REQUEST FOR PROPOSAL THIRD PARTY ADMINISTRATOR FOR TAX SHELTERED ANNUITIES

Transcription

1 REQUEST FOR PROPOSAL THIRD PARTY ADMINISTRATOR FOR TAX SHELTERED ANNUITIES I. BACKGROUND The Marlboro County School District, hereinafter referred to as District is seeking a firm to act as a Third Party Administrator (TPA) for Tax Sheltered Annuities (TSA). The purpose of this agreement pertains to professional review, administrative and IRS tax-compliance services for the District s 403(b) tax-deferred investment program, which is funded exclusively from voluntary salary reductions made by the District s employees. II. RECEIPT OF PROPOSALS For additional information or proposal form please contact the Executive Director of Human Recourses at the address listed below. Proposals must be submitted in sealed envelopes clearly marked Third Party Administrator for the Voluntary Benefits Program with the company name and address. Proposals must be received no later than 11:00 AM on Friday, March 21, 2014 at the following address: Dr. Henry Cobb Executive Director of Human Resources Marlboro County School District PO Box 947 Bennettsville, SC hcobb@marlboro.k12.sc.us (W) (C) The Proposal submitted is the document upon which the District will make its initial judgment regarding a Company s qualifications, understanding of the District s scope and objectives, methodology, and ability to complete services under the contract. Those submitting Proposals do so entirely at their own expense. There is no expressed or implied obligation by the Marlboro County School District to reimburse any firm or individual for any costs incurred in preparing or submitting Proposals, preparing or submitting additional information requested by the District, or for participating in any selection interviews. Submission of any Proposal indicates acceptance of the conditions contained in the RFP, unless clearly and specifically noted otherwise in the Proposal. The Marlboro County School District reserves the right to reject any and all Proposals, in whole or in part, submitted in response to its RFP. The Marlboro County School District reserves the right to waive any and all informalities and to disregard all nonconforming, non-responsive or conditional Proposals. The Marlboro County School District may, at any time, by written notification to all vendors, change any portion of the RFP described and detailed herein. 1

2 During the evaluation of Proposals, the District may require clarification of information or may invite vendor to an oral presentation to amplify and or validate Proposal contents. III. TECHNICAL REQUIREMENTS/SCOPE OF WORK District requirements are, but are not limited to, the following: Provide all necessary Association of School Business Officials (ASBO), Internal Revenue Service (IRS) and National Tax Sheltered Annuity Association (NTSAA) compliant forms for Salary Reductions and Service Provider participation. 1. Oversee all aspects of IRS compliance with the District s 403(b) program by all parties involved. In the event of an IRS audit, TPA will represent the District at the audit. 2. Review all employee files to ensure that each participating employee has an ASBO/IRS/NTSAA compliant Salary Reduction Agreement on file. 3. Obtain fully executed modified Service Provider Agreements from each investment provider conducting business in the District. These modified Service Provider Agreements are ASBO-compliant, with the exception of not requiring the investment providers to provide and certify Maximum Annual Contribution Limits (MAC s) to the employee or the District. TPA will provide these contribution calculations, and certify to the District and the employee as to the accuracy of these calculations. Vendors that do not execute the modified Service Provider Agreement will not be permitted to enroll new participants. 4. Review all employee contributions and perform all necessary calculations to ensure the District s compliance with all IRS regulations pertaining to 403(b) programs. 5. Review all contributions to ensure that additions to the 403(b) program for each participant are within limits prescribed by Section 415 of the Internal Revenue Code. 6. Conduct an on-site review of Service Providers and employee s records as applicable. Site review shall be conducted with minimal disruption to payroll and business office staff. The review is to ensure that all employee accounts are in compliance with all IRS regulations. The Review is intended to identify any defects in process and procedure and TPA will suggest methods for correction of discovered defects. 7. Review all employee Salary Reduction Agreements and sign the forms to verify compliance with the Internal Revenue Code and applicable regulations. TPA shall provide a designee who shall receive all new and revised Salary Reduction Agreements. TPA shall complete review of new and revised Salary Reduction Agreements within three business days. Copies of new and revised Salary Reduction Agreements may be faxed or mailed to TPA, and will verify changes by to District s payroll department. 8. Provide Third Party Errors and Omissions Insurance Coverage on behalf of the District with a limit of $1,000,000 per claim, $5,000,000 in aggregate. The TPA also carries a Fidelity Bond in the amount of $1,000,000 and Computer Fraud and Fund Transfer Fraud Insurance in the amount of $1,000,000 for protection of funds in the TPA s care, custody, and control. 9. Serve a common remitter for the District s 403(b) program, and as paying agent on behalf of the District to promptly remit all funds to participating vendors provided that the District meets the requirements in Section Develop and administer written plan description(s). 2

3 11. The TPA shall not be responsible for any loss, damage, compliance error or expense caused by its failure to perform any duty or obligation under this Agreement which is due to causes beyond its control, such as an act of God, fire, flood, explosion, war, insurrection, riot, vandalism, strike, power failure, interruption or loss of telephone/telecommunication services, or governmental act of regulation; or errors resulting from (1) the employee s election to make contributions to a tax-sheltered annuity or custodial account sponsored by or offered through another employer, or (2) the failure of the District to provide complete and correct provider information and/or employee records and information. 12. TPA to maintain and archive all participant 403(b) files and will ensure strict confidentiality of all employee data, records, and files. TPA will not make available to any outside vendor or sales/marketing organization, any records or information pertaining to District employees. All of the rights available under the various annuity contracts or custodial accounts are enforceable solely by the respective District employees, by the employees beneficiary, or by an authorized representative of the employees. 13. The TPA shall defend, indemnify and hold harmless the District from any claim, demand, lawsuit, judgment, cost or expense, including reasonable attorney s fees, which arises from any negligent act or omission by TPA in the performance of services under this agreement for said District, provided, however, that TPA s obligations and liability under this Section shall not begin until after (a) TPA has completed its compliance review of the District s 403(b) program, (b) the District has implemented all recommendations made by TPA with respect to the District s 403(b) program, and (c) TPA has established the disbursement account described in Section 11 and has commenced making disbursements there from in accordance with Section 10. TPA shall have no obligations or liability under this Section with respect to the time period before it completes its review hereunder; TPA shall not be responsible for determining the propriety of contributions made after an employee s termination or employment with the District; TPA shall not be responsible for implementing its recommendations resulting from its compliance review; and TPA shall not be responsible for any act or omission by the District which adversely affects TPA s ability to act as remitter for the District s 403(b) program under Section 11; and TPA shall not be responsible for the matters described in Sections 12, 15 and District is responsible to ensure that all monies for 403(b) contributions are distributed to appropriate established accounts. The District will use only TPA approved modified salary reduction agreements and will ensure that reductions will not be initiated until such forms are counter-signed by TPA. The District should ensure and then advise employees that a minimum of one pay period transpires before a new salary reduction is included in payroll. The District will ensure that no additional service providers will be added unless they execute a TPA approved modified Service Provider Agreement, TPA assumes no liability for new vendors that will not sign the modified Service Provider Agreement reviewed and approved by TPA. The District will ensure that TPA is provided updated participant employee salaries within 20 days of Board of Education action. Additionally, the District will furnish (or arrange to have furnished) all data and information requested by TPA and necessary for TPA to ensure that the operation of the 403(b) contract complies with the provisions of Sections 402(g), 403(b), and 415(c) of the Internal Revenue Code. The District understands and agrees that TPA s obligation to perform the administrative and support services set forth in this Agreement are subject to the obligation of the District to timely supply (or arrange for TPA to receive) any and all data and information requested by TPA, and necessary for TPA to ensure the District s compliance with the 403(b) programs. TPA will not be responsible for any compliance errors resulting from the District s failure to furnish (or arrange for TPA to receive) necessary information requested within a reasonable time, or errors resulting from any misrepresentations made by the District or its employees. IV. QUALIFICATIONS Provide a statement of Company qualifications including: a. Provide the name of the firm as well as a brief description of its business activities and history. b. Provide information on how long the firm has been in business and length of its experience in Third Party Administration. 3

4 c. Identify the firm s professional staff members who specifically will be assigned to this contract, the experience each possesses, and the location of the office from which they work. Provide a detailed biography and/or resume outlining the experience and credentials of all such staff members. d. Provide a listing and description of similar Third Party Administrator and/or projects awarded with other organizations giving dates of service e. Provide the name and title of person(s) submitting the proposal, the firm s main office address, and primary and secondary points of contact and their telephone and fax numbers (including area codes.) f. Detail the experience your firm and its staff have in working with public sector clients. Describe how needs specific to the public sector were met. Highlight any experience specific to school districts. g. Provide at least three client references from similar public school district projects. Include contact names, addresses and telephone numbers. h. Provide any additional information that you feel would distinguish your firm in its service to the District. VI. TERM OF CONTRACT The contract period shall be for a term of one year from date of contract execution. At the end of the initial one-year term the contract may be renewed annually, upon mutual agreement of both parties, at prices no greater than 75% of the Consumer Price Index (CPI) for the United States for the twelve-month period ending March. Contract cancellation will be at the discretion of either party with 30 days written notice. The successful vendor shall execute a contract with the Marlboro County School District in substantial conformance with the RFP and the contractor s proposal. VII. EVALUATION FACTORS Offers will be evaluated using only the factors stated below. Once evaluation is complete, all responsive offerors will be ranked from most advantageous to least advantageous. 1. Company background and professional qualifications. 2. Ability to offer a competitive range of product quotes. 3. Complete response to all required response items. 4. Structure of proposed compensation method. 5. Comprehensiveness of proposal in meeting the District s needs. 6. Ability to provide all services specified at no cost to the District. 7. Financial strength and capacity. 8. Industry and program experience. 9. Expertise with engagement of similar scope and complexity. 10. Innovative use of current technologies and quality results. 4

5 11. Reliability of delivery and implementation schedules. VIII. ORAL PRESENTATIONS During the evaluation process, the District may, at its discretion, request one or all firms to make oral presentations. Such presentations will provide firms with an opportunity to answer any questions the District may have on a firm s proposal. Not all firms may be asked to make such oral proposals. IX. COST PROPOSAL Submit a cost proposal for the services described above in Section 3, Technical Requirements. The cost proposal must be an all-inclusive amount for the full range of services required for one year under the contract. The proposal must include items such as set up fees, if any, annual maintenance fees, and payment terms. No additional billing will be allowed for travel expenses, parking, participant materials, or other incidentals. This cost proposal should be based on 135 active participants in the 403(b) program, and will be modified either up or down as actual time of installation, based on an accurate census count. The quoted fees must be honored for a period of sixty days (60) from the receipt of this proposal. 5