ACTUARIAL AND OTHER SERVICES TO THE EMPLOYEE PENSION PLAN
City
33758,
1500,
AGREEMENT
vc.-.-
This AGREEMENT, made this ~ day Of~, 2005 by and between the
of Clearwater, Florida (City), P.O.OBOX\4748, Clearwater, Florida
and PRICEWATERHOUSECOOPERS LLP, 101 East Kennedy Boulevard, Suite
Tampa, Florida 33602, (Consultant), a Florida limited liability
partnership.
WHEREAS, City issued Request for Proposal No. 26-04 for Actuarial and
Other Services to the Clearwater Employees Pension Plan (Plan) ( See Exhibit
"A")i and
WHEREAS, City selected Consultant to provide actuarial and other
related services (Project) according to Consultant's response to Request for
Proposal No. 26-04 (See Exhibit "B").
NOW THEREFORE, the City and Consultant do hereby incorporate all terms
and conditions in Exhibit "A" and Exhibit "B" and mutually agree as follows:
1.
SCOPE OF PROJECT.
Consultant agrees to provide pension plan
actuarial and other related services under the terms and conditions
described in Request for Proposal No. 26-04.
2 .
TIME OF PERFORMANCE.
Project will commence on January 1, 2005 and
shall terminate on December 31, 2009.
3 .
REPORTS.
Consultant agrees to provide to City reports on the
proj ect upon request by the City and under the terms provided in the
Request for Proposal No. 26-04.
4 .
COMPENSATION.
The City will pay Consultant a sum not to exceed
$21,000 annually for the annual pension plan actuarial report.
City
agrees to pay Consultant 50% of the amount due each year upon
commencement of the services and 50% upon acceptance by City of the final
actuarial report. Additionally the City will pay Consultant a sum not to
exceed $2,500 annually for individual pension plan benefit statements.
Any additional services related to the proj ect must be approved by the
City Project Manager.
The City may, from time to time, request changes
in the scope of the proj ect of Consultant to be performed hereunder.
Such changes, including any increase or decrease in the amount of
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Consultant's compensation and changes in the terms of this Agreement
which are mutually agreed upon by and between City and Consultant shall
be effective when incorporated in written amendment to this Agreement.
5. METHOD OF PAYMENT. Consul tant shall bill City according to the
payment schedule, and City agrees to pay after approval by the City
proj ect Manager under the terms of the Florida Prompt Payment Act F. S.
218.70.
6. CONTACTS FOR RESPONSIBILITY. Stephen M. Metz will be designated
as Project Director for this project by Consultant to manage and
supervise the performance of this Agreement on behalf of Consultant.
Associated with the Project Director will be staff members whose
experience and qualifications are appropriate for this Project. The City
will be represented by William B. Horne, I I, or his designee for all
matters relating to this Agreement.
7. TERMINATION OF CONTRACT. The City or the Consultant at its sole
discretion may terminate this contract by giving the other party sixty
(60) days written notice of its election to do so and by specifying the
effective date of such termination. The Consultant shall be paid for its
services through the effective date of the termination. Further, if
Consultant shall fail to fulfill any of its material obligations
hereunder, this Agreement shall be in default, the City may terminate the
contract, and Consultant shall be paid only for work completed.
8. NON-DISCRIMINATION. There shall be no discrimination against any
employee who is employed in the work covered by Consultant, or against
applicants for such employment, because of race, religion, color, sex, or
national origin. This provision shall include, but not be limited to the
following: employment, upgrading, demotion, or transfer; recruitment or
recrui tment advertising; layoff or termination; rate of payor other
forms of compensation; and selection for training, including
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apprenticeship.
9.
INTERESTS OF PARTIES.
Consultant covenants that its officers,
employees and shareholders have no interest and shall not acquire any
interest, direct or indirect, which would conflict in any manner or
degree with the performance of services required to be performed under
this Agreement.
10. INDEMNIFICATION AND INSURANCE. Subject to Paragraph 14, Consultant
agrees to hold the City and its officers, employees and agents free and
harmless from and against any and all losses, penalties, damages,
settlements, costs, charges, professional fees or other expenses or
liabili ties of every kind and character arising out of or due to any
negligent act or omission of Consultant or its employees in connection
with or arising directly or indirectly out of this Agreement and/or the
performance hereof. Without limiting its liability under this Agreement,
Consultant shall procure and maintain during the life of this Agreement
liability insurance coverage as described in Exhibit "A". This provision
shall survive the termination of this Agreement.
11. PROPRIETARY MATERIALS. Upon request by City, Consultant shall
transfer, assign and make available to City or its representatives all
property and materials in Consultant's possession belonging to the City,
or originally produced by Consultant as a deliverable hereunder.
Consultant may keep such copies of City's property and materials that it
deems necessary to comply with professional standards with respect to
documentation work performed and/or in accordance with Consultant's
document retention policies.
12. GOVERNING LAW. This Agreement shall be governed by the laws of the
State of Florida and any dispute invol ving the enforcement or
interpretation of this Agreement shall have its venue in Pinellas County,
Florida. In the event that any legal action shall be necessary to
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enforce the provisions of this Agreement, the prevailing party shall be
entitled to all reasonable court costs, including attorneys' fees.
13. WARRANTIES. Consul tant warrants that the service provided will be
performed and supervised by qualified personnel. Notwithstanding
anything to the contrary contained in this agreement, consultant makes no
other warranties, express or implied, or whether arising by operation of
law, course of performance or dealing, custom, usage in the trade or
profession or otherwise, including without limitation implied warranties
of merchantabilitiy and fitness for a particular purpose.
14. LIMITATION OF LIABILITY. Other than the City's obligations to make
payments that are due and owing under this Agreement, a party's and its
affiliates' entire and collective liability arising out of or relating to
this Agreement, including without limitation on account of performance or
nonperformance of obligations hereunder and indemnification under
Paragraph 10, regardless of the form of the cause of action, whether in
contract, tort (including without limitation negligence), statute, or
otherwise, shall in no event exceed the annual fees paid to the
Consultant under this Agreement. Notwithstanding anything to the
contrary contained in this Agreement, neither party nor its affiliates
shall, under any circumstances, be liable to the other party or its
affiliates for any claim based upon any third party claim or for any
consequential, incidental, indirect, punitive, exemplary or special
damages of any nature whatsoever, or for any damages arising out of or in
connection with any malfunctions, delays, loss of data, loss of profit,
interruption of service or loss of business or anticipatory profits, even
if a party or its affiliates have been advised of the likelihood of such
damages occurring. No action, regardless of form, arising out of this
Agreement may be brought by either party more than one (1) year after the
cause of the action has accrued.
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15. CONFIDENTIALITY. Consultant agrees to take reasonable measures to
keep confidential the information provided to Consultant by City (i.e.,
"Confidential Information") and shall disclose the Confidential
Information only to those personnel at Consultant who have a need to know
such information, and shall use the Confidential Information solely for
the purpose of providing services under this Agreement. Notwithstanding
anything to the contrary in this Agreement, Consultant may disclose
Confidential Information as may be required by law, statute, rule or
regulation, including any subpoena or other similar form of process.
Consultant will provide the City with prompt notice of any request that
Consultant disclose Confidential Information (so long as such notice is
not prohibited by law), so that the City may object to the request and/or
seek an appropriate protective order. It is understood and agreed that
any objection by the City to such a request shall not affect Consultant's
obligations to produce materials called for by appropriate legal process.
Upon conclusion of the provision of services under this Agreement, if
the City requests in writing, Consultant shall return the Confidential
Information to City. Consultant may keep such copies of City's
Confidential Information that it deems necessary to comply with
professional standards with respect to documentation work performed
and/or in accordance with Consultant's document retention policies. Any
copies of City's Confidential Information so kept shall be retained and
destroyed in accordance with (a) Consultant's standard document retention
policies and (b) the terms of this Agreement. Consultant recognizes the
confidential and proprietary nature of the Confidential Information and
acknowledges that, in the event it is determined by a court that a breach
of the confidentiality provisions of this Agreement has occurred or is
likely to occur, the City will suffer irreparable harm. Accordingly, the
City shall be entitled to seek preliminary and permanent injunctive
5
relief in the event of a breach or threatened breach of this Agreement,
as well as all other applicable remedies at law or equity. Consultant's
confidentiality obligations under this Agreement will terminate three
years from the date set forth below.
16. QUALIFICATIONS. The Actuary certifies that it is technically
qualified under state and federal laws and is competent to provide the
services required by this Agreement. The Actuary acknowledges that it is
fully familiar with the laws of the State of Florida governing public
employee retirement systems and with the provisions of the Code of the
City of Clearwater relating specifically to the management of this Fund.
The Actuary further acknowledges that it has been provided with a copy of
the applicable provisions of the City Code.
17. RELATION OF PARTIES. The parties recognize that the Actuary is a
fiduciary of the City and the Pension Fund, pursuant to the provisions of
Chapter 112, Part VII, Florida Statutes.
18. ENGAGEMENT LIMITATIONS - The services performed under this Agreement
will not constitute an examination or review in accordance with generally
accepted auditing or attestation standards.
Except as may be specified
in this Agreement, we will not audit or otherwise verify the information
supplied to us, from whatever source, in connection with this engagement.
In performing services under this Agreement, we may occasionally discuss
financial accounting matters with Client. The services performed under
this Agreement, including any such discussions, are not intended to and
do not include an engagement or other undertaking to perform an
engagement to issue an opinion on the application of financial accounting
matters as contemplated under Statement on Auditing Standards (SAS) No.
97. We have no responsibility for such matters unless we are
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specifically engaged to address these issues pursuant to a specific
written engagement agreement.
As you are aware, tax returns and other filings are subject to
examination by taxing and regulatory authorities. We will be available
to assist the Client in the event of an audit of any issue for which we
have provided services under this Agreement. However, unless otherwise
indicated, our fees for these additional services are not included in our
fee for the services covered by this Agreement.
We will not be prevented or restricted by anything in this Agreement from
providing services for other clients.
In the course of our engagement, certain communications between Client
and PricewaterhouseCoopers may be subject to a confidentiality privilege.
Client recognizes that we may be required to disclose such
communications to federal, state and international regulatory bodies; a
court in criminal or other civil litigation; or to other Third Parties,
including Client's independent auditors, as part of our professional
responsibili ties. In the event that we receive a request from a Third
Party (including a subpoena, summons or discovery demand in litigation)
calling for the production of information, we will promptly notify you.
We agree to cooperate with Client in any effort to assert any privilege
with respect to such information, provided Client agrees to hold
PricewaterhouseCoopers harmless from and be responsible for any costs and
expenses resulting from such assertion.
19. OTHER PROVISIONS. If any provision of this Agreement, including the
Limitation of Liability clause, is determined to be invalid under any
applicable law, such provision will be applied to the maximum extent
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permitted by applicable law, and shall automatically be deemed amended in
a manner consistent with its objectives to the extent necessary to
conform to any limitations required under applicable law.
the date first above written.
IN WITNESS WHEREOF, the City and Consultant have executed this Agreement on
Countersigned:
~r~
~k v. Hibbard .
yor-Council Member
Approved as to form:
Witnesses:
,.1'
,J;J~/l, (!J~
...
--~1- ~
CITY OF CLEARWATER, FLORIDA
By: ~,q~ JL
William B. Horne, II
City Manager
Attest:
PriceWaterhouseCoopers
By:
SU:f-~~
Attest:
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CITY OF CLEARWATER, FLORIDA
REQUEST FOR PROPOSAL FOR ACTUARIAL AND OTHER SERVICES
RFP #26-04
A. INTRODUCTION/BACKGROUND
The City of Clearwater (hereinafter "City") is requesting proposals from qualified firms of actuarial consultants
interested in providing actuarial and other related services to the City of Clearwater Employees' Pension Plan
(hereinafter "Plan"). Actuarial services are also required for the City's other postemployment benefits (OPEB). A
Selection Committee (hereafter "Committee") has been formed to facilitate the selection process. The Committee is
composed of five (5) City appointees.
The Plan, is a single-employer, self-administered defined benefit pension plan for eligible City employees. Members
presently contribute 8.0% of their earnings on a pre-tax basis, while the City contributes the balance required as
determined by the actuarial valuation. The Plan requires a minimum City employer contribution of 7.0% of
employee salaries and wages. The Plan includes a disability retirement provision for members who become disabled.
The Employees' Pension Plan is governed by the members of the City Council who serve as the Plan Trustees.
The City has other postemployment benefits due to the inclusion of retirees in the City's group health insurance and
life insurance plans.
The City is a city manager/council form of local government, which offers a traditional mix of municipal services to
a population of approximately 110,000.
The City employs approximately 1,850 persons. The Employee's Pension Plan currently has 1,633 active members
and 646 retirees. The Plan assets had a market value of$471 million as of January 1,2004.
B. REQUIRED SERVICES AND PERFORMANCE STANDARDS
Actuarial Reviews - Pension and Health & Welfare
(1) The valuations must be performed in accordance with accepted actuarial principles including the use of
appropriate actuarial assumptions. The financial information produced must be in accordance with
generally accepted accounting principles, including full compliance with Governmental Accounting
Standards Board (GASB) statements. The actuarial reports must provide sufficient information to enable the
City to make all financial statement note disclosures required by applicable GASB statements.
(2) The techniques and assumptions used and the content of the reports issued must conform to the
requirements of all applicable laws and rules including Florida Statutes and Chapter 60 of the Florida
Administrative Code, and the fee quoted is to include responses by the actuary to inquiries of the State
Board of Administration as necessary.
(3) Pension and Health & Welfare (OPEB) actuarial studies must be completed on a timely basis in order to
meet budgeting requirements, no later than April 151 annually.
Emplovee Benefit Statements
Individual employee benefit statements will be prepared and delivered to the City for distribution to employees.
The benefit statements will include such information as projected plan benefits, employee contributions, accrued
plan benefits, date of 100% vesting, etc. The statements will be delivered to the City annually by July 151 for
distribution to employees.
Request For Proposal For Actuarial Services RFP# 26-04
City of Clearwater, Florida
Exhibit "A"
Advise to City Staff on Tax and Plan Issues
The firm will be available to advise City staff on issues pertaining to tax and plan considerations such as plan
design, estimated funding requirements of various alternative plan designs, and detailed actuarial reports and
impact statements related to the Employees' Pension Plan. Recognizing that service providers and clients have
an on-going need for communications, the service provider will advise the City, in advance, when discussions
are such that a billing will occur. Fees will typically be based on a fee per hour, however for large projects a
project fee will be negotiated.
C. INDEMNIFICATION AND INSURANCE REQUIREMENTS
Indemnification
The Proposer shall hold harmless, indemnify and defend the City, its elected officials, officers and employees,
against any claim, action, lawsuit, loss, damage, injury (whether mental or physical, and include death to persons, or
damage to property), liability, cost and expense of whatsoever kind or nature including, but not by way of limitation,
attorney's fees and court costs, caused by negligent acts or omissions of Actuarial Services.
The City shall also be held harmless against all claims for financial loss with respect to the provision of or failure to
provide professional or other services resulting in professional malpractice, or errors or omissions liability arising
out of performance of the agreement or contract, unless such claims are a result of the city's own negligence.
Insurance
(1) Without limiting its liability under the contract, the Proposer shall procure and maintain at its sole expense
during the life of the contract, insurance of the types and the minimum amounts stated.
Type
Professional Liability
Amount
$2,000,000
Comprehensive or Commercial General Liability
$500,000
Comprehensive or Business Automobile Liability
$500,000
Workers' Compensation Coverage as imposed by State Law
$ Statutory
Employers Liability
$100,000/$100,000/$500,000
(2) The Proposer's comprehensive general liability policy shall include contractual liability on a blanket or
specific basis to cover this indemnification.
(3) Such insurance shall be written by a company or companies licensed to do business in the State of Florida
and satisfactory to the City. Prior to commencing any work under this contract, certificates evidencing the
maintenance of said insurance shall be furnished to and approved by the City's Risk Management Division.
(4) The insurance coverage's and conditions required shall not be suspended, voided, cancelled or modified
except after thirty (30) days prior written notice has been given by certified mail, return receipt requested, to the
City's Risk Management Division Office.
(5) The City may, at its option, require a copy of the Proposer's insurance policies.
Request For Proposal For Actuarial Services RFP# 26-04
2
City of Clearwater, Florida
(6) All insurance policies required within this RFP and any contract subsequently entered into between the
parties shall provide full coverage from the first dollar of exposure unless otherwise stipulated. No deductibles
or self-insurance retention will be accepted without prior approval from the City. The Proposer's
deductible/self-insurance retention's (SIRs) shall be disclosed to the City and may be disapproved by the City.
They shall be reduced or eliminated at the option of the City. The Proposer is responsible for the amount of any
deductible or SIR.
(7) Except for workers' compensation and professional liability insurance, the Proposer's insurance policies
shall be endorsed to name the City as an additional insured to the extent of the city's interest.
(8) Insurance required of the Proposer or any other insurance carried by the Proposer shall be considered
primary and any insurance of the City shall be considered excess as may be applicable to claims under any
contract or agreement between City and Proposer.
(9) Any party providing services or products to the City will be expected to enter into a written agreement,
contract, or purchase order with the City that incorporates, either in writing or by reference, all of the pertinent
provisions relating to insurance and insurance requirements as contained herein. A failure to do so, may, at the
sole discretion of the City, disqualify any party from performing services or selling products to the city
provided, however, the City reserves the right to waive any such requirement.
(10) If a claims made form of professional liability coverage is provided, the retroactive date of coverage shall
be no later than the inception date of claims made coverage, unless prior policy was extended indefinitely to
cover prior acts. Coverage shall be extended beyond the policy year either by a supplemental extended
reporting period (ERP) of as great duration as available, and with no less coverage and with reinstated aggregate
limits, or by requiring that any new policy provide a retroactive date no later than the inception date of claims
made coverage.
D. RFP TIME TABLE
The anticipated schedule for the RFP and contract approval is as follows:
RFP available for distribution
Friday, August 6, 2004
Deadline for receipt of questions
Wednesday, August 25,2004
Deadline for receipt of proposals
Monday, September 13,2004, 4:00p.m.
Review of proposals & select candidates for presentations
Tuesday, September 21, 2004
Presentations & Final Ranking
Wednesday, September 29,2004
City begins contract negotiations
Thursday, September 30,2004
Recommendation to Pension Trustees
Monday, November 15,2004
Projected Contract award and start date
January 1,2005
E. RFP AVAILABILITY
Copies of the RFP are available by contacting George McKibben at (727) 562-4634, or by visiting the Purchasing
Division located at the Municipal Services Building, 3rd Floor/Finance, 100 South Myrtle Avenue, Clearwater,
Florida 33756-5520.
Request For Proposal For Actuarial Services RFP# 26-04
3
City of Clearwater, Florida
F. PROPOSAL SUBMISSION
One original and five copies (a total of six) shall be delivered to the City of Clearwater, Purchasing Manager, 100
South Myrtle Avenue, Clearwater, FL 33756-5520, prior to the opening time of 4:00 p.m., EDT, on Monday,
September 13, 2004. Proposals shall be as brief and to the point as possible while still meeting proposal
requirements.
The delivery of proposals to the City of Clearwater Purchasing Office prior to the specified date and time is solely
and strictly the responsibility of the proposing firm. The City shall not, under any circumstances, be responsible for
delays caused by the United States Postal Service or any private delivery service, or for other delays. All responses
must be manually and duly signed by an authorized authority to bind said firm, and Proposer(s) must affix their
company's corporate seal to the Proposal. In the absence of a corporate seal, the Proposal must be notarized by a
Notary Public.
The submittal of a proposal by a preparer will be considered by the City as constituting an offer by the Proposer to
perform the required services at the stated fees. The stated fees shall be considered locked in for 180 days from the
time of receipt.
All responses must be marked on the outside:
"Request For Proposal For Actuarial Services
for the City of Clearwater, Florida
RFP 26-04
To be opened at 4:00 PM, EDT, September 13th, 2004."
Each Proposer is solely responsible for reading and completely understanding the requirements of this RFP. The
opening time shall be and must be scrupulously observed. Under no circumstances will proposals delivered after the
specified delivery time be considered. Late submissions shall be returned unopened to the firm with the notation
"The Proposal was received after the delivery time designated for the receipt and opening of the proposals."
G. INQUIRIES AND ADDENDA
Each firm shall examine all RFP documents and shall judge all matters relating to the adequacy and accuracy of such
documents. Any inquiries, suggestions or requests concerning interpretation, clarification, or additional information
pertaining to the RFP shall be made in writing a minimum of five (5) working days prior to due date through the City
of Clearwater's Purchasing Manager, George McKibben, at P.O. Box 4748, Clearwater, FL 33758-4748; or FAX
727-562-4635. Facsimiles must have a cover sheet which shall include, at a minimum, the Proposer's name, address,
number of pages transmitted, phone number, and facsimile number.
The City shall not be responsible for oral interpretations given by any City employee, representative, or others. The
issuance of a written addendum is the only official method whereby interpretation, clarification, or additional
information may be given. If any addenda are issued to this RFP, the City will attempt to notify all prospective firms
who have secured same. However, it shall be the responsibility of each firm, prior to submitting the proposal, to
contact the City of Clearwater's Purchasing Manager (727-562-4634) to determine if addenda were issued and to
make such addenda a part of the proposal.
Request For Proposal For Actuarial Services RFP# 26-04
4
City of Clearwater, Florida
H. NO CORRECTIONS
Once a competitive proposal is submitted, the City shall not accept any request by any proposer to correct errors or
omissions in any calculations or competitive price submitted
I. INFORMALITY W AIVER/REJECTION OF BIDS
The City reserves the right to reject any or all responses and to waive any irregularity, variance or informality
whether technical or substantial in nature, in keeping with the best interests of the City.
J. APPROPRIATIONS CLAUSE
The City, as an entity of government, is subject to the appropriation of funds by its legislative body in an amount
sufficient to allow continuation of its performance in accordance with the terms and conditions of this contract for
each and every fiscal year following the fiscal year in which this contract shall remain in effect. Upon notice that
sufficient funds are not available in the subsequent fiscal years, the City shall therefore be released of all terms and
other conditions.
K. ORAL PRESENT A TION
A formal oral presentation may be required by each firm that is selected during the initial review process (at the sole
option of the City). If required, presentations should be in support of the firm's proposal or to exhibit or otherwise
demonstrate the information contained therein. If the Committee wishes additional clarification of any information
or additional information, any of the firms may be requested to submit that information in writing.
L. EXCEPTION TO THE RFP
Proposers may take exceptions to any of the terms of this RFP unless the RFP specifically states where exceptions
may not be taken. Should a Proposer take exception where none is permitted, the proposal will be rejected as non-
responsive. All exceptions taken must be specific, and the Proposer must indicate clearly what alternative is being
offered to allow the City a meaningful opportunity to evaluate and rank proposals.
Where exceptions are permitted, the City shall determine the acceptability of the proposed exceptions and the
proposals will be evaluated based on the proposals as submitted. The City, after completing evaluations, may accept
or reject the exceptions. Where exceptions are rejected, the City may request that the Proposer furnish the services
or goods described herein, or negotiate an acceptable alternative.
M. OPENNESS OF PROCUREMENT PROCESS
Written competitive proposals, other submissions, correspondence, and all records made thereof, as well as
negotiations conducted pursuant to this RFP, shall be handled in compliance with Chapters 119 and 286 Florida
Statutes. The City gives no assurance as to the confidentiality of any proposal once submitted.
Request For Proposal For Actuarial Services RFP# 26-04
5
City of Clearwater, Florida
N. QUALIFICATIONS AND OTHER FACTUAL INFORMATION
(1) Firm Qualifications
A. Indicate size of firm, organizational structure, location of management and charter authorization and
licenses to do business in the State of Florida.
B. Describe in general your firm's national, statewide and local service capabilities to perform the
required services as stated in Section B of this RFP.
C. Describe resources available to your firm such as computer capability, personnel with specialized
knowledge, and expertise in the governmental field.
D. Describe your firm's experience in serving as an actuary and consultant to local governmental units
including your most recent clients within the State of Florida, including the names, addresses, and
phone numbers of contact persons; briefly describe the services performed for these clients.
E. Describe your firm's experience specific to health & welfare actuarial valuations related to other
postemployment benefits.
F. Indicate whether your firm qualifies as an "Enrolled Actuary" as defined in Chapter 60T-1.002(6) of
the Florida Administrative Code.
G. Please provide information on litigation your firm has been a party to during the past three (3) years.
(2) Familiarity with GASB Statement Requirements
Please indicate your familiarity with GASB Statement reporting and disclosure requirements relating to
pension plans and other postemployment benefits by providing a brief summary of current and proposed
requirements and your experience in providing required disclosures.
(3) Qualifications of Personnel to he Assigned
Provide resumes of the personnel who would be directly involved in performing actuarial and consulting
services for the City, including but not limited to:
(i) Formal and supplemental education;
(ii) Experience in performing pension and health & welfare actuarial services and consultation
regarding employee benefit programs including governmental client names where possible;
(iii) Knowledge of State of Florida regulatory requirements applying to municipal pension plans;
(iv) Experience, if any, in performing valuations in compliance with GASB Statements.
(v) Memberships in professional organizations; and
(vi) Professional recognition and awards.
Request For Proposal For Actuarial Services RFP# 26-04
6
City of Clearwater, Florida
(4) Costs to Provide the Various Services
A. Provide full information on the cost for each of the required services identified in Section B of the RFP
including whether the fee is on a project basis or hourly basis, the estimated number of hours and total
cost, and any other costs which would be reasonable expected to be incurred as a result of the
performance of the service. If applicable, please provide any project or hourly cost increases for years
two thru five of the anticipated five-year contract. Costs should be quoted on each service as follows:
· Annual Pension Actuarial Review (project basis)
· Annual Health & Welfare Actuarial Review - OPEB (project basis)
· Annual Employee Benefit Statements (project basis)
· Advise to City Staff on Tax and Plan Issues (hourly basis)
O. NEGOTIATIONS
The City may award a contract on the basis of initial offers received, without further negotiations, or may negotiate a
final contract. Therefore, each initial offer should contain the Proposer's best terms from a cost or price and
technical standpoint.
The City reserves the right to enter into contract negotiations with the selected Proposer. If the City and the selected
Proposer cannot negotiate a successful contract, the City may terminate said negotiations and begin negotiations with
the next selected Proposer. This process will continue until a contract has been executed or all Proposers have been
rejected. No Proposer shall have any rights against the City arising from such negotiations.
P. RIGHT TO PROTEST
Any actual or prospective Proposer who is aggrieved in connection with the solicitation or award of a contract may
seek resolution of its complaints by contacting the Purchasing Manager.
Q. NO COLLUSION
By offering a submission to the RFP, the proposer certifies the proposer has not divulged to, discussed or compared
his/her competitive proposal with other proposers and has not colluded with any other proposers or parties to this
competitive proposal whatsoever.
R. EVALUATION CRITERIA AND RANKING PROCESS
GENERAL
The evaluation and ranking of all competitive proposals received shall be accomplished utilizing the criteria
described in this Section. Information and data included in the Actuarial Services proposal shall be considered in the
evaluation and ranking process.
SELECTION CRITERIA
All proposals shall be equally evaluated with respect to the completeness of the data provided, support for all claims
made, and the overall approach taken. The following criteria shall be utilized in the evaluation of the proposal:
30%
20%
20%
20%
10%
(1) Firm Qualifications
(2) Familiarity with GASB Statement Requirements
(3) Qualifications of Personnel to be Assigned
(4) Costs to Provide the Various Services
(5) References
References may be called regarding the level of satisfaction with services rendered by the proposing firm, technical
ability, cost, and education of and presentation to governing bodies.
Request For Proposal For Actuarial Services RFP# 26-04
7
City of Clearwater, Florida
STATEMENT OF NO BID
Note: If you do not intend to respond to this bid request, please complete and return this sheet to:
City of Clearwater
Purchasing Department
P.O. Box 4748
Clearwater, FL 33758-4748
We, the undersigned, have declined to bid on the above noted Invitation for Bid for the following
reason(s):
Insufficient time to respond to Request for Proposal.
Do not offer this product/service.
Our schedule will not permit us to perform.
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Specifications unclear (please explain below).
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Request For Proposal For Actuarial Services RFP# 26-04
8
City of Clearwater, Florida
Request for Proposal for
Actuarial Services
For the
City of Clearwater, Florida
RFP 26-04
To be opened at 4:00 PM, EDT
September 13th, 2004
Exhibit "B"
CONTENTS
PAGE
Firm Qualifications
1
Familiarity with GASB Statement Requirements
11
QualifICations of Personnel to be Assigned
12
Costs to Provide the Various Services
17
PricewaterhouseCoopers LLP
FIRM QUALIFICATIONS
A. Indicate size of firm, organizational structure, location of management and
charter authorization and licenses to do business in the State of Florida.
PricewaterhouseCoopers LLP (www.pwcglobal.com). the world's largest
professional services organization, helps its clients build value, manage risk and
improve their performance.
Drawing on the talents of more than 125,000 people in 139 countries, we provide
a full range of business advisory services to leading global, national and local
companies and to public institutions. These services include audit, accounting
and tax advice; human resource consulting; financial advisory services including
mergers and acquisitions, business recovery, project finance and litigation
support; business process outsourcing services; and legal services through a
global network of affiliated law firms. We have a global network of over 5,000
human resource practitioners in 60 countries which provide HR services to a wide
range of companies. Our U.S. HRS practice includes over 1,500 practitioners
working in the human resource services area - including actuaries, accountants,
tax specialists, financial advisors, and other human resource professionals with a
wide range of knowledge in areas such as compliance, retirement, healthcare
delivery, compensation, estate planning, learning and education, and HR
effectiveness. Our Southeast HRS practice consists of over 200 professionals
assisting companies with their human resource needs.
PricewaterhouseCoopers refers to the US firm of PricewaterhouseCoopers LLP
and other members of the worldwide PricewaterhouseCoopers organization.
PricewaterhouseCoopers was formed on July 1, 1998 through the global merger
of Coopers & Lybrand and Price Waterhouse, bringing together the legacies and
capabilities of these two world class firms. .
In the U.S., we serve clients through offices of PricewaterhouseCoopers LLP, a
limited liability partnership.
In Florida, we have offices in Tampa, Orlando, Jacksonville, Miami, Fort
Lauderdale, and West Palm Beach. PricewaterhouseCoopers, including its
predecessor firm in Florida, has been a legal entity providing continuous services
in the State for over 60 years. Our Florida practice is registered with the State of
Florida Department of Regulation under the provision or Florida Statutes Chapter
473, under license #AD-0001O-878.
PricewaterhouseCoopers LLP
Through the resources and capabilities of the firm's Human Resource Solutions
group, PricewaterhouseCoopers has one of the world's largest professional practices in
actuarial science and employee benefit plan design and administration and human
resource consulting. Over the past several years, as the human resources industry has
continued to consolidate, PwC has expanded the size, geographic reach and service
capabilities of the HR consulting organization.
B. Describe in general your firm's national, statewide and local service capabilities to
perform the required services as stated in Section B of this RFP.
We have been providing the pension-related services requested in the RFP for the past
16 years and will maintain the same engagement team that has been serving the City
of Clearwater most recently, led by Steve Metz, who has served as your actuary from
the beginning. We have added to the engagement team people with specific expertise
in retiree medical valuations and the implementation ofGASB Statement 45.
. Our HRS practice nationally includes over 1,500 actuaries, attorneys and consultants.
Our Southeast region includes over 200 professionals. Steve Metz, the engagement
partner for the City of Clearwater is the partner in charge of the Southeast Region
Retirement Practice. Our Florida actuarial clients include:
The City of Clearwater
Blue Cross/Blue Shield of Florida
The PGA Tour
Carnival Cruise Lines
University Community Hospital- Tampa
Helen Ellis Memorial Hospital
The Martin County School Board
Bayfront Medical Center
Jackson Memorial Hospital- Miami
The Miami Department of Off-Street Parking
Martin Memorial Health System
Munroe Regional Medical Center
PricewaterhouseCoopers brings the full resources of our firm's assurance and business
advisory, tax and legal services as well as a wide range of consulting resources. We
bring to employee benefit consulting matters an interdisciplinary approach that goes
well beyond the customary scope of benefit consulting services.
Plans
PwC can help you design, build and run the proper
programs for your organization.
HR plans and programs - including benefits and total
compensation - are central to your organization's ability to
attract and retain superior employee talent. PwC teams with
your staff to provide technical advice combined with practical
and creative support in the design, structure and financing of the
PricewaterhouseCoopers LLP
2
People
PricewaterhouseCoopers LLP
right programs to drive your people strategies. To meet these
challenges, we draw on our creativity and our expertise in:
Actuarial and other Financial Services design,
implementation and administration of defined benefit and
defined contribution retirement plans
Total Rewards Program Design - ways to cut a company's
fixed benefit costs, while increasing the value provided to
employees when the company hits or exceeds its performance
target
Health and Welfare Plan Consulting - design, development
and assistance in choosing health and welfare programs,
including claims, plan utilization, workers' compensation and
loss reserve analyses, casualty claims audits and integrated
disability management
Compliance Services - information about current legislation
and its impact on your organization
PwC creates customized strategies that address the needs of
your organization and your employees.
An organization's people strategy directly affects fundamental
business issues, such as productivity, profitability and
innovation. The ability to attract, manage, motivate and reward
human resources creates a critical advantage. We can help your
organization develop strategies to successfully drive the
behaviors and actions of your employees. Working from an
original and appropriate HR strategy, we provide customized
solutions along with the methods and resources to help you
achieve your goals. Our ground breaking work in this area
draws upon a range of disciplines:
Learning and Change development of leadership
competencies, alignment of proper strategies and
implementation of appropriate training
Communication - the key to employee appreciation and
understanding
Organizational Effectiveness & Development - strategic
planning and management, development of managerial
capabilities and establishment of a work environment that
attracts and utilizes a diverse workforce
Compensation - recruiting, retention and performance
management
Diversity and Work/Life Programs - developing awareness
of the need for a diverse workforce and maintaining balance
between work and life commitments
3
Processes
PwC can help you run your operations efficiently
Does the management, organization and structure of your HR
activities add value to your business? By collaborating with
you, we can measure the value generated by your company's
current HR processes and identify opportunities for change and
improvement. We help you to create a clear, compelling
business case to gain management's approval for any
investment required. We can also help you to construct a
realistic plan to guide implementation. Our approach
encompasses:
Strategy - a review of what HR needs to do and why
Business Process Reengineering - how to improve workflow
and efficiency
Implementation - the who, what and where of improving
administration
Operation - the system of continuous improvement
Merger and Acquisition Support - due diligence on assets,
Liabilities
C. Describe resources available to your firm such as computer capability, personnel
with specialized knowledge and expertise in the governmental field.
Computer Capabilities
The firm's actuarial valuation system is ProVal@. We lease ProVal from
Winklevoss Consultants, Inc., whose staff of actuaries and programmers are
dedicated to keeping the system up-to-date with regard to all legislative,
methodological and technological changes. As the largest client of Winkle voss,
the firm is a member of the Pro V al user group and has been a driving force
behind a number of upgrades to the valuation and projection systems.
Pro V al is used for the valuation of pension and postretirement medical plans,
developing plan liabilities as well as full valuation results under ERISA
funding rules and all applicable FASB and GASB standards. ProVal also has
extensive deterministic and stochastic projection capabilities, including the
ability to perform asset allocation studies.
Pro V al is a PC-based system, eliminating much of the time and expense
associated with large mainframe systems. Determining the effects of future
plan and economic changes on funding, accounting, or cash flow requirements
can be performed quickly and efficiently.
Because of the flexible design of Pro V al and its extensive capabilities with
regard to data handling and the coding of plan provisions and future plan or
economic changes, it is uniquely capable of handling extremely complex plan
designs and forecasting requests.
PricewaterhouseCoopers LLP
4
Our firm maintains a number of internally developed programs that link with
ProVal in order to provide an efficient process from data to report. Pro Val's
reporting and graphing tools allow for many report exhibits to come directly
from Pro Val, with great design flexibility to suit individual client needs. .
In addition, PwC has developed specialized active employee and retiree
specific health systems to help with modeling plan changes and pricing.
Specifically, our most recent developments include Consumer Directed
Healthcare Model, Retiree Medical and Dental Manual, and Medicare
Prescription Drug Savings Model.
Internal Resources
Our consulting practice is supported by our National Technical Consulting
Unit in Washington, D.C., a key resource for research as well as up-to-date
information on legislative and regulatory activities. The National Technical
Services Unit sends out technical memoranda to our practice offices daily via
our intranet - The Knowledge Curve. This unit also acts as our liaison with
government agencies to obtain information through key contacts and to obtain
formal rulings.
Our Accounting, Auditing, and SEC Consulting Services Directorate and Tax
Directorate also maintain research units. Specialists in these groups bring their
expertise to emerging issues. Our work on the Financial Executives Research
Foundation Research Project and the FEI Field Test on post-retirement benefits
are specific examples of these multidisciplinary research units working
together. This extensive work required the involvement of group and pension
actuaries, health care and benefits consultants, and accounting and tax
professionals from both practice offices and research units. More recently, the
research units have been analyzing the impact of the proposed change in
accounting treatment of stock based compensation.
Keeping our consultants informed on emerging issues, legislative changes and
research results is a top priority for us and at the core of our high-quality,
responsive service. We get the information out quickly so your team can help
you respond before there is a negative impact on your business. And, with our
contacts in Washington, D.C., and representation on various committees, the
City can be confident that the information is accurate and timely.
The Firm's HRS practice also uses a wide variety of communication vehicles
to disseminate technical information and the related business issues to our
consultants across the country on a timely basis. These communication
methods include:
· The Knowledge Curve - our Intranet - as well as specialized data libraries
on our Lotus Notes servers. These are core resources we use to keep
current with information in the office or on the road, using worldwide dial-
up capability. The Knowledge Network provides our professionals with
PricewaterhouseCoopers LLP
5
acc~ss to firmwide discussion groups, your engagement team learns about
current developments and is able to exchange ideas with PwC professional
across the country.
· Monthly national conference calls and several annual national meetings are
held to share technical opinions and creative solutions to client problems as
well as to discuss ways to meet new client service needs.
· We also offer an internet service to our clients, The Tax News Network.
This on-line service includes ongoing analysis and information about
national benefits legislation and regulations. The Tax News Network is on
the World Wide Web at www.taxnews.com.
D. Describe your firm's experience in serving as an actuary and consultant to
local governmental units including your most recent clients within the State
of Florida, including the names, .addresses, and phone numbers of contact
persons; briefly describe the services performed for these clients.
Government~ll employers must address challenges different from those of
private companies. In most cases, this includes a larger, more diverse work
force and separate and distinct compliance issues, among others.
Governmental employers in Florida must also comply with Chapter 112 of
Florida Statutes, which contains specific funding requirements for pension
plans. We would like to point out our extensive experience with governmental
clients in Florida. We have worked extensively with government clients,
including several government owned hospitals and health systems.
PricewaterhouseCoopers LLP
6
Most specifically, we have served as actuaries and consultants to the City of
Clearwater for the past 16 years and we are proud of our track record of
service. Examples of our assistance to the City include the following:
.
We worked closely with City staff in developing a revised pension
ordinance effective January 1, 1996 subject to collective bargaining. This
process required frequent and difficult efforts on short notice. We also
worked at the side of City staff to ensure that an agreement was reached
with the collective bargaining units without subjecting the City to
excessive cost or risk of future cost increases. We received
commendations from several members of the City's staff following the
completion of the process.
Our actuarial valuation reports for the City have always been accepted
without challenge by the State Division of Retirement and we continue to
guarantee a State-accepted report.
We have assisted the City in developing creative actuarial methods and
techniques to make its pension plan costs more manageable. These include
developing an asset averaging approach and establishing a credit balance
for the City contributions above those required by State law. The result of
these changes has been to greatly reduce the volatility of the City's funding
requirements, stabilizing its cost for several years.
We believe that the City currently enjoys an enviable position relative to
many Florida cities with regard to the funded status of its pension plan and
its financial impact. This is primarily due to very thoughtful decisions
made by City management and leadership, but we are proud to have
assisted in this result.
We've worked closely with the City's HR and Finance groups as well as its
ERISA counsel to evaluate numerous proposed plan changes through the
years.
We assisted the City in responding to the Snair lawsuit as well as a number
of other pension and retirement issues.
.
.
.
.
.
We are also proud of the services we've provided to other clients, both in
Florida and around the world. We encourage you to contact these actuarial
clients regarding the quality and responsiveness of our service.
City of Clearwater
Actuarial valuations, employee benefit statements, plan design and
consulting, plan experience studies
100 S. Myrtle Avenue
Clearwater, FL 34618-4748
Ms. Margaret Simmons, Finance Director
Margie.simmons@myclearwater.com
(727) 562-4530
PricewaterhouseCoopers LLP
7
Jackson Memoria/Hospital
Actuarial valuations, employee benefit statements, plan design and
consulting, plan experience studies
1611 N.W. Ith Avenue
Park Plaza West, RoomL-306
Miami, FL 33136-1096
Ms. Cynthia Sinclair, Director of Human Resources
(305) 585-7265
csinclair@um-jrnh.org
Ms. Trummell Valdera, Senior Vice President and Chief Human
Resources Officer
tvaldera@um-'jmh.org
(305) 585-7123
Miami Department of
Off-Street Parking
Actuarial valuations, employee benefit statements, plan design and
consulting, benefit calculations, plan experience studies
190 N.E. 3rd Street
Miami, FL 33132
Mr. Albert Manduca, Chief Financial Officer
(305) 373-6789
Blue Cross/Blue Shield
Of Florida
Retiree medical actuarial valuations, plan design and consulting
4800 Deerwood Campus Parkway
Jacksonville, FL 32246
Ms. Deanna McDonald, Vice President, Chief Accounting Officer
Deanna.mcdonald@bcbsfl.com
(904) 905-4095
Auburn University
GASB Statement 45 retiree medical valuation
126 Ingram Hall
Auburn University, AL 36849
Marcie C. Smith
Assistant Vice President for Business & Finance/Controller
(334) 844-5588
PricewaterhouseCoopers LLP
8
Wake County, North Carolina
GASB Statement 45 retiree medical valuation
336 Fayetteville St Mall
9th Floor
Raleigh, NC 27602
Kate George, CPA, ARM Risk Manager
(919) 856-6137
Our recent and past experience with Florida governmental pension plans also
includes work for the Martin County School Board, the Monroe County School
Board, the Florida League of Cities, the City of Fort Lauderdale, FRS, Sarasota
Memorial Hospital and others. We will be happy to provide additional
references upon request.
E. Describe your firm's experience specific to health & welfare actuarial
valuations related to other postemployment benefits.
One of the two Firms that merged to create PwC - Coopers & Lybrand - was
the clear leader in the field of actuarial measurement of retiree medical
liabilities. When the Financial Accounting Standards Board issued F ASB
Statement No. 106 we were the authors of several studies that literally "wrote
the book" in this area - for groups such as the Financial Executive Institute and
the National Association of College and University Business Officers. To this
day we maintain a prestigious client base in this area. We have also performed
numerous actuarial valuations under the new GASB standards. Some of our
current retiree medical actuarial valuation clients include:
Auburn University (GASB 45 retiree medical valuation)
Wake County, North Carolina (GASB 45 retiree medical valuation)
State of Alabama (GASB 45 retiree medical valuation)
Blue Cross/Blue Shield of Florida
Shands-Jacksonville
Stetson University - Deland, Florida
Bayfront Medical Center - St. Petersburg, Florida
Sumter Electric Cooperative - Sumterville, Florida
References for several of the clients listed above are provided in the previous
section. The clients noted above are only a few of our retiree medical actuarial
clients. We will be happy to provide additional references if desired.
F. Indicate whether your firm qualifies as an "Enrolled Actuary" as defined in
Chapter 60T-I002(6) of the Florida Administrative Code.
PricewaterhouseCoopers qualifies as an "Enrolled Actuary" under the
definition of the Florida Administrative Code and has been actively serving in
this capacity since 1985.
PricewaterhouseCoopers LLP
9
G. Please provide information on litigation your firm has been a party to during
the past three years.
The increase in litigation experience by the business community over the past
several years affects all professional services firms. PricewaterhouseCoopers
and our competitors must expend significant amounts of time and capital
refuting an increasing number of unwarranted claims for alleged professional
malpractice.
Consistent with the experience of other major firms, our Firm or its
predecessor firms, Coopers & Lybrand L.L.P. and Price Waterhouse L.L.P.
have been namedas a defendant in numerous civil actions. Many of these are
merely attempts by investors to recoup losses from third-party sources. Others
are attempts to shift responsibility for management fraud and deception to the
accounting profession.
We believe our Firm has adequate defenses to the lawsuits III which it IS
named.
PricewaterhouseCoopers LLP
10
FAMILIARITY WITH GASB STATEMENT REQUIREMENTS
Please indicate your familiarity with GASB Statement reporting and disclosure
requirements relating to pension plans and other postemployment benefits by
providing a brief summary of current and proposed requirements and your
experience in providing required disclosures.
PricewaterhouseCoopers has an extensive knowledge of GASB requirements
as well as experience working with governmental units in Florida and
throughout the country in the implementation of GASB statements. Our
know ledge extends throughout our human resources, business assurance and
tax and legal services practice, including all aspects of the GASB's
requirements.
Most importantly, as the City of Clearwater's actuaries, we assisted in the
implementation of GASB 25 and 27. We have also assisted several other
government entities in evaluating the impact of GASB Statement 45. The
three clients referenced in this proposal - Auburn University, Wake County
and the state of Alabama - were all served by the engagement team that will
serve the City of Clearwater.
As the largest of the Big Four accounting firms, PricewaterhouseCoopers LLP
has extensive experience in auditing governmental entities and assisting our
clients with required disclosures. Supporting this business assurance practice,
we put extensive resources in keeping current on GASB, F ASB, FEI, SEC,
AICPA and FICPA as well as other regulatory and oversight bodies that affect
our clients' financial statements.
Further detail on our experience with the reporting and disclosure requirements
can be found in the responses to questions D and E in the Firm Qualifications
section.
PricewaterhouseCoopers LLP
11
QUALIFICATIONS OF PERSONNEL TO BE ASSIGNED
The right people - the most advanced techniques in the world will not help if
we do not have the right people to employ them.
That is why we have taken care in choosing the PricewaterhouseCoopers team
for you. We are sensitive to your need for cost-effective service, a broad range
of capabilities, a business orientation and, most essentially, the people skills
without which no professional relationship can succeed. Your
PricewaterhouseCoopers team has all these attributes.
We depend upon the skills and experience of our professional staff to deliver
the high quality of service described in this proposal. The commitment of our
Finn to anticipate and meet the needs of the City of Clearwater has been
demonstrated through our thirteen-year track record of services and continues
through our commitment of partners and consultants to this engagement.
Steve Metz
Engagement Partner
Actuary
Charles Y ovino
Legal & Compliance
Consulting
-
Jim Burke
Engagement Manager
Elliott Cobin
Retitree Medical
Actuary
Defined Benefit
Staff
The following pages include resumes of the designated staff.
PricewaterhouseCoopers LLP
12
STEPHEN M. METZ
Human Resource Solutions Principal
Partner-in-charge, Southeast Retirement Practice
PricewaterhouseCoopers LLP
Professional Experience
Steve Metz is the partner in charge of the Southeast Retirement practice of the Human
Resource Solutions line of business. He is a pension actuary with more than 20 years of
experience in human resource consulting and employee benefits. His experience includes
employee benefits plan design, funding and administration, and he consults with clients in all
areas of compensation and benefits. Mr. Metz has lead numerous compensation and benefits
engagements for employers in Florida including compensation and benefits surveys,
employee communications, and the design of qualified and nonqualified programs.
Significant Clients Served
Blue Cross/Blue Shield of Florida
City of Clearwater
Jackson Memorial Hospital
University Community Hospital
Miami Department of Off-Street Parking
Intracoastal Health Systems
The PGA Tour
Bayfront Medical Center
Education
B.A. from the University of North Florida
Professional/Community Affiliations
Associate of the Society of Actuaries
Enrolled Actuary
Member of the American Academy of Actuaries
Past President, Florida West Coast Employee Benefits Council
Member, Southern Employee Benefits Conference
PricewaterhouseCoopers LLP
13
Charles Y ovino
Human Resource Solutions Principal
Southeast Region Tax and Regulatory Practice
PricewaterhouseCoopers LLP
Professional Experience
Charlie, a partner in our Atlanta office, heads the Legal & Regulatory compliance practice for
the Southeast Region. Charlie and his team are transaction oriented, and as a result have
effectively combined their regulatory backgrounds with practical experiences to develop a
pragmatic approach to the delivery of benefits.
Charlie and his team consult with management on a variety of special projects and recurring
assignments, including:
. Design and administrative considerations for all types of qualified and
nonqualified retirement plans, including preparation of administrative manuals and
quality controls
. Operational compliance reviews (covering all plan types which in the aggregate
benefit approximately 1/2 million participants)
. Training of employee benefits personnel
. Work-flow and staffing studies of employee benefits departments
. Plan spin-offs, mergers and terminations
. Due diligence reviews
. Total benefit program design and implementation following corporate spin-offs
. Outsourcing ofHR departments' functions (including serving in VP-HR role)
. Project manager of complex benefit program implementations, including telephone
open enrollment, and 401 (k) outsourcing
. Review of ERISA required audited financials
. Preparing governmental reports and filings, including Forms 990, 5300, 5310,
5330, and 5500
Significant Clients Served
Corning
FedEx
PGA and LPGA
Springs Industries University Systems of Georgia and Arkansas
University of Miami
Saks
Education
B.A. (cum laude) in history (with honors) from Hofstra University
J.D. from American University
Masters of Law in Taxation from Georgetown University Law Center
Professional/Community Affiliations
District of Columbia and Maryland Bars
PricewaterhouseCoopers LLP
14
Elliott I. Cobin
Global Human Resource Solutions Director
Southeast Health and Welfare Practice
PricewaterhouseCoopers LLP
Professional Experience
Elliott Cobin is a director and consulting actuary in Southeast Health and Welfare practice of
the Global Human Resource Solutions line of business. He is a health and welfare actuary
with more than twenty-five years of experience. Elliott is an Authorized Actuary by PwC for
all health and welfare employee and retiree benefits. He is responsible for over forty GASB,
FAS 106 (postretirement welfare) and FAS 112 (post-employment) valuations in the
Philadelphia, New York Metro and Atlanta offices. He has extensive experience in funding,
window programs, union negotiations, plan redesign, Consumer Directed Healthcare,
healthcare liability and IBNR calculations, and financial reporting.
Significant Clients Served
Blue Cross Blue Shield of Florida
The State of Alabama
Wake County N.C.
Auburn University
Stetson University
Sumter Electric Cooperative
The Archdiocese of Philadelphia Schools
New York Medical College
Franklin and Marshall College
Oak Ridge Associated Universities
Fairleigh Dickinson University
Education
B.A. (cum laude) from Queens College in NYC
M.A. in mathematics from the University of Illinois
National Science Foundation Fellowship and a Teaching Assistantship at the University of
Illinois
Professional Affiliations
Associate of the Society of Actuaries
Member of the American Academy of Actuaries
Member ofPENJERDEL Employee Benefits and Compensation Association (PEBA)
PricewaterhouseCoopers LLP
15
JAMES D. BURKE
Global Human Resource Solutions, Senior Associate
Southeast Retirement Practice
PricewaterhouseCoopers LLP
Professional Experience
Jim Burke is a pension actuary with nine years of experience in the actuarial profession. His
experience includes pension plan design, funding, and administration for clients in the public
and private sectors. He has acted as a technical resource on pension and post-retirement
benefit matters, including designing, implementing, and utilizing funding and expense
calculation programs. He also has experience with various government reporting
requirements, such as IRS Form 5500, PBGC premium filings, and F ASB and GASB
reporting and disclosure calculations.
Jim completed all exam requirements to become a Fellow of the Society of Actuaries and is
currently participating in Professional Development to achieve this designation. He has also
passed two of the three examinations required to become an Enrolled Actuary and is currently
preparing for the third exam.
Significant Clients Served
City of Clearwater
Jackson Memorial Hospital
University of Pennsy lvania
DENTSPL Y International
Main Line Health
Education
B.S. (cum laude) from Marquette University
Professional/Community Affiliations
Associate of the Society of Actuaries
PricewaterhouseCoopers LLP
16
COSTS TO PROVIDE THE VARIOUS SERVICES
Our fee estimates have been developed in accordance with an hourly rate structure
projecting the time requirements of partners and staff for the work involved. If our
role in the engagement and the corresponding time requirements should change
appreciably in the course of work, it is our policy to review a revised fee estimate with
you before proceeding.
Plans administered by PricewaterhouseCoopers are monitored on a continuous basis at
no additional cost to ascertain the effects of regulatory change on the qualified status
of such plans. Other advisory services which the City may request or special services
necessary to maintain the qualified status of the plans are not contemplated in our fee
estimate. In connection with all special work, a separate fee estimate will be discussed
with you before beginning the project. For planning purposes, however, the average
rate per consulting hour is estimated to be in the range of $150 to $350, depending
upon the staff mix required to complete the assignment.
We anticipate providing the actuarial valuation reports within six to eight weeks of
receiving the employee census and trust data. This anticipated response time, as well
as our fee estimates, is contingent on the employee census data being accurate and
complete within reasonable and customary standards.
PricewaterhouseCoopers LLP
17
2005 Estimated Fees
Estimated Fees
Recurring Actuarial Services - Pension
We will perform the annual valuation of the pension plan, including
providing a draft report and attending an annual meeting to review
the valuation.
Recurring A ctuarial Services - Retiree Medical
We will perform the annual valuation of the retiree medical plan
based on the requirements of GASB Statement 45, including
providing a draft report and.attending an annual meeting to review it
if desired.
Option 1 refers to a full actuarial valuation every year. However,
many of our clients with relatively stable retiree medical plans and
populations only perform a full actuarial valuation every other year,
using a roll-forward approach in the intervening years. The city may
wish to discuss this approach with its auditors - this approach is
specifically permitted by GASB Statement 45. Under this approach
we usually prepare the roll-forward under one of two methods:
(Option 2) gathering new demographic and claims data, reviewing
the actuarial assumptions (baseline costs, participation rates, etc.)
and making adjustments to the expected values, or (Option 3)
preparing the roll-forward based on the expected values without
these adjustments.
The choice among these three approaches is one that reflects each
client's preference in balancing administrative cost versus
minimizing volatility in annual expense. Generally, the more robust
the annual valuation, the smaller any incremental changes will be.
The City may also wish to have a more robust valuation performed
before it adopts GASB Statement 45. Our fees shown above assume
the valuation will be performed under a single actuarial cost method
(Statement 45 allows anyone of six methods). For many of our
clients we have performed five-year projections of expense under all
six permitted methods. This would provide the City with a better
understanding of its options and the potential difference between the
different methods. The cost to provide five-year projections under
all six methods is an additional $5,000.
PricewaterhouseCoopers LLP
$21,000
Option 1
Per Year: $15,000
Option 2
1st Year: $15,000
2nd Year: $8,000
Option 3
1st Year: $15,000
2nd Year: $3,000
18
Employee Pension Statements
Individual pension plan benefit statements enhance the visibility of
the pension program to each plan participant. All the information
that the participant is entitled to request under ERISA is developed.
In addition to the required information, the statements present other
useful benefit information and a description of some of the more
important plan provisions. These statements will be delivered to the
City by July 1 for distribution to employees.
Miscellaneous Services
We will provide all of the other services identified by the City in its
request for proposal including advice to the City of tax and plan
issues and other communications as required.
PricewaterhouseCoopers LLP
$2,500
$150 to $350 per hour
19