Statement of Work for Fiduciary Coverage.doc

Office of Thrift Supervision

TOTS-D-10-Q-00004

Statement of Work

Background

The Office of Thrift Supervision (OTS) is a non-appropriated federal financial regulatory bureau of the Department of Treasury with approximately 1000 employees nationwide. The OTS is comprised of 5 locations; headquarters located in Washington, DC and the four regional offices located in Jersey City, NJ; Atlanta, GA; Chicago, IL; and Dallas, TX. The OTS sponsors a private 401(k) plan for its employees.

Prior to June 2009, the OTS’ private 401(k) plan was part of a multi-employer plan that was administered by Pentegra Retirement Services (Pentegra) located in White Plains, NY. OTS had been a participating employer with Pentegra since the creation of OTS on October 8, 1989 through May 2009 at which time OTS elected a new vendor, Charles Schwab, to administer its private 401(k) plan. One of the main reasons OTS decided to leave Pentegra was due to the investment management fees charged by Pentegra.

Prior to June 2009 when OTS was part of the Pentegra multi-employer plan, Pentegra was the plan fiduciary of the OTS private plan and handled all the administration of the plan; from the selection and monitoring of investments, the adherence of all IRS and ERISA requirements and the daily operations of the plan. With its new plan, the OTS 401(k) Investment Committee (Committee) which is comprised of 5 voting members that are OTS employees and 3 non-voting advisory members that are also OTS employees, are the plan fiduciaries. OTS has contracted with Portfolio Evaluations Incorporated (PEI) located in Warren, NJ, to provide advisory services to the Committee in fulfilling its fiduciary responsibilities.

The current OTS 401(k) plan administered by Schwab has approximately $190 million in plan assets and 1029 participants as of January 2009. The Plan is a governmental plan and thus not subject to ERISA requirements; however, OTS has decided to follow the ERISA plan requirements as a precautionary measure.

Scope of Work

OTS seeks an experienced and qualified insurance broker that has specialized knowledge of ERISA qualified plans to provide 401(k) fiduciary insurance coverage and Fidelity bond coverage for its OTS 401(k) Investment Committee and any individual with any involvement with the Plan. The coverage shall be for the period of March 1, 2010 through March 1, 2011.

Requirements

The contractor shall be capable of providing the following services:

· A determination if the OTS 401(k) Plan is in need of Errors & Omissions coverage

· Provide a written analysis of information gathered and recommendations that includes:

· A comparison of strengths and weaknesses of the different coverage offered

· A comparison of the costs of coverage

· Recommendation of the terms and amount of coverage that would be most beneficial to the OTS from a cost and technical standpoint

· Assist OTS in the acquisition of insurance