RFP 26-16 Retiree Health Savings Program Recordkeep Admin and Claims Processing.pdf

CITY OF NEWPORT BEACH

REQUEST FOR PROPOSAL NO. 26-16

RETIREMENT HEALTH SAVINGS PROGRAM

RECORDKEEPING, ADMINISTRATION, AND

CLAIMS PROCESSING

RESPONSE DUE:

10/31/2025

BY 5:00 P.M. PT

Interested parties may obtain a copy of this RFP by accessing the City of Newport Beach

PlanetBids portal: www.newportbeachca.gov/bidderportal

RETIREMENT HEALTH SAVINGS PROGRAM RECORDKEEPING,

ADMINISTRATION, AND CLAIMS PROCESSING

TABLE OF CONTENTS

Section 1 - Introduction and General Information Page 3

Section 2 – Procedures for Submitting Proposals Page 6

Section 3 – Terms and Conditions Page 9

Section 4 - Scope of Services Page 12

Section 5 - Questionnaire Page 13

Exhibit A - Intent to Respond Page 25

Exhibit B – Sample Professional Services Agreement Page 26

SECTION 1 – INTRODUCTION AND GENERAL INFORMATION

City of Newport Beach Retirement Health Savings Program Request for Proposal

ISSUE DATE: 9/30/2025

The City of Newport Beach (“City”) is conducting a Request for Proposal (“RFP”) process for a company to provide recordkeeping, administration, and claims processing for the Newport Beach Retirement Health Savings Program (“Plan”). The City of Newport Beach has retained the consulting services of Benefit Financial Services Group (“BFSG”) to assist the Retirement Health Savings Committee (“Committee”) in administering and evaluating the RFP. The Committee retains discretion for all decisions related to the RFP.

1.1 BACKGROUND

The City of Newport Beach is located in the coastal center of Orange County. Currently, there are 927 active employees, 782 of which are full-time. All full-time employees participate in the Plan which is intended to provide retirees with reimbursement for out-of-pocket qualified medical expenses. As of June 30, 2025, there are a total of 1,995 participants with a balance, which includes both active employees and those who have separated or retired from the City. The Plan holds $59.8 million in assets.

The Plan operates with two contribution structures. The “Hybrid” structure is provided to employees who were hired and met eligibility requirements prior to 2006. The “Fully-Converted” structure is provided to all employees hired after 2006. The chart below compares the two contribution structures.

Provision Fully-Converted Hybrid Payment by Employee to City to support program prior to retirement None $100 per month until retirement

Contribution to Plan Account During Employment

- 1% Salary Contribution

- $2.50 per month for each year of service plus age (5 year cliff vesting)

-$100 per month for every month paid into “old” system prior to January 1, 2006 (15 year maximum

– must retire from the City to receive)

- Cash from conversion of leave at retirement (percent selected by each Association)

- 1% Salary Contribution

- No City Contribution

- $75 per month for every month paid into “old” system prior to January 1, 2006 (15 year maximum

– must retire from City to receive)

- Cash from conversion of leave at retirement (percent selected by each Association)

Contribution to Plan Account After Retirement

None Up to $450 per month offset by any mandatory PERS contribution

The Plan consists of two separate plans. Participants in the Hybrid program are rolled into a separate plan upon retirement to facilitate their post-retirement contributions. All participants in the Plan are part of collectively bargained employee groups except for those employees classified as Key & Management.

The Plan is currently administered by MissionSquare and Meritain Health. MissionSquare provides recordkeeping and administration services while Meritain provides claims processing. A participant charge of 0.135% of assets covers all these services but the Plan is required to maintain the MissionSquare PLUS Fund as its sole capital preservation option. All revenue sharing is rebated directly back to participants.

Bidders able to provide all the necessary services on their own or through the assistance of a subcontractor will be favored although a proposal requiring two or more contracts will not be disqualified.

BFSG currently serves as the Investment Manager on the Plan, like one defined under ERISA 3(38). MissionSquare allows for an open-architecture fund lineup except for being required to offer the MissionSquare PLUS Fund.

Investments currently offered in the Plan are diverse in terms of manager and asset class. There are currently 19 core investment options and a full suite of target date funds available for contribution. The age-appropriate target date fund is used as a default investment for participants who have not made an investment election. Assets invested in the MissionSquare PLUS fund are subject to a 12-month put.

The Committee is looking to keep its current fund lineup but is open to proposals in the capital preservation category provided that the fund is completely liquid at book value to participants and is liquid at book value for plan-sponsor withdrawals within a period of 12 months.

1.2 PLAN STATISTICS

The current Plan statistics as of June 30, 2025 are as follows:

Fully-Converted Hybrid Plan Assets $43,760,219 $16,046,820

# of Participant Balances 1,298 739 Contributions (12 months) $2,084,559 $2,308,367

Claims (12 months) $2,099,802 $2,297,580

1.3 ASSET ALLOCATION

The allocation of the plan assets as of June 30, 2025 is as follows:

Investment Option Hybrid Fully Converted MissionSquare PLUS Fund R10 $8,019,771 $8,682,669 Vanguard Institutional Index I $7,663,448 $1,595,626

JPMorgan Large Cap Growth R6 $3,786,892 $811,078 Vanguard Mid Cap Index Institutional $2,456,106 $487,246

Vanguard Small Cap Index I $2,339,553 $420,594 T. Rowe Price Balanced I $1,679,556 $753,377

Invesco Global Y $1,900,613 $399,543 T. Rowe Price Diversified Mid Cap Gr I $1,647,285 $241,162

T. Rowe Price Retirement 2025 I $1,295,406 $321,034 T. Rowe Price Retirement 2045 I $1,590,325 $0 T. Rowe Price Retirement 2030 I $1,461,059 $2,261

T. Rowe Price Value I $1,189,059 $206,399 American Funds EUPAC R6 $1,203,216 $166,787

T. Rowe Price Retirement 2035 I $1,256,698 $0 T. Rowe Price Retirement 2005 I $196,991 $996,568 T. Rowe Price Retirement 2040 I $1,102,296 $0

JHancock Disciplined Value Mid Cap R6 $624,853 $284,248 T. Rowe Price Retirement 2050 I $755,456 $0

MFS Value R6 $550,453 $115,174 T. Rowe Price Retirement 2020 I $476,176 $103,655

Dodge & Cox Income X $398,042 $154,202 Vanguard Total Intl Stock Index I $394,953 $78,429

Vanguard Total Bond Market Index I $391,063 $55,928 JPMorgan Small Cap Growth R6 $333,925 $30,839 T. Rowe Price Retirement 2055 I $297,548 $0 T. Rowe Price Retirement 2015 I $182,475 $50,255

Allspring Special Small Cap Value A $178,427 $10,008 Dodge & Cox International Stock X $144,328 $23,173

Cohen & Steers Real Estate Securities A $106,829 $19,576 T. Rowe Price Retirement 2010 I $55,103 $25,393 T. Rowe Price Retirement 2060 I $63,622 $5,805 T. Rowe Price Retirement 2065 I $18,692 $5,792

Total Assets $43,760,219 $16,046,820 Total # of Participants 1,298 739 Average Account Balance $33,714 $21,714

SECTION 2 – PROCEDURES FOR SUBMITTING PROPOSALS

2.1 INTENT TO SUBMIT A PROPOSAL

Listed below are parameters related to the qualifications and submission of the RFP:

To be considered, we ask that you notify Benefit Financial Services Group whether you intend to submit a proposal.

Please complete and return the “Intent to Respond” in Exhibit A to Nicole Chou at nicolec@bfsg.com no later than October 14, 2025.

Please do not contact any EMPLOYEE, COUNCIL MEMBER, UNION OFFICER, LOBBY FIRMS or PLAN PARTICIPANTS of the City of Newport Beach directly other than as provided in this RFP. Neither the City nor its representatives will respond to telephone inquiries or visitation by your company or its representatives.

Contacting any employee or officer of the City of Newport Beach, except as expressly authorized in this RFP, by phone or communication campaign (mailer) may result in disqualification from the RFP process

2.2 SCHEDULE OF PROPOSAL

DATE

RFP Issued 9/30/2025

Vendor RFP Questions Due 10/14/2025 Intent to Respond Sheet Due

Responses to Questions Posted 10/14/2025 10/21/2025

RFP Due 10/31/2025 Finalists Selected (if necessary) November 2025 Finalist Interviews (if necessary) January 2025

Notice of Intent to Award 2/1/2025 Effective Conversion Date (if necessary) 5/1/2025

2.3 VENDOR QUESTIONS ABOUT THE RFP

Questions concerning the RFP are to be submitted using PlanetBids portal using the “Q&A” tab no later than 5:00 p.m., P.S.T. by October 14, 2025.

Should any vendor find discrepancies, omissions or ambiguities in this RFP, the vendor should request in writing an interpretation from Shaun Tormey. Copies of the addendums will be posted to PlanetBids.

2.4 DELIVERY OF PROPOSAL

Each vendor must upload the electronic version of their response to PlanetBids by 5:00 PM PT on October 31, 2025.

Your company is responsible for timely delivery of your proposal. In the event you encounter any complications with the Portal or require further assistance, please contact PlanetBids support at (818) 992-1771.

PROPOSALS WHICH ARE RECEIVED AFTER THE SPECIFIED DUE DATE AND TIME WILL NOT BE

CONSIDERED.

mailto:nicolec@bfsg.com

The proposal must be signed by a person authorized to make contracts of this scope; including terms, specifications and pricing outlined in the proposal. The contents of this RFP and the proposal will become contractual obligations if a contract ensues. Failure of the successful vendor to accept these obligations may result in cancellation of the contract.

We will not consider oral modifications of the bound proposal. If you have submitted your proposal early and want to modify it before the deadline, we ask that you reupload the materials to PlanetBids prior to the deadline.

Proposals and any other materials you submit in response to this RFP will become the property of the City. The City will endeavor to protect the confidentiality of proprietary information in the same way that we do for our own proprietary or confidential information; however, we will not assume any restrictions on the use of information in your proposal unless it is clearly stated.

2.5 AGENDA / PROPOSAL CHANGES

Any change of this RFP by the City will be posted on PlanetBids at www.newportbeachca.gov/bidderportal.

2.6 MINIMUM REQUIREMENTS

At a minimum, your proposal must reflect that your company is capable of providing the following services:

Recordkeeping Minimums:

a. Service provider must have 10 governmental retiree health plans similar to an RHS with assets above $20 million and 500 participants.

b. Service provider must have Plan Sponsor web capabilities for generation of Ad-Hoc reports.

Claims Processing Minimums:

a. Service provider must have 10 governmental retiree health plans similar to an RHS with assets above $20 million and 500 participants.

b. Service provider must have minimum 5 years of experience providing claims processing for health plans similar to an RHS

c. Service provider must be able to accommodate auto-reimbursement, enabling participants to be reimbursed for monthly insurance premium without filing monthly claims.

d. Service provider must have Plan Sponsor web capabilities for generation of Ad-Hoc reports.

Education Minimums:

a. Service provider must have a local Relationship Manager and Education Representative assigned to the City.

All parties must be able to provide on-site education meetings and enrollment services, as well as comprehensive educational materials (print and online).

b. The City must be allowed to review and approve all participant marketing and communication campaigns / materials prior to distribution.

Investment Platform:

a. Service provider must have flexibility with respect to investment options. This includes the ability to offer low cost investment options and the ability to provide a complete array of funds covering the investment spectrum.

b. Any required investment options must have full participant liquidity and plan sponsor liquidity within 12 months of notification at book value.

c. Service provider must disclose all revenue sharing arrangements associated with all fund families proposed and available to the City.

d. Service provider must be able to credit revenue sharing back to participants based on an average daily or average monthly account balance.

e. Any contract entered into with the City must be open for renegotiation of fees, service level and other related services offered to the City at any given time of the contract.

Through the responses to the questionnaire, the written proposal should indicate the capabilities of your company’s recordkeeping and information management system(s) to handle all requirements and provide all the services outlined in the RFP. This will include the competence of personnel whom your company intends to assign to the project and the capabilities of your company’s system to handle as much of the plan administration as is possible. Fees and charges will be an important factor amongst others in the evaluation process. Overall, the City is performing its evaluation of the proposals for the best value in relation to identified parameters of importance including final presentation of selected vendors.

Vendors selected as Finalists will be those that exhibit an RFP Proposal that is overall above these Minimum Requirements, as compared to other vendor proposals. Meeting the minimum requirements is not qualification for Finalist interview or award.

2.7 EVALUATION OF VENDORS

The City will evaluate proposals for conformance including, but not limited to:

♦ RFP guidelines and submittal requirements ♦ ability to provide key service requirements and streamlined administrative processing ♦ quality of participant services, statements, investment education, and print materials ♦ investment platform flexibility ♦ fee transparency ♦ references of clients similar to the City

The evaluation criteria weighting is as follows but is not determinative:

40% Recordkeeping/Administration/Claims Processing (Sections 5.1 – 5.7) 10% Communication/Education (Section 5.8) 20% Investment Platform (Sections 5.9 – 5.10) 30% Fees (Section 5.11)

Following evaluation of the written proposals, we anticipate choosing finalist vendors for further interviews. BFSG will notify you whether you are a finalist.

2.8 ADDITIONAL INFORMATION

To assist it in its evaluation process, the City reserves the right to request additional information with regard to any or all proposals.

2.9 CONFIDENTIALITY

Your company shall instruct its employees to keep confidential information concerning the plan participants, as well as any other information which may be specifically classified as confidential by the City. At the City’s request, the selected vendor may be required to sign confidentiality statements prior to beginning or continuing work on the Plan.

2.10 DELEGATION AND/OR ASSIGNMENT

The vendor shall not delegate any duties under this contract to a subcontractor other than a subcontractor named in the bid unless the City has given written consent to the delegation. The primary vendor may not assign the right to receive money due under the contract without the prior written consent of the City.

The City further reserves the right to interview key personnel assigned by the successful vendor to this project and to recommend reassignment of personnel deemed unsatisfactory by the City.

2.11 FINALS PRESENTATION

Should your company submit a proposal, your company may be required to make a presentation to the City. This presentation provides an opportunity for your company to clarify the proposal through mutual understanding. The date for the presentations will be provided should your company be selected as a finalist. BFSG will schedule these presentations accordingly and provide you with an agenda and evaluation criteria in advance.

SECTION 3 – TERMS AND CONDITIONS

3.1 ACCEPTANCE OF TERMS AND CONDITIONS

Each bidder must provide a signed Statement of Compliance indicating acceptance by the company submitting the proposal of the terms, conditions and specifications contained in this RFP and draft Professional Services Agreement (“Agreement”), unless clearly and specifically stated otherwise. Please note that the items in gray font may not be applicable to this project.

3.2 PRECEDENCE OF TERMS AND CONDITIONS

All other terms and conditions of the draft Agreement attached within this RFP as Exhibit B are hereby incorporated into the terms and conditions of this RFP. In the event of a conflict of terms and conditions between the RFP document and the draft agreement, the terms and conditions expressed in the draft agreement shall take precedence.

3.3 PUBLIC RECORD

Upon submission of a proposal and other materials for consideration by the City, such proposals and materials shall become the property of the City of Newport Beach. Proposals may be subject to public inspection and disclosure pursuant to state and federal law after the award of a contract for this Project. Prior to the RFP deadline, proposals may be modified or withdrawn by an authorized representative of the Proposer by written notice to the Purchasing Office.

3.4 AVAILABILITY OF RECORDS

All relevant documents pertaining to this RFP and procurement process shall be made available by the Purchasing Office upon successful conclusion of the entire procurement process.

3.5 LATE PROPOSALS

Any proposal which is not received by the City’s Purchasing Office prior to the deadline date and time set forth in Section 2 shall not be considered. The City assumes no responsibility or liability for the transmission, delay, or delivery of a proposal by either public or private carriers.

3.6 SPECIFICITY OF INFORMATION

No verbal or written information which is obtained other than through this RFP or its addenda shall be binding on the City. No employee of the City is authorized to interpret any portion of this RFP or give information as to the requirements of the RFP in addition to that contained in or amended to this written RFP document.

3.7 ERRORS AND OMISSIONS

This RFP cannot identify each specific, individual task required to successfully and completely implement this Project. The City relies on the professionalism and competence of Proposers to be knowledgeable of the general areas identified in the scope of work and to include in their proposals all materials, equipment, required tasks and subtasks, personnel commitments, man-hours, labor, direct and indirect costs, etc. Proposers shall not take advantage of any errors and/or omissions in this RFP document or in the firm’s specifications submitted with their proposals. Where such errors or omissions are discovered by the City, full instructions will be given by the City in the form of an addenda.

3.8 PROPOSAL VALIDITY

Unless otherwise noted by the Proposer, all proposals shall be held valid for a period of 180 days.

3.9 RIGHT OF REJECTION

The City reserves the right to: (1) Accept or reject any and all proposals or any part of any proposal, and to waive minor defects or technicalities in such; (2) Request clarification of any information contained in a proposal; (3) Solicit new proposals on the same project, or on a modified project, which may include portions of the original RFP as the City may deem necessary; (4) Disregard all non-conforming, non-responsive, or conditional proposals, (5) Reject the response of any proposer who does not pass the evaluation to the City’s satisfaction, (6) Allow for the correction of errors and/or omissions; (7) Select the proposal that will best meet the needs of the City, and (8) Negotiate service contract and license agreement terms with the successful Proposer.

3.10 RIGHT OF REJECTION OF LOWEST FEE PROPOSAL

The City is under no obligation to award this project to the Proposer offering the lowest fee proposal. Evaluation criteria expressed in this RFP solicitation shall be used in the proposal evaluation process. In evaluating proposals, the City may consider the qualifications of the proposers and whether the proposals comply with the prescribed requirements. The size and scope of the Project at hand may dictate the degree to which Qualifications-Based Selection processes are utilized.

3.11 NON-COMPLIANCE

Proposers and/or proposals that do not meet the stated requirements for this Project may be considered noncompliant and may be disqualified, unless such noncompliance is waived by the City. During the evaluation process, the City reserves the right to request additional information or clarification from those submitting proposals, and to allow corrections of errors and/or omissions.

3.12 EXCEPTIONS TO PROPOSAL REQUIREMENTS

Proposers may find instances where they must take exception with certain requirements or specifications of the RFP and/or Draft Agreement. All exceptions shall be clearly identified using the Statement of Compliance, and written explanations shall include the scope of the exceptions, the ramifications of the exceptions for the City, and a description of the advantage to be gained or disadvantages to be incurred by the City as a result of these exceptions.

3.13 OBLIGATION TO AWARD

The City of Newport Beach is not obligated to enter into a Contract or Agreement on the basis of any proposal submitted in response to this RFP.

3.14 BIDDER REIMBURSEMENT PROHIBITION

The City will not pay for any information herein requested, nor are they liable for any costs incurred by any vendors prior to award of a contract or purchase order. The City may require the finalist proposer(s) to provide on-site presentations and demonstrations of the product(s)/service(s) proposed by the proposer(s). All costs associated with the demonstrations or follow-up interviews are the sole obligation of the proposer(s).

3.15 GRATUITY PROHIBITION

Proposers shall not offer any gratuities, favors, or anything of monetary value to any official, employee, or agent of the City for the purpose of influencing consideration of this proposal. Submission of a Proposal indicates Proposer certifies that they have not paid nor agreed to pay any person, other than a bona fide employee, a fee or a brokerage resulting from the award of the contract.

3.16 CONTACT WITH CITY PERSONNEL

From the time this RFP solicitation is published until the Notice of Intent to Award pertaining to this RFP is released by the City, the RFP Administrator is to serve as the sole and primary point of contact for any and all matters pertaining to this RFP and/or Project. Proposers shall not contact any City entities, including City staff, personnel, Council members, board members, committee members regarding this RFP and/or Project. Unauthorized contact may result in disqualification of a proposal. If there is any question with regard to the authorized or unauthorized nature of any contact, it shall be the responsibility of the Proposer to consult with the RFP Administrator prior to making any contact to the City entities described herein.

3.17 INSURANCE REQUIREMENTS

The selected Consultant(s) for this Project shall be required, prior to the execution of a Contract, to furnish proof of insurance. The specific insurance types and limits will depend on the Project and can be found in the draft Agreement (Exhibit C) of this RFP solicitation.

SECTION 4 – SCOPE OF SERVICE

The City has identified various goals and objectives for the Plan and is looking to your company to provide the services necessary to accomplish, at a minimum, its identified objectives.

4.1 INITIAL PLAN COMMUNICATION

Your company will be required to conduct a full schedule of group meetings to announce the changes to the Plan.

Your company must provide personnel qualified to provide comprehensive education on the Plan and any changes to services, procedures or policies. Your company will be the first responder to any participant questions regarding the transition.

4.2 ONGOING COMMUNICATION

In addition to providing regular meetings to communicate the provisions and procedures of the Plan, the City is looking for a company who will be available for participant inquiries and questions.

4.3 COMMUNICATION AND ENROLLMENT MATERIALS

One of the City’s objectives is to provide clear, concise, and professional plan communication materials. Your company will be responsible for preparing, in consultation with the City, all plan communication materials in both printed and html format. Preparation includes the design, formatting, printing, and where necessary, the mailing of all materials. Your company will be required to print sufficient materials to ensure an adequate supply.

4.4 COMMUNICATION PLAN

Your company will be required to present for the City’s approval an annual communication plan. This plan should detail the approach your company will take in the upcoming year to communicate the Plan to the participants and describes the communication materials to be prepared (including investment allocation documents tailored to the City of Newport Beach Plan), the frequency with which these materials will be distributed, and the distribution methods. Your company will also be required to report annually on the status of the Plan. This report shall include current data on the Plan’s financials, participation levels, and the status of the delivery of plan services.

4.5 RECORDKEEPING

Your company will be required to maintain all participant level records and make them available to City personnel as requested.

4.6 RECORDKEEPING

Your company will be required to timely process and pay qualified claims made in good order by participants.

4.7 CONTRACT TERMS

The City wishes to engage in a 3-year contract with the prospective vendor with 2 one-year optional extensions.

SECTION 5 – RFP QUESTIONNAIRE

In providing your company’s responses to the questions below, restate each question in bold with your response directly below. Your company’s proposal, including your responses to the following questions, will be incorporated as part of the contract between your company and the City of Newport Beach.

5.1 PROVIDER BACKGROUND

1. State the name and address of your company. Provide the name, title, address, e-mail address, and telephone and fax numbers of the person(s) from your company whom BFSG should contact with questions regarding your response.

2. Give a brief history of your company.

3. How long has your organization been providing services to governmental retiree health plans?

4. Is your company a subsidiary or affiliate of another company? Give full disclosure of all direct or indirect ownership, and the type of relationship with affiliate companies.

5. Is the package of services being quoted provided under a joint venture arrangement? If so, describe the arrangement, its terms and conditions, and whether your company and the other companies have been involved in similar joint ventures in the past.

6. Indicate whether any services will be subcontracted to another company and fully describe these services and the stability, background, and qualifications of all companies that may provide subcontracted services, including audited financial statements for the last two years.

7. Does your company have any pending agreements to merge or sell your company? e.g.: demutualization, I.P.O.

8. Has your company ever filed a petition in bankruptcy, been petitioned into bankruptcy or insolvency, or made any assignment for the benefit of your creditors? If so, provide complete details.

9. Please provide your most recent audited financial statement. If the proposing firm is an insurance company please provide your credit ratings from such agencies as Standard & Poor, Moody’s, Duff & Phelps and A.M. Best Company if available.

10. What are the local, state, and federal agencies that monitor, oversee and audit your operations, financial transactions and licensing?

11. In the last 5 years, has your company:

a. Been involved in litigation or is there any pending litigation arising out of your performance or participation in a defined contribution plan?

b. Been cited or threatened with citation by any federal or state regulators for violations of any state or federal law or impending regulations?

c. Had a contract terminated by a City for cause?

d. Been denied a license or have had a license revoked or suspended to do business with a City? If so, please describe.

12. For how many years has your company been providing recordkeeping, administration, and investment services?

For purposes of completing the chart, below, you may include plans to which you provide recordkeeping, administrative services, investment management, trust services and employee communication.

13. Please provide the number of plans as of 6/30/2025, for each category listed below:

Plan Size # of RHS or Similar Plans

Under 100 Participants

100-499 Participants

500-999 Participants

1,000 to 4,999 Participants

Above 5,000 Participants

TOTAL

14. Please provide the number of plans as of 6/30/2025, for each category listed below:

Plan Size # of RHS or Similar Plans

Under 25 million

$25-$50 million

$50-$100 million

Greater than $100 million

TOTAL

15. What is your average plan size for RHS or similar plans?

16. Please provide three references of current clients similar to the City of Newport Beach in size and services requested. Fully describe your scope of services and include the following:

a. City / Municipality

b. Name of Contact

c. Telephone #

d. Email Address

e. Length of Relationship

17. Please provide three references of clients who have terminated their full-service relationship with you within the last three years, indicating the reason for termination.

18. How does your firm measure and evaluate City satisfaction? How does your firm intend to report the results of such measurements to the City?

19. What distinguishes your City service program for governmental retiree health plans from that of other companies?

20. Describe the structure of the retiree health plan that you are proposing. How does it differ from an RHS plan?

Are there any added benefits the City may receive from switching to this structure? Are there any benefits to an RHS plan that may be lost with a conversion? Describe the conversion process.

5.2 RECORDKEEPING SERVICES

21. Please describe your recordkeeping system.

a. What recordkeeping system do you currently use?

b. Was the system initially purchased from an outside vendor? If so, please provide the vendor’s name.

c. If purchased, how has your company modified the system?

d. If leased, who has responsibility for system maintenance and enhancements?

e. How many plans now use this system?

f. How many full service clients use the system?

g. How long has the system been used?

h. When was the last update to the system and what were the key enhancements made to the system?

i. How much has been spent on recordkeeping system enhancements/technology in the past two years?

Please provide in $ and as a % of revenue.

22. Describe the maximum system limits for:

a. Investment funds

b. Contribution sources

c. Vesting schedules

23. In 200 words or less, describe your company’s system back up, security, and disaster recovery procedures. Are files archived and stored at an off-site location? If so, what is the location? Have procedures been tested? When did you last perform a full-scale disaster recovery test?

24. In 200 words or less, describe your procedures for protecting participant data from both cyber and physical threats.

25. Have your systems ever been breached resulting in the theft of participant data? If so, describe when the event occurred, the extent of the breach, and what you did to remedy the situation.

26. Are you going through any system conversions or major changes now or in the next three years? If so, please describe and give the schedule. What effect will this have on the City’s employees?

27. Describe the integration among your voice response, Internet and recordkeeping systems. How do you assure that requests made via one access method will not be duplicated through another method if requests are batch processed?

28. Can you calculate employer contributions? (please include any costs)

29. Describe the process for reporting employee contributions and payments out of the plan sponsor’s payroll software.

30. Describe the reports that are furnished to the plan sponsor and participants. To what extent can these reports be customized? Please provide sample reports.

31. Describe the plan sponsor on-line access to reports. To what extent can the on-line reporting be customized? Provide sample on-line report screen prints and access to your demo site.

32. What controls are in place to ensure that the Plans are administered according to the plan provisions?

33. Do you foresee any specific problems incorporating the City’s Plan into your recordkeeping system? If so, please describe in detail.

34. From what location would this account be serviced?

35. Provide the name, location, and brief biography for each key staff member who would be assigned to the City of Newport Beach account in the chart below.

Other accounts or Clients responsible for

Name

Tenure with your company

Role on the account

Educational and professional background

# of Clients

# of Participants

36. What is your firm’s policy for initial and ongoing training and licensing of customer service personnel? Please give a description of your required licensing and continuing education program, including:

a. Number of hours of training

b. Training methodology (classroom, on-line, outside classes, etc.)

c. Qualifications of instructors

d. Performance requirements for satisfaction of training program

37. Discuss how the team will interface with representatives at the City.

38. Please provide a sample Service Agreement for a City similar in size and make up to the City.

39. The City would like to attempt to manage the Plan in accordance with ERISA 404(c). What resources can you provide to assist with this?

a. Draft, maintain, and distribute a document similar to a Summary Plan Description

b. Make prospectuses available to participants

c. Distribute fund change notices

d. Issue participant fee disclosures similar to those required by ERISA 404(a)

e. Distribute Default Investment Alternative notices

5.3 CLAIMS PROCESSING

40. What is the typical turnaround time for the payment of a claim once it has been submitted? Please provide any schedules or calendars detailing the process.

41. Will you guarantee a turnaround time? How?

42. Describe your typical claims approval process? What controls are in place to ensure the claims are for qualified medical expenses?

43. Do you provide auto-reimbursement enabling retirees to be reimbursed for monthly insurance premiums without filing monthly claims?

44. Do you have experience integrating your claims procedures with CAL-PERS?

45. Please describe a situation when a claim was paid incorrectly? What was the process to correct it?

46. Please describe the procedures for submitting a claim including the mediums by which the claim may be submitted.

47. How are claims paid? Is direct deposit available? Is there a charge to have a check mailed?

48. Do you offer participants the ability to pay for qualified expenses with a debit card?

49. Describe your process for dealing with a claim in excess of a participant’s account balance.

50. Will you provide access to auditors if requested by the City? Will there be an extra charge for complying with a City initiated audit?

51. Please describe the live customer service operators, voice response, and internet services you will provide to both the Plan Sponsor and Plan participants.

a. Does the toll-free number for voice response utilize a voice response system or a human operator at the first contact?

b. Can participants transfer to a service representative midway through a voice response interaction? If so, what is the average time before a live representative answers the call?

c. Can participants who have lost their PIN number or never received one access a service representative?

d. During what days/hours is a service representative available?

e. During what days/hours is the voice response and internet system available?

52. What types of inquiries are your service representatives able to address? Are there any inquires that will need to be addressed by City personnel?

53. What are your minimum qualifications for service representatives answering participant calls?

54. Provide the name, location, and brief biography for each key staff member who would be assigned to the City of Newport Beach account in the chart below.

Other accounts or Clients responsible for

Name

Tenure with your company

Role on the account

Educational and professional background

# of Clients

# of Participants

55. Will a single point of contact be provided for the City? For the participants?

56. How are personal identification numbers and social security numbers handled? What security measures are taken to secure access to participant information?

57. What is the process by which a participant orders a new PIN #? How long does it take to receive the new #?

58. Please provide the following statistics for your participant 800 service line for the six months ending June 30, 2025.

Number of calls received

Average response time (service, rep, pickup) Call abort rate

Average length of calls Percentage of calls requiring operator call–back

Percentage of calls elevated from VRS to operator assistance

5.4 ADMINISTRATION

59. Will the City need to operate two separate plans, or will you be able to accommodate both the Hybrid and Fully-Converted Structure into one Plan and Trust?

60. If two plans are required, what assistance can you provide the City in converting Hybrid participants from one plan to the other upon retirement. Please describe the process and emphasize any items that will need to be initiated / completed by City personnel.

61. Describe the flexibility of your forfeiture process? How long after death can claims be submitted by someone’s estate? Does the City have the ability to dictate the length and forfeiting of a participant’s account? Will the City be able to dictate the terms of forfeiture reallocation / utilization?

62. Please describe the live customer service operators, voice response, and internet services you will provide to both the Plan Sponsor and the Plan participants.

a. Does the toll-free number for voice response utilize a voice response system or a human operator as the first contact?

b. Can participants transfer to a City Service Representative midway through a voice response conversation?

If so, what is the average time before a live representative answers the call?

c. Can participants who have lost their PIN number or never received one access a City Service Representative?

d. During what days/hours is a benefit service representative available?

e. During what days/hours is the voice response and Internet system available?

63. What are your minimum qualifications for service representatives answering participant calls (experience, NASD tests, education, and training)?

64. Indicate with an “X” which services are available through each communication medium. Only transactions, which can be completely processed through that medium, should be classified as available. For example, if a participant can request enrollment forms by voice response system but cannot actually enroll by VRS; this does not qualify as a VRS transaction.

Service Medium

VRS Operator Assisted

Mobile App Internet Written (paper)

Request Personal Access Code – PIN

Plan Information and Provisions Enrollment of Employees

Amount of Current Contributions Investment Allocation of Current Contributions

Change Contributions Levels by % Change Contribution Levels by $

Account Balance by Source, Including Vesting Account Balance by Fund, Including Transferable Amount

Transaction History Investment Transfers by % Investment Transfers by $

Rebalancing of Investment Allocation On-Demand Account Statements

Fund Price Information Fund Performance Information

Initiate Claims Retiree Enrollment Changes

Retiree Premium Billing Inquiries & Payments

65. How are personal identification numbers and social security numbers handled? What security measures are taken to secure access to participant information?

66. What is the process by which a participant orders a new PIN #? How long does it take to receive the new #?

67. Describe any administrative safeguards that prevent inadvertent errors from occurring to participant records when payroll data is transmitted.

68. Please provide representative samples of participant aids for using your voice response and Internet systems (i.e., brochures, maps, or other materials).

69. Please provide the following statistics for your participant 800 service line for the six months ended 6/30/2025.

Please note that this is for recordkeeping and administrations services, if the contact line is different than claims processing.

Number of calls received Average response time (service, rep, pickup)

Call abort rate Average length of calls

Percentage of calls requiring operator call–back Percentage of calls elevated from VRS to operator assistance

70. Please provide a participant and plan sponsor website demo disk (or supply log-in instructions).

71. When will participant statements be mailed following each period end date? Provide a sample statement and indicate whether you would customize statements for the City. Provide your company’s statement accuracy percentage, i.e., the percentage of statements that are mailed after the normal mail date because of an unresolved discrepancy or other problem.

72. Describe your standards for performance in participant service. Assume all data, wires or other requests are received in reasonably good condition and before your cutoff time for the day.

Activity Quality Standard Contribution reconciliation [ ] days from receipt of deposit

Contribution posting [ ] days from receipt of deposit Claims paid [ ] days from receipt of request

Investment fund transfers processed [ ] days from receipt of request Confirmations mailed [ ] days from execution of transaction or request

Participant statements mailed [ ] business days from period end

5.5 COMPLIANCE

73. What assistance will you provide to the City regarding legal and regulatory compliance that affect the operation or design of their retiree health plan?

74. Under your plan structure, is discrimination testing of the participants who are not part of a collectively bargained employee group required? If so, are you able to provide the testing? Describe the process and associated fees.

75. Are participant accounts subject to Qualified Domestic Relations Orders? How would you handle it if one was received?

76. What assistance do you provide to employers regarding fiduciary responsibility?

77. Do you have legal staff to deal with issues regarding plan documents or administration for retiree health plans?

a. If yes, how many attorneys and how many paralegals are on staff?

b. How do you charge for these services?

c. What access does the City have to these resources/legal staff?

5.6 TRUST SERVICES

78. Will you provide trust services for the City?

79. Please provide details on the scope of your trustee services?

80. How long has your firm provided trustee services?

81. Please list the banks you are affiliated with to offer custodial services and what jurisdiction they are chartered under.

5.7 COMMUNICATIONS

82. Fully describe your proposed education campaign for the City. Provide samples of all participant communication materials you have available. Please list any additional fees or charges not included in your proposal.

83. Please describe the extent to which your standard materials can be customized for the City.

84. Describe the process used to measure employee education efforts.

85. To what extent can employee statements be customized?

86. How do you propose staffing for the City on-site services?

87. Please include how many days per year you would provide on-site services.

88. Will you need to hire any additional staff in order to service the City account?

89. Will the City be able to participate in the selection of its on-site dedicated service representative(s)?

90. Will the City’s on-site representative be compensated on an annual salary basis? If not, please describe method of compensation and bonus? Does any part of their compensation or performance review relate to products or services sold to participants?

91. What kind of services will your on-site rep provide for the City?

92. How many initial employee meetings will you provide for the City? (Please include all fees for these services.)

93. How many group meetings will you provide for the City on an on-going basis? (Please include fees for additional meeting days on top of what is proposed).

94. How are fund fact sheets, prospectuses, and performance figures distributed?

95. Are you able to send enrollment booklets to newly eligible employees’ homes (as they become eligible), or is the sponsor responsible for distributing?

5.10 CONVERSION / IMPLEMENTATION

96. How many dedicated conversion teams do you have? How many staff members work exclusively on conversions?

97. What is the earliest conversion date you can accommodate for the City? By what date would you need to be notified in order to achieve a May 1, 2025 conversion date?

98. Please give a work plan and chart of activities, responsibilities and time frames for conversion of the Plan.

a. What is the minimum elapsed time needed for a recordkeeping conversion?

b. How much notice is required to begin a conversion?

c. How long does it take to process a conversion, including implementation of transactional voice response and City service representatives?

99. Please describe any required blackout periods during the conversion in which no transactions can take place.

100. Will you handle claims during the conversion / blackout period?

101. How will you guarantee your stated implementation time frame?

5.8 ASSET ALLOCATION TOOLS/FINANCIAL PLANNING TOOLS

102. Please describe any and all interactive tools your organization will provide to the employees of the City which will help with asset allocation and planning for their retirement.

103. Do you provide point-in-time asset allocation advice? (e.g.: Financial Engines, Morningstar, etc.) What is the annual fee? Who pays the fee, participants, Plan Sponsor or both?

104. What is the methodology used by your on-site investment representatives to make recommendations for asset allocation advice or fund recommendation to participants? Please provide sample tools and output.

105. Do you act in a fiduciary capacity in providing asset allocation advice to a participant? If so, do you acknowledge your fiduciary status in writing?

106. Do you provide managed accounts? What is the annual fee? Who serves as the investment manager?

5.9 INVESTMENT MANAGEMENT SERVICES

107. What year did your firm begin providing investment services?

108. What are your total investment assets under management?

109. How many fund families are available on your platform?

110. How many non-proprietary funds are offered on your platform?

111. Please provide a list of all investment funds identified by asset class, which will be available to the City on your platform. Indicate any restrictions on the number of funds available to the City. If you offer an open architecture investment platform with more than 10,000 investment options, simply respond with “Open Architecture”.

112. Can the City use funds that are not currently offered on your platform? If so, what is the impact on cost?

113. How many proprietary funds will the City need to maintain?

114. Will the City need to map a percentage of assets into proprietary funds? If so, what is the percentage? Please explain the impact on the plan service agreement/fee if ongoing plan assets migrate out of the required % for proprietary funds.

115. Are your company and your proposed product regulated by the SEC?

116. Are any of your investment options cloned or sub-advised?

117. Are all of the investment options publicly traded and published in the Wall Street Journal?

118. Are any of the proposed funds guaranteed by your firm’s general account? If so, please list and describe the nature of the guarantee. In the event of a bankruptcy, please explain the liquidation of the account.

119. As much as possible, City wishes to keep its current fund line-up. To the extent your proposal includes changes to the line-up, please complete the graph below by indicating which investment categories and which funds you would recommend for the City based on current assets indicated in Section 1.3. If more than one fund is available and recommended in an investment category, only choose one for this proposal response.

Asset Class

Recommended Investment Option

Ticker Symbol

Net Expense Ratio*

*Include any wrap fee or asset based fee imposed.

120. Explain any restrictions on transfers between funds.

121. Describe your program for monitoring market-timing and excessive trading.

122. Can you track short-term trading limitations (fees / number of transfers) imposed by non-proprietary fund companies? If no, describe how you handle such limitations.

123. Please provide a copy of your stable value/fixed fund option contract agreement and supply the following information:

a. Your policies for:

1. Participant-initiated withdrawals

2. Plan sponsor-initiated withdrawals

3. Inter-fund transfers

b. Asset allocation

Insurance Company General Account Assets %

Traditional GICs %

Indexed GICs %

Synthetic GICs %

Insurance Company Separate Account Assets %

BICs %

STIF/Cash Equivalents %

Other %

TOTAL 100%

c. For GIC or separate account products, provide the average credit quality of the portfolio and percentage in each investment grade as categorized by S&P and Moody’s. If your fund is a general account annuity product, provide your company’s A.M. Best, S&P, Moody’s, and Duff & Phelps ratings. Describe and provide your company’s S&P, Moody’s, and Duff & Phelps rating. Also provide the portfolio’s average maturity and duration as of June 30th for each of the last five years.

d. Liquidity management

1. Percentage of holdings in cash – normal range

2. Percentage of contracts with benefit responsive features

3. Percentage of contracts with one-year put options

4. Weighted average maturity – normal range

e. Does your product offer a contractually guaranteed long-term interest rate? If so, how long does it remain in force?