Retirement Plan Services
Request for Proposal
1
MISSAUKEE COUNTY, MICHIGAN
RETIREMENT PLAN REQUEST FOR PROPOSAL
NOVEMBER 1, 2016
Missaukee County invites proposals from qualified firms to provide administration, recordkeeping,
education, enrollment, and investment management services for its retirement plans.
A. BACKGROUND
Nationwide and Lincoln Financial Services currently provide deferred compensation plan
administration, recordkeeping, investment, enrollment and education services to participating
Missaukee County employees. We plan to employ a single vendor to serve our 457 and 401 plans
for our retirement programs. The contract will be for a term of five years with the option to renew
for an additional term at Missaukee County’s discretion. At the time of renewal, services and fees
may be renegotiated.
Missaukee County has 33 eligible employees to participate in the 401 Money Purchase Plan and 84
eligible employees to participate in the 457 deferred compensation plan. Key plan data as of
September 30, 2016 was as follows:
Nationwide – Missaukee County Money Purchase Plan (401a)
I.
Assets
$1,364,817
Active Participants
33
Inactive Participants
12
Annual Contributions/Rollins
$102,111 (CY2015)
Annual Distributions/Rollouts
$221,218 (CY2015)
The Missaukee County Defined Contribution Plan is a Section 401(a) money purchase pension plan,
established on January 1, 1984 and amended January 1, 2007. All eligible employees (full-time and
regular part-time AFSCME and non-union employees) participate in the Plan.
The County currently makes contributions for eligible participants in accordance with the following
schedules, depending on date of hire:
AFSCME Employees
Under 1 year – 2% of base wages
1 - 3 years – 3% of base wages
3 -5 years – 4% of base wages
5 – 7 years – 6% of base wages
7 – 10 years – 8% of base wages
10 – 20 years – 10% of base wages
20 – 25 years – 12% of base wages
25+ years – 13% of base wages
Non-Union Employees
Under 1 year – 2% of base wages
1 -3 years – 3% of base wages
3 – 5 years – 4% of base wages
5 – 7 years – 5% of base wages
7 – 10 years – 8% of base wages
10 – 20 years – 10% of base wages
20+ years – 12% of base wages
Employees vest 25% each year beginning with completion of their first year of employment.
completion of four years of employment, employees are 100% vested.
After
Retirement Plan Services
Request for Proposal
2
A single, lump sum distribution payment is required for all vested account balances less than $5,000. For
account balances of $5,000 or greater, participants may receive distributions in a single lump-sum
payment, or partial withdrawals/installments, but only with respect to minimum required distributions, over
a period of not more than one’s assumed life expectancy (of the assumed life expectancies of the
participant and his/her spouse.) Normal retirement age is 65.
In-service withdrawals are permitted after attainment of 70 ½ years of age (100% vesting also required).
Participants may not borrow from their accounts.
An annual educational meeting is held for Plan participants. At times, employees will request one-on-one
meetings to discuss their personal investment objectives.
The Plan is currently invested with and administered by Nationwide. Participants direct the investment of
their accounts in investment funds made available by Nationwide and may choose from a variety of stock
funds (international, small-cap, mid-cap, large-cap), balanced funds, U.S. Bond funds, short-term bond
funds, and cash funds.
Lincoln Financial Services – Missaukee County Deferred Compensation Plan (457b)
II.
Assets
$1,746.221
Active Participants
47
Inactive Participants
11
Annual Contributions/Rollins
$79,038 (CY2015)
Annual Distributions/Rollouts
$631,714 (CY2015)
Missaukee County offers a voluntary 457 Deferred Compensation Plan to all eligible employees. The
plan is provided through Lincoln Financial, with the Fitzgerald Group - Morgan Stanley Wealth
Management serving as consultant/co-fiduciary and PPG Retirement Plan Services serving as the third
party administrator.
Participants direct the investment of their accounts in investment funds made available by Lincoln
Financial and may choose from a variety of stock funds (international, small-cap, mid-cap, large-cap),
balanced funds, bond funds, and cash funds
As of September 30, 2016, plan asset allocations were as follows:
I.
Nationwide – Missaukee County Money Purchase Plan (401a)
Fund Option
Asset (Morningstar)
Category
Ticker Symbol
Fidadv Gr Oppr A
Large-Cap Stock
FGOD
$1,735.07
JPM Mdcap Gr A
Mid-Cap Stock
BMGD
$13,899.07
Opp Glbl Oppr A
International Stock
PGGD
$646.72
Amcent Ultra Inv
Large-Cap Stock
TCLD
$60,989.08
AmFds Smcap Wld R3
International Stock
ARSD
$3,721.80
Fnkln Smmdcap Gr A
Mid-Cap Stock
TSGD
$20,293.75
International Stock
PGZD
$52,458.58
Large-Cap Stock
TRGD
$4,819.73
Opp Glbl A
Trowepr Gr Stk R
Assets
Retirement Plan Services
Request for Proposal
Fund Option
3
Asset (Morningstar)
Category
Ticker Symbol
Drey App
Large-Cap Stock
DAFD
$2,100.63
MFS Val A
Large-Cap Stock
MMVD
$19,241.52
Nw Fd Inst Svc
Large-Cap Stock
NFZD
$197,915.53
Nw Gr Inst
Large-Cap Stock
NGZD
$191,962.30
Fid Asst Mgr 50
Balanced
FAMD
$91,920.82
Fid Puritan
Balanced
FPRD
$185,623.59
Fidadv Bal A
Balanced
FPRD
$1,486.12
Mid-Cap Stock
AMCD
$5,121
Asset Allocation Fund
DAGD
$10,181.17
Nw Bd Indx A
U.S. Bonds
NBID
$803.45
Nw BdInst Svc
U.S. Bonds
NBZD
$44.635.65
Asset Allocation Fund
DMCD
$322.58
NwMny Mkt Inst
Cash
GMZD
$31,463.82
Nationwide Fixed Account
Cash
BOA2A
$423.474.81
Invsco Mdcap Cor Eq A
Nw Inv Dest Mod Aggr Svc
Nw Inv Dest Mod Consrv Svc
TOTAL
II.
Assets
$1,364,816.79
Lincoln Financial Services – Missaukee County Deferred Compensation Plan (457b)
Fund Option
Asset (Morningstar)
Category
Ticker Symbol
International Stock
SGOVX
$16,226.77
Cash
N/A
$364,404.61
Small-Cap Stock
GSSSX
$10,344.46
Bond
PTRAX
$39,328.15
AM Fds Fundamental Invs R6
Large-Cap Stock
RFNGX
$71,247.13
AM Fds Growth Fund of Amer
Large-Cap Stock
RGAGX
$371,341.45
International Stock
RNPGX
$105,661.22
Bond
TGBAX
$358.51
Large-Cap Stock
VFIAX
$15,260.37
Vanguard Target Retirement 2050
Balanced/Allocation
VFIFX
$2,545.09
Vanguard Target Retiremt 2040
Balanced/Allocation
VFORX
$32,208.86
Vanguard Health Care Admin
Specialty
VGHAX
$84,188.57
Vanguard REIT
Specialty
VGSLX
$18,771.98
Mid-Cap Stock
VIMAX
$30,257.24
Small-Cap Stock
VXMAX
$40,833.45
Balanced/Allocation
VTHRX
$18,848.53
First Eagle Overseas
Lincoln Stable Value Account
Goldman Sachs Small Cap Value
Svc
PIMCO Total Return Admin
AM Fds New Perspective
Tmpltn Gbl Bond Adv
Vanguard 500 Index Admiral
Vanguard Mid-Cap Index
Vanguard Small-Cap Index
Vanguard Target Retiremt 2030
Assets
Retirement Plan Services
Request for Proposal
4
Fund Option
Asset (Morningstar)
Category
Ticker Symbol
Vanguard Target Retiremt Income
Balanced/Allocation
VTINX
$32,766.59
Vanguard Target Retiremt 2045
Balanced/Allocation
VTIVX
$14,114.06
Vanguard Target Retiremt 2025
Balanced/Allocation
VTTVX
$15,708.39
Vanguard Target Retiremt 2020
Balanced/Allocation
VTWNX
$11,623.69
Vanguard Target Retiremt 2015
Balanced/Allocation
VTXVX
$705.04
Mid-Cap Stock
WMGRX
$36,249.88
Vanguard FTSE All World Ex
Index
International Stock
VFWIX
$349.41
Vanguard Target Retiremt 2055
Balanced/Allocation
VFFVX
$28,467.36
Vanguard Life Strategy Growth
Allocation
VASGX
$45,771.27
Vanguard Life Strat Conserv Gwth
Allocation
VSCGX
$47,915.27
Balanced/Allocation
PAALX
$163.32
Large-Cap Stock
SVAIX
$143,117.61
AGDIX
$9,558.18
Specialty
FUGIX
$940.90
Thrnbrg Developing World
International Stock
TDWRX
$10,335.15
Vanguard Emerging Markets
International Stock
VEMAX
$32,029.21
MFS Mid-Cap Value R5
Mid-Cap Stock
MVCKX
$56,757.46
AMG GW&K Small Cap
Small-Cap Stock
GWEIX
$1,032.99
Vanguard Interim-Term Bond
Bond
VBILX
$6,477.62
Vanguard Energy Index Adm
Specialty
VENAX
$29,394.55
Bond
PRIPX
$914.00
Ivy Mid Cap
PIMCO All Asset Admin
Fedrtd Strategic Value Instl
Alliance Bern High Income I
Fidelity Advisor Utilities
T Rowe Price Inflation Protected
Bd
Assets
TOTAL
$1,746,221.02
B. RFP PROCESS AND INSTRUCTIONS
RFP responses will be evaluated to determine the relative strengths of potential vendors for our
plan. After evaluating responses, we may choose to request presentations from selected vendors
or enter into contract negotiations with our current vendor.
We plan to adhere to the following schedule in implementing this bid process:
RFP released
November 1, 2016
Statement of interest received
November 15, 2016
Deadline for receiving vendor questions
November 28, 2016
Response to vendor questions
December 12, 2016
Proposals due from vendors
January 9, 2017
Retirement Plan Services
Request for Proposal
5
Finalists selected
February 1, 2017
Finals presentations
February 9, 2017
Vendor selected
February 14, 2017
Plan implemented (transfer of assets)
April 1, 2017
We reserve the right to forgo finals presentations and select a vendor based solely on RFP
responses. We also reserve the right to change this schedule in any way.
Statement of Interest & Questions
Send a statement of interest and questions in writing by e-mail to Precia Garland, Administrator at
[email protected] in accordance with the above schedule. All vendors sending questions or
an expression of interest will receive responses to all questions by e-mail by December 12 and any
other addenda that may be released. Only addenda released or questions answered through this
process will be binding.
Proposal Submission
An original and 12 copies of the proposal must be submitted by 5:00 p.m. on January 9, 2017 to:
Precia Garland, Administrator
Missaukee County
111 S. Canal Street
PO Box 800
Lake City MI 49651
One copy of the proposal must also be submitted on CD or a jump drive.
Any proposal not received at the above address by the prescribed time and date will be returned
unopened to the proposer and will be considered non-responsive. Late proposals will not be
accepted. Faxed proposals will not be accepted. Proposals must be submitted specifically as
outlined and each request for information must be answered thoroughly and accurately.
Other Considerations
All responses, inquiries, and correspondence relating to or in reference to this RFP and all
materials, charts, schedules, exhibits, and other documentation produced by proposers will become
property of Missaukee County and will be available for public inspection upon execution of contract
with the selected vendor. This RFP and the winning vendor’s response will be incorporated into the
contract by reference.
Issuance of this RFP and receipt of proposals does not commit Missaukee County to award a
contract, and Missaukee County reserves the right to reject any and all proposals. The contract will
be awarded to the qualified provider whose proposal is most advantageous to Missaukee County,
based on a point evaluation system developed by Missaukee County. All providers are hereby
notified that the execution of a contract pursuant to this RFP is dependent on the negotiation of an
acceptable contract with the successful bidder. If such a contract cannot be negotiated within a
reasonable period, Missaukee County will enter into negotiations with the next most highly rated
bidder. This RFP and all written material received from the successful vendor will be considered
contractual obligations unless they conflict with the signed contract.
Retirement Plan Services
Request for Proposal
6
The acceptance of the proposal will be a notice in writing by a duly authorized representative of
Missaukee County. No other act of Missaukee County shall constitute the acceptance of a proposal.
C. MINIMUM REQUIREMENTS
Proposing firms must make an affirmative statement confirming conformance with the following
requirements:

The firm must have at least 10 years of experience administering public sector 401 or 457 plans
and must administer a minimum of $5 billion in assets in public sector retirement plans.

On-site service representatives of the vendor site must have at least two years of experience
providing on-site services for public sector retirement plans.

Representatives will be absolutely forbidden to sell ancillary products (such as life insurance) to
participants without the express written consent of Missaukee County. Participant data is the
sole property of Missaukee County and may not be used in any way to market other products or
be sold to other organizations without the express written consent of Missaukee County. These
provisions will be included in the contract with the vendor for the plans.

A wide spectrum of investment options must be available to participants, including a stable
value fund that does not restrict participant withdrawals or transfers (with the exception of
transfers to “competing” fixed income funds) and the asset classes requested in the investment
section of the questionnaire. Insurance company General Accounts may not be offered to the
plans.

There may be no termination, withdrawal or transfer charges or restrictions (including market
value adjustments) throughout the term of the contract. The only exceptions are a) stable value
fund restrictions against direct fund transfers into competing fixed income funds, b) a 12-month
put on a stable value fund, c) charges for early withdrawal from fixed maturity or other
structured investment products (such as CDs) which have a clearly defined investment period
that if shortened would jeopardize the strategy and benefits to longer-term investors, and d)
redemption fees for short-term trading.

The vendor must accept full responsibility for processing errors it makes and they must be
reported within a reasonable period of time. In the event a participant incurs a loss or a lost
opportunity due to such an error, the vendor shall adjust the participant’s account to the same
level as if the processing error had not occurred.

The vendor must comply with all components of this RFP. Unless otherwise noted in your cover
letter, it is assumed that by submitting a response to this RFP, your response conforms to all
specifications in every way. After finalist selection, the proposal of additional terms may not be
considered.
Any proposal not meeting these specifications will not be considered.
D. QUESTIONNAIRE
I. ORGANIZATION
1.
Provide the name of the proposing organization and its address, telephone and fax number.
Provide the same for your organization’s contact for this proposal.
Retirement Plan Services
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7
2.
How many public sector defined contribution and deferred compensation plans do you
currently administer? What are the assets and number of participants in these public sector
retirement plans?
3.
What portion of a) your total retirement plan business and b) your company’s total business
is serving public sector plans?
4.
Describe any regulatory censure or litigation involving the business of your firm with
relation to its deferred compensation or defined contribution services in the past ten years.
5.
Provide three references of public sector retirement plan clients. Include a contact name,
title, phone number and e-mail address.
6.
Provide your public sector retirement plan client retention rates for the last five years.
II. PARTICIPANT SERVICES
Education
1.
Describe the enrollment and educational program that your on-site service representatives
will perform during the transition and on an ongoing basis.
2.
Briefly describe how you encourage new employees to join the plan and how you assist
participants nearing retirement.
3.
Are your representatives salaried employees? On average, what percent of their total
compensation is salary and what percent is bonus/commission? Is their compensation
affected in any way by participant investment or disbursement decisions? Do your
representatives receive any additional compensation for the sale of annuities or life
insurance to participants?
4.
Do you provide participants access to personalized financial plans? Please describe what
they include and any fees associated.
Describe how financial planning staff is
compensated.
5.
Provide samples of retirement plan educational publications materials available to
employees.
6.
How do you measure the success of your educational programs?
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Request for Proposal
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Web-Based Services
1.
Describe the educational features offered to public employees on your Web site.
2.
Describe investment advice and managed account services available to participants. What
firm provides this service?
3.
Describe the transactions that can be implemented by employees on-line.
4.
What online reporting is available to plan sponsors?
5.
Provide the URL for your participant Web site and a test account for us to view all functions.
The test accounts should be made available to us for at least 60 days.
6.
Describe awards and national recognition received by your Web services over the past three
years.
Call Center Services
1.
What transactions and information are accessible through call center representatives and
through your voice response system? Is it a dedicated line to public sector 457/401 service
associates, or do they cover all other aspects of your business?
2.
Describe training received and qualifications of call center personnel.
3.
Describe how participants transfer from the voice response system to the call center. When
are they notified they can transfer to a representative?
4.
What hours are call center representatives available?
5.
What procedures do you have in place for managing unusually large call volumes.
6.
Provide the average call abandon rate and the average response time for your call center for
the 12 months ending as of the last quarter-end.
Retirement Plan Services
Request for Proposal
9
Statements
1.
Do you provide aggregate account information for participants if you administer multiple
plans?
2.
Provide a sample quarterly statement.
3.
How many days after quarter-end are statements mailed?
mailed over the past four quarters met this target?
4.
Do your statements provide personalized investment performance?
What percent of statements
Administrative Services
Address the following questions regarding your administrative services:
1.
Describe in detail the annuity and non-annuity disbursement options available to plan
participants.
2.
How long does it take to mail a check to the participant once a withdrawal is authorized?
How long does it take to mail a check to another vendor once a participant provides an
instruction to make the transfer? What authorization do you require to make such a
payment? Identify all participant-level or plan-level transfer or withdrawal restrictions.
3.
Describe how you handle minimum required distributions.
4.
Describe how you evaluate and process QDROs/DROs and hardship/emergency withdrawal
requests.
5.
Describe your loan service and how participants and the plan sponsor would implement a
loan.
6.
Describe the quality control procedures you have in place. What types of reconciliation and
editing do you perform? How do you resolve data discrepancies with respect to transaction
processing?
7.
Describe your process for resolving issues that occur. What are your standards for the
timing of resolving issues and how do you meet that target? What are your escalation
procedures for issues that are not resolved within a standard period of time?
Retirement Plan Services
Request for Proposal
8.
10
Provide your administrative and record keeping transition plan with timelines.
III. PLAN SPONSOR SERVICES
1.
Describe how you interact with plan sponsors on a daily basis and how you minimize the
plan sponsor’s workload through automation.
2.
Describe what level of fiduciary responsibility your firm will assume for the requested 401(a)
and 457(b) plans. Will this responsibility fall to Missaukee County, to both Missaukee
County and your firm as co-fiduciaries, or will your firm as plan provider take on full
fiduciary responsibility?
3.
Describe the services you offer to help maintain compliance with current and proposed
regulations as they relate to public sector retirement plans.
4.
Do you have a model plan document and take responsibility for maintaining it in compliance
with the current tax code? If so, please provide a sample. Is there a fee for maintaining that
document?
5.
What information do you provide to the plan sponsor to support their oversight of the plan?
Provide samples of materials provided to support plan sponsor due diligence. How do you
assist selection, monitoring, and, if necessary, replacement of funds?
6.
Who will serve as our contact for daily questions and issues related to the administration of
our plan?
7.
Describe on-line services available to plan sponsors.
8.
Provide the URL for your plan sponsor Web site and a test account for us to view all
functions. The test accounts should be made available to us for at least 60 days.
IV. INVESTMENT MANAGEMENT
1.
Briefly describe your overall investment philosophy. What are your criteria for selecting and
retaining funds offered to participants in the plan?
2.
Provide a listing of the proposed investment options and ask to include the criteria below.
You may propose more than one fund per category:
Retirement Plan Services
Request for Proposal
Fund Name/Benchmark
Intermediate-Term Bond
Fund:
Index Benchmark:
Morningstar Category Average:
Treasury Inflation Protected Bond
Fund:
Index Benchmark:
Morningstar Category Average:
High-Yield Bond
Fund:
Index Benchmark:
Morningstar Category Average:
Large Cap Growth
Fund:
Index Benchmark:
Morningstar Category Average:
Large Cap Blend
Fund:
Index Benchmark:
Morningstar Category Average:
Large Cap Value
Fund:
Index Benchmark:
Morningstar Category Average:
Mid-Cap Growth
Fund:
Index Benchmark:
Morningstar Category Average:
Mid Cap Blend
Fund:
Index Benchmark:
Morningstar Category Average:
Mid Cap Value
Fund:
Index Benchmark:
Morningstar Category Average:
Small Cap Growth
Fund:
Index Benchmark:
Morningstar Category Average:
Small Cap Blend
Fund:
Index Benchmark:
Morningstar Category Average:
Small Cap Value
Fund:
Index Benchmark:
Morningstar Category Average:
Foreign
Fund:
Index Benchmark:
Morningstar Category Average:
Real Estate
Fund:
Index Benchmark:
11
1 Year
Return
3 Year
Return
5 Year
Return
10 Year
Return
Mstar.
Rating
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Retirement Plan Services
Request for Proposal
Morningstar Category Average:
Risk-Based / Lifestyle
Fund:
Index Benchmark:
Morningstar Category Average:
Time-Based / Lifecycle
Fund:
Index Benchmark:
Morningstar Category Average:
12
N/A
N/A
N/A
N/A
N/A
Attach copies of Morningstar summary sheets for each fund proposed.
3.
4.
For your stable-value or equivalent investment option(s):
A.
Provide the rate being paid in the current month. Provide a five-year history of
credited rates by quarter. If a single portfolio rate is not used, provide new and old
money rates by quarter for the period. Define how assets are distributed between the
new and old money rates.
B.
Provide the market-book ratio as of the end of the last quarter. Are plan-level or
participant-level transfers or withdrawals limited in any way? Confirm that there are
no charges of any kind (including market value adjustments) for plan-level or
participant-level transfers or withdrawals from the fund.
C.
How is the fund diversified by type of investment and contract issuer?
D.
How do you monitor and manage the portfolio’s credit risk?
What in-plan guaranteed income solutions are available?
V. FEES AND EXPENSES
1.
Provide a description of your fees. All fees, including but not limited to plan asset based
fees, participant fees, fund expenses, ancillary service fees and any other fees/expenses
must be fully disclosed in response to this question. You will not be permitted to assess
fees or expenses of any kind for services you have proposed that are not clearly disclosed
in the written response.
Complete the following table to provide all asset-based fees and current expenses (as of the
latest quarter-end) that you and the funds you propose will assess.
Retirement Plan Services
Request for Proposal
Asset Category
13
Fund Name
Gross
Expense
Net
All Other
Expense Asset Fees*
Total Fees & Total Revenue
Net Expenses** to Vendor
Stable Value
Intermed Term Bond
Treas Infl Prot Bond
High-Yield Bond
Large Cap Growth
Large Cap Blend
Large Cap Value
Mid Cap Growth
Mid Cap Blend
Mid Cap Value
Small Cap Growth
Small Cap Blend
Small Cap Value
Foreign (1)
Foreign (2)
Real Estate
Risk/Time Based
Risk/Time Based
Risk/Time Based
Risk/Time Based
Risk/Time Based
Risk/Time Based
Risk/Time Based
Risk/Time Based
Risk/Time Based
Risk/Time Based
Risk/Time Based
Risk/Time Based
Risk/Time Based
Risk/Time Based
Risk/Time Based
Risk/Time Based
* Administration fees, risk & mortality expense fees, etc. Do not include asset based fees
for advice or managed accounts in this table.
** Total fees and expenses is the net expense ratio plus all other asset-based fees and
expenses.
2.
If expenses and/or revenue for the stable value fund are not disclosed, explain why.
3.
Describe any per participant fees you will charge.
4.
Describe all ancillary service fees and any other fees/expenses you will charge.