T2327 Bid Amendment 7 03.06.25.docx

PHILIP D. MURPHY

Governor State of New Jersey

DEPARTMENT OF THE TREASURY

DIVISION OF PURCHASE AND PROPERTY

PROCUREMENT BUREAU

33 WEST STATE STREET

P. O. BOX 230

TRENTON, NEW JERSEY 08625-0230

ELIZABETH MAHER MUOIO

State Treasurer

TAHESHA L. WAY

Lt. Governor

AMY F. DAVIS, ESQ.

Acting Director https://www.njstart.gov

March 6, 2025

To: All Interested Bidders

Re: Bid Solicitation # 24DPP01010 T2327 - Defined Contribution Retirement Program Administration Services: NJ State Employees Deferred Compensation Plan (NJSEDCP) and NJ Defined Contribution Retirement Program (NJDCRP)

Quote Submission Due Date: March 19, 2025 (2:00 p.m. Eastern Time)

Bid Amendment #7

The following constitutes Bid Amendment #7 to the above referenced Bid Solicitation:

· This Bid Amendment includes answers to questions;

· Please note that for all additions, deletions, clarifications and modifications to the Bid Solicitation, please refer to the Revised Bid Solicitation titled, “T2327 Revised Bid Solicitation 03.06.25”, and hereafter referred to in this document as the “Revised Bid Solicitation”;

· 3.12 Quote Content – revised;

· 3.26 State-Supplied Price Sheet - revised;

· 6.7 Privacy – revised; and

· 7.2.1 Professional Liability Insurance – revised.

· Please refer to the Revised Exhibit 1: DCP-DCRP Demographic and Investment Information (12/31/2023) titled, “T2327 Revised Exhibit 1: DCP-DCRP Demographic and Investment Information (12/31/2023) 03.06.25”, and hereafter referred to in this document as the “Revised Exhibit 1”;

· Please note that for all additions, deletions, clarifications and modifications to the State-Supplied Price Sheet, please refer to the Revised State-Supplied Price Sheet titled, “T2327 Revised State-Supplied Price Sheet 03.06.25”, and hereafter referred to in this document as the “Revised State-Supplied Price Sheet”. The Bidder must submit the Revised State-Supplied Price Sheet as part of its Quote.;

· An Optional Pre-Quote Conference was held on October 23, 2024. The below firms were confirmed to be in attendance:

· Voya Financial

· Empower

It is the sole responsibility of the Bidder to be knowledgeable of all of the additions, deletions, clarifications, and modifications to the Bid Solicitation and/or the New Jersey Standard Terms and Conditions relative to this Bid Solicitation as set forth in all Bid Amendments.

All other instructions, terms, and conditions of the Bid Solicitation shall remain the same.

Bid Solicitation # 24DPP01010 T2327 - Defined Contribution Retirement Program Administration Services: NJ State Employees Deferred Compensation Plan (NJSEDCP) and NJ Defined Contribution Retirement Program (NJDCRP)

Answers to Questions

Where applicable, each question references the appropriate Bid Solicitation section.

Section Reference Question (Bolded) and Answer

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Yes. Prior to the Quote Opening Deadline, a Bidder should review the documents comprising the submitted Quote to ensure that all of the required documents have been completed and attached. Oftentimes a Quote is deemed non-responsive because a Bidder fails to attach a required form or attaches a blank form. To review a submitted a Quote, a Bidder should log into NJSTART and review each document attached to the Quote submission. Instructions on how to review a submitted Quote can be found in the Quick Reference Guide entitled How to Review a Submitted Quote, which is available on the NJSTART Vendor Support Page under Vendor Reference Guides.

Please be advised that all Quotes shall be submitted electronically through NJSTART.

As stated in Bid Solicitation Section 2.2, Exceptions to the State of NJ Standard Terms and Conditions (SSTC): “Questions regarding the State of New Jersey Standard Terms and Conditions and exceptions to mandatory requirements MUST be posed during the Electronic Question and Answer period and shall contain the Bidder’s suggested changes and the reason(s) for the suggested change(s).” Moreover, as stated in Bid Solicitation Section 3.11, Bidder proposed terms or conditions that conflict with those contained in the State of New Jersey Standard Terms and Conditions may render a Quote non-responsive.

No. Quotes should be provided based on the investments noted and instructions included in Attachment 3 – State of NJ Technical Questionnaire and in accordance with the Bid Solicitation.

It is the intent of the State to award a Contract resulting from this Bid Solicitation by summer 2025, which would allow for the Contract to be effective and fully operational following a 90-day Mobilization Period. The State’s anticipated award timeframe is only an estimate and is subject to change.

As specified by Section 2.2 of the Revised Bid Solicitation, any exceptions regarding the State of New Jersey Standard Terms and Conditions and exceptions to mandatory requirements MUST be posed during the Electronic Question and Answer period and shall contain the Bidder’s suggested changes and the reason(s) for the suggested change(s). The State does not accept redlined documents or submissions as part of the Electronic Question and Answer process.

No. All required cells remain unlocked for Bidder responses to all questions. If additional space is required to complete a question, a Bidder may submit a separate sheet in a typed format. This additional sheet must be labeled to include the title of the associated attachment (ex. Attachment 3 - State of NJ Technical Questionnaire) and the question that your response correlates with.

As indicated in the Technical Questionnaire Instructions Tab Section V reference, an open architecture investment platform is required. The State prefers to maintain the current fund lineup, as is. As further indicated in the Technical Questionnaire Instructions Tab, the preferred fund lineup (made up of current and/or proposed funds) has been provided and the Bidder is prompted in the Section VIII Tab to indicate if it is able to accommodate each fund. If the Bidder can, there is no need to provide an alternative fund. However, if the Bidder cannot accommodate the fund, it may propose an alternative. Note that any alternatives proposed by the Bidder will be evaluated relative to those offered by its peers and it is imperative that the Bidder take the time to choose a competitive fund. In order for answers to be considered the Bidder will need to provide all of the requested information in the Section VIII Tab in the Technical Questionnaire.

In terms of the “sample investment menu” referred to in the Section V reference, it should be a simplified listing of the proposed funds indicated in the Section VIII Tab, provided in a Word format.

It is not the State’s intent to terminate this in-plan retirement income solution. Should the State ever decide to terminate the option, the market value of participant IncomeFlex Target Fund balances would move as directed by participants or the plan, negating guarantees associated with income bases based on highest birthday values. Participants may also be able to transfer or roll over their IncomeFlex Target guarantees into a variable annuity contract, which is registered with the Securities and Exchange Commission, available through Empower Annuity Insurance Company of America. This contract may have substantially different fees, investments, and provisions affecting the guarantees. Should your firm be unable to recordkeep the fund, propose an alternative fund as specified in the Technical Questionnaire.

Please use the asset numbers in the Revised Exhibit 1 Investments Tab, which are correct as of 12/31/2023.

Please use the participant numbers in the Revised Exhibit 1 Plan Data Tab, which are correct as of 12/31/2023.

The DCP Stable Value Fund (SVF) is owned by the State and the asset manager for the SVF is PGIM, Inc., a subsidiary of Prudential Financial. Empower serves as the fund administrator, managing individual accounts, processing deposits and withdrawals, maintaining records, providing statements and online services, and supplying the State (DPB) with periodic reports necessary for financial statements and supporting the needs of the DCP and DCRP Boards. The SFV includes wrap insurance that protects the payment of plan benefits to participants at book value, even when the market value of the underlying assets is lower than the book value. The wrap ensures that participants can withdraw the principal of their investments at book value, providing stability and protection against market volatility. The wrap is seldom exercised, typically only at the termination of the fund. For normal operations, the wrap is not exercised, even in the case of mark-to-market (realized and unrealized) losses, as the fund’s liquidity is used to pay for withdrawals. The wrap contract is provided by Prudential Insurance, and Empower Annuity Insurance Company of America (EAICA) serves as reinsurer. The SVF is designed to provide continuity at termination with transferability of the underlying assets independent of the wrap contract. To effectuate the continuity, the State can replace either of the underlying components of the stable value solution and terminate the current vendor as either investment manager or book value guarantor. The unit holdings within the fund can be retained at market value or the market value cash equivalent can be transferred to another provider. In addition, a book value installment option is available.

No notice of termination has been provided for any of the Plans' investments. Please see the response to Question #13, above, regarding the DCP Stable Value Fund’s structure and liquidity.

Yes.

While the State is not interested in terminating and replacing the current Stable Value Fund, its Book-to-Market Ratio is 93% as of November 30, 2024.

Please see the Fund Profile Sheet in Exhibit 4, as well as the response to Question #13, above, for available information on the Stable Value Fund. Cash flow history for the Stable Value Fund is not available at this time.

Information provided in millions of dollars for NJSEDCP: 2023 - $1,253, 2022 - $1,302, 2021 - $1,321, 2020 - $1,311, 2019 - $1,192. NJDCRP: 2023 - $402, 2022 - $354 , 2021 - $311, 2020 - $275, 2019 - $232.

This State is unable to provide this information at this time.

The GoalMaker portfolio consists the following funds: Ariel Investments Small/Mid Cap Value Fund, Core Bond Enhanced Index/PGIM fund, DCP Stable Value Fund, International Blend/Lazard Fund, Invesco Developing Markets Fund Class Y, Large Cap Value/LSV Asset Management, PIMCO All Asset Fund Institutional Class, Polen Capital Large Cap Growth, Prudential IncomeFlex Target Balanced Fund, Small Cap Growth II Fund, and Small Cap Value I Fund. Asset balances are provided in the investment tab in the Revised Exhibit 1; however, these assets are not limited to Goalmaker. A detailed breakdown of individual asset balances in Goalmaker is not available at this time. There are 13,018 NJSEDCP and 1,719 NJDCRP participants age 55+ invested in GoalMaker portfolios with $1,166,412,830 (NJSEDCP) and $23,661,178 (NJDCRP) in total assets invested in those portfolios.

Calls received for NJSEDCP was 24,293 and for NJDCRP was 18,399 for calendar year 2023. The State is unable to provide the other information at this time.

No.

Please see the response to Question #13, above, regarding the DCP Stable Value Fund’s structure and liquidity. While the State is not interested in terminating and replacing the current Stable Value Fund, its Book-to-Market Ratio is 93% as of November 30, 2024.

Refer to the answer to Question #13.

We do not have data on fixed assets by fund in Goalmaker. Total assets in Goalmaker for NJSEDCP is $2,134,114,963 and for NJDCRP is $44,749.494 as of 12/31/2023.

As of 12/31/2023, NJSEDCP has total assets of $398,476,132 in conservative portfolio, $928,747,587 in moderate portfolio, and $806,891,245 in aggressive portfolio. NJDCRP has total assets of $5,048,944 in conservative portfolio, $21,469,332 in moderate portfolio, and $18,231,218 in aggressive portfolio.

No.

Refer to the answer to Question #13.

The State declines the proposal as presented in this question.

Pursuant to Bid Solicitation Section 1.4:

The Contract awarded, and the entire agreement between the parties, as a result of this Bid Solicitation shall consist of: (1) the final Bid Solicitation, (2) the State of New Jersey Standard Terms and Conditions, (3) the Quote, and if applicable (4) any Bidder responses to clarifications; (5) a Bidder’s Best and Final Offer, (6) other negotiated document, and/or (7) third party document.

Pursuant to Bid Solicitation Section 2.2, any conflict in terms and exceptions to mandatory requirements MUST be posed during the Electronic Question and Answer period and shall contain the Bidder’s suggested changes and the reason(s) for the suggested change(s). A Quote submitted with conflicting terms and conditions that were not raised during the Electronic Question and Answer period may be deemed non-responsive.

The requirement is five (5) Defined Contribution Plans with at least 50,000 participants in each of the five (5) plans.

Per the State-Supplied Price Sheet Instructions, the State is requesting fees be submitted separately for each Plan, on a per participant account basis in each respective Plan. The State requests that each Plan be priced separately based on its own respective demographics and services. Please refer to the Revised State-Supplied Price Sheet.

No. Per the State-Supplied Price Sheet Instructions, the State is requesting fees be submitted separately for each Plan, on a per participant account basis in each respective Plan. The State requests that each Plan be priced separately based on its own respective demographics and services. Please refer to the Revised State-Supplied Price Sheet.

No. Per the State-Supplied Price Sheet Instructions, the State is requesting fees be submitted separately for each Plan, on a per participant account basis in each respective Plan, not on a unique SSN basis across Plans. Please refer to the Revised State-Supplied Price Sheet.

While the State desires an open-architecture investment platform, it desires a bundled service arrangement meeting the Bid Solicitation’s Scope of Work requirements. The State requires the availability of investment management products and services, although the State's Investment Division assists with investment oversight and management. The State also requires the availability of financial wellness tools and participant advice service for the Plans' participants.

As specified by Revised Bid Solicitation Section 6.1, the Security Plan shall address the Contractor’s approach to meeting each applicable security requirement outlined by Sections 6.2 through 6.34 of the Bid Solicitation. The Security Plan must be submitted by the Contractor to the State no later than thirty (30) Calendar Days after the award of the Contract.

The State is unable to speculate as to whether or not potential aspects of a Bidder’s Quote will meet the Security Plan requirements specified by Section 6.1. The awarded Contractor will be required to meet the Security Plan requirements as outlined above, and in Section 6.1 of the Revised Bid Solicitation.

The State declines to modify Section 6.18 of the Bid Solicitation. However, the State acknowledges Bid Solicitations Section 6.18 and 6.19 may not be applicable to all Bidders. This should be indicated as well within Section 14 and 15 of the State's Security Questionnaire. Data security requirements outlined in Section 6 shall be met where applicable.

The State declines to modify Section 6.7 of the Bid Solicitation. However, the State acknowledges not all compliance frameworks listed may be applicable to Bidders. This is State template language that includes but is not limited to GDPR, PCI DSS, HIPAA, etc. Data security requirements outlined in Section 6 shall be met where applicable.

Pursuant to the express language in Bid Solicitation Section 6.7, any such permission will be on "a case-by-case basis as specifically agreed to in writing by the State Contract Manager."

The State accepts the proposed change to notify the State of a Breach no later than 72 hours. Bid Solicitation Section 6.7, G has been revised to reflect this change.

That sensitive data is sufficiently hidden so that it cannot be viewed, deciphered, or able to be used by bad actors.

Reason for Suggested Change: Regarding 7.1 of the Solicitation intended to modify Section 4.1 Indemnification of the SSTC, Bidder is amenable to the State’s indemnification requirements except that it will not be liable to the State for acts or omissions undertaken at the direction of the State, for strict performance of services under a contract, and for the States failure to provide timely and accurate information.

The State declines to further alter or modify the State Standard Terms and Conditions Section 4.1 Indemnification (as modified by Bid Solicitation Section 7).

The proposed modification is accepted by the State. Bid Solicitation Section 7.2.1 has been revised to reflect this change. Please refer to the Revised Bid Solicitation.

The State declines to provide additional information regarding the technical evaluation weighting and scoring percentages during the Question and Answer process.

The State declines to provide additional information regarding the pricing evaluation weighting and scoring during the Question and Answer process.

The State declines to re-define the term Subcontractor.

Yes. Some cells on the Revised State-Supplied Price Sheet have been formatted using the Accounting format. If the Bidder inputs a zero (0) into a cell with this formatting type, the zero (0) will automatically be converted to a dash line (-).

As specified by Revised Bid Solicitation Section 3.26, if a fee or service is not applicable, add "N/A" to each price line in the applicable column (B, C, and/or D). Any highlighted price lines that do not include a response, will be considered as an "Incomplete Fee quote" and may result in the Quote being deemed non-responsive.

If a Bidder inputs $0 (-) or No Charge, it will be accepted as “N/A”.

All cells identified as “Other” are unlocked on the Revised State-Supplied Price Sheet. Each cell is highlighted and includes a bracketed description guiding Bidders on where to enter service descriptions or fees. Examples include Other - [Explain briefly here & enter any associated cost to the right] or Other fee [Enter Description Here]. Bidders may enter the applicable information as directed within these cells.

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