Questions-and-Answers.DMS-2425-199.pdf

DMS-24/25-199 Page 1 of 9 State University System Optional Retirement Program (SUSORP) 403(B) and Senior Management Service Optional Annuity Program (SMSOAP) 401(A)

INVITATION TO NEGOTIATE NO. DMS-24/25-199

STATE UNIVERSITY SYSTEM OPTIONAL RETIREMENT PROGRAM (SUSORP) 403(B)

AND

SENIOR MANAGEMENT SERVICE OPTIONAL ANNUITY PROGRAM (SMSOAP) 401(A)

QUESTIONS AND ANSWERS

Note: All written questions are reproduced in the same format as submitted by the Respondent.

NO. QUESTION ANSWER

1.

Could you please confirm if a list of interested vendors, pre-bidders, or prior awardees is available for this solicitation?

Equitable, TIAA and VALIC Retirement Services Company indicated they intend to participate through the Ariba Business Network.

Please see sections 1.3.1.1 and 1.3.1.2 of the ITN document for a list of the current Service Providers for SUSORP and SMSOAP.

2.

Page 7, Section 1.5 of the ITN document:

Can you confirm you are looking for a response from the respondent to Section 1.5 Questions Being Explored?

Section 1.5 of the ITN document proposes overarching and wide range considerations of the Invitation to Negotiate. Responsive materials should address these questions.

3.

Page 18, Section 3.5.6.1a:

We did not see a response document for the questions listed in Exhibit 4 and Exhibit 7.

Can you confirm it is acceptable to create a separate document for each exhibit to respond to those questions?

Yes, the Respondent shall submit two separate

Portfolios. In accordance with section 3.5.6.1a of the ITN document, the Respondent shall submit one Portfolio for responses required in Exhibit 4 and one Portfolio for responses required in Exhibit 7.

4.

Please describe the current fixed account or stable value options offered by the providers. Please include current crediting rates, expense ratios, minimum guarantees, withdrawal restrictions, market value adjustments, surrender charges, required put notices or any other encumbrance to liquidation.

Equitable

• current crediting rates – 3%

• expense ratios – N/A

• minimum guarantees – 3% lifetime minimum

• withdrawal restrictions – The only restrictions are based on IRS guidelines and guidelines provided by FL DMS

• market value adjustments – N/A

DMS-24/25-199 Page 2 of 9 State University System Optional Retirement Program (SUSORP) 403(B) and Senior Management Service Optional Annuity Program (SMSOAP) 401(A)

NO. QUESTION ANSWER

• surrender charges - None (Equitable does not have surrender fees for FL SUSORP participants)

• required put notices – N/A

• other encumbrances to liquidation – N/A

Corebridge

• current crediting rates - 2.75%

• expense ratios - N/A to fixed option

• minimum guarantees - 1.00%

• withdrawal restrictions - Equity wash provision applicable to participant-initiated transfers to a competing option, as defined in the product contract.

• market value adjustments - yes on plan sponsor-initiated withdrawal/surrender of all the assts in Fixed Account Plus

• surrender charges - There are no separate surrender charges at the time of a surrender or withdrawal

• required put notices - N/A

• other encumbrances to liquidation – Other considerations based on the product contract.

Voya

• current crediting rates – Current interest rates for 664012 - ORP and 664013 – OAP is 1.55%

• expense ratios - Not applicable

• minimum guarantees - 1% Guaranteed minimum interest rate (GMIR) for the life of the contract

• withdrawal restrictions - Amounts held in Voya Fixed Plus Account III and Voya Fixed Plus Account II will be paid in five installments over a four year and one day time period

• market value adjustments - Not applicable

• surrender charges - Not applicable

DMS-24/25-199 Page 3 of 9 State University System Optional Retirement Program (SUSORP) 403(B) and Senior Management Service Optional Annuity Program (SMSOAP) 401(A)

NO. QUESTION ANSWER

• required put notices - Not applicable

• other encumbrances to liquidation - Not applicable

TIAA

Current crediting rates -

SUSORP ‘current menu’ and SMSOAP

• TIAA traditional (employer/employee required investment contribution)

- Current crediting rate for May 2025 5.50%

• TIAA traditional (voluntary contributions)

- Current crediting rate for May 2025

4.75%

SUSORP ‘pre-2015 menu’

• TIAA traditional (employer/employee required investment contribution)

- Current crediting rate for May 2025 5.25%

• TIAA traditional (voluntary contributions)

- Current crediting rate for May 2025 4.50%

Expense ratios:

- There is not a stated expense ratio for the TIAA Traditional investment.

Minimum guarantee:

- 3% current minimum on all variations of TIAA traditional

Withdrawal restrictions:

• SUSORP ‘current menu’ and SMSOAP

- TIAA traditional (employer/employee required investment contribution)

DMS-24/25-199 Page 4 of 9 State University System Optional Retirement Program (SUSORP) 403(B) and Senior Management Service Optional Annuity Program (SMSOAP) 401(A)

NO. QUESTION ANSWER

- Retirement Choice ‘RC’ contract--- Monthly withdrawals over 7 years (84 payments) is the quickest withdrawal

• TIAA traditional (voluntary contributions) o Retirement Choice plus ‘RCP” contract - Immediate liquidity with no restriction

- SUSORP ‘pre-2015 menu’

• TIAA traditional (employer/employee required investment contribution) o Retirement Annuity ‘RA’ contract---10 payments over 9 years is the quickest withdrawal

• TIAA traditional (voluntary contributions) o Group Supplemental Retirement Annuity

‘GSRA’

contract’ - Immediate liquidity with no restriction

· Market value adjustments

• None

DMS-24/25-199 Page 5 of 9 State University System Optional Retirement Program (SUSORP) 403(B) and Senior Management Service Optional Annuity Program (SMSOAP) 401(A)

NO. QUESTION ANSWER

· Surrender charges

• For the required contribution for the SUSORP current menu and SMSOAP, a 100% withdrawal from TIAA traditional can be taken out within 120 days of leaving work with a 2.5% surrender charge (just from TIAA Traditional balances)

· Required put notices

• On a ‘plan sponsor’ level there is mappability for the RC and RCP TIAA traditional balances (SUSORP ‘current menu and SMSOAP) over 60 monthly payments (5 years)

• There is no mappability for the pre-2015 menu from TIAA traditional

· Other encumbrances to liquidation:

Not applicable

5.

Please provide the total contributions to the plan in 2023 and 2024 for each provider.

Refer to Revised Exhibit 1, Plan Demographics and Employer Information, which is attached to Addendum 1.

6.

For the self-directed brokerage, please provide the total assets in the program today and current fee schedule.

Corebridge offers self-directed brokerage through Charles Schwab. There are 33 Members using this service and $3.36M in assets as of 5/30/24. There are no fees for electronic purchases.

TIAA offers self-directed brokerage through a proprietary service. There are 173 members using

DMS-24/25-199 Page 6 of 9 State University System Optional Retirement Program (SUSORP) 403(B) and Senior Management Service Optional Annuity Program (SMSOAP) 401(A)

NO. QUESTION ANSWER

this service and $25,012,789.43 in assets as of 05/22/25. There are no trading fees.

7.

Please provide the available investment vehicles for the Self- Directed Brokerage

Mutual funds.

8.

Are all assets with each current Contractor liquid and able to be transferred with the State’s direction of a new Contractor at the proposed Transfer of Assets Date? If not, please describe any limitations or restrictions.

Revised Exhibit 1, Plan Demographics and Employer Information, discloses “Mappable Plan Assets by Vendor” with other Plan assets having Participant, Recordkeeper, or Product based transfer limitations.

9.

If the goal is to transfer assets and participant accounts to a new Contractor, please confirm the number of participants with balances (both active and termed) which will be transferring to the new Contractor?

Per Revised Exhibit 1, Plan Demographics and Employer Information, there are 28,301 Members/Participants with mappable assets.

10.

Will the State consider offering a best-in-class offering for the SUSORP and/or SUSOAP plan and consolidating down to only one Contractor thereby creating ease of administrative and efficiencies for both the Participants and the State?

Per 121.35(6)(b), Florida Statutes (F.S.), the SUSORP can “[d]designate no more than six companies…” and can consider only one Contractor.

11.

Exhibit 1:

Please provide the number of actively contributing participants by vendor.

Active Members from 01/01/2025 – 05/31/2025

Corebridge Financial (SUSORP) – 1

Corebridge Financial (SMSOAP) – 4,110

Equitable – 696

TIAA – 10,152

Voya (SUSORP) – 4.366

Voya (SMSOAP) – 4

Total Unique Participants(SUSORP)*: 19,052

Total Unique Participants(SMSOAP): 5

*Some participants have active accounts with multiple vendors.

DMS-24/25-199 Page 7 of 9 State University System Optional Retirement Program (SUSORP) 403(B) and Senior Management Service Optional Annuity Program (SMSOAP) 401(A)

NO. QUESTION ANSWER

12.

Exhibit 1:

Please provide total annual contribution and distribution amounts by vendor.

Corebridge – $46,713,969.36 / 164,550,914.12

Equitable – $5,731,202.00 / 1,604,154.66

TIAA – $128,289,084.01 / $149,745,258.79

Voya – $45,753,389.29 / $65,351,319.43

13. Exhibit 1:

Please provide current asset balances by vendor.

Information available as of 03/31/2025:

TIAA (SUSORP)

$5,158,145,824.16

TIAA (SMSOAP)

$153,936.71

Information available as of 05/21/2025:

Corebridge Financial (SUSORP)

1,836,768,463.63

Corebridge Financial (SMSOAP)

$1,726,433.18

Equitable (SUSORP)

51,230,678.40

Equitable (SMSOAP)

$0.00

Voya Financial (SUSORP)

$1,117,235,295.50

Voya Financial (SMSOAP)

$12,045,838.79

14. Page 27, Section 4.2.1:

How many Evaluators will there be for Exhibit 4 in Section 4.2.1 of the ITN and how they were selected?”

The Department has not yet appointed evaluators.

However, we will follow the requirements contained in 287.057(17)(a)1, F.S.

DMS-24/25-199 Page 8 of 9 State University System Optional Retirement Program (SUSORP) 403(B) and Senior Management Service Optional Annuity Program (SMSOAP) 401(A)

NO. QUESTION ANSWER

15. Page 30, Section 4.5.1:

How will the “competitive range” be established to enter the negotiation process as described in 4.5.1 of ITN?

Per section 4.3.3 of the ITN solicitation document:

“The Procurement Officer will combine the evaluator’s weighted scores from Exhibit 4 – Technical Questions with the score(s) from Exhibit 3 – Cost Reply to create a Respondent’s final technical score(s), which will be used by the Department to establish a competitive range of Replies reasonably susceptible of award.”

16. Page 20, Section 3.11.5:

Please confirm that a 90-day equity wash provision is allowed for the proprietary Fixed Account/Guaranteed Income Product.

Per 3.11.5(c) of Attachment B – Statement of Work:

No restrictions on withdrawals, transfers, or contributions either through Member or Beneficiary action, or by the Plan/Program in the event of termination or non-renewal of the contract

17. Page 20, Section 3.11.5:

Please confirm that no market value adjustment for the proprietary Fixed Account/Guaranteed 15 Income Product applies at the participant level, not the plan level.

No market value adjustment is allowable.

18. Page 22, Section 3.5.7.7:

Please provide other pricing scenarios the Department would like to see.

Additionally, under a multi-vendor arrangement are you looking for bidders to address a default vendor selection?

The Department has requested only an annual per Participant fee. Respondents may offer any other pricing method or scenario (e.g., asset based, minimum balance phase in, age of account factors, etc.) and may include price considerations based on default provider status.

19. Please clarify whether a Self -Directed Brokerage window will be offered in the plan.

Attachment B, Statement of Work, Section 3.11.8, “The Respondent may submit alternative pricing methodologies for consideration by the Department, if selected to negotiate.”

20. Please clarify whether all service providers are currently offering a brokerage platform within the plan.

See Answer #6

21. Please provide the number of members allocating accounts and assets to a Self-Directed Brokerage window offered at each current provider.

See Answer #6.

DMS-24/25-199 Page 9 of 9 State University System Optional Retirement Program (SUSORP) 403(B) and Senior Management Service Optional Annuity Program (SMSOAP) 401(A)

NO. QUESTION ANSWER

22. Please confirm whether managed account services are required.

Managed Account Services are not required, but can be proposed per 3.5.7.7(a)2 of the ITN solicitation document.

23. Exhibit 1:

Please re-confirm the mappable assets from each current vendor.

Refer to Revised Exhibit 1, Plan Demographics and Employer Information, which is attached to Addendum 1.

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