RFP_Actuary_PEEICB__FINAL.pdf

PUBLIC EDUCATION EMPLOYEE

INJURY COMPENSATION BOARD

REQUEST FOR PROPOSALS FOR

CONSULTING ACTUARY

The Public Education Employee Injury Compensation Board is a statutorily authorized legislatively appropriated on-the-job injury program established to provide workers’ compensation benefits for full-time Alabama education employees and adult bus drivers.

The Board is issuing this Request for Proposal (RFP) to solicit proposals from qualified Actuarial Firms to provide comprehensive actuarial services in the State of Alabama.

This RFP is intended to solicit proposals from qualified and experienced Actuarial Firms capable of combining technical expertise and its methodology, assumptions, experience with emerging programs, and ability to work with limited data to help establish the financial foundation of the Public Education Employee Injury Compensation Board with no historical loss experience.

The Public Education Employee Injury Compensation Board (the “Board”) is pleased to issue this Request for Proposal (RFP) for an Actuarial Firm to conduct engagements that include:

• Quarterly or semiannual monitoring during the first year to compare emerging experience with projections.

• An annual actuarial update for the first three to five years, allowing assumptions and funding recommendations to evolve as credible claims data develops.

The Board appreciates your interest and looks forward to reviewing your proposal.

REQUEST FOR PROPOSAL (RFP)

Actuarial Services Public education employee’s on-the-job injuries Only Public Education Employee Injury Compensation Board

1. RFP SCHEDULE

RFP Issued: August 14, 2026 Questions Due: September 1, 2026 Proposal Due: September 15, 2026

2. PROGRAM OVERVIEW

Line of Coverage:

- On-the-job injuries (Appropriations – Alabama) Covered Employees:

- Full-time Public Education Employees

- Adult bus drivers Estimated Annual Claim Volume:

- Medical-Only Claims: 1800

- Lost-Time Claims: 700 Geographic Scope: State of Alabama

3. SCOPE OF SERVICES – WORKERS’ COMPENSATION

• Develop credible prospective loss projections despite limited historical experience.

• Create funding recommendations for a new statewide program.

• Assist with financial stability during the first several years.

• Build a methodology that can be updated annually as actual experience develops.

• Explain complex actuarial concepts to non-actuaries, legislators, board members, and finance officials.

Provide the following:

• Prospective loss projections (1-, 3-, and 5-year horizons)

• Frequency projections

• Severity projections

• Loss ratio projections

• Expected claim counts

• Expected medical costs

• Expected indemnity costs

• Recommended funding levels

• IBNR estimates

• Recommended reserve levels

• Catastrophic loss assumptions

• Sensitivity analyses

• Assumptions documentation

• Executive presentation to program leadership

• Board presentation

• Legislative presentation support

4. ACTUARY FIRM QUALIFICATIONS

1. Describe your firm’s experience with workers’ compensation actuarial studies.

2. Describe your firm’s experience with public entity workers’ compensation pools.

3. Describe your firm’s experience with actuarial studies for:

• State governments

• Public school systems

• Educational institutions

• Teacher injury programs

4. Describe your experience developing actuarial models for newly created insurance programs that lack historical loss data.

5. Provide three similar engagements completed during the past ten years.

6. Describe the qualifications of the actuaries who will perform this work.

7. Provide proof of certification with the Casualty Actuarial Society or the American

Academy of Actuaries.

8. Provide resumes for the key actuaries who will be assigned to complete the requested services.

9. Provide a valid copy of current license required to do business in the State of

Alabama. The following are acceptable:

1.“Certificate of Authority” issued by the Secretary of State to a foreign entity to transact business in the State of Alabama.

2.“Certificate of Existence” issued by the Secretary of State to an entity that is incorporated in the State of Alabama.

3. A Business License issued by a probate judge in the State of Alabama.

5. EXPERIENCE WITH EDUCATIONAL EMPLOYEES

1.Describe your experience analyzing workers’ compensation exposure for:

• Teachers

• Principals

• Bus drivers

• Cafeteria workers

• Custodians

• Maintenance employees

• Coaches

• Administrative personnel

• Central office staff

2.Have you completed actuarial studies for statewide education systems?

3.Have you developed loss projections for educational employees where claim experience was unavailable or incomplete?

4.What unique characteristics distinguish educational employee claims from municipal or industrial workers?

6. METHODOLOGY

How would you develop actuarial projections when historical claims data is limited?

What credibility methodologies would you utilize?

Methodology examples:

• Industry benchmarks

• NCCI data

• State-specific data

• Similar public entity programs

• Exposure-based modeling

• Payroll modeling

• Employee count modeling

• Occupation mix

• Frequency/severity modeling

Explain your methodology.

7. DATA REQUIREMENTS

Please identify every type of information you would request before beginning the study.

Examples:

• Payroll

• Employee counts

• Job classifications

• School district demographics

• Geographic distribution

• Historical injury reports

• OSHA logs

• Legacy medical information

• Sick leave information

• Absenteeism data

• Disability information

• Existing health plan utilization

• Blue Cross information

• PEEHIP information (if available)

8. TEACHER-SPECIFIC ISSUES

Describe how your firm would evaluate the following issues:

• Classroom injury exposure

• Student assault exposure

• Special education risks

• Physical restraint injuries

• Bus transportation injuries

• Slip and falls

• Repetitive stress injuries

• Custodial exposure

• Vocational education exposure

• Agricultural education exposure

• Athletic coaching exposure

• Career technical education exposure

• Science laboratory exposure

• School violence exposure

• Mental stress claims

• Heat-related injuries

• Outdoor supervision

9. PROSPECTIVE FINANCIAL MODELING

Describe how your firm would project the following:

• Expected claim frequency

• Expected severity

• Medical inflation

• Wage inflation

• Future payroll growth

• Teacher salary changes

• Legislative changes

• Benefit changes

• Catastrophic claims

• Shock losses

• Large loss development

10. INITIAL FUNDING

How would you recommend establishing:

• Initial funding levels

• Funding corridors

• Confidence intervals

• Capital requirements

• Contingency margins

• IBNR

• Case reserve adequacy

• Loss reserve margins

• Surplus recommendations

11. SENSITIVITY ANALYSIS

Provide multiple projection scenarios including:

• Conservative

• Expected

• Optimistic

• High inflation

• Catastrophic year

• Low frequency

• High severity

• High medical inflation

12. REPORTING

Provide examples of:

• Executive summaries

• Board reports

• Legislative reports

• Funding recommendations

• Reserve analysis

• Projection models

• Interactive financial models

13. UPDATING THE STUDY

How will your methodology allow the State to transition from projected losses to actual experience over:

Year 1 Year 2 Year 3 Year 4 Year 5

14. LEGACY CLAIMS

How would you evaluate the impact of incomplete legacy claim information?

How would you account for:

• Unknown open claims

• Unknown incurred losses

• Unknown medical liabilities

• Unknown litigation

• Unknown reserve adequacy

How would uncertainty be reflected in your projections?

15. STRATEGIC QUESTIONS

1. What concerns you most about developing actuarial projections for a newly established statewide teachers’ workers’ compensation program?

2. What assumptions do you believe represent the greatest financial risk to this program?

3. What data gaps would most affect the credibility of your projections?

4. How would you validate your assumptions during the first three years?

5. What indicators would you monitor to determine whether the program is performing better or worse than expected?

6. If actual experience differs significantly from projections in Year 1, what process would you use to recalibrate future projections?

7. How would you communicate actuarial uncertainty and confidence intervals to a governing board and state policymakers?

16. FEES & PRICING

Provide a detailed fee proposal including:

- Hourly cost and expenses for work performed

- Any flat or minimum fees

- Performance guarantees or fee caps, if available

- Any other fees not listed (Example: Travel expenses)

17. TERMS & CONDITIONS

The Board reserves the right to reject any or all proposals, waive informalities, an select the proposal that best meets the needs of the member school systems. All proposal preparation costs are the responsibility of the respondent.

18. QUESTION SUBMISSION

All questions should be submitted by 5:00 pm CDT September 1, 2026. All questions and answers received will be posted to the RFP in Alabama Buys following the question deadline. The questions should be addressed to Craig White and emailed to craig.white@peeicb.alabama.gov .

19. PROPOSAL SUBMISSION INSTRUCTIONS

All proposals must be uploaded electronically in Alabama Buys by 4:30 p.m. CDT on September 15, 2026, the RFP response close date. It is solely the responsibility of each supplier to ensure timely submission of the proposal in Alabama Buys. PEEICB and the State of Alabama are not responsible for any costs incurred by the supplier for their proposal submission.

Electronic submissions must include a complete proposal uploaded in Alabama Buys.

Electronic submissions are preferred; however, if a supplier is unable to submit an electronic proposal, requirements for physical submissions are outlined in the RFP Standard Terms and Conditions.

Proposals will be considered unacceptable if:

1. Missing information

2. Faxed

3. Improperly labeled or addressed

4. Received after the deadline of submission

REQUIREMENTS OF SUBMISSION

SCOPE OF SERVICES – WORKERS’ COMPENSATION

ACTUARY FIRM QUALIFICATIONS

EXPERIENCE WITH EDUCATIONAL EMPLOYEES

METHODOLOGY

DATA REQUIREMENTS

TEACHER-SPECIFIC ISSUES

mailto:craig.white@peeicb.alabama.gov

PROSPECTIVE FINANCIAL MODELING

INITIAL FUNDING

SENSITIVITY ANALYSIS

REPORTING

UPDATING THE STUDY

LEGACY CLAIMS

STRATEGIC QUESTIONS

DISCLOSURE STATEMENT

W9

E-VERIFY ATTACHMENT

20. DISCLOSURE STATEMENT

A Disclosure Statement is required to be filed with all proposals, bids, contracts, or grant proposals to the State of Alabama in excess of $5,000.00. (Code of Alabama 1975, §41-16-80 through 88, as amended) Click on the link to obtain the disclosure statement.

https://www.alabamaag.gov/wp-content/uploads/2025/10/Alabama-Vendor- Disclosure-Statement.pdf

21. FEDERAL EMPLOYER IDENTIFICATION NUMBER OR SOCIAL SECURITY NUMBER

Submit W9 with proposal. https://www.irs.gov/pub/irs-pdf/fw9.pdf

22. E-VERIFY ATTACHMENT

The E-Verify MOU first page, the signature page, the page that includes the TIN number, and any Company profile pages that may be applicable must be attached to the proposal with signatures in ink and/or legally proper electronic signatures. The Company ID number on each page cannot be written. It will be imprinted on the E-Verify MOU after the US Department of Homeland Security has verified the information.

Responses should follow the order of this RFP.

23. EVALUATION CRITERIA

Experience conducting analysis for Public Employee on the Job Injury Programs (35%) Actuarial Firm Workers’ Compensation Analysis Expertise & Experience (25%) Technology, Methodology, & Reporting (20%) Fees & Pricing (20%)

24. TERMS & CONDITIONS OF THE CONTRACT

The Public Education Employee Injury Compensation Board intends to execute an initial contract with the prospective supplier for a period of two (2) years, with one (1), two-year renewal option and (1) one-year renewal option, pending written agreement, dependent upon required state approvals, availability of funds, performance evaluation of the project, at the full discretion of the Public Education Employee Injury Compensation Board. The contract will commence pending Chief Procurement Officer’s (CPO), the Legislative Review Committee’s (LOC) approval, and the https://www.alabamaag.gov/wp-content/uploads/2025/10/Alabama-Vendor-%20%20%20%20%20%20%20%20%20%20Disclosure-Statement.pdf https://www.alabamaag.gov/wp-content/uploads/2025/10/Alabama-Vendor-%20%20%20%20%20%20%20%20%20%20Disclosure-Statement.pdf https://www.irs.gov/pub/irs-pdf/fw9.pdf

Governor’s signature. Each Contract renewal must be signed by the CPO, presented to the LOC, and signed by the Governor before it is effective.

25. CANCELLATION POLICY

In accordance with Alabama Administrative Code § 355-4-3-.09, this RFP may be cancelled and/or any and all proposals may be rejected in whole or in part when doing so in the best interest of the State. In the event that the RFP is cancelled, a notice of cancellation will be sent to appropriate recipients.

26. BOYCOTT CLAUSE

In compliance with Act 2016-312, the contractor hereby certifies that it is not currently engaged in, and will not engage in, the boycott of a person or an entity based in or doing business with a jurisdiction with which this state can enjoy open trade.

27. IMMIGRATION CLAUSE

By signing this contract, the contracting parties affirm, for the duration of the agreement, that they will not violate federal immigration law or knowingly employ, hire for employment, or continue to employ an unauthorized alien within the State of Alabama. Furthermore, a contracting party found to be in violation of this provision shall be deemed in breach of the agreement and shall be responsible for all damages resulting therefrom.

28. MERIT SYSTEM EXCLUSION CLAUSE

The awarded firm will not to be considered a merit system employee and is not Entitled to any benefits of the State Merit System.

29. ALTERNATIVE DISPUTE RESOLUTION CLAUSE

In the event of any dispute between the parties, senior officials of both parties shall meet and engage in a good faith attempt to resolve the dispute. Should that effort fail and the dispute involves the payment of money, a party’s sole remedy is the filing of a claim with the Board of Adjustment of the State of Alabama. For any and all other disputes arising under the terms of this contract which are not resolved by negotiation, the parties agree to utilize appropriate forms of non-binding alternative dispute resolution including, but not limited to, mediation. Such dispute resolution shall occur in Montgomery, Alabama, utilizing where appropriate, mediators selected from the roster of mediators maintained by the Center for Dispute Resolution of the Alabama State Bar.

30. ECONOMIC BOYCOTT CLUASE

In compliance with Act 2023-409, by signing this contract, Contractor provides written verification that Contractor, without violating controlling law or regulation, does not and will not, during the term of the contract engage in economic boycotts as the term “economic boycott” is defined in Section 41-16-160, Code of Alabama 1975.