P25-002 Actuarial Services.pdf

TOWN OF PORTSMOUTH, RI

Request for Proposal #P25-002 – Actuarial Services

Solicitation Date: February 6, 2025 Proposals Due: February 27, 2025 (1:00 p.m.)

Town of Portsmouth, Rhode Island Finance Department 2200 East Main Road

Portsmouth, RI 02871

Town of Portsmouth, RI

Table of Contents

Introduction

General Information

Actuarial Assumptions

Annual Valuation Date Reporting and Presentation

Non Routine or Other Services

Qualifications of Pension Consultant

Proposal Contents

Minimum Requirements to Respond

Fees

Proposal Submission

Proposal Evaluation

RFP Questions

The RFP Process

Other Information

RFP #P25-002 – Actuarial Services

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Town of Portsmouth, RI

Notice is hereby given that sealed proposals will be received at the Finance Office until 1:00 p.m., February 27, 2025, EST/EDT, from qualified firms interested in providing Actuarial Services as described herein.

Sealed proposals clearly marked “RFP #P25-002 - Actuarial Services” will be received at the Town Finance Director’s Office at Portsmouth Town Hall, 2200 East Main Road, Portsmouth, RI 02871 until 1:00 p.m. February 27, 2025. A bid opening will be scheduled for 2:00 p.m.

February 27, 2025 at the Portsmouth Town Hall, 2nd Floor, Portsmouth Room. Any proposals received before February 27, 2025, will be stored in a secure location until the bid opening.

Any Proposer who wishes their Proposal to be considered is responsible for making certain their Proposal is received in the Finance Office by the proper time. The Town Finance Director will be the final judge on if a Proposal was delivered on time.

No oral, telegraphic, electronic, facsimile, or telephonic proposals or modifications will be considered unless specified. Proposals received after the scheduled Submittal Deadline will be returned unopened. Proposals must bear original signatures and figures.

No bid may be withdrawn for a period of sixty days subsequent to the opening thereof without permission of the Finance Director.

The Town reserves the right to reject any or all bids, waive any informality in the bidding, or accept the bid deemed to be in the best interest of the Town.

Kayla T. Marsden Finance Director

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In troduc t ion The purpose of this request is to solicit proposals from qualified firms interested in serving as actuary to the Town of Portsmouth, Rhode Island (the “Town”). The Town is seeking professional actuary services to perform annual pension plan valuations, annual other post-employment benefit (OPEB) plan valuation and other related services as required by current or future GASB pronouncements.

Genera l In format ion The actuarial services agreement will cover the services required for each pension plan related to (a) review of actuarial assumptions; (b) annual valuation date reporting and presentation;

the services required for an annual valuation and report of OPEB and other services as may be requested from time to time.

Actu ar ia l Assumpt ions The consultant shall review each assumption used in calculating the accrued actuarial liability of pension obligations and OPEB for each plan as of July 1 of each year. The consultant should make recommendations to the Town of Portsmouth about assumptions based on its experience with other organizations and its knowledge of changing laws, regulations or policies, including drafting required amendments for compliance with applicable law. All assumptions and the resultant calculations must conform to guidelines set forth by the Governmental Accounting Standards Board (GASB) and Rhode Island General Law (RIGL).

Annual Valu at ion Date Report ing and Presentat ion The consultant will make actuarial calculations for each pension plan totaled and then subtotaled into separate categories for Police, Fire, School, Town and Public Works, including retirees, alternative payees and beneficiaries. The consultant will also make actuarial calculations for the OPEB valuation. The calculations required for each plan are the actuarial value of plan assets and the actuarial accrued liability as of each June 30, the annual pension cost for the fiscal year then ended, and the annual required contributions for the subsequent fiscal year. The Town’s fiscal year begins on July 1 and ends on June 30. The annual pension/OPEB costs must be distinguished between (a) required contribution, (b) interest on prior year underfundings, and (c) adjustments for previously recognized overfundings or underfundings. Assumptions and resultant calculations should be clearly yet concisely presented within each annual valuation report. Sufficient supporting documentation of all required actuarial computations must be made available by the pension consultant at the request of Town’s personnel. The consultant shall respond to confirmation requests by the Town’s auditors. The report must include all information required by GASB and RIGL to be disclosed and presented on the Town’s financial statements, including any pension benefit obligation. Successful Bidder must produce required reports on or before October 1 to ensure the Town meets the State’s financial statement reporting requirements.

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Reporting Years:

• Full Valuation for FYE 6/30/2025

• Roll Forward Valuation for FYE 6/30/2026

• Full Valuation for FYE 6/30/2027

• Roll Forward Valuation for FYE 6/30/2028

In addition, at the request of the Pension Board and/or the Town Council, attendance at the Pension Board Committee meeting or Town Council meeting is required to conduct a presentation on the results of the actuarial valuation and answer any questions.

The Town’s Finance and Human Resources departments have the responsibility to provide all necessary data to the consultant in a timely manner. All actuarial services will be coordinated by the Town’s Finance department. Data includes, but is not limited to, collective bargaining agreements, listings of all retired personnel, listings of all active employees, contributions made to the plans, details of investment activities, and a listing of all active and retired personnel and their health benefits for OPEB valuation.

Non Rout ine o r Oth er Serv ices The consultants may be separately engaged in an advisory capacity from time to time for matters involving budget preparation, collective bargaining negotiations, arbitration and presentations to Council or other interested parties. The consultants will also assist in the calculation of pension estimates for all new retirees. The pricing structure for other services should be included in the proposal.

Qual i f i cat ions of Pens ion Consu l tan t Each pension consulting firm should meet the qualifications established by the Actuarial Standards Board of the American Academy of Actuaries, as amended from time to time.

Additionally, at least one member of the firm must be a Fellow of the Society of Actuaries who shall supervise all work performed under the scope of this request and sign each copy of the annual actuarial valuation reports.

The pension consulting firm should maintain professional liability insurance in the aggregate amount of $1 million per occurrence.

Proposa l Con ten ts Proposals should contain the following items:

1. Provide the name, address and telephone number of the home office of your firm as well as the address of the office(s) providing any services under the RFP. Identify the primary contact person who will be the liaison at your firm for administrative and actuarial services. List corporate officers.

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2. A general description of the firm, including its qualifications, experience, number of professional and administrative staff and professional affiliations. Describe how your firm has been providing the types of pension services sought under this RFP, specifically to municipalities and government entities. Include your professional staff’s annual turnover during the past three years, and the measures your firm takes to ensure continuity of service.

3. Describe your firm’s approach to client support, any policies that your firm has in place to ensure high quality customer service, and your intended and expected relationship with the Pension Board, Finance Director, Human Resources Director, Town Administrator and Town Solicitor.

4. Describe your firm’s approach to monitoring and managing regulatory changes imposed by state and federal law or regulation, and how you assist municipal clients in maintaining compliance.

5. Describe your firm’s security and privacy plan (including data centers, remote networks, web portal, cloud storage, and vendor-to-vendor transfers), the hardware and software system used to record keep and administer benefit plans, and the disaster recovery plan.

6. Describe the level of general liability, professional liability, errors and omissions, data breach and cyber liability and cybercrime, and similar insurance coverage carried by your firm.

7. Provide a full disclosure of any conflicts of interest that may be relevant to this RFP, and describe the policies used by your firm to avoid or mitigate conflicts of interest, including, but not limited to, whether your firm receives any things of value from, or your personnel serve in any capacity with, investment management firms.

8. Identify the level of bonding carried by your firm.

9. For the five-year period preceding the date of this RFP, list any formal complaints, claims, legal actions, or other proceedings filed with regulatory agencies, including the IRS, DOL, and state regulators, administrative agencies, arbitrators, or courts as a result of actuarial services provided by the firm and/or its actuaries (or any employees, subcontractors, or partners identified above) or that could interfere with your ability to perform the work requested by this RFP.

10. The names and resumes of the consultants who will be rendering services to the Town, including years of service with your firm, including all certifications. Confirm whether any such staff has ever been suspended, subject to disciplinary action, accused or convicted of any criminal action such as fraud, dishonesty, or breach of fiduciary duty, or named in any malpractice, negligence or similar action within the past five years.

11. Fixed fee pricing for each of the four years requested that separately identifies the pension valuations and the OPEB valuation and an hourly rate for other requested services.

12. References from three to five clients, including the name and contact person and telephone number.

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13. Provide a list of clients that have terminated your firm’s service in the past three years and the reasons for the termination. (Names of clients can be redacted if the firm does not have permission to share the information.)

14. A sample valuation report issued to a municipal client.

15. Copies of certificates of professional liability insurance and Fellow of Society of

Actuaries.

16. Disclosure of any terms and conditions contained in this request which have not been incorporated within the proposed pricing.

Proposals which do not contain the above items may be considered non-responsive

Min imum Requirem ents to Respond Applicants that respond to this RFP must be able to meet or exceed the following minimum criteria to be considered for the award of a professional services contract:

1. Five or more years’ experience providing pension services to Rhode Island municipal government entities.

2. Three or more Rhode Island clients under contract for pension services similar to those described in this RFP.

3. With respect to the specific actuarial staff assigned to the Police and Fire Pension Plan:

a. must have performed actuarial valuations for defined benefit plans for at least three years;

b. must have performed at least five actuarial valuations of a defined benefit pension plan sponsored by a governmental entity in Rhode Island; and

c. at least one staff member must be a Fellow or Associate of the Society of Actuaries or a Fellow or Associate of the Conference of Actuaries in Public Practice.

F ees

1. Insert a table or provide a complete list of:

a. Services, including:

i. routine administrative and actuarial services your firm will provide under this RFP

ii. non-routine and optional services described in the scope of work

iii. any additional routine, non-routine/optional, or other administrative or actuarial services your firm can provide

b. For each service listed indicate:

i. the fees associated with each

ii. how fees are calculated

iii. how fees are reported and billed

2. Identify any expenses or services not included in the fees described in 1., or for which the firm will seek reimbursement, such as travel, postage, or photocopying.

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3. What is the maximum length of time the firm is willing to guarantee these fees, and what is the maximum increase in fees following the guaranteed term?

Proposa l Submiss ion The proposal package must be sealed and clearly marked on the outside of the envelope with “RFP #P25-002 – Actuarial Services.”

Submit an original plus three (3) bound copies of the proposal. One (1) electronic copy is required by CD, DVD, memory stick, etc.

Deliver your completed package to the following office before 1:00 p.m. February 27, 2025.

Finance Department

RFP #P25-002

Town of Portsmouth, RI 2200 East Main Road

Portsmouth, RI 02871

P roposa l Eva luat ion A panel will review the qualified bids and qualifications as submitted in the RFP process. The panel will score the RFP submittals, determine the highest qualified applicants, conduct interviews as necessary, and make a final recommendation to the Portsmouth Town Council regarding the award.

The proposal will be evaluated based on the following criteria, each valued at a maximum score of 25 points:

• Demonstration of experience.

• Quality of past performance.

• Professional experience of the individual advisors with municipal clients.

• Cost.

RF P Ques t ions Any questions regarding this RFP must be submitted in writing and received no later than 3:30 p.m. on February 18, 2025. To ensure fair competition, all proposers will receive the same information and materials. Questions should be delivered to Kayla Marsden, Finance Director at kmarsden@portsmouthri.gov. Answers, if any, made by the Town of Portsmouth will be posted to BidNet Direct and the State of Rhode Island's Statewide Purchasing System (as indicated on the Town of Portsmouth’s website) as addendum on February 19, 2025 by 4:30 p.m. All addenda must be included with the bidder’s Proposal.

mailto:kmarsden@portsmouthri.gov https://www.bidnetdirect.com/rhode-island/portsmouthri http://www.purchasing.ri.gov/bidding/ExternalBidSearch.aspx

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Th e RFP Proc ess Date Time Due Solicitation of Proposal February 6, 2025 Questions Deadline February 18, 2025 3:30 p.m.

Answers (date of responses to written questions) February 19, 2025 4:30 p.m.

Proposal Submission Date February 27, 2025 1:00 p.m.

Bid Opening February 27, 2025 2:00 p.m.

Oth er In format ion The Town of Portsmouth reserves the right to reject any or all bids and to waive any informality in the bidding system.

No bidder may withdraw their bid within sixty (60) days after the actual date of the opening thereof.

Documents incorrectly addressed or misdirected to locations other than the Finance Office at the Town Hall will not be considered. Postmarks or other carrier stamps will not be considered proof of timely submission. Actual receipt in the Director of Finance office by the due date is required. The Director of Finance/Purchasing Agent will be the final judge of a timely receipt.

Proposals received after the due date and time will not be considered.

The Town of Portsmouth does not discriminate on the basis of age, religion, national origin, color or disability in accordance with applicable laws and regulations.