newMerced Co.ACTUARIAL AUDIT rev JULY 2009 4
30 Pages
English
Downloading requires you to have access to the YouScribe library
Learn all about the services we offer

newMerced Co.ACTUARIAL AUDIT rev JULY 2009 4

-

Downloading requires you to have access to the YouScribe library
Learn all about the services we offer
30 Pages
English

Description

MERCED COUNTY EMPLOYEES RETIREMENT ASSOCIATION REQUEST FOR PROPOSAL ACTUARIAL AUDIT SERVICES July 1, 2009 MERCED COUNTY EMPLOYEES RETIREMENT ASSOCIATION REQUEST FOR PROPOSAL ACTUARIAL AUDIT SERVICES TABLE OF CONTENTS SECTION ONE - GENERAL INFORMATION Page 1.1 INTRODUCTION 4 1.2 CALENDAR OF EVENTS 4 1.3 PROPOSAL SUBMISSION 4 1.4 CONTRACT PRICING 5 1.5 MODIFICATION OR WITHDRAWAL OF OFFERS 5 1.6 CONFIDENTIALITY 5 1.7 RFP RESPONSE COSTS 6 1.8 TAXES 6 1.9 DISCUSSION FORMAT 6 1.10 DISCLOSURE 7 SECTION TWO - PROPOSAL PROCEDURES 7 2.1 CONTACTS 7 2.2 RFP INQUIRES 7 2.3 ADDITIONAL INFORMATION REQUESTS 8 2.4 RESPONDENT SITE VISITS 8 2.5 AWARDING OF CONTRACT 8 SECTION THREE – ENTITY DESCRIPTION 8 3.1 BACKGROUND INFORMATION 8 3.2 PLAN INFORMATION AND BENEFIT PROVISIONS 9 3.3 RESERVES 11 3.4 ACTURIAL INFORMATION 12 SECTION FOUR - LENGTH OF CONTRACT 13 SECTION FIVE - MINIMUM REQUIREMENTS 14 SECTION SIX- PROPOSAL PREPARATION INSTRUCTIONS 14 6.1 GENERAL 14 6.2 PROPOSAL COVER LETTER 15 6.3 PROPOSAL 15 SECTION SEVEN- EVALUATION PROCEDURES 17 2 MERCED COUNTY EMPLOYEES RETIREMENT ASSOCIATION REQUEST FOR PROPOSAL ACTUARIAL AUDIT SERVICES EXHIBIT A: SCOPE OF SERVICES 19 EXHIBIT B: QUESTIONNAIRE 21 ATTACHMENT 1: ANNUAL REPORTS 26 ATTACHMENT 2: RESPONDENT GUARANTEES 27 ATTACHMENT 3: RESPONDENT WARRANTIES 28 ATTACHMENT 4 ...

Subjects

Informations

Published by
Reads 8
Language English

Exrait







MERCED COUNTY EMPLOYEES RETIREMENT ASSOCIATION


REQUEST FOR PROPOSAL


ACTUARIAL AUDIT SERVICES




July 1, 2009





























MERCED COUNTY EMPLOYEES RETIREMENT ASSOCIATION
REQUEST FOR PROPOSAL
ACTUARIAL AUDIT SERVICES


TABLE OF CONTENTS

SECTION ONE - GENERAL INFORMATION Page


1.1 INTRODUCTION 4
1.2 CALENDAR OF EVENTS 4
1.3 PROPOSAL SUBMISSION 4
1.4 CONTRACT PRICING 5
1.5 MODIFICATION OR WITHDRAWAL OF OFFERS 5
1.6 CONFIDENTIALITY 5
1.7 RFP RESPONSE COSTS 6
1.8 TAXES 6
1.9 DISCUSSION FORMAT 6
1.10 DISCLOSURE 7

SECTION TWO - PROPOSAL PROCEDURES 7
2.1 CONTACTS 7
2.2 RFP INQUIRES 7
2.3 ADDITIONAL INFORMATION REQUESTS 8
2.4 RESPONDENT SITE VISITS 8
2.5 AWARDING OF CONTRACT 8

SECTION THREE – ENTITY DESCRIPTION 8
3.1 BACKGROUND INFORMATION 8
3.2 PLAN INFORMATION AND BENEFIT PROVISIONS 9
3.3 RESERVES 11
3.4 ACTURIAL INFORMATION 12

SECTION FOUR - LENGTH OF CONTRACT 13

SECTION FIVE - MINIMUM REQUIREMENTS 14

SECTION SIX- PROPOSAL PREPARATION INSTRUCTIONS 14
6.1 GENERAL 14
6.2 PROPOSAL COVER LETTER 15
6.3 PROPOSAL 15

SECTION SEVEN- EVALUATION PROCEDURES 17




2 MERCED COUNTY EMPLOYEES RETIREMENT ASSOCIATION
REQUEST FOR PROPOSAL
ACTUARIAL AUDIT SERVICES

EXHIBIT A: SCOPE OF SERVICES 19
EXHIBIT B: QUESTIONNAIRE 21

ATTACHMENT 1: ANNUAL REPORTS 26
ATTACHMENT 2: RESPONDENT GUARANTEES 27
ATTACHMENT 3: RESPONDENT WARRANTIES 28
ATTACHMENT 4: DOLLAR COST BID 29
ATTACHMENT 5: SAMPLE AGREEMENT 30




































3 MERCED COUNTY EMPLOYEES RETIREMENT ASSOCIATION
REQUEST FOR PROPOSAL
ACTUARIAL AUDIT SERVICES


SECTION ONE

GENERAL INFORMATION

1.1 INTRODUCTION
This Request for Proposal (RFP) is issued by the Merced County Employees’ Retirement
Association (MCERA) for the purpose of soliciting proposals from qualified actuarial
firms (actuary) to provide:

1) annual valuations of the MCERA, an experience study every three years, and
other actuarial services on an “as needed” basis for a three-year term beginning
on or before November 2, 2009 and,
2) for actuarial auditing services for a one year term to audit the Annual Valuation
as of June 30, 2007 and 2008 and the Experience Study for the Period July 1,
2004 through June 30, 2007 beginning on November 2, 2009.

It is MCERA’s intent to obtain the services of one firm for actuarial audit services and
one different firm, for actuarial consulting services as described in Exhibit A Scope of
Services. A firm may submit bids for either or both types of services but will only be
selected for one.

MCERA is a cost-sharing, multiple-employer, defined benefit pension plan covering the
employees of the County of Merced, the Merced County Superior Court and the Merced
Cemetery District pursuant to the County Employees Retirement Law of 1937, California
Government Code Section 31450, et seq. MCERA operates as an independent
governmental entity separate and distinct from the County of Merced and MCERA’s
basic financial statements are included in Merced County’s basic financial reports as a
pension trust fund.

1.2 CALENDAR OF EVENTS
Request for Proposal (RFP) issued: July 1, 2009
Submission of Interpretation and/or
Written Questions on the RFP: July 15, 2009
Proposal Submission Due Date August 15, 2009
Proposal Evaluation August/ September, 2009
Finalist Presentations Week of September 21, 2009
Approval by Board of Retirement October 8, 2009
Estimated Contract Commencement November 2, 2009


1.3 PROPOSAL SUBMISSION
Respondents must submit an original, two (2) copies and CD ROM of their proposal, no
later than August 15, 2009, and prior to 1 p.m. PST, to:
4
MERCED COUNTY EMPLOYEES RETIREMENT ASSOCIATION
REQUEST FOR PROPOSAL
ACTUARIAL AUDIT SERVICES

Maria L. Arevalo
Plan Administrator
MCERA
3119 M Street
Merced, CA 95348

No telegraphic, fax, email or telephone responses will be accepted. Any proposal
received after the due date will not be considered. Any late proposals will be returned,
unopened, to the Respondent, upon request, within thirty (30) days of filing.

1.4 CONTRACT PRICING
The respondent shall provide a “not to exceed” price for the actuarial audit and/ or for the
consulting actuarial valuation in Attachment 4. If incidental costs are included in the “not
to exceed” bid, such costs shall be clearly identified and segregated from actual
engagement related costs.

1.5 MODIFICATIONS OR WITHDRAWALS OF OFFERS/ ERRORS
Responses to this RFP may be modified or withdrawn in writing or by fax notice if
received prior to the date specified for submission of proposals. Modifications to or
withdrawal of a proposal received after the date specified for submission of proposals
will not be considered except as provided in 6.1.

If a Respondent discovers any ambiguity, conflict, discrepancy, omission or other error in
this RFP, please immediately notify MCERA of such error by e-mail at
marevalo@co.merced.ca.us and request clarification or modification of the document. If
it becomes necessary to revise any part of this RFP or if a more exact interpretation of
provisions of this RFP are required prior to the due date for proposals, a supplement will
be posted by MCERA on its website. If such addenda issuance is necessary, MCERA
reserves the right to extend the due date of proposals to accommodate such
interpretations or additional data requirements.

If the Respondent fails to notify MCERA of a known error or an error that reasonably
should have been known prior to the final filing date for submission, the Respondent
shall assume the risk. If awarded the contract, the Respondent shall not be entitled to
additional compensation.


1.6 CONFIDENTIALITY
All responses to this RFP become the property of MCERA and will be kept confidential
until such time as recommendation for award of a contract has been announced.
Thereafter, submittals are subject to public inspection and disclosure


5

MERCED COUNTY EMPLOYEES RETIREMENT ASSOCIATION
REQUEST FOR PROPOSAL
ACTUARIAL AUDIT SERVICES

under the California Public Records Act. If a Respondent believes that any portion of its
submittal is exempt from public disclosure, such portion may be marked “confidential.”
MCERA will use reasonable means to ensure that such confidential information is
safeguarded but will not be held liable for inadvertent disclosure of such materials, data
and information.

Submissions marked “confidential” in their entirety will not be honored as such and
MCERA will not deny public disclosure of all or any portion of submittals so marked.
By submitting information with portions marked “confidential,” the Respondent
represents it has a good faith belief that such material is exempt from disclosure under the
California Public Records Act and agrees to reimburse MCERA for, and to indemnify,
defend and hold harmless MCERA, its officers, fiduciaries, employees and agents from
and against: (a) any and all claims, damages, losses, liabilities, suits, judgments, fines,
penalties, costs and expenses including, without limitation, attorneys’ fees, expenses and
court costs of any nature whatsoever (collectively, “Claims”) arising from or relating to
MCERA’s non-disclosure of any such designated portions of a proposal if disclosure is
deemed required by law or court order.

1.7 RFP RESPONSE COSTS
MCERA accepts no obligations for costs incurred by Respondents in preparing
responses to this request.

1.8 TAXES
MCERA is exempt from federal, state and local taxes. MCERA will not be responsible
for any taxes levied on the Respondent as a result of any contract resulting from this RFP.

1.9 DISCUSSION FORMAT
MCERA reserves the right to conduct discussions or obtain clarifications, either oral or
written, with those Respondents determined by MCERA to be potential finalists. Such
communications may be permitted after submission of proposals and prior to award for
the purpose of obtaining best and final offers. In such communications, there shall be no
disclosure of any information derived from proposals submitted by competing Bidders to
anyone outside the Evaluation Committee. The purpose of such discussions shall be to
examine Bidders’:
- Qualifications.
- Proposed method of performance.
- Proposed personnel and facilities.
- Compensation.




6

MERCED COUNTY EMPLOYEES RETIREMENT ASSOCIATION
REQUEST FOR PROPOSAL
ACTUARIAL AUDIT SERVICES

All Bidders submitting a proposal for consideration agree that their company will be
willing to enter into a negotiated, final Contract if awarded this proposal. Such negotiated
changes will not change the “Scope of Work”.

1.10 DISCLOSURE
Submission of information indicates acceptance by the submitting firm of the terms and
conditions contained in this request for proposal, unless exceptions are clearly and
specifically noted in the submittal.

If the Respondent objects to any term(s) in the RFP, or wishes to modify or add terms to
a subsequent contract, the submittal must identify each objection, propose language for
each modification and include the reasons for the modification. MCERA reserves the
right to modify the contract prior to execution.


SECTION TWO
PROPOSAL PROCEDURES

2.1 CONTACTS
Inquires are not to be directed to board members, staff or consultants of MCERA except
Plan Administrator Maria L. Arevalo or Fiscal Supervisor, Gale Garcia. Any contact
relating to the RFP with any MCERA Board member, other staff or consultant shall be
grounds for disqualification.

2.2 RFP INQUIRIES
Any inquiries concerning the request for proposals must be submitted via email to
marevalo@co.merced.ca.us . All questions must identify the RFP section and page
number to which the question refers. Questions and responses thereto will be posted on
the MCERA web site. Written questions to the above e-mail address will be accepted
until 5:00 p.m. on July 15, 2009. Responses to questions will be posted to the MCERA
web site at www.mcera.merced.ca on or before July 22, 2009.

Waiver/Cure of Minor Informalities, Errors and Omissions: The MCERA reserves
the right to waive or permit cure for minor informalities, errors or omissions prior to the
selection of a proposal, and to conduct discussion with any qualified proposers and to
take any other measures with respect to this RFP in any manner necessary to serve the
best interests of the MCERA and its beneficiaries.





7



MERCED COUNTY EMPLOYEES RETIREMENT ASSOCIATION
REQUEST FOR PROPOSAL
ACTUARIAL AUDIT SERVICES


2.3 RESPONDENT SITE VISITS
MCERA may request a site visit to a Respondent’s main office of business to conduct
due diligence to support the evaluation of the Respondent.

2.4 AWARDING OF CONTRACT
The qualifying proposal determined to be the most advantageous to MCERA, taking into
account all of the selection criteria (as outlined in Section Seven), may be selected by
MCERA for further action, such as a contract award. If, however, MCERA decides that
no proposal is sufficiently advantageous to MCERA, MCERA may take whatever further
action is deemed best in its sole discretion, including making no contract award.

If, for any reason, a proposal is selected and it is not possible to consummate a contract
with the Respondent, MCERA may begin contract discussions with the next qualified
Respondent or determine that it does not wish to award a contract pursuant to this RFP, at
its sole discretion.

MCERA reserves the right to reject any or all proposals received or to award, without
discussions or clarifications, a contract on the basis of the proposals received. At the
point of contract, a final detailed agreement concerning services and performance
expectations will be agreed upon between MCERA and the successful firm. The terms of
the final contract between MCERA and the successful firm will be binding and supersede
this RFP. However, this RFP and the successful firm’s proposal will be incorporated into
the contract. In addition, the contract will require the successful firm to acknowledge, in
writing, that it is a fiduciary with respect to MCERA.

SECTION THREE
ENTITY DESCRIPTION

3.1 BACKGROUND INFORMATION

The Merced County Employees’ Retirement Association (MCERA) is an independent
multi-employer public retirement trust established pursuant to California Government
Code Section 31450 et seq. Under the provisions of the Government Code the
administration and investment of assets is governed by a ten member Board of Trustees.
Four of the trustees are elected by the active members, one is elected by the retired
members, four are appointed by the Board of Supervisors and the County Treasurer is an
ex-officio member of the Board of Trustees.


8 MERCED COUNTY EMPLOYEES RETIREMENT ASSOCIATION
REQUEST FOR PROPOSAL
ACTUARIAL AUDIT SERVICES

MCERA administers benefits for the County of Merced, the Superior Court of Merced
County and the Merced Cemetery District.

MCERA currently administers retirement benefits for approximately 2,260 active
members and 1,658 retired members and beneficiaries. The active membership is
composed of general and safety classifications, each with two tiers. (Tier 1 and Tier 2)
Each member classification/tier has a different benefit formula.

Member contribution rates are established based on the member’s age at the time of
employment. The County contribution rate is established based on the Plan Actuary’s
recommendation. MCERA currently administers (as of July 1, 2009) approximately
$350 million in plan assets.
.
3.2 PLAN INFORMATION AND BENEFIT PROVISIONS
The MCERA Plan provides for retirement, disability, death, beneficiary and cost-of-
living retirement benefits.

• Effective on March 15, 2005, the Board of Supervisors adopted a change in
the benefit formula for all MCERA’s general members, from Government Code Section
31676.11 to section 31676.17 (3% at 60) (Merced County employees only).

• Effective July 1, 2005, the Board of Supervisors adopted a change in the benefit
formula from Government Code Section 31664 to Section 31664.1 (3% at 50) for
MCERA’s safety members.

• Effective November 4, 2005 the Merced County Superior Court adopted a change in the
benefit formula for all court employees moving from Government Code Section
31676.11 to section 31676.17 (3% at 60)

Service Retirement Benefit
All eligible employees must participate in the Merced County Employees’ Retirement
Association. A member In Tier 1 may retire after reaching the age of 50 with 10 years of
service; or general members may retire with 30 years of service and safety members may
retire with 20 years of service, regardless of age.

A member in Tier 2 may retire after reaching the age of 55 with 10 years of service or
general members may retire with 30 years of service and safety members may retire with
20 years of service regardless of age.

Members who retire at or after age 50 or 55 with 10 or more years of service are entitled
to pension benefits for the remainder of their lives. The amount of such monthly benefit



9 MERCED COUNTY EMPLOYEES RETIREMENT ASSOCIATION
REQUEST FOR PROPOSAL
ACTUARIAL AUDIT SERVICES

is determined as a percentage of their final monthly compensation and is based on age at
retirement and the number of years of service. For members of Tier 1, the final monthly
compensation is the monthly average of the highest consecutive 12 months of
compensation; for members of Tier 2, the final monthly compensation is the monthly
average of the highest consecutive 36 months of compensation

• Retiring members may choose from four optional beneficiary retirements allowances.
Most retirees elect to receive the unmodified allowance which includes 60% of the
allowance continued to the retirees’ surviving spouse.

• Pension provisions include deferred allowances whereby a member may terminate his
or her employment with the County after five or more years of County service. If the
member does not withdraw his or her accumulated contributions, the member is entitled
to all pension benefits after being vested five years, and upon reaching the age of 50 with
ten or more years of participation in the retirement system.

• A member that terminates his or her employment with the County of Merced and within
180 days enters another retirement system that has a reciprocal agreement with MCERA,
may elect to leave their contributions on deposit with MCERA and establish reciprocity,
regardless of their length of service with MCERA. Reciprocal retirement systems include
any other county under the County Employees’ Retirement Law of 1937, the Public
Employees’ Retirement System or CalPERS, the State Teachers’ Retirement System
Defined Benefit Plan or CalSTRS, the Judges’ Retirement System, the Judges’
Retirement System II and any other public agency within the State of California that has
a reciprocal agreement with CalPERS.

Death Benefit
Death Before Retirement
An active member’s beneficiary is entitled to receive death benefits which consist of
accumulated contributions plus interest, and one month’s salary for each full year of
service up to a maximum of six month’s salary.

If a member is vested and their death is not the result of job-caused injury or disease,
their spouse will be entitled to receive for life, a monthly allowance equal to 60% of the
retirement allowance in which they would have been entitled to receive if they had retired
for non-service connected disability on the date of their death. If there is no surviving
spouse, this same choice is given to their minor children under the age of 18, or 22 if in
school.

If a member dies in the performance of duty, their spouse receives for life a monthly
allowance equal to at least 50% of the member’s final average salary.



10