Gabriel, Roeder, Smith & Company.pdf

Nebraska Public Employees Retirement Systems

Proposal for Actuarial Services – Technical Proposal Solicitation Number 120961 O5 March 21, 2025

Submitted by: Gabriel, Roeder, Smith & Company One Towne Square, Suite 800 Southfield, Michigan 48076 www.grsconsulting.com

Bonita J. Wurst, ASA, EA, FCA, MAAA Phone: 763.432.9453 Email: bonnie.wurst@grsconsulting.com

Sheryl L. Christensen, FSA, EA, FCA, MAAA Phone: 763.710.9158 (Direct Dial) Email: sheri.christensen@grsconsulting.com http://www.grsconsulting.com/ mailto:bonnie.wurst@grsconsulting.com mailto:sheri.christensen@grsconsulting.com

Nebraska Public Employees Retirement Systems Proposal for Actuarial Services

Table of Contents

Section Page

Letter of Transmittal

Contractual Agreement Form

Solicitation Response

I Corporate Overview 1

II Technical Response Attachment A: Mandatory Qualifications Attachment B: Proposed Technical Approach Attachment C: Additional Corporate Experience Cost Sheet

III Additional Required Forms

Section II – Terms and Conditions Section III – Vendor Duties Section IV – Payment

Appendices

A Proposed Team Member Biographies

B Sample Client Lists

C GRS Sample Client Contract

D Sample Actuarial Valuation Reports

E Statement of Professional Liability Insurance

F GRS Technology Tools

Ms. Connie Heinrichs and Ms. Brook Taylor Procurement Contract Officers State Purchasing Bureau 1526 K. Street, Suite 130 Lincoln, Nebraska 68508

Re: GRS’ Response to Request for Proposal for Actuarial Services Solicitation #120961 O5

Dear Ms. Heinrichs and Ms. Taylor:

Gabriel, Roeder, Smith & Company (GRS) is very pleased to have this opportunity to submit a Proposal to provide professional actuarial services to the Nebraska Public Employees Retirement Systems (NPERS). The attached Proposal sets forth our understanding of the work to be performed and the qualifications and capabilities of the consultants and resources of GRS.

GRS offers the NPERS the opportunity to work with the nation’s premier provider of actuarial consulting services to the public sector community and to partner with an actuarial team that excels in communicating complex items in terms that are understandable to all interested parties. GRS has been in business since 1938 and has a nationally renowned reputation, an excellent research center that specializes in public sector benefit programs and a clear understanding of the issues public retirement systems face across the nation. The employees of GRS are the company's shareholders. As shareholders, our employees have a stake in providing the best possible service and the most independent consulting advice possible.

GRS is the prominent provider of actuarial and consulting services to the public sector community in the country. As the Public Sector Leader, we serve more than 1,000 public sector retirement systems and healthcare programs, including 41 statewide public pension retirement systems, 28 of which have 50,000 or more members. The location of our clients ranges from Rhode Island to Hawaii and from Minnesota to Texas.

GRS has previous experience with the NPERS plans as GRS completed a full replication audit in 2022. If we are awarded this engagement, we will be able to get a jump start on the actuarial work since the plans are familiar to us.

GRS has an exceptional reputation for quality work and commitment to the public sector community. We also have a long-standing reputation for unbiased presentation of facts. Our role is to present impartial information and consulting advice so that governments and boards can make informed decisions.

We believe that GRS’ proposed client service team is unmatched by any of our competitors. We have assembled a GRS team that is the perfect match for the NPERS. The consultants that we are proposing have extensive experience providing actuarial consulting to public sector retirement systems across the country which brings a national perspective to their consulting.

Ms. Connie Heinrichs Ms. Brook Taylor

We believe there are four key qualification areas that you will want to look for in your actuarial firm. Our Proposal will demonstrate GRS’ qualifications in each of these four areas:

Knowledge of the Issues and the Services – Our 85+ year reputation for providing sound, technically proficient, independent advice is evidenced by the over 1,000 public sector clients we serve, of which the majority have been clients for more than 30 years. GRS retains clients for long periods of time because we consistently demonstrate knowledge, expertise, timeliness and capabilities that exceed those of our competitors.

Communication – Given the vast experience and expertise of our client service team, we believe strongly that we will be able to communicate effectively with the NPERS staff, its Executive Director and the Board. Our work often requires us to speak in front of governing bodies, such as legislatures and city councils, as well as in front of labor and other employee groups. We communicate our results and recommendations in clear, jargon-free terms to maximize understanding by all parties.

Depth in the Issues – The NPERS will want the benefit of knowing what other similar public retirement systems are doing and currently experiencing, not only in your region, but across the country, as well. In particular, we can provide the NPERS with knowledge and consulting on the emerging financial and benefit related trends, and the ways in which the NPERS can prepare and respond to these issues as they emerge. GRS is uniquely qualified to fill this role. We serve more public sector retirement systems than any other firm. As the nation’s leading consultant to public sector retirement systems, GRS offers consulting expertise and technological capabilities that specifically focus on the needs of public sector employee benefit plans.

Sound and Integrated Approach – Our consulting team’s depth of expertise in retirement benefit consulting results from strong actuarial science credentials, many years of experience with benefit related government finance issues, specific experience with public sector clients similar to the NPERS, and access to GRS’ state-of-the-art technology and research resources. We will work with the NPERS to bring forward solutions that respect the interests of the members, the employers, and the NPERS.

If we are awarded this engagement, we intend to negotiate in good faith with the NPERS to reach an agreement on contract terms as expeditiously as possible. As the nation’s largest provider of actuarial services to public entities, we have negotiated mutually acceptable contract terms with our other clients in support of similar opportunities. We expect to also successfully reach agreement with the NPERS on acceptable contract terms for this opportunity.

Ms. Connie Heinrichs Ms. Brook Taylor

Bonita J. Wurst and Sheryl L. Christensen are authorized to represent GRS in all matters related to this proposal.

Bonita J. Wurst 277 Coon Rapids Boulevard, Suite 212 Coon Rapids, Minnesota 55433 Phone: 763.432.9453 bonnie.wurst@grsconsulting.com

Sheryl L. Christensen 277 Coon Rapids Boulevard, Suite 212 Coon Rapids, Minnesota 55433 Phone: 763.710.9158 sheri.christensen@grsconsulting.com

Judith A. Kermans, our President and CEO, is authorized to legally bind the firm.

Judith A. Kermans One Towne Square, Suite 800 Southfield, Michigan 48076 Phone: 248.799.9000 ext. 1125 judy.kermans@grsconsulting.com

We trust that this response conveys the depth of our interest in serving the NPERS, our commitment to delivering services of the highest quality, and the strength of our capability.

If you have any questions on our response or need additional information, please feel free to contact Bonita J. Wurst or Sheryl L. Christensen.

Respectfully submitted, Gabriel, Roeder, Smith & Company

Bonita J. Wurst, ASA, EA, FCA, MAAA Sheryl L. Christensen, FSA, EA, FCA, MAAA Senior Consultant Senior Consultant

Judith A. Kermans, EA, FCA, MAAA President and CEO mailto:bonnie.wurst@grsconsulting.com mailto:sheri.christensen@grsconsulting.com mailto:judy.kermans@grsconsulting.com

SECTION I

CORPORATE OVERVIEW

Corporate Overview

a. BIDDER IDENTIFICATION AND INFORMATION. The bidder should provide the full company or corporate name, address of the company's headquarters, entity organization (corporation, partnership, proprietorship), state in which the bidder is incorporated or otherwise organized to do business, year in which the bidder first organized to do business, and whether the name and form of organization has changed since first organized.

Gabriel, Roeder, Smith & Company (GRS) was incorporated on October 2, 1962 from a merger of A. G.

Gabriel & Company, a sole proprietorship that was established in 1938, and another younger sole proprietorship, Roeder & Company. In 1995, the company merged with Kruse, O'Connor & Ling, a Florida based consulting firm.

In 2015, the company formed a health & welfare consulting subsidiary, Gabriel, Roeder, Smith & Company Health and Welfare Consulting, LLC from its existing health and welfare practice. For administrative and operating efficiency, both Gabriel, Roeder, Smith & Company and Gabriel, Roeder, Smith & Company Health and Welfare Consulting, LLC are now wholly owned subsidiaries of Gabriel, Roeder, Smith & Company Holdings, Inc., a private Michigan corporation.

We are headquartered in Southfield, Michigan with additional offices in Rockford, Michigan; Colorado;

Florida; Illinois; Minnesota and Texas.

Gabriel, Roeder, Smith & Company (Headquarters) One Towne Square, Suite 800 Southfield, Michigan 48076 www.grsconsulting.com

b. FINANCIAL STATEMENTS. The bidder should provide financial statements applicable to the firm. If publicly held, the bidder should provide a copy of the corporation's most recently audited financial reports and statements, and the name, address, and telephone number of the fiscally responsible representative of the bidder’s financial or banking organization.

If the bidder is not a publicly held corporation, either the reports and statements required of a publicly held corporation, or a description of the organization, including size, longevity, client base, areas of specialization and expertise, and any other pertinent information, should be submitted in such a manner that solicitation evaluators may reasonably formulate a determination about the stability and financial strength of the organization. Additionally, a non-publicly held firm should provide a banking reference.

The bidder must disclose any and all judgments, pending or expected litigation, or other real or potential financial reversals, which might materially affect the viability or stability of the organization, or state that no such condition is known to exist.

The State may elect to use a third party to conduct credit checks as part of the corporate overview evaluation.

http://www.grsconsulting.com/

Gabriel, Roeder, Smith & Company is a national actuarial and benefits consulting services leader that has served the public sector for 85+ years. We are not a publicly held corporation; however, we would be happy to provide you with our audited financial statements provided they are kept confidential. As a point of reference, 100% of our revenues come from services to public sector benefits plans. As of our latest financial report dated December 31, 2024:

GRS has nominal debt and substantial cash reserves on its balance sheet.

GRS has access to a $2.6 million line of credit from JPMorgan Chase Bank, a bank with which GRS has had a more than 40-year relationship.

Please see the following page for a letter of reference from our bank.

We are fully committed to serving the public sector for many years to come. With over 1,000 public sector clients served by seven offices, GRS is confident of its long-term viability.

We are unaware of any judgments, pending or expected litigation, or other real or potential financial reversals which might materially affect the viability or stability of GRS.

GRS practice areas include pension, OPEB, defined benefit plan administration, and client software; all of which comprise core competencies for GRS. Table 1 below illustrates the services we provide.

Table 1: Actuarial and Benefits Consulting Services

GRS is the only firm that has been dedicated to serving public sector plans since its inception. Public sector work is not a sideline for our primary work, it is our primary work. With 1,000 clients in nearly 50 states, we provide actuarial and benefits consulting services to more public sector clients than any other firm in the country.

The following is representative of our client base:

Served 1,000 actuarial clients covering pension and OPEB plans.

41 statewide retirement systems covering a total of over 7 million participants and nearly $1 trillion in assets.

28 statewide retirement systems with 50,000 or more participants.

26 statewide retirement systems with more than $10 billion in assets

A full list of our retainer clients is in Appendix B. We have been associated with more than half of our clients for at least 30 years, many for more than 50 years and some for more than 85 years. As far as we know, none of our competitors can make this latter claim. We believe that our clients' long association with our company results from our focus on technological innovation, research and employee professional growth efforts solely focused on managing the challenges faced by the public sector. This means that 100% of our talent is directed to serving public sector benefit plans. We are confident none of our competitors offer the same level of expertise and resources.

We are an employee-owned corporation that is independent of banks, accounting firms, insurance companies, brokerage firms, and multinational corporations. This means GRS can provide NPERS with totally independent and unbiased advice and service. GRS has 127 employees, including 66 credentialed actuaries and consultants with decades of benefits experience. All of our employees are involved in serving public sector agencies, from consultants to administrative staff.

John A. York

Vice President

Commercial Banking

JPMorgan Chase Bank, NA | 1116 W. Long Lake Rd, Floor 2, Bloomfield Hills, MI 48302

T: 248 839 0125 | john.york@chase.com | chase.com/commercialbanking

March 18, 2025

Subject: Gabriel, Roeder, Smith & Company’s RFP Response

To Whom It May Concern, This letter is intended to serve as a reference to support Gabriel, Roeder, Smith & Company’s response to an RFP.

Gabriel, Roeder, Smith & Company (“the Company”) has been a client of JPMorgan Chase Bank, NA (“Chase Bank” or “the Bank”) and its predecessor organizations for over 60 years. Chase Bank’s relationship with the Company consists of providing banking services including depository and lending activities. The Company maintains average balances with Chase Bank in the low-to-mid seven figure range and has a line of credit in the low seven figure range that has the ability to issue irrevocable letters of credit up to the low seven figure range.

The relationship Chase Bank has with the Company is in good standing and all accounts have been handled as agreed.

If you have any questions, please contact me.

Sincerely, Vice President

c. CHANGE OF OWNERSHIP. If any change in ownership or control of the company is anticipated during the twelve (12) months following the proposal due date, the bidder should describe the circumstances of such change and indicate when the change will likely occur. Any change of ownership to an awarded vendor(s) will require notification to the State.

No such changes are anticipated.

d. OFFICE LOCATION. The bidder’s office location responsible for performance pursuant to an award of a contract with the State of Nebraska should be identified.

Services for the Nebraska Public Employees Retirement Systems will be provided from our Minneapolis and Dallas offices, located below.

Minneapolis Dallas

277 Coon Rapids Blvd. NW, Suite 212 Coon Rapids, Minnesota 55433 800.521.0498

5605 N. MacArthur Blvd., Suite 870 Irving, Texas 75038 469.524.0000

e. RELATIONSHIPS WITH THE STATE. The bidder should describe any dealings with the State over the previous ten (10) years. If the organization, its predecessor, or any Party named in the bidder’s solicitation response has contracted with the State, the bidder should identify the contract number(s) and/or any other information available to identify such contract(s). If no such contracts exist, so declare.

GRS completed a full replication audit of the 2021 actuarial valuation results of the five NPERS plans, with work concluding in 2022. Our contract for this work was executed on September 29, 2021 and signed by Randy Gerke of the Nebraska Public Employees Retirement Systems.

f. BIDDER'S EMPLOYEE RELATIONS TO STATE. If any Party named in the bidder's solicitation response is or was an employee of the State within the past twelve (12) months, identify the individual(s) by name, State agency with whom employed, job title or position held with the State, and separation date. If no such relationship exists or has existed, so declare.

No such relationship has existed.

If any employee of any agency of the State of Nebraska is employed by the bidder or is a subcontractor to the bidder, as of the due date for solicitation response submission, identify all such persons by name, position held with the bidder, and position held with the State (including job title and agency). Describe the responsibilities of such persons within the proposing organization. If, after review of this information by the State, it is determined that a conflict of interest exists or may exist, the bidder may be disqualified from further consideration in this solicitation. If no such relationship exists, so declare.

No such relationship exists.

g. CONTRACT PERFORMANCE. If the bidder or any proposed subcontractor has had a contract terminated for default during the past ten (10) years, all such instances must be described as required below. Termination for default is defined as a notice to stop performance delivery due to the bidder's non-performance or poor performance, and the issue was either not litigated due to inaction on the part of the bidder or litigated and such litigation determined the bidder to be in default.

It is mandatory that the bidder submit full details of all termination for default experienced during the past ten (10) years, including the other Party's name, address, and telephone number. The response to this section must present the bidder’s position on the matter. The State will evaluate the facts and will score the bidder’s solicitation response accordingly. If no such termination for default has been experienced by the bidder in the past ten (10) years, so declare.

If at any time during the past ten (10) years, the bidder has had a contract terminated for convenience, non-performance, non-allocation of funds, or any other reason, describe fully all circumstances surrounding such termination, including the name and address of the other contracting Party.

None.

h. SUMMARY OF BIDDER’S CORPORATE EXPERIENCE. The bidder should provide a summary matrix listing the bidder’s previous projects similar to this Solicitation in size, scope, and complexity. The State will use no more than three (3) narrative project descriptions submitted by the bidder during its evaluation of the solicitation response.

The bidder should address the following:

i. Provide narrative descriptions to highlight the similarities between the bidder’s experience and this Solicitation. These descriptions should include:

a) The time period of the project,

b) The scheduled and actual completion dates,

c) The bidder’s responsibilities,

d) For reference purposes, a customer name (including the name of a contact person, a current telephone number, a facsimile number, and e-mail address); and

e) Each project description should identify whether the work was performed as the prime Vendor or as a subcontractor. If a bidder performed as the prime Vendor, the description should provide the originally scheduled completion date and budget, as well as the actual (or currently planned) completion date and actual (or currently planned) budget.

ii. Bidder and Subcontractor(s) experience should be listed separately. Narrative descriptions submitted for Subcontractors should be specifically identified as subcontractor projects.

iii. If the work was performed as a subcontractor, the narrative description should identify the same information as requested for the bidders above. In addition, subcontractors should identify what share of contract costs, project responsibilities, and time period were performed as a subcontractor.

iv. Additional corporate experience must be completed on Attachment C.

GRS Corporate Experience

Name Time

Period

Scheduled and Actual Completion

Dates

GRS

Responsibilities

(No Subcontractors) Reference Project

Description

Original and Actual Budget

Minnesota State Retirement System

(MSRS)

July 2024 to November 2024

November 26, 2024 scheduled and actual completion

GRS is the retained actuary for MSRS

Ms. Erin Leonard Executive Director 60 Empire Drive, Suite 300 St. Paul, Minnesota 55103 Phone: (651) 284-7848 E-mail: erin.leonard@msrs.us

Actuarial funding and GASB 67/68 valuations of MSRS’ five plans

$152,000 (original and actual)

North Dakota Public Employees Retirement System

(NDPERS)

August 2024 to December 2024

October 23, 2024 (funding) and December 31, 2024

(GASB 67/68)

scheduled and actual completion actuary for NDPERS

Ms. Rebecca Fricke

1600 East Century Avenue, Suite 2 Bismarck, ND 58502-1657 Phone: (701) 328-3978 Email: rfricke@nd.gov

Actuarial funding and GASB 67/68 valuations of NDPERS’ three plans;

GASB 67/68 reports include proportionate share calculations for the System’s 500+ employers

$126,750 (original and actual)

Public Employee Retirement Association of Minnesota

(PERA)

February 2022 to May 2022

May 31, 2022 scheduled and actual completion actuary for PERA

Mr. Doug Anderson

60 Empire Drive, Suite 200 St. Paul, Minnesota 55103 Phone: (651) 201-2690 E-mail:

doug.anderson@mnpera.org

Cost impact of various changes in the annual post-retirement benefit increase for PERA’s three plans; 30 cost studies were completed in total.

$45,000- 50,000 budget

$46,147 actual

Additional corporate experience is provided in Attachment C, as requested, beginning on page 24 of this proposal.

mailto:rfricke@nd.gov

i. SUMMARY OF BIDDER’S PROPOSED PERSONNEL/MANAGEMENT APPROACH. The bidder should present a detailed description of its proposed approach to the management of the project.

The bidder should identify the specific professionals who will work on the State’s project if their company is awarded the contract resulting from this Solicitation. The names and titles of the team proposed for assignment to the State project should be identified in full, with a description of the team leadership, interface, and support functions, and reporting relationships. The primary work assigned to each person should also be identified.

The bidder should provide resumes for all personnel proposed by the bidder to work on the project.

The State will consider the resumes as a key indicator of the bidder’s understanding of the skill mixes required to carry out the requirements of the Solicitation in addition to assessing the experience of specific individuals.

Resumes should not be longer than three (3) pages. Resumes should include, at a minimum, academic background and degrees, professional certifications, understanding of the process, and at least three

(3) references (name, address, and telephone number) who can attest to the competence and skill level of the individual. Any changes in proposed personnel shall only be implemented after written approval from the State.

We use a “client service team” approach in order to leverage our resources in the most effective and efficient way. This approach ensures that work is performed at the most appropriate level so that we deliver services to the NPERS at the lowest possible cost without compromising quality. It also ensures that a number of associates are familiar with the NPERS account, preventing any disruption to the services provided to the NPERS.

We propose the following team for the NPERS:

Bonita J. Wurst, ASA, EA, FCA, MAAA, will serve as co-lead actuary for the NPERS. Bonnie is a Senior Consultant and Team Leader in GRS' Minneapolis, Minnesota office. She has more than 30 years of actuarial and consulting experience. Bonnie has served public sector clients located across the country, with current clients in Illinois, Indiana, Minnesota, and North Dakota. Bonnie consults to statewide, large municipal, and church-sponsored retirement systems. Her actuarial experience covers pension and OPEB actuarial valuation services, funding projections, plan design studies, experience studies, plan merger and implementation consulting and benefit administration services.

Sheryl L. Christensen, FSA, EA, FCA, MAAA, will serve as co-lead actuary for the NPERS. Sheri is a Senior Consultant in GRS' Minnesota office. She has more than 30 years of actuarial and consulting experience.

Sheri has served clients in Delaware, Indiana, Minnesota, New York, North Dakota, South Dakota and Wisconsin. During Sheri’s career, she has worked with statewide and municipal retirement systems, church plans, not-for-profit organizations, and corporate plans. Sheri's areas of expertise include traditional and hybrid defined benefit pension plans and retiree health care benefits. Her work covers valuations, actuarial audits, cost analyses for proposed plan and/or assumption changes, experience studies, funding projections, and service purchase calculations.

As co-lead actuaries, Bonnie and Sheri will be the primary contact for the NPERS staff. They will both be responsible for all projects, ensuring quality work, timely delivery and results that are clearly communicated to both the NPERS staff and the Retirement Board.

James D. Anderson, FSA, EA, FCA, MAAA, will serve as peer review actuary for the NPERS, and co-presented the most recent audit of NPERS delivered in March 2022 to the Board. Jim is a Senior Consultant in GRS' Grand Rapids (Rockford), Michigan office. He has more than 30 years of actuarial and benefits consulting experience. Jim has served public sector clients located across the country, and currently serves statewide clients in Virginia and Wisconsin. His areas of expertise include plan design, funding, accounting, and administration and communication of defined benefit plans, defined contribution plans, and post-retirement medical plans. Jim has significant experience providing assumption reviews, experience studies, cash flow projections, and actuarial audits.

As peer review actuary, Jim Anderson will bring significant experience to the NPERS team. In addition, Jim was a key member of the GRS team that completed the full replication audit of the 2021 actuarial valuation results of the five NPERS plans; GRS’ prior experience with the NPERS plans on this audit will allow GRS to get a head start on the replication valuations.

Joseph Newton, FSA, EA, FCA, MAAA, will serve as support actuary for the NPERS. Joe is a nationally recognized public sector actuary who works with numerous statewide, regional, and local retirement systems and is located in GRS’ Dallas, Texas office. He has more than 20 years of actuarial and benefits consulting experience for both traditional and cash balance pension plans. Joe’s clients are located in Colorado, Hawaii, Rhode Island, South Carolina, Kentucky, and Texas. Joe is also a member of the GRS Office of the Chief Actuary. In this capacity, he provides strategic thought leadership to public sector clients as well as ensuring that service is being provided at the highest level by all GRS employees.

Janie Shaw, ASA, EA, MAAA, will serve as support actuary for the NPERS. Janie is a consultant in the GRS Dallas, Texas office. She has 14 years of public sector pension consulting experience. Janie has experience working with statewide and municipal retirement systems in multiple states including Kentucky, Michigan, New Mexico, North Carolina, Oklahoma, Texas, and Utah. Janie’s actuarial consulting experience includes annual valuation services for both traditional and cash balance pension plans. She currently consults on two large statewide cash balance retirement plans, with significant experience on funding policy and benefit plan design for these systems.

As support actuaries, Joe Newton and Janie Shaw will bring their extensive experience with cash balance plans to the NPERS team. Joe’s experience on a national level, as GRS’ Pension Market Leader, member of GRS’ Office of the Chief Actuary and leadership within the National Association of State Retirement Administrators (NASRA) provides strategic thought leadership to public sector clients.

References for all team members are provided in Appendix A.

Co-Lead Approach to Actuarial Services

GRS has had much success with a co-lead approach to providing actuarial services. The Co-Lead approach assigns two actuaries to manage the account, Bonnie Wurst and Sheri Christensen, with both sharing in all of the responsibilities typically held by a single lead consulting actuary. This approach allows the NPERS to have more direct senior contact and receive a more seasoned and proactive consulting experience. Further, this allows our actuaries to have a broader client base, while keeping an appropriate client load, and permits more flexibility around meetings and presentations, as well as for stronger relationships. In addition, the transition plan, if one is ever needed, is already in place.

Bonnie and Sheri are supported by a fully-staffed team, and no subcontractors will be used for this contract. Fully-staffed teams have senior consultants, consultants, senior analysts, analysts, and administrative staff, all dedicated to your account. The key members of your team —all experienced consultants — will give direction to a staff of associates selected according to the appropriate levels of experience and expertise for the project at hand. It is important to GRS that our clients are provided with excellent and timely service.

Each team has access to a full complement of technology resources which include network servers (including virtual private network capabilities), computer equipment, and actuarial and business software. These resources allow team members to work independently or together from any location.

j. SUBCONTRACTORS. If the bidder intends to subcontract any part of its performance hereunder, the bidder should provide:

i. name, address, and telephone number of the subcontractor(s);

i. specific tasks for each subcontractor(s);

ii. percentage of performance hours intended for each subcontract; and

iii. total percentage of subcontractor(s) performance hours

We will not use a subcontractor on this project. We partner with firms only in cases when either Gabriel, Roeder, Smith & Company or the partner bring a specialized set of services or skills not otherwise available at the firm. For public sector pension and OPEB work we do not use subcontractors.

By not partnering with another firm, our client is assured that Professional Standards and our internal Code of Ethics policies will be enforced.

Additional benefits for the client include:

Our quality and peer review process are under our control. When our work is audited by other firms, those firms will not be engaged in providing services for this engagement.

You can be assured that our advice is only our own and unbiased towards all stakeholders and is not in any way influenced by another firm.

Our clients can be assured that GRS will only provide services that it is qualified to provide.

We are a fee for service firm (we bill based on time and expense incurred). Our clients can be assured that our advice is impartial since we do not receive any revenue other than for work completed and delivered to our client.

SECTION II

TECHNICAL RESPONSE

Technical Response

a. Understanding of the Project Requirements

We understand the requirements of the assignment to include:

1. Original Contractual Agreement Form signed manually in ink or by DocuSign;

2. Clarity and responsiveness;

3. Completed Corporate Overview, including Attachment C – Additional Corporate Experience;

4. Completed Sections II through VI;

5. Completed Attachment A – Mandatory Qualification Certification and Questionnaire,

6. Completed Technical Response, including Attachment B – Technical Approach; and

7. Completed Cost Sheet.

b. Attachment A: Mandatory Qualifications

Attachment A is provided on the following page.

X

X

X

X

X

X

March 22, 2025 Gabriel, Roeder, Smith & Company

Judith A. Kermans, President & CEO

ATTACHMENT A

Mandatory Qualification Certification and Questionnaire

Request for Proposal Number 120961 O5

All bidders are required to complete this attachment.

The bidder hereby certifies that it meets all of the following mandatory qualifications:

1. As of December 31, 2024, the bidder has a minimum of three (3) public pension fund clients.

_____ Yes. _____ No.

2. The bidder has a minimum of five (5) years of experience in providing actuarial consulting services to a public pension fund. This means that the bidder as an organization has been providing actuarial consulting services to a public pension fund for at least five (5) years. This requirement is not satisfied simply because its employees have at least five (5) years’ experience in providing actuarial consulting services to a public pension fund.

3. The bidder’s lead consultant on the account must have a minimum of ten (10) years of experience in providing actuarial consulting service to public pension funds. This experience shall include general consulting, experience analysis, and valuation assignments for such funds. This person shall also have experience in testifying before legislative and administrative bodies in support of actuarial positions and the principles used in valuing a public retirement system or pricing legislation, and an ability to discuss in laymen’s terms the following: actuarial theory; basis for assumptions; and other actuarial matters. The lead consultant must be a member of the American Academy of Actuaries.

4. Professional staff assigned to the account shall have a minimum of five (5) years of experience in the field of actuarial science and will include persons with appropriate professional credentials such as Fellow or Associate of Society of Actuaries, and/or Fellow of the Conference of Actuaries in Public Practice, and/or Member of the American Academy of Actuaries, and/or meet standards of a qualified actuary under the provisions of the Employee Retirement Income Security Act of 1974.

5. All services to be provided on behalf of the account shall be in accordance with generally accepted actuarial principles.

_____ Yes. _____ No.

6. The actuarial firm must carry liability insurance as set forth in this RFP for the duration the contract (Section III, J Insurance Requirements).

Date Name of firm

Name and title of individual signing for the firm. Signed Manually in Ink or by DocuSign

Docusign Envelope ID: 269D3CBC-8348-4432-9121-246C2969FC8D

c. Attachment B: Proposed Technical Approach

Attachment B is provided on the following pages.

Nebraska Public Employees Retirement System

ATTACHMENT B

Technical Approach

Bidder Name: ______________________________

Bidders shall complete and submit a Technical Approach Document to provide Actuarial Services for the Nebraska Public Employees Retirement Systems (NPERS). Bidders are required to describe in detail how their proposed solution meets the specifications outlined within each Requirement.

The Technical Approach Document must indicate how the bidder intends to comply with the requirement and the effort required to achieve that compliance. It is not sufficient for the bidder to simply state that it intends to meet the requirements of the RFP.

The State will consider any such response to the requirements in this RFP to be non-responsive. The narrative should provide the State with sufficient information to differentiate the bidder’s solution from other bidders’ solutions.

TECHNICAL APPROACH

1. Describe bidder’s understanding of the Scope of Work for this RFP.

Bidder response:

We understand the State of Nebraska (State), Department of Administrative Services (DAS), Materiel Division, State Purchasing Bureau (SPB), is issuing this Request for Proposal (RFP) Number 120961 O5 for the purpose of selecting a qualified bidder to provide the following Actuarial Services for the Nebraska Public Employees Retirement Systems (NPERS):

1. Consulting Services

2. Valuation Services

3. Governmental Accounting Standards Board (GASB) Services

4. Projection Services

5. Actuarial Experience Study

6. Benefit Adequacy Study

7. Supplemental Services

GRS has been providing all of the requested services for over 85 years. Based on our experience with 41 statewide retirement systems and 1,000 local governments, we provide more year end reporting for public sector clients than any other consulting firm in the country. Virtually all of the statewide systems we work on, as well as local municipalities, require timely and accurate information for the System’s annual financial report. This information is typically needed within a month or two after the close of the fiscal year. This requires reconciling the valuation data, producing data schedules, reviewing financial information, computing actuarial liabilities and contribution requirements as well as providing the various disclosure requirements all in a short period of time. Since all of our valuation software and technology tools have been designed specifically for public sector clients, we have the capability of providing all of the necessary information for year-end reporting in a fast and efficient manner.

At some actuarial and benefits consulting firms, the provision of consulting services is secondary to completion of the annual actuarial valuation. In contrast, at GRS we consider the provision of retirement consulting services to be equally as important as the actuarial valuation itself. We focus on providing real value to our clients by integrating pension funding and accounting into their overall business and financial plans (as compared to merely “running the numbers”). We view the provision of consulting services as making our clients' lives easier and providing them with complete information such that they will be able to make informed decisions, and anticipate events that may impact this process.

2. Describe bidder’s approach for providing Actuarial Consulting Services for public pension funds.

Bidder response:

We view the Public Employees Retirement Board and Staff as policy makers and managers; as your consulting actuaries, we serve as your trusted technical and strategic advisors.

Our continuing objective is to remain a trusted advisor to clients and to continue to partner with them as risk managers and subject matter experts. We view the provision of consulting services as making our clients' lives easier and providing them with complete information such that they will be able to make informed decisions, and anticipate events that may impact this process. A key building block to our approach is the integration of pension funding and accounting into overall business and financial plans (as compared to merely “running the numbers”).

GRS emphasizes accountability, transparency, education, risk management and honesty in its work for our clients. We will make sure decision makers are able to base their decisions on broad understanding of not only the top line numbers, but their limitations, their risks, what strategies have been implemented and how the System will react in adverse scenarios.

We will also hold ourselves accountable to previous estimates and provide transparent discussions on either

(1) how consistent the new information is, or (2) why the new information is different.

As your partner, we view our client relationships as a dynamic process in which both GRS and NPERS take an active role. We value client input and perspectives as it makes us better advisors and results in recommendations that are informed and mutually understood. Our consulting philosophy rests on these fundamental principles and focus on providing real value to our clients.

Further solidifying our approach and philosophy are the following attributes which make GRS' consulting expertise invaluable to the public sector.

Reputation for an unbiased presentation of facts. Our role is to present unbiased information and consulting advice so that Boards and governments can make decisions;

Experienced with providing testimony on benefit issues to state legislatures and commissions, county commissions and city councils;

Clear understanding that the plan operates towards the beneficial interest of the plan participants through the operation of the entire Board; and

Sensitive to the considerations of the various stakeholders, management, labor management, private citizens, and board members.

3. Describe bidder’s approach for providing Actuarial Valuation Services for defined benefit and cash balance public pension funds. Give examples.

Bidder response:

The proposed GRS team has experience meeting the valuation and reporting deadlines of large, complex retirement systems, including cash balance systems. Please see the sample client experience noted in Attachment C on page 25 for a highlight of our experience with traditional and cash balance funds.

Listed below is the basic approach we would use in performing actuarial valuation services for the NPERS defined benefit and cash balance plans. A sample public pension valuation report is provided in Appendix D.

1. Hold Planning Meeting. Each year’s work starts with a planning meeting. We will have a meeting with

NPERS soon after we receive notification that we have been selected to provide actuarial consulting services. We believe that meeting with you up front to clarify the deliverables is critical to developing a strong working relationship. We will discuss any special concerns that you may have including the effects of any recent benefit changes or special data needs. GRS will review with the Board/Staff the flow of events for the valuations and make note of important dates and issues to be addressed in the valuations. We will discuss the methods and assumptions used in the previous year’s valuation and recommend any changes to NPERS, as needed. The result of the meeting is a work plan for the upcoming valuation process.

2. Review Current Plan Provisions. GRS will review State statutes, actuarial standards and request and review information such as, plan documents, summary plan descriptions, bargaining agreements, and other communications to active and retired members in order to evaluate the nature of the pension benefits of NPERS members.

3. Perform Replication Valuations. GRS will request census data files and assumption tables used in the previous year’s valuation from the former actuary. We will perform a replication valuation of the previous year’s valuation. We consider the replication valuation a standard practice and crucial to understanding the intricacies of NPERS. This parallel valuation also serves as an “audit” in that it replicates the work of the prior actuary and will highlight any exceptions in the valuation process that may merit discussion. Because GRS has previous experience with NPERS plans from the 2021 full replication audit, we will be able to get a jump start on the replication valuations.

4. Request Member Data. GRS will request data files including records on each person who is actively participating in the plans as of the valuation date, receiving a benefit as of the valuation date, or who retains a right to future benefits. We request that the census information be provided electronically, in Access, Excel or some other format. GRS and the Board/Staff will discuss the method of data transmission – via email with password protected files, with a secure FTP site (file transfer portal), or by other means. GRS has 1,000 public sector clients and has never had a breach of confidential information in its entire history, which dates back to 1938.

5. Prepare Data. Once data has been received, it is checked for general reasonableness, and compared with the prior year. Selected individual cases are reviewed in detail to ensure that the data changed as expected from year to year. For example, we would confirm that active member test cases had an increase in service and that their reported pay amounts compare well between the two years. Retirees would be checked to confirm that they received the proper COLA, if applicable. A letter outlining any issues found in the reasonableness check along with comparative statistics is then sent to the client for their review and confirmation. Once NPERS staff has provided a reasonable check of the information provided, GRS will prepare the data for the valuations.

6. Produce Valuation Results. Once the data files are ready for use, they will be run through our valuation programs to produce initial results. The results will be thoroughly checked and costs and liabilities will be developed along with the contribution rate for the Defined Benefit Plan. The valuations will compare the actuarial assumptions and actual experience of the plan each year. Any unusual or unexpected results are discussed immediately with the Board/Staff. The gain/loss analysis is provided as part of the valuation process.

7. Present Results. We will then present the valuation to the Retirement Board, highlighting the most important results along with any trends emerging from the current and prior years' results. We will also inform the Retirement Board of the latest developments in the public sector benefits field as they apply to

NPERS.

8. Prepare Draft and Final Reports. The valuation reports will then be drafted. The format is normally consistent from year to year for ease of use. At the initial planning meeting, we will discuss report content and format to ensure all the necessary information is provided. Our draft reports will typically be delivered approximately 8 weeks following the receipt of complete and usable data. Please see our proposed detailed work plan in Table 2 on the following page. Dates to be filled in at planning meeting.

Table 2 – GRS’ Proposed Detailed Pension Work Plan

Responsibility Task Description GRS System Due Date

Planning Meeting

Meeting with the NPERS and team regarding scope of actuarial services

Transition

Commence Parallel Valuation

GRS requests the following information from the prior actuary Valuation-ready data Historical reports and documents

Replicate Valuation Results

Write and test valuation programs Run parallel valuations and confirm discrepancies with prior actuary Submit and discuss replication results with the System

Data

Census Data

Receipt of census data from System

Review and load data and email questions to the System

Data answers received from System

Load data answers, finalize data and prepare schedule

Financial Data

Receipt of financial statements from System

Assets entered and reviewed

Valuation

Calculations and Programs

Test Life program check

Test Life program review

Financing work papers input

Financing work papers review

Run gain/loss programs and analyze

Review gain/loss by source

Report

Draft valuation report

Valuation report review

Consultant final review of valuation report

Deliverable Schedule

Draft report to System

Final report to System

Presentation of report to Retirement Board

4. Describe bidder’s approach for providing GASB Services for single and multiple employer public pension funds. Give examples.

Bidder response:

Based on our experience listed in the few examples provided below, your proposed GRS consulting team has the infrastructure necessary to develop the appropriate GASB disclosure information to the numerous employers participating in the NPERS Plans.

Illinois Municipal Retirement Fund: provide individual valuation reports to the 3,000 cities that participate in the Fund, as well as allocating individual contribution rates to the cities.

North Dakota Public Employees Retirement System: prepare annual GASB reports with proportionate share calculations for the System’s 500+ employers.

Virginia Retirement System: produce GASB results for five statewide pension plans, three statewide OPEB plans, and proportionate shares and individual reports for over 600 Political Subdivision pension plans and over 200 Political Subdivision OPEB plans.

Wisconsin Retirement System: provide GASB 67/68 results for retirement system and GASB 67/68 results for sick leave program, along with detailed proportionate share calculations for the System’s 1,500+ employers.

Listed on the following page is the basic approach we would use in performing the GASB actuarial valuations for the NPERS.

Table 3 – GRS’ Proposed Detailed GASB 67/68 Work Plan

Responsibility Task Description GRS System Due Date

Planning Meeting

Meeting with the NPERS team regarding timing and deliverables

Transition

Commence Parallel Valuation

GRS requests the following information from the prior actuary Valuation-ready data Historical reports and documents

Replicate Valuation Results

Write and test valuation programs Run parallel valuations and confirm discrepancies with prior actuary Submit and discuss replication results with the

System

Receipt of data from System

Review and email questions to the System

Receipt of financial statements from the System

Assets entered and reviewed

Receipt of component unit information from System

Review of component unit information from System

Valuation

Calculations and Programs

Test Life program and projection check

Test Life program and projection review

Financing work papers input

Financing work papers review

Report

Draft valuation report

Valuation report review

Consultant final review of valuation report

Deliverable Schedule

Draft report to the System

Final report to the System

A sample GASB report is provided in Appendix D.

5. Describe bidder’s approach for providing Projection Services for…