The Segal Group, Inc..pdf

© 2025 by The Segal Group, Inc.

Nebraska Public Employees Retirement System

Actuarial Services Solicitation Number: 120961 O5

March 21, 2025

Matthew Strom, FSA, MAAA, EA Senior Vice President, Actuary T 312.984.8534 M 646.668.1425 mstrom@segalco.com

101 North Wacker Drive Suite 500

Chicago, IL 60606-1724 segalco.com

March 21, 2025

State Purchasing Bureau Attention: Connie Heinrichs/Brook Taylor, Procurement Contract Officers 1526 K Street, Suite 130 Lincoln, Nebraska 68508

RE: Request for Proposal for Actuarial Services Solicitation Number: 120961 O5

Dear Ms. Heinrichs and Ms. Taylor:

Thank you for the opportunity to present our proposal to perform actuarial services for the Nebraska Public Employees Retirement System (NPERS). We understand the services include general consulting, valuation services, Governmental Accounting Standards Board (GASB) reporting, projections, and the performance of experience and benefit adequacy studies. Segal is well-qualified to perform the requested scope of services.

Segal has been assisting employers for over 85 years and public sector retirement plans for more than 70 years. Serving the public sector is a primary focus at Segal and for our senior consulting team proposed for NPERS. We are a recognized industry leader, sponsoring and participating in many service and professional organizations, including the National Association of State Retirement Administrators, the National Council on Teacher Retirement, the National Conference on Public Employee Retirement Systems, and the Public Sector HealthCare Roundtable.

Segal’s longstanding mission is to provide “trusted advice that improves lives.” We offer a team with the knowledge and experience to engage with NPERS when and where you need us, and a commitment to a common goal: to allow your members to thrive in their employment years as they look forward to a secure retirement. Our proposed team’s deep experience with similar public sector defined benefit plans and our cost-effective, client-focused approach will serve NPERS well.

I am authorized to negotiate a contract with NPERS and look forward to discussing our proposal response with you in greater detail. If you have any questions, please feel free to contact me directly at 646.668.1425.

Sincerely, Matthew Strom, FSA, MAAA, EA Senior Vice President, Actuary ii

Table of Contents

Executive Summary

Contractual Agreement Form

1. Corporate Overview

Section II. Terms and Conditions

Section III. Vendor Duties

Section IV. Payment

2. Technical Response

a. Attachment A: Mandatory qualifications

b. Attachment B: Proposed technical approach

c. Attachment C: Additional corporate experience

d. Deliverables and due dates (Cost Proposal)

Attachments and Supplementary Information A. Sample Actuarial Valuation report B. Sample GASB 67 and GASB 68 report C. Sample Experience Study D. Sample Benefits Adequacy study

Appendix A. Financial statement cover letter B. Bank reference C. Professional biographies D. Representative list of Public Sector clients

Executive Summary We appreciate the opportunity to present our proposal to the Nebraska Public Employees Retirement System (NPERS) in response to your Request for Proposal. We trust this proposal will demonstrate that Segal is best qualified to provide the services requested.

Our understanding We understand that NPERS, under the direction of the Public Employees Retirement Board (PERB) is seeking proposals from qualified actuarial consulting firms to provide actuarial services for six retirement systems and one deferred compensation plan for the State of Nebraska. If retained for this important engagement, Segal will provide all required services in accordance with federal and state statutes and the contract between NPERS and Segal.

Segal works with a number of statewide plans and is very familiar with all services being requested for NPERS. We approach our work with public employee retirement systems with a deep understanding of the numerous intricacies and challenges involved. Some of our current clients have relatively straightforward plans with just one group and a single plan of benefit provisions whereas other plans are more complex with multiple tiers with inherently unique benefit provisions.

Team experience Segal has established a team of retirement actuaries and consultants that functions as a center of excellence for public sector consulting. This team specializes in public sector systems, states, local governments and other public sector organizations and has extensive experience valuing the liabilities for all types of retirement benefits, as well as advising clients on managing the magnitude of their unfunded liabilities. Utilizing this experience, the team provides them insight into a wide range of circumstances, strategies and practices from various levels of governmental organizations; therefore, we are well positioned to provide NPERS with context, perspective and expert advice.

In addition to a robust actuarial consulting team, NPERS will have access to additional consultants as needs arise. Melanie Walker, Segal’s Public Sector Compliance Practice leader, will keep NPERS staff up to date on tax and regulatory issues that affect public retirement systems and can provide advice and training on fiduciary rules and plan governance structure.

Experience with other large public employees’ retirement systems Segal is well versed in providing consulting services to large public pension plans like NPERS including annual actuarial valuations, periodic experience studies, and Board education sessions. In addition to these services, we provide consulting around model funding policy, legislative proposals and benefit adequacy. Following are recent examples of our experience:

• Public Employees’ Retirement Association of Colorado (PERA): Segal assisted with the application of a law that ties employer and member contributions, levels of post-retirement COLAs, and state assessments to plan funding levels. The law creates a direct link between actuarially calculated contributions and actual contributions in a systematic way, improving the plan’s long-term funding outlook. PERA staff and the Segal team use Segal’s dynamic online modeling tool Segal Pulse® to assess the impact of economic and demographic experience that differs from assumptions and evaluate PERA’s projected funded level under difference scenarios.

• Public Employees’ Retirement System of Nevada: Our consultants analyzed a proposed State bill that would have closed the defined benefit system and created a defined contribution plan for new members. Our work on this proposal included a detailed analysis of the short- and long-term costs, discussion of legal and compliance issues, meetings with legislative staff, committee testimony and Board education.

• Vermont Retirement Systems: Segal works with the Office of the State Treasurer and the Boards of Trustees of three pension systems that cover state and local workers as well as public school teachers and staff. Segal presented a detailed and comprehensive risk analysis to the Boards and stakeholders and worked with the legislature to assess the impact of additional funding sources to improve the funded status of the Systems over time. The team also evaluated the statutory contribution levels of subgroups within the Municipal Employees’ System to advise the Board on potential changes in employer and member contribution rates that would balance equity between employer/employee cost-sharing and total contribution levels relative to the value of benefits provided in each subgroup.

• Kern County Employees’ Retirement Association in California (KCERA): KCERA engaged with our consultants to build a robust risk report surrounding the funding and strategic outlook of its pension system. The report provided a deep dive into the history of funded status and contributions, detailing significant policies and events and illustrated how they affected the financial health of the system over time. We also worked with staff to understand the Board’s key concerns going forward, and projected various investment return scenarios, the plan’s maturity evolution based on employee turnover by tier, and stochastic modeling that focused on the likelihood of key funding and contribution parameters.

As one of the nation's leading independent consultants to the public sector, Segal has the knowledge, expertise and experience to understand the environment in which decisions are made by public plans. We understand what solutions will work for a public plan and help our public sector clients craft those solutions to their specific needs.

We are pleased to expand upon any issue at the level of detail you require and are available to meet with you to discuss our proposed approach. We are excited about the opportunity to partner with NPERS to provide actuarial services.

Contractual Agreement Form

CONTRACTUAL AGREEMENT FORM

By signing this Contractual Agreement Form, the bidder guarantees compliance with the provisions stated in this solicitation and agrees to the terms and conditions unless otherwise indicated in writing and certifies that bidder is not owned by the Chinese Communist Party.

THIS FORM MUST BE SIGNED MANUALLY IN INK OR BY DOCUSIGN

COMPANY: The Segal Company (Midwest), Inc. d/b/a Segal

ADDRESS: 101 North Wacker Drive, Suite 500, Chicago, Illinois 60707

PHONE: 646.668.1425

EMAIL: mstrom@segalco.com

BIDDER NAME & TITLE: Matthew A. Strom, FSA, MAAA, EA / Senior Vice President, Actuary

SIGNATURE:

DATE: March 21, 2025

VENDOR COMMUNICATION WITH THE STATE CONTACT INFORMATION

(IF DIFFERENT FROM ABOVE)

NAME: Not applicable.

TITLE:

PHONE:

EMAIL:

Per Nebraska’s Transparency in Government Procurement Act, Neb. Rev Stat § 73-603, DAS is required to collect statistical information regarding the number of contracts awarded to Nebraska Vendors. This information is for statistical purposes only and will not be considered for contract award purposes.

NEBRASKA VENDOR AFFIDAVIT: Bidder hereby attests that bidder is a Nebraska Vendor.

“Nebraska Vendor” shall mean any bidder who has maintained a bona fide place of business and at least one employee within this state for at least the six (6) months immediately preceding the posting date of this Solicitation. All vendors who are not a Nebraska Vendor are considered Foreign Vendors under Neb. Rev Stat § 73-603 (c).

I hereby certify that I am a Resident disabled veteran or business located in a designated enterprise zone in accordance with Neb. Rev. Stat. § 73-107 and wish to have preference, if applicable, considered in the award of this contract.

I hereby certify that I am a blind person licensed by the Commission for the Blind & Visually Impaired in accordance with Neb. Rev. Stat. § 71-8611 and wish to have preference considered in the award of this contract.

BIDDER MUST COMPLETE THE FOLLOWING

mailto:mstrom@segalco.com

1. Corporate Overview

a. BIDDER IDENTIFICATION AND INFORMATION

The bidder should provide the full company or corporate name, address of the company's headquarters, entity organization (corporation, partnership, proprietorship), state in which the bidder is incorporated or otherwise organized to do business, year in which the bidder first organized to do business and whether the name and form of organization has changed since first organized.

Firm Information Name of firm: The Segal Company (Midwest), Inc. d/b/a Segal

Address of company headquarters: 333 West 34th Street New York, NY 10001-2402

Office providing services: 101 N. Wacker Drive Suite 500 Chicago, Illinois 60606-1724

Entity organization: Corporation

State of incorporation Illinois

First organized to do business: The Chicago office first organized to do business in 1968.

Segal was founded as the Martin E. Segal Company in 1939, early in the development of employee benefit plans in American industry. From the beginning, Segal has been involved in developing health and retirement programs that meet the needs of employees and employers.

Through our history, we’ve built a group of brand names you’ve come to count on for truly personal actuarial, investment and human resources consulting expertise aimed at one mission:

delivering trusted advice that improves lives. Today we formally operate under one name:

Segal.

The following is a summary of changes in our company name over the years.

Changes in Company Names 1939 Segal was founded as the Martin E. Segal Company

1967 The Martin E. Segal Company became part of Wertheim & Co

1978 It again became independent when it was repurchased by company management and was again known as the Martin E. Segal Company

1991 The business began operating as Segal (no change in legal ownership, simply a rebranding of the name), and shortly thereafter as Segal Consulting

2020 We formally operate as Segal

Segal, Segal Benz and Segal Marco Advisors are all members of the Segal family. While company names and logos have evolved over the firm’s 85-year history, we remain an employee-owned firm known for providing unbiased consulting based on the integrity, expertise, personal investment and trusted advice of our people.

Administration and Technology Consulting Benefit Audit Solutions Compensation and Career Strategies Compliance

Health and Welfare Benefits HR and Benefits Technology Insurance Organizational Effectiveness Retirement Benefits

Benefits Communication Communication Strategy Personalized Benefit Statements Surveys and Focus Groups Website and Portal Design

Corporate Governance and Proxy Voting Defined Contribution Consulting Discretionary Investment Management Intermediary/Advisor Solutions Investment Consulting

OCIO

b. FINANCIAL STATEMENTS

The bidder should provide financial statements applicable to the firm. If publicly held, the bidder should provide a copy of the corporation's most recent audited financial reports and statements, and the name, address, and telephone number of the fiscally responsible representative of the bidder’s financial or banking organization.

If the bidder is not a publicly held corporation, either the reports and statements required of a publicly held corporation, or a description of the organization, including size, longevity, client base, areas of specialization and expertise, and any other pertinent information, should be submitted in such a manner that solicitation evaluators may reasonably formulate a determination about the stability and financial strength of the organization. Additionally, a non-publicly held firm should provide a banking reference.

Segal is considered financially sound and has been profitable throughout its history. A copy of our audited financial statements have been included with our proposal response, as a separate password protected document. Upon submission of our proposal, our CFO will telephone the procurement contact with the password necessary to open the statements.

The financial statement cover letter with detailed information is attached to this proposal as Appendix A.

Our bank reference is attached to this proposal as Appendix B.

The bidder must disclose any and all judgments, pending or expected litigation, or other real or potential financial reversals, which might materially affect the viability or stability of the organization, or state that no such condition is known to exist.

Throughout our long history, Segal has occasionally been named as a party in litigation. No litigation has ever affected Segal's ability to provide services to its clients or materially affected Segal’s financial position or operations.

The State may elect to use a third party to conduct credit checks as part of the corporate overview evaluation.

We acknowledge the State may elect to use a third party to conduct credit checks as part of the corporate overview evaluation.

c. CHANGE OF OWNERSHIP

If any change in ownership or control of the company is anticipated during the twelve

(12) months following the solicitation response due date, the bidder should describe the circumstances of such change and indicate when the change will likely occur. Any change of ownership to an awarded bidder(s) will require notification to the State.

Segal is a privately held, employee-owned company, and as such, we do not anticipate any change in ownership or control of our company in the future.

d. OFFICE LOCATION

The bidder’s office location responsible for performance pursuant to an award of a contract with the State of Nebraska should be identified.

The NPERS account will be managed out of Segal’s Chicago office, located at 101 N. Wacker Drive, Suite 500, Chicago, Illinois 60606-1724.

e. RELATIONSHIPS WITH THE STATE

The bidder should describe any dealings with the State over the previous ten (10) years.

If the organization, its predecessor, or any Party named in the bidder’s solicitation response has contracted with the State, the bidder should identify the contract number(s) and/or any other information available to identify such contract(s). If no such contracts exist, so declare.

Since 2016, Segal has been the State’s health consultant and actuary. The contract number is 120005 O5.

Contract to supply and deliver professional health and welfare consulting services for the employee insurance benefits program which includes health, wellness, dental, vision, life, long term disability, flexible spending accounts, health savings account, and employee assistance program to the State of Nebraska as per the attached specifications for the contract period March 1, 2025 with a contract length of three years with two possible extensions.

f. BIDDER’S EMPLOYEE RELATIONS TO STATE

If any Party named in the bidder’s solicitation response is or was an employee of the State within the past twelve (12) months, identify the individual(s) by name, State agency with whom employed, job title or position held with the State, and separation date. If no such relationship exists or has existed, so declare.

If any employee of any agency of the State of Nebraska is employed by the bidder or is a subcontractor to the bidder, as of the due date for solicitation response submission, identify all such persons by name, position held with the bidder, and position held with the State (including job title and agency). Describe the responsibilities of such persons within the proposing organization. If, after review of this information by the State, it is determined that a conflict of interest exists or may exist, the bidder may be disqualified from further consideration in this solicitation. If no such relationship exists, so declare.

To the best of our knowledge, there is no such current or past relationship.

g. CONTRACT PERFORMANCE

If the bidder or any proposed subcontractor has had a contract terminated for default during the past ten (10) years, all such instances must be described as required below.

Termination for default is defined as a notice to stop performance delivery due to the bidder’s non-performance or poor performance, and the issue was either not litigated due to inaction on the part of the bidder or litigated and such litigation determined the bidder to be in default.

Segal has not had a contract terminated for default.

It is mandatory that the bidder submit full details of all termination for default experienced during the past ten (10) years, including the other Party's name, address, and telephone number. The response to this section must present the bidder’s position on the matter. The State will evaluate the facts and will score the bidder’s solicitation response accordingly. If no such termination for default has been experienced by the bidder in the past ten (10) years, so declare.

Segal has not had a contract terminated for default.

If at any time during the past ten (10) years, the bidder has had a contract terminated for convenience, non-performance, non-allocation of funds, or any other reason, describe fully all circumstances surrounding such termination, including the name and address of the other contracting Party.

Segal has not had a contract terminated for convenience, non-performance, non-allocation of funds, or any other reason.

h. SUMMARY OF BIDDER’S CORPORATE EXPERIENCE

The bidder should provide a summary matrix listing the bidder’s previous projects similar to this Solicitation in size, scope, and complexity. The State will use no more than three (3) narrative project descriptions submitted by the bidder during its evaluation of the solicitation response.

The bidder should address the following:

i. Provide narrative descriptions to highlight the similarities between the bidder’s experience and this Solicitation. These descriptions should include:

a. The time period of the project,

b. The scheduled and actual completion dates,

c. The bidder’s responsibilities,

d. For reference purposes, a customer name (including the name of a contact person, a current telephone number, a facsimile number, and e-mail address);

and

e. Each project description should identify whether the work was performed as the prime Vendor or as a subcontractor. If a bidder performed as the prime Vendor, the description should provide the originally scheduled completion date and budget, as well as the actual (or currently planned) completion date and actual (or currently planned) budget.

ii. Bidder and Subcontractor(s) experience should be listed separately. Narrative descriptions submitted for Subcontractors should be specifically identified as subcontractor projects.

iii. If the work was performed as a subcontractor, the narrative description should identify the same information as requested for the bidders above. In addition, subcontractors should identify what share of contract costs, project responsibilities, and time period were performed as a subcontractor.

iv. Additional corporate experience must be completed on Attachment C.

As requested, Segal’s corporate experience has been completed on Attachment C. Segal will not use subcontractors to perform the requested Scope of Services.

i. SUMMARY OF BIDDER’S PROPOSED PERSONNEL/MANAGEMENT APPROACH

The bidder should present a detailed description of its proposed approach to the management of the project.

Following is a sample work plan describing our approach to the project. Valuations are scheduled to finish within approximately four months of the close of the applicable fiscal year.

The sample shown is for a July 30 fiscal year with results presented in early November.

Actuarial Work Plan/Calendar Valuation Process – Preparation and Presentation of Valuation Report

Key Task Team Members Assigned Consultant

Responsibilities

NPERS

Responsibilities Other Needed

Resources General Timeline

Initial preparation: Set up files, including review of plan documents for all plans, previous valuations and any other relevant materials. Prepare data request, identifying all required information.

Segal Matt Strom (Client Relationship Manager and Primary Actuary)

Dan Siblik (Secondary Actuary)

Tanya Dybal (Senior Reviewing Actuary) David Nickerson (Reviewing Actuary)

Jakob Nolan (Reviewing Actuary)

Diana Yen (Senior Analyst)

Laura Jeske (Analyst) Maria Manoukarakis (Analyst)

• Prepare files and data/information request

• Review notes from prior year’s valuation file

• Update consultant on any changes or relevant facts that occurred since the prior valuation

• N/A July through mid-August

Gather and review participant data: Run the participant data through standard "edit and distribution" programs to verify completeness and reasonableness. Resolve any issues with NPERS staff.

Financial data should also be provided when available.

Segal Dan Siblik David Nickerson

Jakob Nolan

Diana Yen

Laura Jeske Maria Manoukarakis

• Scrub and reconcile participant census data

• Prepare questions

• Review financial information for completeness

• Provide census data files to Consultant

• Assist with questions that arise during reconciliation process

• End of year market value of assets broken out by broad classification

• Reconciliation of market value from beginning of year to end of year

August

Key Task Team Members Assigned Consultant

Responsibilities

NPERS

Responsibilities Other Needed

Resources General Timeline

Develop/ revise/ test all computer programs: Make programming adjustments as necessary to take into account changes in benefits, contributions and actuarial assumptions.

Perform extensive testing of valuation applications before, during and after processing the actual valuations to ensure the programs perform as expected.

Segal David Nickerson

Jakob Nolan

Diana Yen

• Update and test valuation programs

• Prepare “test lives” suite

• Three-level do, check and review

• N/A • N/A September and October

Review assumptions against experience: The team will assess developing trends and analyze actuarial gains and losses since the prior valuation. Discuss with NPERS staff, if necessary, to verify unusual results.

Segal Matt Strom

Dan Siblik

Tanya Dybal

David Nickerson

Jakob Nolan

Diana Yen

• Calculate actuarial assets

• Generate and review detailed gain/loss analysis

• Identify trends in experience and areas to investigate during next experience study

• Discuss observations with consultant

• Explore possible external reasons for unusual liability gains or losses

• N/A September and October

Complete the actuarial calculations: Run final versions of computer valuation programs.

Prepare work sheets and tables.

Submit all calculations to the reviewing actuary for verification of mathematical accuracy.

Segal Dan Siblik

David Nickerson

Jakob Nolan

Diana Yen

• Use final liabilities and final actuarial assets to develop valuation costs, contribution rates, and GASB calculations

• Review for accuracy

• N/A • N/A Late September into October

Key Task Team Members Assigned Consultant

Responsibilities

NPERS

Responsibilities Other Needed

Resources General Timeline

Review the actuarial valuation:

This review by the reviewing actuary encompasses the entire process including participant and financial data preparation, calculations and programs. Draft the report and presentation to be presented to the Board. Final review performed by Primary and Secondary Actuaries.

Segal Matt Strom

Dan Siblik

Tanya Dybal

David Nickerson

Jakob Nolan

• Prepare draft valuation report, GASB accounting schedules, and Board presentation materials

• Senior actuaries review the entire valuation and report for technical accuracy

• Identify key findings and develop consulting and communication approach

• Prepare Problem Identification Report, if necessary

• Participation in process for developing Board communication strategy, as appropriate

• Review and comment on Problem Identification Report, if necessary

• N/A October into November

Present the report: Distribute draft report and discuss results and findings with NPERS staff.

Incorporate final edits into report.

Present results to the Board.

Segal Matt Strom

Dan Siblik

Tanya Dybal

• Distribute draft report and draft presentation

• Compile final reports

• Prepare and present to Board

• Review draft report and draft presentation

• Assistance with presentation logistics, if necessary

November

Experience Study Process: Analysis of Experience and Development of Recommended Assumptions

Key Task Team Members

Assigned Consultant

Responsibilities

NPERS

Responsibilities Other Needed

Resources General Timeline

Data preparation: Run historical valuation data files through data utility to add current and prior status fields.

Create five data files to be used in Segal’s Experience Study Software (ESS) tool

Segal David Nickerson

Jakob Nolan

Diana Yen

• Convert census data files to format compatible to use with ESS tool

• Review notes from data section of historical valuation files

• N/A • N/A October 2025

Run data files through ESS utility:

Set up ESS to analyze each demographic assumption. Review current assumption formats. Process ESS and develop expected versus actual experience, by decrement.

Segal David Nickerson

Jakob Nolan

Diana Yen

• Run data files through

ESS

• Review output for anomalies and address in data files, if necessary

• Develop exposures, expected decrements and actual decrements

• N/A • N/A October 2025

Analysis of demographic experience and economic assumptions: Use capital market data to evaluate investment return assumption and underlying inflation.

Study actual demographic experience versus expected and develop proposed assumptions. Value impact of proposed assumptions on actuarial valuation results

Segal Dan Siblik

David Nickerson

Jakob Nolan

Diana Yen

• Evaluate available data and generate recommended inflation

• Run stochastic projection of real rates of investment return by asset class and develop expected return recommendation

• Develop recommended demographic assumptions

• Evaluate impact on valuation results of proposed assumptions

• Provide input on external trends that might impact future experience or explain anomalous historical experience not expected to repeat in the future

• Receive copy of Investment Policy Statement and current target asset allocation

November

Experience Study Process: Analysis of Experience and Development of Recommended Assumptions

Key Task Team Members

Assigned Consultant

Responsibilities

NPERS

Responsibilities Other Needed

Resources General Timeline

Review the experience study: This review by the reviewing actuary encompasses the entire process including census data files, ESS calculations/analysis, and development of recommended assumptions. Draft the report and presentation to be presented to the Board. Final review performed by Primary and Secondary Actuaries.

Segal Matt Strom

Dan Siblik

Tanya Dybal

David Nickerson

Jakob Nolan

• Prepare draft experience study report and Board presentation materials

• Senior actuaries review the entire experience study and report for technical accuracy

• Identify key findings and develop consulting and communication approach

• Participation in process for developing Board communication strategy, as appropriate

• N/A End of November into December

Present the report: Distribute draft report and discuss results and findings with NPERS staff. Incorporate final edits into report. Present results to the Board.

Segal Matt Strom

Dan Siblik

Tanya Dybal

• Distribute draft report and draft presentation

• Compile final report

• Prepare and present to

Board

• Review draft report and draft presentation

• Assistance with presentation logistics, if necessary

December

The bidder should identify the specific professionals who will work on the State’s project if their company is awarded the contract resulting from this Solicitation. The names and titles of the team proposed for assignment to the State project should be identified in full, with a description of the team leadership, interface, and support functions, and reporting relationships. The primary work assigned to each person should also be identified.

Matt Strom, FSA, MAAA, EA, will serve as Client Relationship Manager (CRM) for NPERS. As CRM, Matt will oversee the relationship by monitoring workflow, responding to client inquiries and needs, and communicating progress to you. Our approach to client satisfaction is proactive:

we seek to understand client business issues and anticipate client needs, rather than react to them. Matt will also solicit feedback and keep you updated on issues that arise in the industry that may have an impact on your plans. In addition, Matt will ensure that the team delivers the highest quality work and meets all client objectives.

Matt has more than 25 years of experience consulting to sponsors of defined benefit pension plans. His responsibilities include presenting to boards of trustees, reviewing actuarial valuations, preparing actuarial cost studies and managing other special projects for public sector retirement plans. His expertise includes deterministic and stochastic cost and funding level projections, plan design analyses, experience studies, asset/liability modeling and actuarial audits. Additionally, Matt is a member of Segal’s Public Sector Leadership Group.

Matt serves as actuary to a number of public sector retirement systems including:

• Colorado Public Employees’ Retirement Association

• Vermont Retirement Systems

• Teachers' Retirement System of the State of Illinois

• Firemen’s Annuity and Benefit Fund of Chicago

• Chicago Municipal Employees' Pension and Annuity Pension Fund

• Chicago Park Employees' Pension and Annuity Pension Fund

• Chicago Housing Authority Pension Plan

• Illinois Commission on Government Forecasting and Accountability

Matt will be supported by a team of experienced team of actuaries and a compliance professional. We utilize a consulting team approach requiring broad skill sets such as pension actuaries, retirement experts, compliance experts, communications experts and more. Our team approach ensures you will always have a Segal expert available to you.

Segal Team Name Role Experience and Responsibilities

Matthew Strom, FSA, MAAA, EA Senior Vice President and Actuary 312.984.8534 mstrom@segalco.com

Client Relationship Manager (CRM) and Primary Actuary

Matt has more than 25 years of experience supporting the design and financing of retirement and other employee benefit programs for the public sector. Matt will review all correspondence and reports, present results to NPERS and manage the relationship. He will work closely with the team to ensure NPERS’ needs are met.

Daniel Siblik, ASA, MAAA, FCA, EA Vice President and Actuary 630.414.2695 dsiblik@segalco.com

Secondary Actuary

Dan will serve as Secondary Actuary for NPERS. He has more than 25 years of experience, focusing primarily on public sector pension consulting. Dan will review all correspondence and reports and present the results to NPERS. He will manage the workflow of the team to ensure needs are met and deliverables are provided on a timely basis.

Tatsiana (Tanya) Dybal, FSA, MAAA, EA

Vice President and Actuary 312.984.8671 tdybal@segalco.com

Senior Reviewing Actuary

Tanya will conduct valuation reviews, review the actuarial valuation replications, prepare actuarial cost studies and manage other special projects, as needed. Tanya will work closely with the actuarial team to ensure NPERS needs are met.

David Nickerson, ASA, EA Actuary 312.984.8555 dnickerson@segalco.com

Reviewing Actuary

David will conduct valuation reviews and review the actuarial valuation replications, including all levels of valuation production. David will be the lead Reviewing Actuary.

Jakob Nolan, ASA, MAAA, EA Associate Actuarial Consultant 312.984.8629 jnolan@segalco.com

Reviewing Actuary

Jakob will conduct valuation reviews and review the actuarial valuation replications and assist with plan design and experience study reviews under the direction and supervision of the actuarial consulting team.

Diana Yen, ASA, MAAA Actuarial Associate 312.984.8582 dyen@segalco.com

Senior Actuarial Analyst

Diana will perform and review valuation results and projections, prepare reports, and assist with plan design and experience study reviews under the direction and supervision of the actuarial consulting team.

Laura Jeske Senior Actuarial Associate 312.984.8663 ljeske@segalco.com

Actuarial Analyst

Laura will perform valuation replications and ongoing valuations along with projections, prepare reports, and assist with plan design and experience study reviews under the direction and supervision of the Senior Actuarial Analyst and the actuarial consulting team.

Maria Manoukarakis Actuarial Associate 312.984.8683 mmanoukarakis@segalco.com

Actuarial Analyst

Maria will prepare data, perform valuation replications and ongoing valuations along with projections, prepare reports, and assist with plan design and experience study reviews under the under the direction and supervision of the Senior Actuarial Analyst and the actuarial consulting team

Melanie Walker, JD Senior Vice President, National Compliance Practice Leader 303.714.9942 mwalker@segalco.com

Compliance Resource

Melanie will be available to assist with any national or state legislative developments with respect to the retirement system and compliance related matters.

mailto:mstrom@segalco.com mailto:dsiblik@segalco.com mailto:tdybal@segalco.com mailto:dnickerson@segalco.com mailto:jnolan@segalco.com mailto:dyen@segalco.com mailto:ljeske@segalco.com mailto:mmanoukarakis@segalco.com mailto:mwalker@segalco.com

The bidder should provide resumes for all personnel proposed by the bidder to work on the project. The State will consider the resumes as a key indicator of the bidder’s understanding of the skill mixes required to carry out the requirements of the Solicitation in addition to assessing the experience of specific individuals.

Resumes should not be longer than three (3) pages. Resumes should include, at a minimum, academic background and degrees, professional certifications, understanding of the process, and at least three (3) references (name, address, and telephone number) who can attest to the competence and skill level of the individual. Any changes in proposed personnel shall only be implemented after written approval from the State.

Professional biographies for each of the above team members are attached to this proposal as Appendix C.

j. SUBCONTRACTORS

If the bidder intends to subcontract any part of its performance hereunder, the bidder should provide:

i. name, address, and telephone number of the subcontractor(s),

ii. specific tasks for each subcontractor(s),

iii. percentage of performance hours intended for each subcontract; and

iv. total percentage of subcontractor(s) performance hours.

Segal will not use subcontractors to perform the requested Scope of Services.

Section II. Terms and Conditions The reviewed Terms and Conditions section begins on the following page.

SPB Form 22 | RFP Template | Effective 12162024

I. TERMS AND CONDITIONS

Bidder should read the Terms and Conditions within this section and must initial either “Accept All Terms and Conditions Within Section as Written” or “Exceptions Taken to Terms and Conditions Within Section as Written” in the table below. If exception is not taken to a provision, it is deemed accepted as stated. If the bidder takes any exceptions, they must provide the following within the “Exceptions” field of the table below (Bidder may provide responses in separate attachment if multiple exceptions are taken):

1. The specific clause, including section reference, to which an exception has been taken;

2. An explanation of why the bidder took exception to the clause; and

3. Provide alternative language to the specific clause within the solicitation response.

By signing the solicitation, bidder agrees to be legally bound by all the accepted terms and conditions, and any proposed alternative terms and conditions submitted with the solicitation response. The State reserves the right to negotiate rejected or proposed alternative language. If the State and bidder fail to agree on the final Terms and Conditions, the State reserves the right to reject the solicitation response. The State reserves the right to reject solicitation responses that attempt to substitute the bidder’s commercial contracts and/or documents for this solicitation.

Accept All Terms and Conditions

Within Section as

Written (Initial)

Exceptions Taken to

Terms and Conditions

Within Section as

Written (Initial)

Exceptions:

(Bidder must note the specific clause, including section reference, to which an exception has been taken, an explanation of why the bidder took exception to the clause, and provide alternative language to the specific clause within the solicitation response.)

MS Segal currently provides services to DAS. Accordingly, if Segal is determined to be the winning bidder, Segal proposes to continue providing services pursuant to contract terms and conditions that are substantively similar to the previously negotiated contract. Please note that our form contract has changed but we are willing to discuss any changes and tailor the agreement as appropriate under the circumstances.

The bidders should submit with their solicitation response any license, user agreement, service level agreement, or similar documents that the bidder wants incorporated in the Contract. The State will not consider incorporation of any document not submitted with the solicitation response as the document will not have been included in the evaluation process. These documents shall be subject to negotiation and will be incorporated as addendums if agreed to by the Parties.

If a conflict or ambiguity arises after the Addendum to Contract Award has been negotiated and agreed to, the Addendum to Contract Award shall be interpreted as follows:

1. If only one (1) Party has a particular clause, then that clause shall control,

2. If both Parties have a similar clause, but the clauses do not conflict, the clauses shall be read together,

3. If both Parties have a similar clause, but the clauses conflict, the State’s clause shall control.

A. GENERAL

1. The contract resulting from this Solicitation shall incorporate the following documents:

a. Solicitation, including any attachments and addenda;

b. Questions and Answers;

c. Bidder’s properly submitted solicitation response, including any terms and conditions or agreements submitted by the bidder;

d. Addendum to Contract Award (if applicable); and

e. Amendments to the Contract. (if applicable)

These documents constitute the entirety of the contract.

Unless otherwise specifically stated in a future contract amendment, in case of any conflict between the incorporated documents, the documents shall govern in the following order of preference with number one (1) receiving preference over all other documents and with each lower numbered document having preference over any higher numbered document: 1) Amendment to the executed Contract with the most recent dated amendment having the highest priority,

2) Executed Contract and any attached Addenda 3) Addendums to the solicitation and any Questions and Answers,

4) the original solicitation document and any Addenda or attachments, and 5) the Vendor’s submitted solicitation response, including any terms and conditions or agreements that are accepted by the State.

Unless otherwise specifically agreed to in writing by the State, the State’s standard terms and conditions, as executed by the State, shall always control over any terms and conditions or agreements submitted or included by the Vendor.

Any ambiguity or conflict in the contract discovered after its execution, not otherwise addressed herein, shall be resolved in accordance with the rules of contract interpretation as established in the State of Nebraska.

B. NOTIFICATION

Bidder and State shall identify the contract manager who shall serve as the point of contact for the executed contract.

Communications regarding the executed contract shall be in writing and shall be deemed to have been given if delivered personally; electronically, return receipt requested; or mailed, return receipt requested. All notices, requests, or communications shall be deemed effective upon receipt.

Either party may change its address for notification purposes by giving notice of the change and setting forth the new address and an effective date.

C. BUYER’S REPRESENTATIVE

The State reserves the right to appoint a Buyer's Representative to manage or assist the Buyer in managing the contract on behalf of the State. The Buyer's Representative will be appointed in writing, and the appointment document will specify the extent of the Buyer's Representative authority and responsibilities. If a Buyer's Representative is appointed, the bidder will be provided a copy of the appointment document and is expected to cooperate accordingly with the Buyer's Representative. The Buyer's Representative has no authority to bind the State to a contract, amendment, addendum, or other change or addition to the contract.

D. GOVERNING LAW (Nonnegotiable) Notwithstanding any other provision of this contract, or any amendment or addendum(s) entered into contemporaneously or at a later time, the parties understand and agree that, (1) the State of Nebraska is a sovereign state and its authority to contract is therefore subject to limitation by the State’s Constitution, statutes, common law, and regulation; (2) this contract will be interpreted and enforced under the laws of the State of Nebraska; (3) any action to enforce the provisions of this agreement must be brought in the State of Nebraska per state law; (4) the person signing this contract on behalf of the State of Nebraska does not have the authority to waive the State's sovereign immunity, statutes, common law, or regulations; (5) the indemnity, limitation of liability, remedy, and other similar provisions of the final contract, if any, are entered into subject to the State's Constitution, statutes, common law, regulations, and sovereign immunity; and, (6) all terms and conditions of the final contract, including but not limited to the clauses concerning third party use, licenses, warranties, limitations of liability, governing law and venue, usage verification, indemnity, liability, remedy or other similar provisions of the final contract are entered into specifically subject to the State's Constitution, statutes, common law, regulations, and sovereign immunity.

The Parties must comply with all applicable local, state, and federal laws, ordinances, rules, orders, and regulations.

E. BEGINNING OF WORK & SUSPENSION OF SERVICES

The bidder shall not commence any billable work until a valid contract has been fully executed by the State and the successful Vendor. The Vendor will be notified in writing when work may begin.

The State may, at any time and without advance notice, require the Vendor to suspend any or all performance or deliverables provided under this Contract. In the event of such suspension, the Contract Manager or POC, or their designee, will issue a written order to stop work. The written order will specify which activities are to be immediately suspended and the reason(s) for the suspension. Upon receipt of such order, the Vendor shall immediately comply with its terms and take all necessary steps to mitigate and eliminate the incurrence of costs allocable to the work affected by the order during the period of suspension. The suspended performance or deliverables may only resume when the State provides the Vendor with written notice that such performance or deliverables may resume, in whole or in part.

F. AMENDMENT

This Contract may be amended in writing, within scope, upon the agreement of both parties.

G. CHANGE ORDERS OR SUBSTITUTIONS

The State and the Vendor, upon the written agreement, may make changes to the contract within the general scope of the solicitation. Changes may involve specifications, the quantity of work, or such other items as the State may find necessary or desirable. Corrections of any deliverable, service, or work required pursuant to the contract shall not be deemed a change. The Vendor may not claim forfeiture of the contract by reasons of such changes.

The Vendor shall prepare a written description of the work required due to the change and an itemized cost sheet for the change. Changes in work and the amount of compensation to be paid to the Vendor shall be determined in accordance with applicable unit prices if any, a pro-rated value, or through negotiations. The State shall not incur a price increase for changes that should have been included in the Vendor’s solicitation response, were foreseeable, or result from difficulties with or failure of the Vendor’s solicitation response or performance.

No change shall be implemented by the Vendor until approved by the State, and the Contract is amended to reflect the change and associated costs, if any. If there is a dispute regarding the cost, but both parties agree that immediate implementation is necessary, the change may be implemented, and cost negotiations may continue with both Parties retaining all remedies under the contract and law.

In the event any good or service is discontinued or replaced upon mutual consent during the contract period or prior to delivery, the State reserves the right to amend the contract to include the alternate product at the same price.

***Vendor will not substitute any item that has been awarded without prior written approval of SPB***

H. RECORD OF VENDOR PERFORMANCE

The State may document the vendor’s performance, which may include, but is not limited to, the customer service provided by the vendor, the ability of the vendor, the skill of the vendor, and any instance(s) of products or services delivered or performed which fail to meet the terms of the purchase order, contract, and/or specifications. In addition to other remedies and options available to the State, the State may issue one or more notices to the vendor outlining any issues the State has regarding the vendor’s performance for a specific contract (“Contract Compliance Request”).

The State may also document the Vendor’s performance in a report, which may or may not be provided to the vendor (“Contract Non-Compliance Notice”). The Vendor shall respond to any Contract Compliance Request or Contract Non-Compliance Notice in accordance with such notice or request. At the sole discretion of the State, such Contract Compliance Requests and Contract Non-Compliance Notices may be placed in the State’s records regarding the vendor and may be considered by the State and held against the vendor in any future contract or award opportunity.

The record of vendor performance will be considered in any suspension or debarment action.

I. NOTICE OF POTENTIAL VENDOR BREACH

If Vendor breaches the contract or anticipates breaching the contract, the Vendor shall immediately give written notice to the State. The notice shall explain the breach or potential breach, a proposed cure, and may include a request for a waiver of the breach if so desired. The State may, in its discretion, temporarily or permanently waive the breach.

By granting a waiver, the State does not forfeit any rights or remedies to which the State is entitled by law or equity, or pursuant to the provisions of the contract. Failure to give immediate notice, however, may be grounds for denial of any request for a waiver of a breach.

J. BREACH

Either Party may terminate the contract, in whole or in part, if the other Party…