, but not be limited to, the following:

3.8.2.1 Record all incoming and outgoing calls to Members. Should the

Department require a recording, the Contractor shall provide the recording within five (5) Business Days after request is made.

3.8.2.2 Call detailed information for performance reports, auditing, and analytics.

3.8.2.3 Telephonic assistance in either English or Spanish.

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3.8.3 Hours and Days of Operation

3.8.3.1 The hours of operation shall be during the hours of 7:00 a.m. to 7:00 p.m., EST, Monday through Friday, excluding State holidays set forth in section 110.117, F.S., unless agreed to otherwise in the Final Implementation Plan, or as approved in writing after implementation by the Department.

3.8.3.2 Should the Contractor have a need to shut down the toll-free number(s) temporarily or due to an unexpected event, the Contractor shall notify the Department immediately via telephone and follow up in writing. The notif ication should advise the Department of the date and time services went down and then anticipated date and time that services will be restored.

3.8.3.3 Should the Contractor need to shut down the toll-free number due to system maintenance and/or repair, the Contractor shall notify the Department in writing, in advance, no less than seven (7) Calendar Days. The notif ication must advise the Department of the date and time services will be shut down and then anticipated date and time that services will be restored.

3.9 CALL CENTER

The Contractor shall, at a minimum:

3.9.1 Maintain a call center based solely in the United States to perform all aspects of customer service to assist Members telephonically or in writing.

3.9.2 Provide assistance to Members during the days and hours identif ied in Section

3.8.3.1.

3.9.3 Maintain the same number of call center personnel included in its Final Implementation Plan, unless approved otherwise, after implementation, in writing, by the Department.

3.9.4 Ensure call center personnel shall have the capability to adequately provide service and issue resolution.

3.9.5 Resolve call center Member issues (i.e., contingent upon the Service Provider’s receipt of all pertinent information required for the resolution) within f ive (5) Business Days.

3.9.6 Notify the Department in writing of complaint resolutions exceeding five (5)

Business Days. The notif ication shall identify pending issues, action taken, and proposed resolution.

3.9.7 Ensure calls to the call center unit are accepted and answered promptly by a live call center employee or IVRU. Eighty (80) percent of calls must be answered within thirty (30) seconds, with no call being placed on hold or in a queue for more than 60 seconds.

SUSORP/SMSOAP Page 18 of 41

3.9.8 Notify the Department immediately of any call center shutdowns should the need arise temporarily or due to an unexpected event. The Department will either approve or disapprove of the shut down in writing.

3.9.9 Ensure call center personnel answer all reasonably anticipated Member questions received in writing or over the telephone about the Plans or the investment products offered by the Service Provider including questions about each product’s performance.

3.9.10 Process changes to investment allocations to Member’s account and record the date they were requested.

3.9.11 Process investment transfers (received by 4:00 p.m., EST) before the beginning of the next Business Day, using the previous day’s net asset value or unit/share value.

3.9.12 Provide call center personnel training on the Plans upon hire. Personnel must have the ability to answer inquiries and complaints regarding Authorized Products and the account status of Members.

3.9.13 Ensure call center personnel are available for annual virtual training by the Department. The Department shall provide no less than 30 Calendar Days advance notice of such training in writing.

3.10 REQUIRED NOTIFICATIONS

Within two (2) Business Days, the Service Provider shall notify the Department of the following:

3.10.1 Any action taken by any regulatory body of any jurisdiction (State or Federal) to place Service Provider on any “watch list” with respect to its financial condition or to suspend sales activity by Service Provider.

3.10.2 Any impending administrative or judicial action which would or could have the effect of suspending or terminating the Service Provider’s authorization to do business in any state or jurisdiction.

3.10.3 Any impending administrative or judicial action which would or could have the effect of placing the Service Provider in receivership.

3.10.4 Any cease or desist order, suspension order, or administrative fine or penalty imposed by any jurisdiction against the Service Provider.

3.10.5 Any judgment or decree rendered by any court of any jurisdiction the effect of which is to enjoin practices of Service Provider with respect to the sale of Authorized Products.

3.10.6 Any petition in bankruptcy or for the approval of a plan of reorganization or arrangement under the Bankruptcy Act (or an admission seeking the relief therein provided), any assignment for the benefit of creditors, any voluntary appointment of a receiver for its properties, and the entry of any judgment obtained against it not arising out of claims made in the ordinary course of

SUSORP/SMSOAP Page 19 of 41 business, which has a material effect on Service Provider and which is not promptly paid or promptly appealed and secured pending appeal.

3.10.7 Any merger, sale, or takeover of a Service Provider’s assets.

3.10.8 Any conviction of Service Provider or any agent of Service Provider for commission of a felony arising out of the performance of duties as an investment advisor or Service Provider.

3.10.9 The Service Provider shall provide the Department with a six-month advance notif ication of name/branding changes or other changes related to the entity that will provide services under this Contract.

3.11 AUTHORIZED PRODUCTS

3.11.1 In accordance with section 121.35(6)(c), F.S., the SBA reviews and makes recommendations to the Department on the acceptability of all investment-related products proposed by Service Providers.

3.11.2 Service Provider shall have an Open Architecture platform when providing the mutual fund investment line-up for SUSORP.

3.11.3 Service Provider shall only offer Authorized Products to Members. The Authorized Products are contained in Attachment M - List of Authorized Products, which may be modified upon written agreement of the Parties without the execution of a formal written amendment to the Contract.

3.11.4 Service Provider is required to periodically review the Authorized Products for performance and submit recommendations which will be reviewed by the SBA and approved or rejected by the Department. Modifications to Attachment M

- List of Authorized Products may only be made during the term of this Contract upon approval by the SBA and approval in writing by the Department’s Contract Manager, subject to payment of the fees specified below.

3.11.4.1 Replacement

If the Service Provider proposes a replacement product based upon the terms set forth in this Contract, the Service Provider shall directly pay the SBA $250.00, per product review, within 20 Business Days of receipt of the invoice from the Department.

3.11.4.2 Deletion

If the Service Provider proposes deleting a product based upon the terms set for in this Contract, the Service Provider shall directly pay the SBA $250.00, per product review, within 20 Business Days of receipt of the invoice from the Department.

3.11.4.3 Evaluation

If the Service Provider requests an evaluation of the acceptability of the mix of Service Provider products, the Service Provider shall directly pay the SBA $40.00, per hour, within 20 Business Days of receipt of the invoice from the Department.

SUSORP/SMSOAP Page 20 of 41

3.11.4.4 Change Implementation

If the Department approves in writing the changes to the Authorized Products, the Service Provider shall provide to the Department’s Contract Manager, within 10 Business Days of the Department ’s written approval, acknowledgement in writing of the modified Authorized Products, an implementation timeline, and a sample copy of any proposed communication to the affected Members.

The implementation plan and proposed communication must be approved by the Department in writing prior to distribution by the Service Provider to affected Members in accordance with section 3.5.6, Communications. As directed by the Department, the Service Provider shall communicate to any Member of the approved modifications.

3.11.4.5 SBA Payments

The Service Provider shall be responsible for all payments required by the SBA.

3.11.5 Service Provider shall offer a proprietary Fixed Account/Guaranteed Income

Product with the following factors:

a. A floor rate that is the minimum allowable crediting rate during the duration of the Contract;

b. A guaranteed minimum interest rate that may differ from the floor rate;

c. No restrictions on withdrawals, transfers, or contributions either through

Member or Beneficiary action, or by the Plan/Program in the event of termination or non-renewal of the contract;

d. A declared crediting rate for each quarter;

e. No market adjustment;

f. No fees for any additional insurance feature; and

g. Crediting rate terms that track the annualized average crediting rate for general account products as provided by the Stable Value Investment Association (SVIA) quarterly characteristic survey report on a quarterly basis and is equal to or higher than the SVIA average crediting rate for the latest quarter crediting rate.

Upon written notice to and approval from the Department, the Service Provider may alter guaranteed provisions and interest rates of fixed Authorized Products.

Service Provider may opt to offer a non-proprietary Fixed Account/Guaranteed Income Product, but such product is subject to the same terms and conditions in 3.11.5, a-g.

3.11.6 Annuity-based Products

Temporary place holder. Contingent on Respondent Reply and negotiations.

3.11.7 Managed Account Product

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3.11.8 Brokerage Window

3.11.9 Department Product Review

The Department may also periodically review the products set forth in Attachment M – List of Authorized Products. If the Department determines that an Authorized Product should be added or removed from Attachment M, the Department will notify the Service Provider in writing.

Once notif ied, the Service Provider shall then provide the Department’s Contract Manager acknowledgement in writing of the modified Authorized Products, an implementation timeline, and a sample copy of any proposed communication to the affected Members.

The implementation plan and proposed communication need to be approved by the Department in accordance with section 3.5.6. The Service Provider shall communicate to the affected Members and implement the changes within 90 Business Days after the Department’s notif ication.

3.11.10 Mutual funds within Authorized Products shall not include investment related revenue sharing.

3.12 TRANSACTION PROCESSING

3.12.1 Department Responsibilities

3.12.1.1 The Department shall be responsible for a) the enrollment of new Members and, b) processing requests from Members to change voluntary contribution rates and/or Service Providers.

3.12.1.2 The Department shall cause Contributions to be remitted in the amount elected by Members and authorized by law for each payroll date deposited in a depository bank designated by Service Provider.

3.12.1.3 The Department shall cooperate with the Service Provider in reconciling amounts posted to Members’ accounts with Service Provider. On or about the payroll date, the Department will make available, via FRS Online, a remittance file in the format of Attachment K-Remittance File Format, reconciling the amounts posted to the members’ accounts to the Service Provider.

3.12.2 Service Provider Responsibilities

3.12.2.1 Good Order Policy

The Service Provider shall provide the Department with a copy of its good order policy within 30 Calendar Days of Contract execution.

3.12.2.2 Revised Good Order Policy

Should the good order policy require updates, the Service Provider shall discuss and seek the Department’s approval of any and all

SUSORP/SMSOAP Page 22 of 41 updates prior to implementation. A revised copy of the good order policy shall be provided electronically (via email) to the Department’s Contract Manager within 15 days of receiving the Department’s approval.

3.12.2.3 The Service Provider will hold the Department and Members harmless for all cases where an Authorized Product is closed to future contributions (either by the Service Provider or a third party, such as an investment manager).

3.12.3 Contributions

3.12.3.1 Credits

Service Provider shall credit Contributions to the Member accounts on the day the Service Provider receives the disbursement from the Department, provided the Department’s remittance file and disbursement are determined to be in good order in accordance with Service Provider’s good order notice policy.

3.12.3.2 Outreach

Service Provider shall communicate with all Members that have stopped voluntary contributions to the Plan in the preceding quarter to help the Member decide whether the Member should resume voluntary contributions or not.

3.12.3.3 Service Provider is prohibited from soliciting Members to remove

Plan assets to its company’s IRA. However, this does not prohibit the Service Provider from accepting rollovers which are initiated by the Member without solicitation.

3.12.4 Suspense Account

3.12.4.1 Service Provider shall create a Suspense Account for the administration of gains and losses resulting from Corrections made to a Member’s account and Financial Consequences (if applicable).

3.12.4.2 Corrections

Pursuant to the Department’s review, should the Quarterly Reconciliation Report reflect that a Correction to a Member’s account is needed, the Department will notify Service Provider and the Service Provider shall make the Correction to a Member’s account within 10 Business Days of notice by the Department. In accordance with Section 3.4.2.3, this correction will be reflected in the Members Quarterly Statement.

3.12.4.3 At the end of the Contract term, and on a date certain established in a final end of service transition plan, Service Provider shall either remit any funds remaining in its Suspense Account to a Suspense Account with a subsequent service provider as selected by the

SUSORP/SMSOAP Page 23 of 41

Department or return funds to the SUSORP or SMSOAP trust fund, as applicable.

3.12.5 Member Distributions

3.12.5.1 Service Provider shall communicate with Members that are eligible for a Distribution to assist with informed decision making regarding whether to leave assets in the Plan.

3.12.5.2 Prior to processing a distribution, the Service Provider shall notify the Department of a request by a Member to rollover to the Service Provider or Service Provider’s subsidiaries, parent, subcontractor, or other affiliated entities.

The notif ication shall be by a Service Provider affidavit affirming that the Member made any such request unsolicited by the Service Provider and provide sufficient documentation of the reasons stated by the Member for the rollover. This notification shall be submitted within ninety (90) Calendar Days of the Member’s request.

3.12.5.3 Service Provider shall maintain the Member’s beneficiary designation information and process requests made by a Member’s designated beneficiary for death benefits only upon the Member’s death.

3.12.5.4 Service Provider shall not make a Distribution to a Member or a

Member’s beneficiary in any manner other than as provided in sections 121.055 or 121.35, F.S. If processed other than identified in statute, the Service Provider shall recapture the distribution in accordance with the timeframes identif ied in Section 3.12.6, Member Overpayments (Unauthorized Distributions).

3.12.5.5 Service Provider shall not make a Distribution (e.g., full or partial) to a Member without authorization from the Department.

3.12.5.6 After a Member terminates employment and requests a

Distribution, Service Provider shall not proceed with the Distribution until the Service Provider receives approval from the Department for each:

a. Retirement Distribution.

b. Required Minimum Distribution (RMD).

c. Refund of Voluntary Employee Contributions.

3.12.5.7 The Department shall provide Service Provider with authorization for Distributions in the format provided in Attachment J – Distribution…