Actuarial Services

The Teacher Retirement System of Texas (TRS) is seeking actuarial services through a Request for Proposals (RFP) with solicitation number TRS000552. The procurement covers two primary service categories: Pension Actuarial Services and TRS-Care Actuarial Valuation Services, with respondents able to propose on either or both categories. Required services include annual pension fund valuations, GASB reporting, experience studies, funding policy reviews, and ongoing actuarial consulting for TRS's $210.5 billion pension fund serving 2.06 million members and retirees, as well as the TRS-Care health insurance program covering 214,560 retirees and dependents. Principal and Support Actuaries must possess Fellowship in the Society of Actuaries and extensive experience with large public retirement systems. Proposal evaluation will be based on qualifications and experience (30%), key personnel (30%), technical approach (30%), and pricing (10%). Key dates include questions due by March 6, 2025, proposals due by March 21, 2025, presentations and interviews for top-ranked respondents on April 28, 2025, and final Board selection anticipated on July 17-18, 2025. The initial contract term will span four years from January 1, 2026, through December 31, 2029, with a transition period from December 1-31, 2025.

While no specific Historically Underutilized Business (HUB) set-aside is initially required, respondents must notify TRS if they plan to subcontract any services and may need to submit a HUB Subcontracting Plan. The contractor must maintain professional liability insurance of $1 million per occurrence/$2 million aggregate and cyber liability coverage of $10 million aggregate. The contract will include a not-to-exceed amount structure to be determined upon vendor selection, with pricing to be all-inclusive of expenses. Additional services beyond specified deliverables will be billed at pre-approved hourly rates. The contractor must comply with HIPAA requirements and execute a Business Associate Agreement for handling protected health information. Deliverables include annual pension fund actuarial valuation reports due by November 7th each year, GASB 67/74 reports due 56 days after fiscal year end, and legislative year actuarial valuations in 2027 and 2029. While no specific incumbent vendor is mentioned, the valuation update indicates the current funding status shows an Unfunded Actuarial Accrued Liability of $54.4 billion projected by August 31, 2023, with full funding expected by August 2050.