EvaluationQuestionaireVersion6.doc

EVALUATION QUESTIONNAIRE

Table of Contents

A. Experience/Organizational Structure………………………………. 2

B. Past Performance/ Responsibility…………………………………… 5

C. Technical Capabilities………………………………………………… 6

1. Recordkeeping/Administration

1. Client Service/Quality Assurance

2. Recordkeeping/Administration

3. Regulatory

4. Loans

5. Reporting

6. Participant Access

7. Communication/Education

8. Conversion

9. System Capabilities

2. Investment Manager/Trustee

1. Investments

2. Trustee

D. Fees and Other Arrangements…………………………………….. 26

E. Past Performance Questionnaire…………………………….…… 27

Appendix: Requested Exhibits Evaluation Questionnaire

Please confirm that your organization has the capability to provide:

Recordkeeping/Administration YES/NO

Investment Manager/Trustee Services YES/NO

Please confirm that you have included any and all fees for such services in the Fee Workbook YES/NO

Authorized Signature:

Printed Name:

A.

Experience/Organizational Structure

1. Provide a brief narrative with an overview of your company, including its history and an organizational chart. Please describe any parent/subsidiary/affiliate relationships.

2. Are the following services done in-house or on an outsourced basis? If provided in-house what is the length of time you have been providing these services?

Recordkeeping/Administration

Regulatory Compliance

Trustee/Custodial

Communication/Education

3. If any services listed in Question 2 are outsourced, indicate the name of the outsourcing firm, how many years the outsourcing firm has been in existence, and if the client deals directly with, or has day-to-day contact with the outsourcing firm.

Recordkeeping/Administration

Regulatory/compliance

Trustee/Custodial

Communication/Education

4. For your institutional retirement plan business, how many employees work in each of the following functional areas? If you have multiple service centers, provide the same information for each location.

# of employees

Sales and marketing

Recordkeeping/Administration

Legal/Compliance

Client Services

Telephone services

Systems

5.

Indicate the total value of assets for which you provide recordkeeping services. Please do not include investment only client relationships.

6.

How many daily-defined contribution plans do you currently administer in the following categories:

Less than 500

500-999

1,000-4,999

More than 5,000

Total

7.

Please show a breakdown of the number of clients with assets you service by plan type:

Business by Plan Type

Profit-Sharing/Money Purchase

401(k)

Combination

403(b)

8.

If you have multiple client service locations, please list the city and state where our Plan will be administered.

9.

Do you carry fiduciary liability insurance? Describe any and all insurance coverage that will be provided.

B.

Past Performance / Responsibility

1. For bundled defined contribution services only, please provide the following regarding business gained/lost over the past three years.

Total

2. For lost business over the last 3 years, what percentage of your clients left due to the following issues:

3.

In the last five years, has your organization been cited or threatened with any regulatory action by federal or state regulators for violations of any state or federal law? If so, please explain.

4.

Have you had any license problems in the last 5 years? If so, please explain.

5. Describe any past or pending litigation, within the last 5 years, relating to the services you are proposing.

List your Company’s Ratings - (e.g., A.M. Best, Moody’s, Standard & Poor’s).

C1.

Technical Capabilities - Recordkeeper/Administrator

1. Client Service/Quality Assurance

a) Please describe the staff that would deal directly with us during plan conversion and on an ongoing basis. Please include the resumes for designated key personnel as requested in the “Exhibits” section.

b) Please indicate the type and length of training for new employees prior to working on client plans:

Length in days

Classroom training

Mentoring

On-the-job training

Take home study course

Computer-based training

Please also note any professional certifications and /or registrations required, and that staff have.

c) Are you willing to bear financial responsibility for errors caused by your company? Is this included in your standard administrative agreement?

d) Describe your quality assurance program currently used to provide the highest quality service to your customers (including your training philosophy and current programs). Describe some of the measurements you have in place to ensure quality service to your clients (including any training provided).

e) Do you guarantee service performance?

Yes/No

Statement turnaround

Check processing

Conversion blackout

Participation rates

Diversification goals

Average deferral rates

Other?

2.

Recordkeeping / Administration:

a.

Which of the following methods are available to the plan sponsor for transmission of data to your firm?

Yes/No

Electronic

Paper

Diskette

Tape

On-line sponsor web station

Other b.

Does your firm or the client define the format of the payroll data?

c.

What is the number of business days after receiving a “clean” payroll file that contributions are invested?

d.

Describe in detail how your system processes the following:

1. Contributions

Frequency at which files may be submitted without incurring add’l fees

Once data is clean, when is sponsor asked to send contribution

2. Contribution rate changes

3. Transfers/Exchanges

4. In-service withdrawals

On a Schedule- please state batch cycle

Is Direct Deposit option available to participants

5. Hardship withdrawals

On a Schedule – please state batch cycle

Is Direct Deposit option available to participants

Notify participant

Both

6. Loans

7. Lump sum distributions

On a Schedule – please state batch cycle

On a Schedule – please state batch cycle

8. Rollovers to another plan or an IRA

On a Schedule – please state batch cycle

9. Required minimum distributions (RMD)

Participant

Both

Can you calculate the RMD

a. Which methods can be used for processing transfers/exchanges?

Yes/No

Balance realignment in percentages

Percentage from/Percentage to

Dollar from/Dollar to

b. Describe in detail how you administer Qualified Domestic Relations Orders (QDRO). Will you review the Domestic Relations Order to determine if it is qualified?

c. Are there data edits your system performs automatically? If so, please list all data edits performed.

d. Do you provide an administration manual? If yes, is it paper? On-line? Both?

3.

Regulatory Services

a. Indicate whether your firm provides the following services and the frequency such services are provided:

Discrimination Testing ADP/ACP

415 annual additions testing

415 combined annual additions testing for both our DC plans

402(g) elective deferral limit

Identification of HCEs

410(b) coverage testing

401(a)17

Other

b. How do you address violations for any of the testing covered above? How will you ensure that our plan remains in compliance?

c. Does your firm have ERISA attorneys on staff? If yes, approximately how many? Is there a fee to use this service?

d. Will your firm provide recordkeeping services for plans with a customized document?

e. Does your firm offer the following?

Yes/No

Custom document

Custom SPD

Prototype document

SPD based on prototype

Qualification submission to IRS

Signature ready Form 5500 & SAR

Information to complete Form 5500

f. What fiduciary responsibility does your organization assume?

g. How do you keep Plan Sponsors informed and updated on any regulatory and legislative changes?

Yes/No

Periodic newsletters

Letters/memos/fax alerts

Telephone contact

E-mail

Face-to-face meetings at least semi-annually

Plan sponsor website

Seminars (on-line)

4.

Loans

a. What is the standard turnaround time for issuance of loan checks?

b. Describe the flexibility in your loan repayment processing (i.e., additional payments, multiple, multiple loans, missed payments).

c. Do you notify employee/employer/both when a loan is in default? If yes, what is the timing of the notification?

d. What responsibility does the OCC retain for initial and ongoing loan servicing other than withholding the loan repayment and submitting it to the trust?

e. Where are the original promissory notes maintained?

f. When a loan is paid off, do you return the promissory notes to the employee marked “paid”?

5.

Reporting:

a. Please list and describe all types of account statements/management reports which can be provided.

b. What is the turnaround time for statements/management reports (in business days after quarter end)?

c. Are statements mailed directly to participant’s home or alternate address that is provided by the client?

d. Who pays for postage?

e. Can you provide duplicate paper statements to participants upon request?

f. Can you provide electronic statements, i.e., PDF from website?

g. Describe your ability to customize reports or input formats to meet our needs and to generate special, ad-hoc reports and files?

h. What is the timing of receipt of a customized report?

i. Describe the documentation provided each customer including timing for updates and enhancements.

j. Describe the procedures to be followed by customers if they find errors in the documentation or if they want to suggest improvements.

k. How does your company respond to such requests?

l. Can you provide personal rates of return on participant statements?

6.

Participant Access: Voice Response System (VRS)/Internet Access/Call Center

a. Please mark the services that are available through VRS, Internet and Call Center Representatives:

Obtain Plan Information

Request enrollment forms

Enroll in the Plan

Request PIN

Change PIN

Request beneficiary forms

Change beneficiary

Find out current contribution rate

Change contribution rate

Find out current investment elections (existing money)

Change future investment elections

Loan modeling

Request loan forms

Request loan

Request hardship withdrawal forms

Request in-service withdrawal forms (non-hardship)

Request in –service withdrawal (non-hardship)

Request termination distribution

Find out account balance by fund

Find out outstanding loan balance

Obtain prospectus/fund info

Request forms for rollover into Plan

Account balance projections

Request a copy of prior period statement

Request a statement as of today

Opt out to live operator

Access for hearing impaired participants

E-mail questions to customer service reps and receive an e-mail response

b. Please indicate the time when the VRS and/or Internet are inaccessible, if any: _______EST to ______EST.

c. Are the voice response and Internet systems connected in real time to the recordkeeping system?

d. If a transaction request is made on the VRS, can the participant immediately see the pending trade request on the Internet system and vice-versa?

e. If a transaction request is made on voice, can the request be cancelled on the Internet system and vice-versa?

f. Do you maintain a plan sponsor website? If so, describe the services available through your sponsor site.

g. Section 508 requires that Federal agencies' electronic and information technology is accessible to people with disabilities. Is your website 508 compliant?

Please complete the Voluntary Product Accessibility Template (Attachment 6 to the solicitation). See solicitation Section A. 10 for the standards determined to be applicable to this requirement.

h. What hours is a customer service representative available:

Monday – Friday EST to _____

EST

Saturday

_____ EST to _____ EST

Sunday ______EST to _____ EST

i. Please identify your call center standards. Please include statistics related to actual performance.

1. Number of calls per day

2. Average length of calls in seconds

3. Average response time in seconds

4. Percentage of calls requiring follow-up

5. Call abort rate

6. Percentage of incoming calls handled via VRS versus call center representatives

7. Percentage of service requests handled via website versus call center representatives and VRS

j. What training is provided to call center representatives before they are allowed to handle incoming calls?

k. What kind of license do your customer service representatives have?

Yes/No

NASD Series 6

NASD Series 7

NASD Series 63

Other:

l. Do you monitor and/or tape calls? What percentage of all calls is monitored? taped?

m. What are your case management procedures for calls that have service issues?

n. What is your turnaround time for participant statements (in business days after quarter end)?

o. Are “e-statements” available? If so, please provide an example.

7.

Communication and Education

a. Describe separately your initial and on going communication and education programs (including printed material, customization, visits, training, etc.). If the program is tailored to a specific plan sponsor need, identify the critical issues to be determined in designing such a program.

b. Do you provide the following communication and education materials?

Written materials

Videos

Employee meetings

Customer Service Reps

Voice Response System

Internet

c. Do you provide personnel resources as part of both the initial and on going communication and education programs?

d. How many days of meetings have you budgeted for the initial communication?

e. How many meetings per year for ongoing communication are included?

f. What is the cost per additional day?

g. Does your organization provide any planning tools/that would help individual participants with financial planning/education?

Workbooks

Questionnaires

Personalized retirement income projection statements

Software

Internet calculators

On-line education classes

h. Do you offer financial guidance/advice products? If so which provider(s) do you use? Describe your process, mode and scope of advice. What fiduciary responsibility do you assume if advice is provided?

i. Do you provide face-to-face investment information workshops to your client organizations? If so, provide a listing of sample workshops available.

8.

Conversion

a. Please provide a detailed timeline of the conversion process, including tasks and who is responsible for each assuming an award date of July 1, 2008 and an January 1, 2009 conversion date.

b. Do you provide a dedicated conversion team? Is the “relationship manager” assigned to our team involved with our plan during the conversion?

c. How long is the blackout period? Please provide response in number of business days.

d. Is the VRS, call center and/or Internet available to participants during the conversion period? Assuming a 1/1/09 conversion, when would these be available?

Plan information

Investment information

Future investment elections

Key dates/timeframes regarding transition

e. What conversion audit reporting do you provide?

f. Describe your process to ensure accurate conversion of all historical data.

g. Do you have any limitations as to the format/media of conversion records?

h. Do you have any recent experience converting a Plan from Prudential?

i. How are investments handled during the conversion process? Also describe your ability to handle in-kind transfer of assets.

j. How does your system handle conversion/set-ups of pre-existing loans from another recordkeeping system?

1) Keep same amortization schedules?

2) Re-amortize all loans?

k.

How do you monitor the effectiveness and quality of your conversion process and team?

l.

Are clients surveyed after the conversion is complete? If so, from the survey results, what do you do best during conversions? What area could you improve upon?

9.

Technical Capabilities - Systems Capabilities:

1. Describe the hardware platform and software systems used for investing, trust accounting, recordkeeping and administering defined contribution plans.

2. How long have you used the current hardware/software?

3. Was the software developed internally, leased or bought from another provider? Who has the ultimate responsibility/authority to make sure the software remains current to laws, regulations, client needs, etc?

4. Describe your investment management, trust related, and recordkeeping/administrative computer systems, including:

a. Maintenance/ backup procedures (daily backups, retention timetable, archival process and off-site backup storage)

b. Disaster prevention and recovery program (plan, recent testing, history of any data losses or system failures)

c. Data processing/programming staff (where located, number of programmers: routine maintenance, upgrades/enhancements, client requested design changes)

5. Please describe your method of your security controls to include audit reports that ensure that individuals are following the security plan and established security procedures?

6. Please describe your systems security features for data and fund transmission to include Internet transmissions and restriction of access to confidential data.

7. What types of investigations do you perform on employees having access to participant data?

8. If you outsource any of these functions, what methods will you use to ensure systems compatibility and security?

9. What is the client’s hardware/software requirement?

10. Does your system limit any of the following? If so, what are the limitations?

a.

Transfer frequency.

b.

Minimum/maximum contribution percentages.

c.

Investment election changes.

d.

Withdrawal frequency.

11. Please provide ongoing transaction layouts if specific layouts are required.

12. Are there charges to the client for system changes associated with legislative changes? Plan changes/modifications?

13. Is your trust accounting system integrated with your recordkeeping system?

14. Describe your internal and external audit processes and procedures for both investment management and trustee/custody services provided.

C2.

Technical Capabilities - Investment Manager/Trustee Services 1.

Investments:

a. How long have you been providing investment management services?

b. How long have you been providing investment management services to retirement plans?

c. Are plan sponsors limited to your proprietary fund line-up?

d. How many proprietary funds must be held by our plan, if any?

% of assets?

% of funds?

$ amount

e. To the extent we wish to comply with IRC 404(c), how can you assist us?

f. Discuss your investment process for recommending plan investment options. Your discussion should cover:

1) The quantitative and qualitative factors considered in placing an investment or mutual fund on your platform of investments offered to 401(k) plans. Also provide information on the qualifications of your staff involved in this process.

2) The process used to monitor investments on your platform, both for ongoing performance/quantitative factors, and for any qualitative issues impacting an investment.

3) The due diligence and selection process for separately managed fund managers, and your process for monitoring ongoing performance.

g. Provide a recommended fund and four additional funds in each of the Asset Classes listed below. One of the funds should be an index fund offering. These funds should all be funds that would be available to our Plan. (Note: The recommended fund for each asset class should be entered into Fee Worksheet). For each of the recommended funds please provide:

1) The inception date;

2) The name of the investment/portfolio manager;

3) The length of time the manager has been responsible for this investment/portfolio;

4) A biography of the manager;

5) The investment vehicle objective;

6) The investment philosophy;

7) The comparative index (benchmark) and R2;

8) The year-to-date total return as of December 31, 2007; the annualized total return for the 1, 3, 5 and 10 year periods as of December 31, 2007; also provide the peer ranking (if appropriate) and the standard deviation of return for each time period;

9) A discussion of performance including where the manager added value, with supporting documentation as appropriate (peer alpha comparison, benchmark comparison, or performance attribution);

10) Information as to whether performance levels have been audited by an outside, independent source;

11) A discussion of the risk levels and risk tolerance. Include supporting documentation, e.g., risk-adjusted return analysis, tracking error, beta, duration, etc.);

12) The expense structure (including any loads, load waivers, management fees, other expenses, 12b- fees, fee subsidies, etc.). Also, please disclose any revenue sharing or finder-fee arrangements that you may have with the fund company.

13) Withdrawal provisions (including restrictions on transfers);

14) The total defined contribution assets under management as of the end of each of the last three calendar years.

Balanced/Moderate Allocation

Balanced/Conservative Allocation

Fixed Income

International Equity – Developed Markets

International Equity - Emerging Markets

S & P 500 Index Fund

Large Growth

Large Value

Small Growth

Mid Growth

Small Value

Mid Value

Money Market Mutual or Stable Value

Socially Responsible

Qualified Default Investment Alternative Fund

h. In addition to the information provided in (g), please provide the following for each of your recommended funds:

1) For each equity investment vehicle you have included, provide:

i. The top ten holdings as of the last three calendar quarters, along with the percent of the total that the top ten holdings represent.

ii. The sector breakdown as of the last three calendar quarters, along with the ranges of each sector during each period.

2) For each fixed income investment vehicle you have included, provide:

iii. The sector breakdown as of the last three calendar quarters, along with the ranges of each sector during each period.

iv. The average maturity, the average duration, average yield, and average quality as of the latest three calendar quarters.

3) For each balanced asset allocation and/or life style investment vehicle you have included, provide:

v. The asset breakdown by cash, stocks, and bonds as of the last three calendar quarters.

vi. The range for each category during that time period

4) For each international or global investment vehicle you have included, provide the dollar-weighted average of the investment’s allocations in each country.

5) For the money market investment vehicle you have included, provide the 7-day current yield as of the latest three calendar quarters.

i. Describe your internal and external audit procedures.

j. Do your systems (Internet and voice) have auto-rebalancing capabilities at the individual participant level? Please describe. By auto-rebalancing we mean that a participant can set their investment mix once and have it periodically “automatically” reset by the system without their intervention.

k. Do you offer lifecycle funds?

a. Provide a description of the allocation models used.

b. How are the models constructed – based on risk, age, target retirement date, or a combination?

c. Provide a list of mutual funds that are currently used in the allocations. How are these funds selected? Are the funds proprietary or subject to a revenue sharing/finders fee arrangement with the fund company?

d. What is the fee structure for this product? Include both expense ratios of the underlying funds and any additional wrapper or admin fees charged for the allocation product.

e. Is rebalancing automatic? How frequently are these funds rebalanced? Is there any fee associated with rebalancing?

l. Do you offer products that will payout retirement income over a set period of time, or over the participant’s life such as a retirement income/income replacement mutual fund or a flexible annuity? If so, please provide a description of the product, including any guaranteed payout levels, the ability to change payout amount or make emergency withdrawals, and whether the participant can maintain control of assets and/or leave balance to heirs. Describe the cost structure of these products.

m. Do you have a relationship with a service (such as Financial Engine or Morningstar Clearfuture) that provides investment advice (such as asset allocation advice) to participants? If so, describe the services available and the costs of those services.

2.

Trustee Services:

a. Describe your fiduciary responsibilities as trustee.

b. Are defined contribution trustee services generally provided in conjunction with investment management services? With recordkeeping services?

c.

Are your trustee/custodial services a “standalone” business? A “core” business?

d.

Describe “checks and balances” employed in your trust accounting system.

e.

Will you trustee outside investment funds?

f.

Describe in detail how your system handles Federal and State tax reporting. Do you provide tax form preparation and filing?

g.

What is your turn-around time on check issuance?

h.

Do you provide information to plan participants regarding options on distributions?

i.

Do you have a limit on the number of checks/wires available to participants who rollover their distributions?

j.

Do you provide consolidated year-end ERISA reports for 5500 filings?

k.

Do you maintain all loan documentation (i.e., promissory notes) as part of your files?

D.

Fees and Other Arrangements

1. Will you guarantee your fees? If so what is the maximum time period in months?

1. Do you ever reduce your fees if service guarantees are not met? If yes, please describe.

2. What are the factors used to determine if fee increases or decreases are warranted? How often do you review these factors?

3. How is the client protected against increases to fees if one or more of your proprietary funds needs to be replaced due to performance issues down the road?

4. Provide a list of mutual fund companies (or their affiliates) in which you have fee-related arrangements with (formal or informal). Also, include non-monetary arrangements, with explanations of such arrangements.

5. Describe the nature of any compensation between you and specific mutual fund companies (or their affiliates). This compensation is not typically part of a mutual fund’s expense ratio. Examples include but are not limited to finder fees, rebates, revenue sharing arrangements, compensation based upon minimum balances in the 401(k) plan, and compensation based on a fund’s performance.

6. Please complete the 401(k) Plan Fee Disclosure Form. The form is available at http://www.dol.gov/ebsa/pdf/401kfefm.pdf E. Past Performance Questionnaire Offerors shall send the Past Performance Questionnaire (provided with the RFP documents) to no more than five 401(k) client references that are similar in either participants and/or assets to our Plan. Please include in the five at least one reference that has recently left your firm.

Those clients shall be requested to submit the COMPLETED - FILLED OUT forms electronically to Marguerite.Brown@occ.treas.gov or via fax to (301) 433-6309 no later than March 14, 2008 at 2:00 p.m. Offerors shall include in the proposal a list of clients who received the Past Performance Questionnaire. The list shall include the information detailed below. At least three completed questionnaires, including a reference that has recently left your firm, are required to be returned. Completed questionnaires should be limited to a maximum of five. Offerors are responsible for ensuring that completed questionnaires are received by the specified date.

Client Listing Information (Minimum of 3, Maximum of 5)

1. Company Name:

Company Contact:

Plan Size (participants/assets):

Geographic Location:

Phone Number:

E-mail address: _________________________________________

Date Relationship Began/Ended: ____________________________________

2. Company Name:

3. Company Name:

4. Company Name:

5. Company Name:

EXHIBITS REQUESTED:

1. Annual reports for the last three (3) years

2. Resume(s) of Account Representative/Consultant; Client Consultant; Investment Advisor/Consultant(s) who will be assigned to our account.

Include at a minimum:

a. Primary role on our account

b. Total years experience in this field

c. Years experience with your firm

d. Average number of clients

e. Average size of clients (participants and/or assets)

3. If you survey your customers to evaluate performance, please provide copies of surveys and results for the past three years

4. Sample services agreement or contract

5. Sample custodial trust agreement

6. Sample participant and management reports

7. Samples of initial enrollment and on going communication and education materials

8. Listing of all fund family alliances (include any revenue sharing or finder-fee type arrangements with any of the fund families)

9. Listing of all funds available (proprietary, alliance and separately managed accounts)