ACERS Actuarial Services RFP

ACERS Actuarial Services RFP

I. INTRODUCTION

A. Overview

The Arlington County Employees’ Retirement System (ACERS) is a single employer, public employee defined benefit plan covering substantially all employees of the County. As of June30, 2016, System membership included approximately 3,500 active employees and 4,500 retirees. The System’s actuarial liability was $1.97 billion and the actuarial value of assets was $2.05 billion, resulting in a 99.6% funded ratio.

ACERS is seeking actuarial consulting services to perform annual valuations to determine funding status and recommend contribution rates as well as perform experience studies.

More details on ACERS, including the most recent Comprehensive Annual Financial Report, are available at:

B. Services to be provided

Specific duties will include, but are not limited to, the following:

Perform annual actuarial valuation as of June30following relevant GASB standards and recommend contribution rates. Such valuations shall:
Consider actual changes of economic and non-economic experience since the prior year’s valuation
Review and analyze the current actuarial assumptions and suggest changes and/or improvements as deemed appropriate
Includeexplanatory text describing key actuarial assumptions, methods, trends and conclusions sufficient to provide a reasonable understanding to individuals with fiduciary responsibility for the System
Prepare and present an annual actuarial valuation report, including a preparation meeting in advance of final presentation to the Board.
Work with ACERS staff and auditor to ensure proper and timely submission of actuarial data and analysis in compliance with GASB reporting and disclosure requirements to be included in the System’s Comprehensive Annual Financial Report, to include GASB 67 reporting requirements.
Perform 5 year experience study in 2019 that:
Analyzes economic and non-economic experience of the System
Assesses appropriateness of assumptions
Recommends potential changes as appropriate
Provide education on related topics as requested or appropriate
Provide actuarial consulting services for performance of special projects as may be required on a project specific fee basis.

II. PROCESS

A. Proposal Submission

A cover letter including the following information will be considered an integral part of the proposal:

Firm name, address and main phone number
Statement expressing an understanding of, and willingness to perform,the services described
Statement that the firm is an Equal Opportunity Employer and complies with the American with Disabilities Act of 1990
Name, title and phone number of primary person signing the cover letter and a statement that the signer is authorized to bind the firm contractually

Proposers must complete and return the Questionnaire in Section III.

Requests for clarification should be directed to Randee Stenroos, via email, at no later than close of business March8, 2017.

Please submit threecopies of your proposal to:

Arlington County Employees’ Retirement System

2100 Clarendon Blvd, Suite 504

Arlington, VA 22201

Proposals are due no later than close of business March 10, 2017.

ACERS may reject any or all proposals.

B. Evaluation

The purpose of the comprehensive evaluation process is to identify those bidders that are most likely to perform satisfactorily the services described and which work well with staff and the Board.

Written proposals will be reviewed and evaluated by an evaluation committee. Those firms with the highest scores on the evaluation of written submissions will be selected for on-site interviews.

The top firmswill be identified based on a combined evaluation of the interview and written submission. These firmswill present to the Board, or a subcommittee thereof, before a final selection is made.

III. QUESTIONNAIRE

A.Organization

1.Provide your company's name and address, and the primary RFP contact's name, phone number, e-mail address and fax number.

2.Please give a brief history of the firm including the year organized, the year the firm began providing actuarial consulting services, and the nature of the firm's ownership and specific details with regard to any affiliated companies or joint ventures.

3.If your firm has multiple offices, please provide the total number of offices, the location of the headquarters office and indicate which location would service this account.

4.Please list your firm's lines of business and the approximate contributions of each business to your organization's total revenue. If you are an affiliate or subsidiary of an organization, what percentage of the parent firm's total revenue does your subsidiary or affiliate generate?

5.Within the past three years, have there been any significant developments in your organization such as changes in ownership, restructuring, or personnel reorganization? Do you anticipate future significant changes in your organization?

6.What do you consider to be your firm's consulting specialties and strengths?

7.Please list the number and percent of professional actuaries who have left the firm in the past 5 years.

B. Legal/Compliance

1.Over the past five years, has your organization or any of its affiliates or parent, or any officer or principal been involved in any business litigation or other legal proceedings related to your consulting activities?

2.Describe in detail any potential conflicts of interest your firm, affiliates, or parent, may have in servicing this account.

3.Describe the coverage levels and insurance carrier of errors and omissions insurance and/or fiduciary or professional liability insurance carried by your firm.

C. Experience/Clients

1.Please provide a brief description of your firm’s experience providing actuarial consulting services for public pension plans.

2.Please provide a representative client list.

3.Please provide a list of clients gained and lost over the past 5 years.

4.What is the average client to consultant ratio?

5.Please provide the name, address, phone number, contact name, and title of three clients as references.

D. Staff/Team

1.List the name and location of primary individual(s) who would be responsible for this account and provide brief biographies including titles, functions, academic credentials, and relevant experience. Include the role of each individual for this assignment, the role of back-up personnel and how many clients are assigned to each person named above.

E. Project Specific Details

1.Please describe how the firm will approach the valuation analysis and determine proper methods and assumptions appropriate to the specifics of the System.

2.Please provide a project timeline, including key data requirements and deliverables, assuming a June30, 2017 valuation date and an October 5, 2017 final presentation to the Board. Identify any support likely to be required by ACERS staff.

3.Please provide a sample valuation report as an appendix to the questionnaire responses.

F. Fees

1.Please provide a fee proposal for an annual actuarial valuation as described in this document, including a list of all services that would be included and which types of services would result in additional fees.

2.Please provide a fee proposal for the 5 year experience study as described in this document, including a list of all services that would be included and which types of services would result in additional fees.

3.For special projects as may be required, please provide a schedule of standard hourly billing rates, by level of professional. Are you willing to complete such projects on fixed fee basis negotiated in advance?

4.Are you willing to guarantee your fees for a specific period of time? If not willing to guarantee fees, please explain why.

5.Please include an example contract your firm would require for this engagement should it be successful in winning it.