Plan Administrative, Recordkeeping, Investment Management

RFP #15-1045-9CS

Questions and Answers

403(b) / 457 Deferred Compensation Plan:

Plan Administrative, Recordkeeping, Investment Management,

and Employee Education Services

COUNTY OF HENRICO, VIRGINIA

December 21, 2015

Q1.Could you please clarify if the teleconference number is only available to those people who are unable to physically attend the pre-proposal conference or if the conference can be simultaneously attended on-site by two firm representatives as well as remotely by another firm representative?

NA. Pre-proposal conference has already been held.

Q2.The Henrico 457 with VOYA Financial has a fixed account with roughly 12 million in deposits. It has a minimum guarantee of 4%. This rate is not available in the marketplace and current rates are much lower. If a new contract is established for the county, what does the county plan on doing with these accounts? Would the participant be made whole in any way?

The County will be reviewing a series of alternatives as part of this discussion point.

Q3.Will the fee paid by the county and/or plan participants to Sageview Advisory be clearly disclosed to participants along with the selected provider fees?

This question is not relevant to the scope of this RFP.

Q4.Administratively, what type of coordination is required between the Henrico 403b/457plans and VRS regarding annual max contributions?

The County’s payroll system is programmed to account for this operationally. Any future need for coordination of contributions would be established with the selected vendor.

Q5.The RFP document mentions that in the Henrico County Government plan, over 1,400 employees actively contribute and over 2,100 employees and former employees have deferred compensation accounts. The provided statistical data shows 1,074 total accounts (648 active/426 term) at Voya and 1,122 total accounts (698 active/424 term) at ICMA-RC. Is there any overlap between participants at the two providers? If so, can you provide the total unique participants?

Please refer to Attachment G for the most accurate data on the total number of active and terminated accounts as of 6/30/2015. There is one person who has a balance with both VOYA and ICMA-RC.

Q6.Is the contribution data for the Government and 457b plans, respectively, dated 6/30/15 only for 6 months or is it 12 months through 6/30/15?

Yes, the 6/30/2015 data for the Henrico County Government 457 plan is only for the prior 6 months. As stated in Attachment G, the 6/30/2015 data for Henrico County Public Schools 403(b) Planincludes the prior 12 months of contributions and distributions.

Q7.Is there a specific # of mtgs/days currently allocated to onsite employee meetings that we should replicate? Is there just 1 location for the Government Employees or multiple? Any Foreign language needs?

The County is interested in hearing from vendors a proposed solution for employee education and communication. There are multiple locations that could be used for employee meetings. The vendors should not read into the current solution and approach as being more optimal or less optimal; this is an area of significant consideration for the committee.

The need for interpretive pieces and communications is small. Please provide as part of your proposal submittal any specific capabilities you have in this area.

Q8.How many payrolls and what is the frequency?

Henrico County General Government employees are paid 26 times per year. Currently, Henrico County General Government allows employees to choose if they want their 457 deduction taken 24 or 26 times annually.

The majority of Henrico County Public Schools employees are paid 26 times annually. Most of HCPS employees are paid monthly (all teachers).

Q9.For the Schools plan, how many loans are currently outstanding?

As of 9/30/2015, there were 175 total loans outstanding totaling $881,027.87in assets.

Q10.For the Schools plan, how many SDBAs are currently outstanding?

As of 9/30/2015, there were 28 total SDBAs totaling $164,716.11 in assets.

Q11.Please confirm that all assets listed can be moved on a plan level. Are there any holds/MVAs on current fixed products? Any of the other investments?

The Voya Fixed Account is fully liquid. The Voya Fixed Plus Account may be subject to a 5 year spread payout using the following schedule:

•One fifth of the value on the day requested

•One fourth of current value 12 months later

•One third of the current value 12 months later

•One half of the current value 12 months later

•Balance 12 months later

The VALIC Fixed Account may impose a limitation on sponsor initiated withdrawals from the Fixed Account equal to 20% per year without incurring a withdrawal charge.

In the event of an Employer initiates withdrawal of all or part of its Plan’s assets from the VT PLUS Fund, ICMA-RC has full discretion to defer the payout of such assets for a period of up to twelve months. In the case of a total withdrawal, participant transfers of PLUS Fund assets to other investment options may be restricted and participants may not be able to make additional investments in the PLUS Fund during this twelve-month period.

The decision to enforce these restrictions is a decision that each of these three firms will make independently. We are not at liberty to anticipate their business policy around these prospectus requirements.

There are no additional liquidity restrictions on the other investment options in either of the plans.

Q12.Please provide a copy of the plan documents/design.

While we understand why this would be helpful to know, the County is interested in conducting a thorough review of their plan design to maximize the opportunity to take advantage of some design features they have been contemplating over the last year.The County looks forward to revisiting the plan design with our advisor and recordkeeping partners as part of the initiation of the new contract.

Q13.Expand further on the coordination needed with VRS.

It is the expectation that our recordkeeping partner will not only be familiar with VRS plan design, but also be able to for example help administer the plan in tandem with contribution limits, educating participants appropriately on both ours and the VRS plan as well as consulting on payroll files that will take into consideration the programming necessary to ensure compliance with plan limits.

Q14.Please confirm that on page 37, there is an error with regard to duplication of questions.

Confirmed.

Q15.Please provide the approximate number of employees at your 73 locations.

Please see the below table for a detailed listing of the total number of employees by site for Henrico County Public Schools. It’s the expectation that the school locations be served and supported as done so today. It has not yet been determined the employee education strategy for the General Government employees but the committee looks to hearing a proposed strategy.

Count ofEMPLOYEE_HRMS_NUMBER
LOCATION / Total
Adams / 63
Ashe / 61
Baker / 54
Brookland / 133
Byrd / 110
Carver / 47
Chamberlayne / 55
ColonialTrail / 57
Davis / 57
DeepRun / 172
Donahoe / 58
Dumbarton / 67
EchoLake / 63
Elko / 105
FairOaks / 54
Fairfield / 120
Freeman / 179
Gayton / 49
GlenAllen / 4
Glen AllenElementary / 59
Glen AllenHigh / 171
GlenLea / 57
Godwin / 184
Greenwood / 60
Harvie / 66
Henrico / 197
Hermitage / 187
Hermitage TechnicalCenter / 31
Highland SpringsElem / 3
Highland SpringsElementary / 65
Highland SpringsHigh / 196
Highland Springs TechCtr / 33
Holladay / 73
Holman / 98
HungaryCreek / 107
Johnson / 64
KaecheleElementary / 43
Laburnum / 71
Lakeside / 63
Longan / 54
Longdale / 70
Maybeury / 60
Mehfoud / 42
Montrose / 48
Moody / 106
NuckolsFarm / 52
Pemberton / 40
Pinchbeck / 56
Pocahontas / 97
Randolph EducationCenter / 46
Ratcliffe / 60
Ridge / 58
RiversEdge / 61
Rolfe / 126
Sandston / 35
SevenPines / 48
ShadyGrove / 62
Short PumpElementary / 49
Short PumpMiddle / 91
Skipwith / 58
SpringfieldPark / 58
The Academy at VirginiaRandolph / 74
ThreeChopt / 42
Trevvett / 54
TuckahoeElementary / 57
TuckahoeMiddle / 108
Tucker / 191
TwinHickory / 59
VarinaElementary / 42
VarinaHigh / 187
Ward / 64
Wilder / 114
GrandTotal / 5705

Q16.Do you prefer the recordkeeper submit a suggested investment menu offering?

At this time Henrico County will be working through their advisor to offer a proposed line-up. It is the expectation that the Successful Offeror have a complete open architecture platform. There are questions within the RFP that speak to the submission of any proprietary fund requirements. The committee under the current arrangement has ultimate decision making authority for investment fund selection.

Q17.Does the Henrico County population have a need for interpretive services or employees where English is not their primary language?

The need for interpretive pieces and communications is small. Please provide as part of your proposal submission any specific capabilities you have in this area.

Q18.Is it anticipated that VOYA, ICMA-RC or VALIC will impose a put on their stable value products?

At this time, the response to this is ultimately up to these three firms and their internal requirements regarding stable value funds. The County is not at liberty to anticipate their business policy or ability to waive such options.

Q19.How many unique employees are participating in the 457 plan? Are there any duplicate records where an employee has participated with more than one recordkeeper?

Please see Attachment G of the RFP. There is only one employee with a VOYA and ICMA-RC account.

Q20.Are the investment map able?

Please see Q11 above for more information on liquidity restrictions associated with the investments.

Q21.What are the mailing requirements?

There are only routine notices that are currently being mailed to employee’s homes.The County looks forward to hearing from Offerors their capabilities and best practices for combining required notices, making use of electronic means and communicating efficiently with participants.

Q22.Can you provide confirmation that the 403b assets are part of a group contract?

Confirmed

Q23.Please provide plan details on the total number of unique participants with an account balance between all the plans.

Please see Attachment G and Q19 above.

Q24.Please detail the employee education services today for both the Public Schools and the Governmental employees?

The County is interested in hearing from Offerors a proposed solution for employee education and communication. Offerors should not read into the current solution and approach as being more optimal or less optimal; this is an area of significant consideration for the committee.

Q25.Please confirm the intended transition dates for both the 457 and 403b?

The County is not committed to any one particular effective date for the 457 plan but has tentatively targeted 2nd or 3rd quarter 2016. The 403(b) plan is under contract through 2016. The County anticipates staggered conversion dates.

Q26.What was the total number of unforeseeable emergencies, QDROs, and distribution checks processed in 2014 for each plan?

For the Henrico County Public Schools 403(b) Plan: 2014 – 19 hardships, 0 QDRO’s, 73 in service distributions, 47 Retirement distributions, 100 Rollovers and 22 termination distributions.

For Henrico County General Government 457 Plan (Voya only): 2014 – 19 unforeseeable emergencies, 1 QDRO, 139 total distributions

For Henrico County General Government 457 Plan (ICMA only): 2014 – 11 Emergency withdrawals, 1 QDRO, 118 total distributions

Q27.Please provide the dollars in the SDBA account and the all associated fees?

As of 9/30/2015, there were 28 total SDBAs totaling $164,716.11 in assets in the Schwab Personal Choice Retirement Accounts.

Participants who utilize the Schwab Personal Choice Retirement Account may be subject to a $50 annual fee. Additionally, participants who utilize the account are subject to applicable trading costs associated with their transactions

Q28.Are there liquidation restrictions with the fixed/stable value product for all three vendors – ICMA, VOYA and VALIC if the County were to terminate their current contracts? Is there any contingent deferred sales charge (CDSC)? If so what percentage and dollar amount (or schedule)? Are there any restrictions on the transition of the Stable Value/Fixed Account assets?

Please see Q11 above.

Q29.Please confirm the amount of assets that will transfer within 90 days of transition.

Please see Attachment G of the RFP for a list of total assets by plan and vendor. Please see Q11 above for a description of the liquidity restrictions the investments may be subject to. We are unable to predict the amount of assets that will transfer within 90 days of the transition.

Q30.Can you please confirm the percentage of overlap of participants between plans?

Please see Q19 above.

Q31.Please confirm if you would like a proposed menu included in the RFP response.

Q32.How many days of onsite education does the General Government currently receive? How many days for the Public Schools?Does the current level of education onsite days meet the expectations of the County?

Please see Q24 above.

Q33.What additional retirement education would the County see as beneficial to its employees?

Please see Q24 above.

Q34.Is there a need for communications in languages other than English? If yes, please specify languages.

The need for interpretive pieces and communications is small. Please share as part of your proposal submission any specific capabilities you have in this area.

Q35.What have the typical growth rates in participation been over the last 2 years?

For the Henrico County Public Schools 403(b) Plan the participation rate has fluctuated between 20 – 25% for the past two calendar years.

The participation rate is not currently tracked by either vendor for the Henrico County General Government 457 Plan, however the participation rate has averaged roughly 30% for the past two years.

Q36.Do you currently allow beneficiaries to remain in the plan upon the transfer of assets from a deceased participant?

Yes

Q37.Please confirm if there is a limit on the number of unforeseeable emergency withdrawals that are permitted per participant under the current 457 plan? Approximately how many unforeseeable emergency withdrawals are requested annually?

Please see Q26 above.

Q38.Please confirm the targeted conversion date if the incumbent is not selected provider. Is there flexibility in the transition date?

Please note Q25 above.

Q39.Are there grandfathered life insurance policies in the plan?

Q40.Are deemed IRAs a part of the 457 plan? If so, please confirm the number of participants with deemed IRAs.

Q41.Please confirm if there are any services currently being administered in- house that the County would like to outsource to the provider (i.e. salary deferrals)

As indicated in the RFP, the County is increasingly interested in ways to outsource administrative serves that can be performed by the recordkeeper while at the same time streamlining processes and achieving more efficient outcomes. This is an area of significant importance to the committee.

Q42.Please confirm that all investment options do not have any participant liquidity restrictions or surrender charges. If there are liquidity restrictions or surrender charges, please disclose the provisions.

Please see Q11 above.

Q43.Are there any plan participants in the 457 government plan using more than one carrier? If so, how many? We want to confirm the actual number of plan participants in the 457 plan today.

Please note Q19 above.

Q44.Does the 457 or 403(b) plan require a QDIA? If so, what is it?

The VALIC Fixed Interest Account currently serves as the Designated Investment Alternative for the Henrico County Public Schools 403(b) Plan.

The Vantagepoint Milestone Target Date Series currently serves as the Designated Investment Alternative for the Henrico County General Government Plan.

Q45.Can the assets in money market accounts be mapped to a proprietary stable value product?

Yes, the assets in the money market accounts are map able. A mapping strategy has not been determined for the plans at this time.

Q46.Do either of the 457(b) providers offer a Managed Account program? If so, please provide the total assets in such programs with each provider.

No, Henrico County General Government 457 Plan does not currently utilize a managed account service. The County is interested in hearing from Offerors their proposed managed account service as part of the response to the RFP.

Q47.Please provide the current cost structure in either basis points or hard dollar fees being charged to the plan and plan participants today?

Please contact the procurement office directly at Henrico County and request this information.

Q48.Do any of the plans/vendors include individual life insurance policies? If so, please confirm the number of participants who have the policies, and if there are contributions being made to the policies. Please also advise which insurance company currently maintains life insurance policies.

No.

Q49.Questions 70C-I in the Stable Value section are identical to Questions 70J- P. Are they duplicates? If not, how should each set be answered?

Yes the questions are duplicates. Please only answer the questions once.

Q50.Regarding SageView Advisory Group, from an ongoing investment consulting and/or RIA service capacity what will they be responsible for and how will they be compensated?

This question is not relevant to the scope of this RFP.

Q51.What will SageView Advisory Group's involvement be in fund selection, portfolio selection with the open architecture's mutual fund platforms being proposed?

This question is not relevant to the scope of this RFP.

Q52.What is SageView Advisory Group's viewpoint of acting in a 3(21) investment fiduciary capacity for non ERISA plans?

This question is not relevant to the scope of this RFP.

Q53.Since you have two different TPAs will you be reducing to one TPA? Are you interested in the inclusion of a TPA offer with this bid?

As mentioned in the RFP, the County is interested in achieving efficiencies on all levels. It is anticipated that one vendor/recordkeeper will be chosen to administer the 457 plan. It is solely at the discretion of the committee if that one Offeror will in fact serve the schools population as well. The County is not interested in nor does the RFP encompass the services of a third party administrator.