Supplemental_Retirement_Program_SOW.pdf

Supplemental Retirement Program (SRP) 4/1/2013

U.S. Securities and Exchange Commision

OHR – Office of Human Resources Supplemental Retirement Program (SRP) – Financial Institution

Statement of Work

C.1 Scope

The U.S. Securities and Exchange Commission ("SEC") is looking for a vendor that will establish and administer a vehicle to enroll eligible SEC employees in a qualified supplemental retirement plan, Simplified Employee Pension “SEP” plan. The vendor will establish the supplemental retirement plan accounts for employees and act as custodian of the accounts. The SEC will deposit contributions to the supplemental retirement plan for all eligible employees on a bi-weekly basis. In addition, the vendor should have the ability to accept any additional discretionary payments that the agency makes. Contributions will be subject to the Internal Revenue Service (IRS) maximum elective deferral limits and any other applicable laws and regulations governing retirement plans. The SEC will fund all contributions via electronic wire transfer. The vendor must stipulate any associated fees for acceptance of such wire transfers.

The contractor should be an institution that does not fall under the purview of SEC’s regulatory authority. The contractor should be fully insured by the appropriate regulator (e.g. FDIC, NCUA). The contractor must be able to offer regional coverage for multiple SEC locations.

C.2 Background

The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. SEC oversees the key participants in the securities world, including securities exchanges, securities brokers and dealers, investment advisors, and mutual funds.

As part of Securities and Exchange Commission’s (SEC’s) compensation model and negotiated agreement with National Treasury Employees Union (NTEU), the SEC will establish a supplemental retirement program for eligible employees.

The supplemental retirement plan will cover nearly all of the SEC’s 4000+ employees, who are located in the Washington, DC headquarters office as well as 11 regional offices throughout the US.

C.3 Business Requirements

C.3.1 - The SEC will develop the Supplemental Retirement Plan Rules. The contractor shall study and understand the SEC Supplemental Retirement Plan design and rules, data elements, accounting, financial, and auditing requirements.

C.3.2 - The contractor shall provide a financial vehicle to meet the Plan’s accounting, financial reporting, participant reporting, and internal control requirements. Travel to the SEC’s headquarters in Washington, DC as may be required, for familiarization and design of financial reports to support the Agency’s reporting for the supplemental retirement program.

C.3.3 - In addition, and because of the objective of this contract, the contractor shall be able to provide the following:

• A viable method to enroll all employees at the onset of the supplemental retirement plan’s establishment.

This should include any requirements and appropriate procedures for transmitting employee data such as full name, address, date of hire, employee identification number, and beneficiary information as well as the necessary actions needed to properly update individual employee accounts with the lump-sum payment for the initial 2013 tax-year contributions.

• Any requirements essential to the ongoing enrollment of new employees entering the Commission after the initial commencement of the supplemental retirement plan, as well as a process to account for any employee data changes (address, marital status, beneficiary, etc.) and employee terminations.

• Offer regional coverage for multiple SEC locations. This will include providing onsite support, at the

SEC Headquarters or any of the SEC’s 11 regional offices, for 6-9 months after the creation of the supplemental retirement plan as well as continued operational support thereafter. This could include site visits to present informational sessions to employees to answer account questions (e.g. verifying account balances, withdrawal rules, etc.), website hosting, and customer call center and/or email coverage.

• Accessibility of account information. This includes electronic interface, secure access, and customer service support.

• Recordkeeping for the supplemental retirement accounts will involve the following:

o Setting up, establishing, and maintaining individual sub-accounts for each participant to keep track of contributions, and their respective net earnings and/or fees. These accounts must roll up to the principal account on a daily basis.

o Allocating net earnings/fees to each component of a participant’s account (calculations of total earnings/fees to be allocated shall be prepared by the plan custodian).

o Processing updates and corrections that include, but are not limited to, the following:

Name and address change/correction requests Data merge requests for individuals with two payroll IDs (one inactive and one active) “Catch up/retroactive” contributions for participants who were mistakenly not established as eligible participants, as well as recording of their personnel data “Catch up/retroactive” contributions for participants for late pay actions, such as promotions o Calculating distribution amounts for the return of contributions to post for individuals who were mistakenly deemed eligible for the plan o Calculating distribution amounts (broken out by each employee account, as well as bi-weekly contributions and net earnings/fees) for quarterly reporting on employee separations o Calculating distribution amounts for special payment requests (including payments missed in previous quarterly processing, as well as payments related to the death of a participant) as notification of these cases is sent to the contractor o Preparing and transmitting quarterly participant statements o Preparing the Census Data Request to capture relevant employee data missing for participants

(and not captured in the bi-weekly contribution file) to complete the data records to facilitate generation of the quarterly statements o Populating the system with the personnel data from information received from the SEC o Reconciling the participant accounts with the bi-weekly contribution files; as well as the monthly Fund Balance with the Plan’s Custodian as provided by SEC.

C.3.4 - The Contractor shall calculate distribution amounts for the return of contributions to the Agency for individuals who were mistakenly deemed eligible for participation in the plan.

C.3.5 - The Contractor shall prepare and deliver to the Agency a quarterly separation list with calculated distribution amounts (after allocation of net earnings/fees).

C.3.6 - The contractor shall ensure privacy and security of all participant data, maintaining the Commission’s standards for the handling of sensitive data.

Note the following:

a) Security Requirement for Contract Staff: All individuals working on the effort must have a Moderate Risk Public Trust (MRPT) determination from the Agency to facilitate the protection of sensitive account data.

b) Data contains personal information protected by the Privacy Act of 1974 and sensitive financial information.

c) Incident Reporting: Notify the COR of any breach of security. Security incidents must be reported and addressed immediately, so as to contain the incident, establish countermeasures to mitigate the impact of the incident, and recover from it. The party discovering the incident in accordance with their procedures will report security incidents.

d) Security Parameters: Specify security parameters used to exchange information with the Agency, including, but not limited to, encryption being used during transport; whether the data (including passwords) is encrypted in storage; type of connection; etc.

C.3.7 – The contractor shall produce quarterly census data requests to collect missing participant data (that is absent from the contractor’s record keeping system) to support accurate reporting of participant data and generation of the quarterly reports.

File Format: To be Determined Data Elements: Account Holder, Date Acct was Established, SEC Identifier, Location, and Comments.

Due Date: Contractor will provide to the COR within five business days after the end of the quarter. The Agency will respond to the data request within 14 days.

C.3.8 – The contractor shall provide ongoing support and open communication to obtain answers to inquiries regarding the separation processing, quarterly reporting, and any aspect of participant account maintenance, etc.

C.3.9 – The contractor shall respond to telephone and e-mail inquiries by the SEC representatives and return calls/messages within two (2) business days.

SECTION F - DELIVERIES OR PERFORMANCE

F.1 Period of Performance. The period of performance is twenty-four (24) months from date of award, with three

(3) option periods to follow the base year.

F.1.1 Option Periods. This contract has three (3) one-year option periods. If all options are exercised, the period of performance will not exceed a total of five (5) years six (6) months (the contract may be extended up to six months – see Section I – 52.217-8). If exercised, the period of performance for each successive option will begin the day after the expiration of the previous year and continue for one year. Exercise of any option requires a modification signed by an SEC Contracting Officer.

F.2 Place of Performance. The Contractor shall perform development work at the Contractor’s work site location (off-site). Desk, phone, and computer will be made available to Contractor personnel at the SEC for temporary use in the performance of this contract if needed.

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 Type of Contract. It is anticipated that this contract will be awarded on a Firm Fixed Price (FFP) basis.

Please submit a ROM (Rough Order of Magnitude) on a fee per account basis or in accordance with industry standards. The Government estimates a total of 4,200 eligible employees during the first year.