TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 1, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to advertise Contract 23-RFP-23 Deferred Compensation Plan Administrator, for a five-year period effective January 1, 2025 to December 31, 2029 (Deferred from the January 4, 2024 Board Meeting)(Deferred from the January 18, 2024 Board Meeting)
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Dear Sir:
Request for proposal documents are being prepared for a deferred compensation plan administrator at the request of the Human Resources Department.
The District 457(b) Deferred Compensation Plan is a voluntary retirement savings plan established in 1998 to serve as a supplement to the District pension benefits. As of September 30, 2023, there are 2,054 participant accounts (1,109 active employees and 945 non-contributing employees and retirees) with total plan assets of approximately $326 million.
The District, through its Board of Commissioners, serves as Trustee and fiduciary for the Plan. The Board of Commissioners has established a Deferred Compensation Committee (Committee) in accordance with the Plan document. The Committee consists of the Chairman of the Committee on Finance, Commissioner; Treasurer, and the Director of Human Resources. The Committee is the primary fiduciary of the plan, with authority to interpret and oversee the administration of the Plan. This responsibility includes the recommendation of a plan administrator for the Plan and on-going oversight of that provider.
The purpose of this contract is to select a vendor to provide administrative services for the deferred compensation plan including recordkeeping/administration; investment management; communication and education, including onsite education; participant advisory services; and custodial trustee services. This professional services contract will cover the period from January 1, 2025 through December 31, 2029. The current provider of these services is Variable Annuity Life Insurance Company, operating under the name Corebridge Financial.
No bid deposit is required for this request for proposal.
The costs associated with these services are assessed as an administrative fee paid by the individual participants. There are no direct costs paid by the District for these services. As such, no funding is required in the District operating budget.
The Diversity Section reviewed the request for proposal and concluded that Affirmative Action goals are not applicable for this contract. Affirmative Action participation goals are only applicable to proposals where the total estimated expenditure exceeds $100,000.00. Since there are no direct costs to the District for these services, Appendix A and Appendix V would not apply.
The tentative schedule for this contract is as follows:
Advertise January 31, 2024
Proposals Received March 1, 2024
Award August 8, 2024
Completion December 31, 2029
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to advertise Contract 23-RFP-23.
Requested, Thaddeus J. Kosowski, Director of Human Resources, TJK:JEF
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Marcelino Garcia, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for February 1, 2024
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