SFA and Casework Actuarial PWS (1).docx

General Information

The American Rescue Plan Act of 2021 (ARP) established a Special Financial Assistance (SFA) program to provide funds for certain defined benefit multiemployer pension plans including ones that suspended benefits to participants and beneficiaries pursuant to the Multiemployer Pension Reform Act of 2014 (MPRA) or to an ERISA Section 4245(a) plan insolvency. Under ARP, the Department of Labor (DOL), in coordination with the Department of Treasury, has the responsibility to ensure that such plans reinstate any benefits that were suspended and provide payments equal to the amounts of benefits previously suspended.

The Contractor shall provide consultant actuary services to support the Employee Benefits Security Administration (EBSA) of DOL in its efforts to fulfill that responsibility under ARP. The Contractor will utilize plan and other supporting documents as well as plan census data including age, tenure, position, salary, benefit type, etc. to calculate what the monthly payment should be for a sample of individuals for each selected plan. The Contractor shall perform to the standards in this contract.

The Contractor may also provide case-specific actuarial support for pension and group health matters, in coordination with the COR and designated EBSA/OSOL staff. Work products are government-confidential; public-facing materials will be Section 508 compliant

Background In order to reduce the unfunded liabilities of plans, MPRA allowed defined benefit multiemployer plans in critical and declining status to propose benefit suspensions for participants and beneficiaries if plans were projected to run out of funds. Applications for suspensions had to be approved by the Pension Benefit Guaranty Corporation (PBGC), in consultation with the Treasury Department and the Department of Labor. Participants and beneficiaries had the right to vote on the proposed reductions.

ARP established the SFA program to provide funds for defined benefit multiemployer pension plans meeting certain eligibility requirements, including plans that suspended benefits to participants and beneficiaries pursuant to MPRA or an ERISA Section 4245(a) plan insolvency. As described above, DOL, in coordination with the Department of Treasury, has the responsibility to ensure that such plans reinstate any benefits that were suspended and provide payments equal to the amounts of benefits previously suspended.

EBSA is particularly concerned with individuals that entered into pay status during the period a MPRA or an ERISA Section 4245(a) suspension was in effect. While individuals that were in pay status prior to a benefit reduction have a documented payment amount to reference for reinstatement, those that entered into pay status during the benefit reduction period do not. To ensure that those individuals receive the full, reinstated benefit, EBSA is independently calculating the restored benefit amount for a sample of those individuals that entered into pay status during a suspension of payments for each plan receiving SFA funds.

To conduct these independent calculations, EBSA requires the assistance of a consulting pension actuary that can use plan and supporting documents along with plan census data to perform benefit calculations for a sample of participants and beneficiaries and compare those calculated amounts to the amounts being paid by the plan. The contractor will conduct these services for multiple plans. EBSA plans to contract with an expert that has demonstrated experience in calculating pension benefits for private pension plans.

EBSA/OSOL casework requires rapid, expert actuarial analyses using plan filings and records, including Form 5500 Series (and Schedules SB/MB/H), actuarial reports/workpapers, plan documents, SPD/SMM/SPDs/SBCs, trust statements, and claims/stop-loss data. Cases may involve pension plan liabilities/funding and assumption reviews, as well as group health issues such as funding mechanisms, plan design, AV, cost-sharing, stop-loss, and MHPAEA/ACA compliance.

Objectives

· To obtain a contract for pension actuary services from a qualified contractor.

· To have the contractor verify monthly benefits for a sample of participants and beneficiaries in certain multiemployer defined benefit pension plans receiving SFA under the ARP.

· As necessary, provide casework-compliant, credentialed actuarial support to inform enforcement, litigation, and program oversight, producing timely, accurate analyses and clear case reporting as directed by the Program Office.

Scope The Contractor shall help with EBSA’s enforcement and actuarial work. For each plan these services may include:

SFA

· Review plan documents and participant census data to understand the benefit formula and then independently generate spreadsheet formulas to calculate the plan's monthly benefit for each individual in the sample.

· Compare the calculated monthly benefit to the amounts being paid by the plan to determine if those amounts are reasonably equivalent.

· Prepare request(s) to the plan for any additional documents or data needed to reconcile differences in the amounts and update the benefit comparisons.

· Produce a document summarizing the methodology, benefit formula and findings for the sample requested.

Casework

· Case intake and scope definition with the COR and designated EBSA/OSOL staff; delivery of a written scope memorandum within five (5) business days.

· Secure acquisition, reconciliation, and validation of case data and filings.

· Performance of actuarial analyses and calculations covering pension liabilities/funding and group health AV, claims experience, stop-loss structures, and compliance assessments.

· Preparation of confidential reports with supporting exhibits and provision of non-technical briefings.

· Litigation/enforcement support, including declarations and rebuttal analyses.

· All work led and signed by a credentialed actuary and performed in compliance with ASOPs; timelines as specified by the COR; Section 508 requirements apply to public-facing materials.

Period of Performance The period of performance (POP) shall be for one 12-month base period and two 12-month option period. The Period of Performance reads as follows:

Specific Tasks

5.1 Services:

The contractor shall provide services to support EBSA’s review of participants and beneficiaries benefits to confirm the promised benefits are restored following the plan’s receipt of SFA. For each plan these services would include:

· Review plan documents and participant census data to understand the benefit formula and then independently generate spreadsheet formulas to calculate the plan's monthly benefit for each individual in the sample. For some plans, some portions of plan census data may not be in electronic format or may not be available from the plan.

· Compare the calculated monthly benefit to the amounts being paid by the plan to determine if those amounts are reasonably equivalent.

· Prepare request(s) to the plan for any additional documents or data needed to reconcile differences in the amounts and update the benefit comparisons.

· Produce a document summarizing the methodology, benefit formula and findings for the sample requested.

The task shall involve approximately one hundred and six (106) plans and the approximately 6,890 associated sample participants and beneficiaries for all plans combined.

Task 1. – Project Development Meeting and Project Work Plan – Kick-Off Meeting

Within 2 weeks of the award of task order, the Contractor shall schedule and carry out an orientation/kick-off meeting with the COR and other EBSA staff to discuss a range of topics, including, but not necessarily limited to: the initial four plans to be reviewed, clarification of DOL’s interests and objectives for the project, conducting work on an efficient schedule and budget, coordination with DOL agencies and staff, methodologies to be employed, clarification of any specific contractual language or items, timelines for early project deliverables, and the challenges anticipated and potential solutions. The Contractor shall send an agenda and any relevant materials to the COR no less than three (3) working days prior to the kick-off meeting.

Within 1 week of the kick-off meeting, the Contractor shall submit a proposed work plan. This proposed work plan should incorporate feedback from the kickoff meeting, such as detailed information and understanding of the activities required to conduct and meet the goals and objectives of the project, the summary memo, and consultation with the EBSA Subject Matter Expert (SME).

Within 1 week after receiving comments from the Government on the draft work plan, the Contractor shall submit a revised work plan which shall address any comments made by the Government on the draft work plan. The final document shall include a clear description of the tasks to be done as well as the schedule of deliverables.

The work plan shall be updated and revised for EBSA SME review and approval whenever major changes occur. The work plan shall provide a primary basis for assessing Contractor performance and taking action when needed to ensure timely and satisfactory completion of the project on schedule and within budget.

Deliverables:

1.1. Project Development Meeting

1.2. Memorandum summarizing Project Development Meeting

1.3. Work Plan

Task 2: Calculate the promised benefits for the sample of individuals provided for each plan, compare the estimated benefits to the amounts being paid by the plan to determine if those amounts are reasonably equivalent.

EBSA will provide the Contractor with plan documents, supporting documents, and sampled plan census data for each plan to be reviewed. The Contractor shall review the provided information and data and use that information to create an Excel workbook with formulas to calculate each sampled participant’s benefit. EBSA will provide the list of sample participants to the Contractor. If the Contractor discovers that additional information or data is necessary to complete the calculation for any sampled participant, the Contractor shall provide EBSA with a specific explanation of what information or data is needed and EBSA will work with the plans to obtain the information for the Contractor.

Once the Contractor has calculated each sampled participant’s benefit based on the plan’s benefit formula, they will then compare their calculated benefit amounts to the amounts being paid by the plan to determine if those amounts are reasonably equivalent. The Contractor will then provide their spreadsheet, including documentation for EBSA to be able to interpret the spreadsheet, to EBSA for review and consultation. The spreadsheet should identify the differences between the Contractor’s calculated benefits and the amounts being paid from the plan for each sampled participant and beneficiary. For any differences that exceed a reasonable level of rounding error, the Contractor should list and identify potential reasons for the difference (e.g., missing or inconsistent data, plan calculation error, etc.). To the extent possible, the Contractor should group differences together that are expected to be due to the same causes to facilitate EBSA sending a request to the plan to remedy the differences.

After receiving comments from the Government and/or additional information from the plan to address prior differences the Contractor identified, the Contractor shall address all the Government’s comments and/or additional information with each plan’s spreadsheet, list of differences, and questions for the plan. The Task 2 process is repeated until all differences in plan benefits have been addressed to the satisfaction of the Government.

Deliverables:

2.1. Plan 1 spreadsheet with calculated benefits for the sample and listing of potential reasons for benefit differences

2.2. Plan 2 spreadsheet with calculated benefits for the sample and listing of potential reasons for benefit differences

2.3. Plan 3 spreadsheet with calculated benefits for the sample and listing of potential reasons for benefit differences

2.4. Plan 4 spreadsheet with calculated benefits for the sample and listing of potential reasons for benefit differences

2.X. Plan X spreadsheet with calculated benefits for the sample and listing of potential reasons for benefit differences. (represent any additional information after the 2.4)

Task 3: Complete a Summary of Findings

After completing each plan analysis, submitting the results to EBSA, and receiving approval from EBSA to close out the work for the plan, the Contractor will submit a draft document to EBSA summarizing their methodology and findings, including the overall accuracy of each plan’s calculations.

Once EBSA has reviewed the draft summary document and provided comments, the Contractor must revise the document. Once EBSA has approved the document, the summary of findings will be completed.

Deliverables:

3.1. Plan 1 summary document

3.2. Plan 2 summary document

3.3. Plan 3 summary document

3.X. Plan X summary document. (represent any additional information after 3.3)

Task 4: Monthly Progress Reports, Invoice and Ongoing Communications Frequent communication is essential to the success of this contract. The Contractor shall prepare monthly progress reports which will be submitted with one monthly invoice on the last day of the month. The progress report will be sent to EBSA SME with a copy to the COR via e-mail. The report will document task order progress. The progress reports shall summarize:

· The major activities and accomplishments during the reporting period.

· Progress on each task for each plan for the report month.

· The extent to which the project is on schedule and any significant deviations from the substantive and time factors in the contract.

· Significant challenges or anticipated challenges.

· Activities planned for the next month.

· Decisions which may be needed from DOL; and,

· The hours used by each staffing category that month, cumulative and balance remaining.

The report shall state if no problems or deviations exist. If there are problems or deviations, the Contractor shall describe the plan for addressing them. If necessary, an updated work plan for the remainder of the contract period should be included.

In addition, the contractor shall schedule regular calls with the government for additional instructions, clarifications, and status updates on the project.

Deliverables:

4.1. Monthly Progress Reports summarizing Project activities

4.2. Monthly Progress Meeting

4.3. Weekly Progress Review Meeting

4.4. Monthly Invoice

4.5. Revised Work Plans (if applicable)

Task 5. Case‑Specific Actuarial Support for Pension Plans

Subtask 5.1: Case Intake and Scope Memorandum

The Contractor shall, upon request, meet with the COR and designated EBSA/OSOL staff to define the case objectives, issues, and required analyses. Within five (5) business days, the Contractor shall submit a memorandum summarizing the scope, data needs (including Form 5500 Series filings, Schedules SB/MB/H, actuarial reports and workpapers, plan documents, SPD/SMM, trust statements), assumptions to be evaluated, methods, milestones, and deliverables.

Subtask 5.2: Data Acquisition, Validation, and Documentation

The Contractor shall receive and securely handle case‑specific materials provided by EBSA/OSOL. The Contractor shall validate and reconcile data from Form 5500 and supplementary sources, document data provenance, and identify gaps or inconsistencies for government resolution.

Subtask 5.3: Actuarial Analysis and Calculations

The Contractor shall perform actuarial analyses consistent with applicable Actuarial Standards of Practice (ASOPs), including but not limited to:

· Review of funding methodologies, liability measures (ABO/PBO), discount rates, mortality tables, salary scale, turnover/retirement assumptions;

· Minimum required contributions and funding ratios; sensitivity analyses under alternative assumptions;

· Asset allocation, valuation methods, rate of return analyses;

· Compliance assessments under ERISA Titles I/II and related regulations; evaluation of impacts on participants/beneficiaries.

The Contractor shall prepare calculations, exhibits, and documentation sufficient for internal decision‑making and potential litigation support.

Subtask 5.4: Case Report and Briefing

Within ten (10) business days after completion of Subtask 5.3 (or as directed by the COR for expedited matters), the Contractor shall deliver a confidential case memorandum detailing methods, assumptions, findings, and conclusions, with supporting exhibits. A non‑technical briefing accessible to a broad audience shall be provided within one (1) week of the COR’s request.

Subtask 5.5: Litigation and Enforcement Support (as needed)

At the COR’s direction, the Contractor shall support EBSA/OSOL in preparing declarations, rebuttal analyses, deposition preparation, and expert testimony materials. Deliverables will follow EBSA/OSOL templates and schedules.

Requirements

Work under Task 6 shall be led and signed by a credentialed actuary (MAAA and ASA/FSA or EA, as applicable) with demonstrated ERISA expertise. All work shall comply with applicable ASOPs. Materials are government‑confidential; Section 508 compliance is not required for internal case memoranda, but any public‑facing deliverables must be Section 508 compliant. The Contractor shall adhere to timelines specified by the COR for time‑sensitive matters.

Task 6. Case‑Specific Actuarial Support for Group Health Plans

Subtask 6.1: Case Intake and Scope Memorandum

Similar to Subtask 5.1, focusing on health plan issues (funding mechanism, plan design, AV, cost‑sharing, stop‑loss, MHPAEA/ACA compliance).

Subtask 6.2: Data Acquisition, Validation, and Documentation

The Contractor shall receive and handle plan‑specific health materials (plan documents/SPD/SBC, claims experience, premium/contribution data, stop‑loss contracts, vendor reports, Schedule A and other Form 5500 information). Validate and reconcile inputs; identify data gaps.

Subtask 6.3: Actuarial Analysis and Calculations

Perform health actuarial analyses, including but not limited to:

· Actuarial Value (AV) determination based on actual plan design parameters;

· Claims experience analyses; trend, utilization, and unit cost decomposition; credibility and smoothing as appropriate;

· Funding arrangement assessment (fully insured vs. self‑insured), stop‑loss coverage evaluation, and potential adverse selection impacts;

· Compliance assessments (e.g., MHPAEA parity testing, ACA market reforms), and participant impact analyses.

Prepare calculations and exhibits for internal and litigation support use.

Subtask 6.4: Case Report and Briefing

Confidential memorandum and non‑technical briefing, per timelines set by COR (default ten business days after analysis completion).

Subtask 6.5: Litigation and Enforcement Support (as needed)

Support EBSA/OSOL with expert materials, rebuttals, and testimony preparation.

Requirements

Work under Task 6 shall be led and signed by a credentialed actuary (MAAA and ASA/FSA) with relevant experience. Comply with applicable ASOPs. Confidential handling per EBSA/OSOL direction. Section 508 applies only to public‑facing deliverables.

Attachment 1 – Contract Modification 1605C1-23-F-00068

Technical Exhibit 2 Deliverables Schedule

PART 5, TASK 1

KICK-OFF MEETING AND WORK PLANS

*WITHIN 2 WEEKS AFTER AWARD (KICK-OFF MEETING)

*WITHIN 3 WEEKS OF THE AWARD OF THE TASK ORDER (DRAFT WORK PLAN)

1 DRAFT

1 FINAL

*SECURE FILE TRANSFER

MS WORD

EBSA SME & COR

*WITHIN 1 WEEK AFTER RECEIVING COMMENTS FROM THE GOVERNMENT ON THE DRAFT (FINAL WORK PLAN).

PART 5, TASK 2

CALCULATE BENEFIT PAYMENT AMOUNTS FOR EACH PARTICIPANT AND BENEFICIARY IN THE SAMPLE AND LISTING OF POTENTIAL REASONS FOR BENEFIT DIFFERENCES

/REQUEST THAT NEEDS TO BE MADE TO EACH PLAN

PART 5, TASK 3

SUMMARY DOCUMENT

*EACH MONTH

2 DRAFT DOCUMENTS

2 FINAL DOCUMENTS

*SECURE FILE TRANSFER

MS EXCEL OR

MS WORD

EBSA SME

PART 5, TASK 44

MONTHLY INVOICE AND PROGRESS REPORTS

1 MONTHLY INVOICE

*SECURE FILE TRANSFER

MS WORD

EBSA SME & COR