REQUEST FOR PROPOSAL (CONSULTING SERVICES)

Transcription

1 REQUEST FOR PROPOSAL (CONSULTING SERVICES) March 16, 2015 MARSHALL ISLANDS SOCIAL SECURITY ADMINISTRATION P.O. Box 175, Majuro, Marshall Islands MH Phone: (692) , Fax: (692)

2 I. BACKGROUND MISSA S financial profile Since 2009, MISSA has experienced operational deficits due to the widening gap between its revenues and benefit payments. Contributions collected in the past five years remained flat at an average of around $12-13 million a year while the $13.6 million yearly benefits paid in 2009 have now soared to $18.4 million in 2014 and are expected to reach $19.6 million in This translates to about 7% increase every year. The average administrative expenses of MISSA is around $900 thousand a year. To ensure uninterrupted benefit payments and positive cash flow, MISSA was forced to make a series of withdrawals from its investments outside the country which have now totaled $11.5 million as of December 31, Another $6 million investment drawdowns are expected by the end of MISSA s net assets totaled $72.0 million as of December 31, 2014 comprised mainly of offshore investments with a market value of $59.7 million and local investments worth $12 million. As per the latest actuarial report (as of October 1, 2013), if this trend will not change, the system will be totally bankrupt by MISSA s funded actuarial accrued liability (as of October 1, 2013) was 23%. To attain long-term financial sustainability of the system, MISSA has considered the option to convert its current system (Defined Benefits-DB) to Defined Contributions (DC) plan. Objectives of this project Project # 1 Current Performance Review Actuarial review Provide an independent actuarial review and second opinion on the valuation report as of October 1, 2013; use new (more realistic) assumptions as needed. Investment review Provide an opinion on the current asset allocation and investment policies of MISSA. Project # 2 Plan conversion design (from DB to DC plan) Establish accounts for workers from available assets in exchange for future benefits; Worker s accounts would continue to grow with asset returns; Beneficiaries would be able to draw periodic payments from accounts based on life expectancy and expected returns; and Opening account balances could be established under one or several alternatives. Project # 3 On-going Consulting Services for Investment Portfolio Management Provide assistance in the implementation of the plan design change.

3 II. SCOPE OF WORK Project # 1 Current Performance Review Actuarial review Provide independent assessment of the assumptions utilized for actuarial valuation; Actuarial analysis and valuation update; Collect demographic data to independently audit the actuarial valuation; and Compare valuation results with the valuation report of October 1, Investment review Provide benchmarking data of the current asset allocation against other public pension entity of similar size; Provide simulation analysis to assess the probability of depletion of funds under the current asset allocation/benefit/contribution policies; Suggest necessary changes to the system; and Benchmarking plan investment return by asset class and manager, with appropriate investment management universes and benchmarks. Project # 2 Plan conversion design (from DB to DC plan) Collect all participants individual data for analysis; Evaluate financial implications of different options to be considered by MISSA; Provide a description of the alternatives to transition from current design (DB) to another (i.e. DC); Illustrate the financial impact of each alternative on worker/beneficiary segments; and Assess the amount workers would need to save/employers need to contribute in the future to attain specific retirement income at a specific retirement age. Project # 3 - On-going Consulting Services for Investment Portfolio Management Asset allocation and portfolio restructuring recommendations, if applicable; Investment option tiering design, if applicable; Vendor searches and recommendations; and On-going management and monitoring, if necessary. III. PROGRAM MANAGEMENT Direction Informal progress meetings (by telephone) may be held with the contractor as deemed necessary by MISSA. Timeline Work on this project should commence not later than May 4, 2015 and have this work completed no later than September 30, IV. PROPOSAL PROCESS Questions of a technical or procedural nature should be directed by telephone or to:

4 Saane K. Aho Administrator & CEO Marshall Islands Social Security Administration P.O. Box 175, Majuro MH Republic of the Marshall Islands Phone: (692) ; Mobile: (692) If by , cc to: Avelino Gimao Jr. Deputy Administrator & CFO Marshall Islands Social Security Administration P.O. Box 175, Majuro MH Republic of the Marshall Islands and cc: Envelopes containing the original copy and two (2) photocopies of the proposal must be sealed and clearly marked in large letters PROPOSAL FOR CONSULTING SERVICES. All proposals must be received prior to April 24, 2015 at 5:00pm, Marshall Islands time, by: Saane K. Aho Administrator & CEO Marshall Islands Social Security Administration P.O. Box 175, Majuro MH Republic of the Marshall Islands V. PROPOSAL EVALUATION CRITERIA MISSA will evaluate proposals and select a contractor based on a combination of the following factors: Qualifications and relevant experience of the firm s proposed project management team and staff; The firm s track record of successful completion of assignment similar to this project; Quality of references from similar work completed recently; Understanding of the issues facing MISSA; The extent to which the proposed solutions matches the needs of MISSA; Quality of the proposed plan for testing and acceptance of the implemented structure; Quality of the contractor s approach to knowledge transfer; and Reasonableness of cost of services requested. VI. REQUIREMENTS AND FORMAT OF THE PROPOSAL Contractors responding to this RFP shall submit their proposals, organized and presented below.

5 Accuracy and completeness are essential. Since the successful proposal will be incorporated into the contract, contractors are cautioned not to make claims or statements to which they are not prepared to commit contractually. Part 1 Letter of transmittal Part 1 of the proposal must contain a letter of transmittal by or personal delivery. It shall: Concisely identify the services offered in the proposal; and Include the name, title, address, telephone number and address of the contact person, and one or more individuals authorized to sign a contract; Part 2 - Understanding the scope of work In this section, the Contractor shall provide a concise presentation of its understanding of the major issues facing MISSA and of the elements required in implementing the scope of work described above. Part 3 Proposed work plan and schedule In this section, the Contractor will describe the approach and tasks to be undertaken in order to successfully complete the requested work. Issues raised on Section VI, Part 2, shall be addressed. Part 4 Relevant experience and client references In this section, a brief description of relevant work experience is to be provided, detailing the timeframe over which services where provided to specific clients. Information of relevance to the Scope of Work should be presented to allow MISSA to assess Contractor s experience. VII. LIMITATIONS MISSA reserves the unqualified right to waive defects in any proposal, to choose or accept or reject any or all proposals submitted in response to this RFP for any reason whatsoever without explanation or justification, to select any firm as the party with whom it would be willing to enter into an agreement regardless of whether such party shall have submitted a proposal pursuant to this RFP at any time including the deletion, addition, modification or other changes thereto, and to make any decision in any manner as MISSA may choose in its sole discretion in the determination of its own interests and irrespective of the position of any interested party that in MISSA s determination is unreasonable, unfair, arbitrary, discriminatory or capricious. MISSA makes no representations, warranties or guarantees that the information contained herein is accurate, complete or timely. The furnishing of such information by MISSA shall not create, nor be deemed to create any obligation or liability upon it for any reason whatsoever, and each organization by expressing its interest and submitting its proposal expressly agrees that it has not relied upon foregoing information and that it shall not hold MISSA liable or responsible therefore in any manner whatsoever.

6 VIII. PUBLIC RECORDS REQUIREMENTS MISSA shall seek to hold all proposals and subsequent submissions in confidence, to the extent consistent with applicable laws of the Republic of the Marshall Islands, until a final decision has been made or the selection processes are terminated.