REQUEST FOR PROPOSAL LARIMER COUNTY COLORADO 200 W. OAK ST., SUITE 4000 FORT COLLINS, COLORADO

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1 REQUEST FOR PROPOSAL LARIMER COUNTY COLORADO 200 W. OAK ST., SUITE 4000 FORT COLLINS, COLORADO PROPOSAL NUMBER: DESCRIPTION: Administration of 401(a) and 457 Plans RECORDING DATE: 2/25/2013 The Board of Larimer County Commissioners will be receiving sealed proposals at the office of the Purchasing Director, 200 W. Oak Street, Suite 4000, Fort Collins, Colorado, up to 2:00 P.M. (our clock), Monday, February 25, 2013 at which time they will be recorded, but not publicly opened, to consider contracting for the administration of401(a) and 457 plans for the Larimer County Retirement Board. All questions regarding this proposal must be in writing and should go to Ms. Kathryn Rowe, Purchasing Director, at (970) Questions are due no later than 11:00 A.M., Tuesday, February 5, Questions may be faxed to Ms. Rowe at , or ed to Please call to verify receipt of your questions. No additional questions will be accepted after the date and time referenced above. INSTRUCTIONS TO PROPOSERS: Three (3) copies of your proposal are required. If brochures or other supportive documents are requested, then it is required that 3 sets be submitted with your proposal. In submitting a proposal, the vendor agrees that acceptance of any or all proposals by the County within a reasonable time or period constitutes a contract. No delivery shall become due or be accepted unless a purchase order shall first have been issued by the Purchasing Director of Larimer County. No work shall commence nor shall any invoices be paid until the contractor provides the requested proof of insurance as outlined in the Insurance Requirements for Contractors and until such proof is accepted by Larimer County. Additionally, the contractor will provide an endorsement naming Larimer County as an additional insured to their policy. If you have any questions concerning the insurance requirements, please contact Connie Ellis, Property/Casualty Claims Adjustor, at (970) at least one week before the proposal recording date. Payment for work performed or goods sold to Larimer County can be expected within 30 days after receipt of the invoice and satisfactory acceptance from the department receiving the service or goods. As of August 7, 2006, state and local government agencies are prohibited from purchasing services from any contractor that knowingly employs illegal immigrants to help carry out publicly funded work. Pursuant to the provisions of Colo. Rev. Stat , contractors must certify that they are using the E-Verify Program or Department Program to verify the employment eligibility of new employees. If a contractor awarded a contract violates the provisions of Colo. Rev. Stat (2), the state or local government agency may terminate the contract and the contractor will be liable for damages to such agency. Any contract agreed to by the parties that results in a sole source government contract must contain provisions and comply with Article XXVIII, Section 15 of the Colorado Constitution. Larimer County reserves the right to reject any and or all proposals, to further negotiate with successful proposer and to waive informalities and minor irregularities in proposals received, and to accept any portion of the proposal if deemed to be in the best interest of Larimer County to do so. If, in the sole judgment of the Board of County Commissioners, the proposals are substantially equal, the Board may grant the contract to

2 companies located in Larimer County. The total cost of proposal preparation and submission shall be borne by the proposer. All information submitted in response to this request for proposal (RFP) is public after the Notice of Award has been issued. The proposer should not include as part of the response to the RFP any information which the proposer believes to be a trade secret or other privileged or confidential data. If the proposer wishes to include such material with a proposal, then the material should be supplied under separate cover and identified as confidential. Statements that the entire proposal is confidential will not be honored. Larimer County will endeavor to keep that information confidential, separate and apart from the proposal subject to the provisions of the Colorado Open Records Act or order of court. No telephone, or facsimile proposals will be accepted. Proposals must be clearly identified on the front of the envelope by proposal number and title. Responsibility for timely submittal and routing of proposals, prior to recording, lies solely with the proposer. Proposals received after the closing time specified will not be considered. Minority Business Enterprises will be afforded full opportunity to submit proposals in response to this invitation and will not be discriminated against on grounds of race, color, or national origin. PROJECT OVERVIEW: Larimer County, Colorado is seeking proposals from retirement plan vendors to administer their Internal Revenue Code Section 401(a) and 457(b) retirement programs. The County sponsors a 401(a) plan to provide retirement benefits to the employees of the County. Larimer County also sponsors a 457 deferred compensation plan to provide supplemental retirement benefits to county employees. Specifics for each plan are provided below: General Employees 401(a) Plan Mandatory employee contribution schedule: 5% for first 5 years in plan 7% for 6 th 10 th years in plan 8% for 11+ years in plan Larimer County makes employer contributions in the same amount Plan does not allow loans Current Vendor: Principal Financial Group Assets: $136,794,728 as of 12/20/2012 Total Participant Accounts: 1,606 as of 12/20/ through 10/31/2012 Annual Contributions: $11,803,080 $12,387,522 $12,472,952 $10,420,785 Annual Distributions: $5,270,329 $5,273,189 $11,068,454 $6,199,116 (per the 2011 audit) 2

3 Larimer County Employees 457 Plan Current Vendor: The Hartford Assets: $6,859,828 Total Participant Accounts: 294 Loans: 23 loans with outstanding balance of $143, through 12/26/2012 Annual Contributions: $496,169 $396,527 $356,729 $423,144 Annual Distributions: $479,679 $1,136,107 $778,306 $267,446 Current Vendor: Nationwide Retirement Solutions Assets: $15,249,949 Total Participant Accounts: 403 Loans: 49 loans with outstanding balance of $350, through 9/30/2012 Annual Contributions: $1,063,300 $1,080,700 $1,106,200 $733,000 Annual Distributions: $543,107 $744,937 $943,084 $1,036,457 SCOPE OF WORK: The Retirement Board wants the proposer to present 4 scenarios for consideration. These scenarios should be transparent and clearly state the revenue requirement for each scenario. You should discuss the competitiveness of pricing based on plan demographics and the cash flow for each scenario. The scenarios are: Scenario 1 sole provider for both plans Scenario 2 sole provider for 401(a) plan only Scenario 3 sole provider for 457 plan only Scenario 4 one of two providers for 457 plan (revenue requirement for each 457 plan separately) QUALIFICATIONS: The selected plan vendor must meet the following minimum qualifications: A. General Services 1. Demonstrated experience converting and servicing plans of at least $100 million. 2. Demonstrated ability to complete an organized, effective plan conversion minimizing the blackout period. 3. Must have compliant SSAE 16 on internal controls for a service organization. 4. A pro-active approach for assistance to the plan sponsor regarding legislative and regulatory changes. 3 B. Plan Sponsor and Participant Services 1. Dedicated relationship manager/day-to-day contact is preferred. 2. Robust Plan Sponsor website with adhoc report capabilities. 3. The selected vendor must be able to provide a toll-free voice response system as well as interactive fully transactional website for participant account access, trading, performance calculations, enrollment, distributions, loans, educational materials and fees. 4. An adequate number of customer service representatives must be available to provide customer service over the telephone during reasonable hours.

4 5. Communication materials and plan website must be custom branded. C. Recordkeeping and Administrative Services 1. Provide governmental 401(a) and 457 plan documents that support current plan structure, with ongoing compliance updates. 2. Ability to provide automated processes in order to minimize administrative burden on plan sponsor. 3. Ability to process and maintain the deferred compensation plans participant loans. 4. Investment of payroll contributions must be credited to participant accounts no later than one day following receipt of funds. 5. The plan vendor must handle benefit distribution processing including required notices, checks, tax withholding and tax reporting on Form 1099-R. D. Investments 1. A wide universe of investment options and a fully open architecture approach - no proprietary fund requirement 2. Availability of stable value product versus fixed account offering. E. Communication Services 1. Education should include: a. Minimum of 28 days of on-sight education. b. Investment advice offered by an on-sight dedicated contact or dedicated team, both in person and on-line. c. Participant education should be available in a variety of delivery methods including but not limited to: on-line webinars, on-site and one-on-one meetings, and mailings. d. Format should be group meetings followed by one-on-one meetings if desired by participants. F. Legal Requirements 1. The vendor must have the flexibility in their contractual language and have the ability to make changes to the language based on the reasonable request of the client. PROPOSAL SUBMITTAL REQUIREMENTS: Your proposal should include the following information in the order listed: Signed signature page Commentary tab spread sheet with questions filled in(go to to download the spread sheet) Fund lineup tab spread sheet with revenue sharing filled in All attachments listed on the attachments tab Fees and cost of the program A transparent and clearly stated revenue requirement for a variety of scenarios is required Competitiveness of pricing based on plan demographics, cash flow and multiple scenarios Scenario 1 sole provider for both plans Scenario 2 sole provider for 401(a) plan only Scenario 3 sole provider for 457 plan only Scenario 4 one of two providers for 457 plan (revenue requirement for each 457 plan separately) 4

5 INSURANCE REQUIREMENTS: Prior to commencement of any work, contractor shall forward Certificates of Insurance to Larimer County Purchasing Department, 200 W. Oak St., #4000, Fort Collins, Colorado The insurance required shall be procured and maintained in full force and effect for the duration of the Contract and shall be written for not less than the following amounts, or greater if required by law. Certificate Holder should be Larimer County at the above address. I. Workers' Compensation and Employers' Liability II. A. State of Colorado: Statutory B. Applicable Federal: Statutory C. Employer's Liability: $100,000 Each Accident $500,000 Disease-Policy Limit $100,000 Disease-Each Employee D. Waiver of Subrogation Commercial General Liability on an Occurrence Form including the following coverages: Premises Operations; Products and Completed Operations; Personal and Advertising Injury; Medical Payments; Contractual Liability; Independent Contractors; and Broad Form Property Damage. Coverage provided should be at least as broad as found in Insurance Services Office (ISO) form CG0001. Minimum limits to be as follows: A. Bodily Injury & Property Damage General Aggregate Limit $2,000,000 B. Products & Completed Operations Aggregate Limit $2,000,000 C. Personal & Advertising Injury Limit $1,000,000 D. Each Occurrence Limit $1,000,000 Other General Liability Conditions: 1. Products and Completed Operations to be maintained for one year after final payment. Contractor shall continue to provide evidence of such coverage to the County on an annual basis during the aforementioned period (as appropriate). 2. Contractor agrees that the insurance afforded the County is primary. 3. If coverage is to be provided on Claims Made forms, contractor must refer policy to Risk Management Department for approval and additional requirements. III. Errors and Omissions Coverage $2,000,000 IV. Crime Coverage $2,000,000 V. Commercial Automobile Liability coverage to be provided on Business Auto, Garage, or Truckers form. Coverage provided should be at least as broad as found in ISO form CA0001 (BAP), CA0005 (Garage) or CA0012 (Trucker) including coverage for owned, non-owned, & hired autos. Limits to be as follows: A. Bodily Injury & Property Damage Combined Single Limit $1,000,000 B. Medical Payments Coverage $5,000/person C. Uninsured/Underinsured Motorist Colorado Statutory Limit $1,000,000 VI. Umbrella Liability: Each Occurrence Limit: $2,000,000 VII. Aggregate Limit: $2,000,000 All Insurance policies (except Workers Compensation) shall include Larimer County and its elected and appointed officials and employees as additional insureds as their interests may appear. The additional insured endorsement should be at least as broad as ISO form CG2010 for General Liability coverage and similar forms for Commercial Auto and Umbrella Liability. Additional Insured endorsement(s) shall be attached to the certificate of insurance that is provided to the county. 5

6 VIII. IX. The County reserves the right to reject any insurer it deems not financially acceptable by insurance industry standards. Property and Liability Insurance Companies shall be licenses to do business in Colorado and shall have an AM Best rating of not less than B+ and/or VII. Notice of Cancellation: Each insurance policy required by the insurance provision of this Contract shall provide the required coverage and shall not be suspended, voided or canceled except after thirty (30) days prior written notice has been given to the County, except when cancellation is for nonpayment of premium, then ten (10) days prior notice may be given. Such notice shall be sent directly to Larimer County Risk Management, 200 W. Oak St., #4000, Ft. Collins, CO If the insurance company refuses to provide the required notice, the contractor or its insurance broker shall notify the County of any cancellation, suspension, non-renewal of any insurance within seven (7) days of receipt of insurers notification to that effect. X. Contractor shall furnish Larimer County certificates of insurance. Contractor will receive all subcontractors certificates of insurance. Such certificate must meet all requirements listed above. ANY DEVIATIONS FROM THE STANDARDS GIVEN ABOVE MUST BE APPROVED BY THE LARIMER COUNTY RISK MANAGEMENT DEPARTMENT. EVALUATION CRITERIA: Initial reviews of responses will be evaluated by Innovest Portfolio Solutions LLC. Finalists may be asked to make a presentation. Please note the attached Excel file contains three tabs. Please answer the questions on tab one, fill in revenue sharing for funds on tab two and include the attachments listed on tab three. Finalists will be selected based on the following factors presented in the proposers response to this request: Organization Employer and Employee Services Universe of Investment Choices Fees and Expenses 6

7 SIGNATURE PAGE ADDENDA: The proposer acknowledges the receipt of the following Addenda: Addendum Number Date of Addendum Date Received The undersigned certifies that he/she has examined the specifications and instructions to proposers and has submitted a proposal in full compliance and without collusion with any other person, individual or corporation. The undersigned further certifies that he/she is or is trying to participate in the Basic Pilot Employment Verification Program (Basic Pilot) as detailed as a part of the Systematic Alien Verification for Entitlements (SAVE) Program as found on the U.S. Citizenship and Immigration Services website at ( The entire URL for the SAVE program is: 8e010VgnVCM ecd190aRCRD&vgnextchannel=71919c7755cb9010VgnVCM f3d6a1 The undersigned certifies that you have verified that you do not employ illegal aliens, and that you shall not knowingly employ an illegal alien to perform work. SIGNED: TITLE: PRINTED NAME: FIRM: ADDRESS: CITY: STATE: ZIP: DATE: TELEPHONE NUMBER: FAX NUMBER: For further information regarding this request for proposal, please contact Kathryn Rowe, Purchasing Director, at (970) Please submit proposals in a sealed envelope using a bright highlighter to highlight the proposal number, proposal name and closing date on the outside of your sealed envelope. Mail your proposal to: LARIMER COUNTY PURCHASING DIRECTOR 200 W. OAK STREET, SUITE 4000 FORT COLLINS, COLORADO