The Vendor is required to provide for custodial services and functions required by the agency non-represented employee defined benefit pension plan (“the plan”).
- Services include:
• The safekeeping of the fund’s securities (physically or electronically) shall be in a location and manner satisfactory to the fund, with adequate controls and an adequate disaster preparedness plan.
• Online with domestic depositories (e.g., depository trust company, fed book entry system) and basic international depositories (euro clear, clear stream, etc.).
• Identify and collect on a timely basis all receipts/income, and shall be responsible for timely notification of all corporate actions and asset servicing activities.
• The requisite securities movement and control platform to monitor all cash and non-cash activities, including all purchases and sales.
• Perform regular reconciliations with investment managers or provide information electronically to investment managers for reconciliation to ensure records are consistent.
• Provide contractual settlement in those markets with sufficient depository controls and where market infrastructure promotes efficient settlement.
• Clear procedures for contractual settlement and shall identify the circumstances under which contractual settlement will be suspended.
• Well-defined methods for monitoring and managing failed trades and shall have specific remedies for each level where a trade fails.
- Accounting/reporting
• Securities monitoring and control system shall be fully integrated with its core accounting system, its sub custodians, and depositories.
• If the securities tracking and control system is purchased from an outside vendor, the contractor shall retain in-house expertise to maintain and upgrade the system.
• Standard consolidated monthly audited report package shall be available online and includes a statement of assets and transactions, accrued income at month end, failed trade reporting, pending trade reporting, and cash and cash equivalents sorted by fund.
• Provide audited plan accounting statements for the fund (or unit holdings for each plan in the fund plus assets held directly) on a monthly basis.
• Provide services and support systems necessary for the timely receipt, review, and monitoring of corporate actions and proxy voting according to specifications by the fund.
• Provide daily pricing for all publicly traded securities on a non-audited basis and end-of-month audited pricing for all securities, including private placements and non-publicly traded securities.
• Ensure the availability of both online accounting data on a prior-day basis and standard monthly accounting production reports.
• Have the ability to provide consolidated monthly audited financial reports, the ability to support the fund’s preparation of audited financials and other pertinent financial accounting standards board accounting reports.
- Cash management
• The global cash management function shall have regional centralization.
• Have a clear schedule of charges for overdraft problems.
• Have overnight cash sweeps, including overnight multi-currency cash sweeps.
• Have cash management vehicles available for each investment risk tolerance.
• Available for investment same day.
• The capability to work with third parties (investment managers, record-keepers, or participants) to facilitate collections and withdrawals in a daily environment.
- Risk analysis system/internal controls
• Run an automated exception process.
• Front-end edits to verify the integrity of trade data.
• Specific guidelines for dealing with exceptions and problems at each level.
• A specific sign-off process for exceptions.
• Specific materiality standards for re-processing client activity.
• A process for reconciling and following up with investment managers.
- Must keep duplicates or back-up computer data files maintained in connection with the Plan.
- Must have a disaster recovery plan in effect and may be required by the Committee to provide evidence that the system has been tested.
- Must be able to provide access to the committee to all back-up source materials, reports, records, computer programs, and all other information and documentation relating to the plan, as reasonably required so that the committee and/or its designated officers, agents, and accountants, can conduct a financial examination and/or audit of the plan.
- Responsible for maintaining compliance with all security requirements as set forth by federal, state, local, or other applicable statutes.
- Within thirty (30) days of the end of the contract term, the data files must be provided to agency/the committee in a format approved by the committee.
- Benefit Calculations
• Responsible for maintaining appropriate records to determine, track and update participant Plan eligibility.
• System must contain requisite participant data to perform benefit calculations for active and terminated participants to include, but not limited to:
1. Vesting records
2. Transfer and rehire data
3. Special service credit data (e.g., Portability service)
• Responsible for preparing benefit calculations (including illustrations), retroactive calculations, survivor options, and benefit distribution options in accordance with Plan provisions.
• Responsible for preparing and/or validating benefit calculations for beneficiaries of deceased participants.
• Work with Plan Counsel to respond to any claims or appeals arising from a benefit calculation prepared by the Contractor.
- Contract Period/Term: 5 years
- A Virtual Pre-Proposal Conference Date: May 27, 2025
- Questions/Inquires Deadline: June 2, 2025