The vendor is required to provide from qualified investment and financial advisor(s) to provide valuable guidance and expertise to help the city make informed decisions related to managing and providing fiduciary oversight to its employee retirement plans.
- The comprehensive investment consulting services requested for the city include 401(a) defined contribution, 457(b) deferred compensation, RHS, and OPEB accounts.
- As of May 2024, there are approximately 1,132 enrolled participants in the city’s defined contribution and deferred compensation programs, which include 457(b) including roth plans, 401(a) retirement plans and retirement health savings accounts.
- The contractor shall periodically evaluate the performance and cost of investment options offered to participants by mission square retirement
- The contractor shall also provide general consultation services regarding section 457(b) deferred compensation and section 401(a) defined contribution issues.
- It is the city’s intent to obtain sound, independent, and objective advice.
- Deferred compensation and defined contribution consultation services shall include, but are not limited to, the following:
• General consultation services on an as-needed basis during the term of the contract.
• Provide general consultation to the city, as needed, regarding its plan document, design and operation of its deferred compensation and defined contribution programs, written investment policy statement, strategic goals, communication and detailed investment education programs, industry best practices for both internal and plan service provider procedures, implementation of new federal laws and regulatory changes, etc.
• Review and evaluate current expenses; and prepare possible blind bids to establish market rates.
- Services relative to quarterly investment review services:
• An economic overview and general market conditions for the reporting period.
• A comparison of each investment option’s performance to appropriate market indices and universes of similarly managed vehicles.
• A verification of investment option.
• A measurement of the investment style of each investment option.
• Historical performance with a focus on consistency.
• Morningstar or equivalent ratings.
• Comments on manager tenure and on the popularity of funds among participants.
• A review of expenses and returns of each fund option.
• An analysis of the extent to which investment policies have been carried out and how they have affected actual fund performance.
• Recommendations for alternatives to address any of the above.
• A summary of findings and recommendations based on individual funds’ strengths and weaknesses in the plan.
• A review of plan participant fund selections by age.
- Develop an RFP to obtain needed services for the plan
- Provide a comprehensive detailed report analyzing and comparing all responses to the RFP including, but not limited to, recommendations with supporting detail.
- The report must include a comprehensive review of bidder fund options compared to current fund options including preliminary mapping of transfer of funds.
- For each investment option that is proposed by bidders in response to the RFP, the consultant will provide a report with a full analysis of the investment options which includes, but is not limited to, the following:
• The risk and return and other financial characteristics of the investment funds, so that participants may select among investment funds that are materially different from one another.
• Each investment option will be reviewed for administrative, accounting and transaction processing factors to ensure that participants’ elections may be executed in a timely manner and that reports and statements are produced as required.
• Recommendations of an allocation process that focuses on the relative attractiveness of broad asset categories for plan participants.
• Identify and recommend individual funds appropriate to each of the various broad asset classes from which participants may make individual investments selections.
- Furthermore, the report shall also include a thorough examination of the following for each individual fund:
• Tenure of management and fund reputation.
• Long-term performance and relative risk as measured by standard deviation and/or 24-month rolling alpha.
• Competitive and consistent performance measured against an appropriate benchmark (3, 5, and 10-year periods should be measured and evaluated).
• Consistency of investment objectives and investment approach.
• Each fund should be a diversified fund.
• The selected funds should have fees that are reasonable and competitive with similar funds offering a similar range of services.
• Provide primary support for the negotiation process.
- Services should a new plan provider be selected
• Develop a strategy to successfully migrate from the current investment options and record keeping services to a new service provider if a new plan service provider is selected.
• Review education and participant training materials developed by the new plan service provider, if one is selected, for completeness and accuracy.
recommend changes to the city’s education and participant training materials to assure materials are complete and accurate.
• As required, assist the city in meeting with or making presentations to various city employee groups relative to the selection of a new plan provider and the transition process.
- Contract Period/Term: 1 year
- Questions/Inquires Deadline: March 20, 2025