General Information

Government Type

Municipality

Entity

Pleasant Grove

Public Body

Public Hearing Notices

Notice Information

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Notice Title

Request for Proposal 401(k) Consulting Services

Notice Tags

Other

Notice Type(s)

Notice

Event Start Date & Time

July 18, 2019 12:00 PM

Event End Date & Time

August 7, 2019 05:00 PM

Description/Agenda

Pleasant Grove City Request for Proposal 401(k) Consulting Services Table of Contents Page Overview of the Organization & Plans......................................................................................... 1 RFP Reply Guidelines................................................................................................................... 3 Overview of Your Company......................................................................................................... 5 Client Service Personnel ............................................................................................................... 6 Clients and Services Provided ...................................................................................................... 9 Plan Investment Structure ............................................................................................................. 9 Investment Selection, Monitoring, and Reporting...................................................................... 10 ERISA 3 (21) versus 3(38) Services ........................................................................................... 11 Potential Conflicts....................................................................................................................... 12 Engagement Fees ........................................................................................................................ 13 Overview of the Organization & Plans Overview of Current Plan Services to Be Performed It is the objective of the PLEASANT GROVE CITY Plan Committee (Plan Committee) to hire a Plan Consultant with the experience and capabilities to provide them a range of 401(k) consulting services for their Plans. In selecting a Plan Consultant, the Plan Committee will only consider companies who are willing to serve as a fiduciary under either ERISA 3(21) or 3(38). Specifically, the responsibilities of the selected Plan Consultant will include but not be limited to the following duties: 1.Assist the Retirement Committee in maintaining Plans that are competitive with thosesponsored by other municipalities. 2.Assist in the development and on-going review and maintenance of the InvestmentPolicy Statements (IPS) for the Plans. 3.Act as liaison between PLEASANT GROVE CITY and its service provider to resolveany issues that may arise and to otherwise facilitate ongoing operational efficiency. 4.Review all fees paid for by the Plans for investment and administrative servicesprovided to assure ongoing reasonableness. 5.Perform an annual review of the fiduciary and governance structure of the Plans toensure ongoing compliance and minimization of risk. 6.Conduct investment manager searches as needed. 7.Provide research and or due diligence reports on the investment options within thePlans. Evaluate investment manager performance in terms of effective implementationof investment strategy, actual performance versus established return and riskbenchmarks, organizational stability and compliance with investment guidelines andrestrictions. 8.Measure and monitor the performance and risk of the investment managers. Prepareand present quarterly summaries of investment manager activities and performance. 9.Communicate advice on matters of policy, manager research, manager performanceand capital market conditions to the members of the Plan Committee. 10.Review fund investment history, historical capital markets' performance and IPS issueswith the members of the Plan Committee. 11.Provide continuing review of the investment structure and specific recommendationsfor the Plans. 12.Be able to attend the following meetings: a.Quarterly Plan Committee meetings b.Presentations by current or prospective investment managers c.Other occasions, as necessary 13.Provide assistance with the ongoing employee education and communications strategy,including oversight of and assistance with all required IRS and DOL employeesnotices. 14.Provide detailed account billing which allows PLEASANT GROVE CITY to easilyidentify and verify the calculation of all fees charged for services rendered andcompliance with contract pricing. 15.Other duties or services that would be reasonably expected of a Plan Consultant. Qualifications The following factors will be of primary importance to PLEASANT GROVE CITY in selecting a Plan Consultant to provide the services listed in the section above: 1.The selected Plan Consultant will have an excellent reputation in the 401(k) industryfor providing quality non-conflicted advice to retirement plans, including thosesponsored by other municipalities. 2.The selected Plan Consultant must be willing to accept fiduciary responsibility undereither ERISA 3(21) or 3(38) for the services and recommendations that it will provideto the Plans. 3.The selected Plan Consultant will provide PLEASANT GROVE CITY with a clientrelationship team that is proactive, responsive, and has substantial subject matterexpertise in defined contribution plans. 4.The selected Plan Consultant will charge reasonable fees, taking into account thecomplexities and value of the services being provided. PLEASANT GROVE CITY iswilling to discuss various options for the annual fee. RFP Reply Guidelines Purpose The purpose of this Request for Proposal (RFP) is to identify and retain a qualified organization to provide plan consulting services for the Plans sponsored by PLEASANT GROVE CITY. The selected Plan Consultant shall provide consulting services to PLEASANT GROVE CITY and the Plan Committee. Questions Regarding RFP Please contact Scott Darrington at sdarrington@pgcity.org or call (801) 922-4529. Finalist Presentation As part of the selection process, your company may be asked to make a finalist presentation to the Plan Committee. This presentation will provide your company with an opportunity to further expand on your proposal, as well as to meet the members of the Plan Committee. References from Current Clients If you are selected as a finalist to make a presentation to the Plan Committee, we may request that you immediately provide us with three (3) client references. These references should be from current clients of your company, and should preferably include municipalities. Acceptance of Proposal Content The proposal must be signed by a person at your company who is authorized to enter into contracts of the scope, terms, specifications, and pricing sought by this RFP. The contents of this RFP, as well as your company's response, will become contractual obligations if an agreement ensues. Failure of the successful Plan Consultant to accept these obligations may result in cancellation of the award. The proposal must remain valid for a period of at least 120 days from the RFP due date. Proposal Changes & Interpretations If there are any changes made to this RFP, or if there are further interpretations to this proposal, all such changes and or interpretations will be sent to all companies who are submitting responses to this RFP. Any such changes or interpretations shall become a part of the RFP for incorporation into any award pursuant to this RFP. Cost Liability PLEASANT GROVE CITY does not assume any responsibility or liability for the costs incurred by your company prior to the signing of any agreement resulting from this RFP. Basis for Selection PLEASANT GROVE CITY will closely evaluate all proposals received in response to this RFP. This evaluation will include your company's ability to deliver the requested services and the competency of the personnel that your company will assign to this project. The evaluation will also consider the clarity with which the RFP questions are answered. PLEASANT GROVE CITY appreciates clear and unambiguous replies. If your company cannot or will not meet a specific requirement, then please tell us so succinctly. While the fees to be charged for your services will be a factor in the evaluation process, PLEASANT GROVE CITY is under no obligation to select the prospective consultant with the lowest fees. Due Date All proposals must be received byWednesday, August 7th at 5:00 p.m. Proposals For a proposal to receive consideration, it must observe the following requirements: 1.Quoted prices must include any and all fees. Please indicate if there is a date by whichthe terms of your RFP reply expire. 2.One electronic copy of the proposal and exhibits should be sent to the following:sdarrington@pgcity.org. 3.Five hard copies of the proposal and exhibits shall be provided to Pleasant Grove Cityat 70 S. 100 E., Pleasant Grove, UT 84062. Proposals can be dropped off or mailed. 4.Please make your proposal as simple and concise as possible. Any assumptions youmake in the preparation of the proposal should be specifically stated. 5.Exhibits and additional documentation may be attached to the proposal. 6.All proposals and any other materials submitted in response to this RFP will becomethe property of PLEASANT GROVE CITY and may be returned only at PLEASANTGROVE CITY's option and at your company's expense. Company Provisions PLEASANT GROVE CITY reserves the right to further negotiate the terms and conditions with the selected Plan Consultant. In addition, PLEASANT GROVE CITY reserves the right to accept or reject, at its sole discretion and without explanation, any and all responses to this RFP. Delegation and or Assignment The Plan Consultant selected to perform the services requested under this RFP shall not delegate any of these duties to a subcontractor other than a subcontractor named in the bid unless the client has given its written consent to the delegation. The primary Plan Consultant may not assign the right to receive money due under the contract without the prior written consent of the client. Anticipated Process Timeline It is anticipated that the selection process will proceed as follows. However, these dates are subject to change if necessary: RFP Issued: Tuesday, July 16, 2019 Deadline for submission of responses: Wednesday, August 7, 2019 5:00 p.m. Identification & notification of finalists: TBD Interview of finalists: TBD Notification of successful candidate: TBD Contract effective date: TBD Overview of Your Company 1.Provide the name, title, address, e-mail and telephone number for the individual responsiblefor responding to this request. 2.Provide a general description of your company. Please identify all affiliated companies as wellas any joint ventures in which your company participates. In addition, please note if yourcompany, parent or affiliate is registered as a broker and or dealer. 3.List three key factors that distinguish your company from your competitors. 4.Describe the current ownership structure of your company, and indicate if your company ispublicly traded or privately held. 5.Identify all companies that your company plans to subcontract or partner with in providing therequested services to PLEASANT GROVE CITY. Please provide detail as to how yourcompany ensures that your subcontractors have the technical knowledge and expertise toperform the requested services. 6.Provide a copy of your company's Form ADV, Part II, including Attachment B. 7.Within the last 5 years, has your company or any officer or principal been involved in anybusiness litigation or other legal proceedings regarding the type of services to be providedunder this contract. If so, please provide a full explanation and indicate the status or dispositionof these proceedings. 8.Has your company or any of your professional employees ever been fined, suspended orcensored by the Securities and Exchange Commission or by any securities self-regulatoryorganization. If yes, please provide a full explanation and indicate the status or disposition ofthese proceedings. 9.Provide all relevant detail regarding your company's insurance coverage, including coveragecarried for errors and omissions, fidelity, fiduciary and liability. 10.Provide a copy of your company's Conflict of Interest Policy as well as a description of policyenforcement procedures. 11.Provide a copy of your company's most recent policies and procedures regarding businesscontinuation and disaster recovery. 12.Is your company currently providing, or have you provided, any type of service or products toPLEASANT GROVE CITY. If yes, please provide a brief summary of the businessrelationship including information on the business group and the name of the person involvedin the relationship, the volume of the business, and the time and the length of the association. 13.Currently, the Plans offer custom lifestyle (risk-based) model portfolios. Please confirm yourability to maintain these portfolios and serve as a 3(38) fiduciary thereto if PLEASANTGROVE CITY decides to retain them. Client Service Personnel 1.Provide an organizational chart of your company as well as of the office that will be assignedto the PLEASANT GROVE CITY account. 2.Indicate the number of professionals employed by your company and how many of theseemployees are specifically designated for providing ERISA 3(38) or 3(21) investment advisoryservices to corporate defined contribution plans. 3.Identify the consultants and other key staff who will be involved in servicing the PLEASANTGROVE CITY relationship. Please provide as much detail as possible for each individual. Name: Location: Professional Designations: Years of Experience in Field: Years with Company: Years in Present Position: Case Load (assets and or participants): Average Client Asset Size: Number of Municipal Clients: Specific Role for PLEASANT GROVE CITY: In addition to completing this table, please provide a brief bio below. Name: Location: Professional Designations: Years of Experience in Field: Years with Company: Years in Present Position: Case Load (assets and or participants): Average Client Asset Size: Number of Municipal Clients: Specific Role for PLEASANT GROVE CITY: In addition to completing this table, please provide a brief bio below. Name: Location: Professional Designations: Years of Experience in Field: Years with Company: Years in Present Position: Case Load (assets and or participants): Average Client Asset Size: Number of Municipal Clients: Specific Role for PLEASANT GROVE CITY: In addition to completing this table, please provide a brief bio below. Name: Location: Professional Designations: Years of Experience in Field: Years with Company: Years in Present Position: Case Load (assets and or participants): Average Client Asset Size: Number of Municipal Clients: Specific Role for PLEASANT GROVE CITY: In addition to completing this table, please provide a brief bio below. Name: Location: Professional Designations: Years of Experience in Field: Years with Company: Years in Present Position: Case Load (assets and or participants): Average Client Asset Size: Number of Municipal Clients: Specific Role for PLEASANT GROVE CITY: In addition to completing this table, please provide a brief bio below. Name: Location: Professional Designations: Years of Experience in Field: Years with Company: Years in Present Position: Case Load (assets and or participants): Average Client Asset Size: Number of Municipal Clients: Specific Role for PLEASANT GROVE CITY: In addition to completing this table, please provide a brief bio below. Clients and Services Provided 1. List the range of services currently being provided by your company to corporate defined contribution plans. 2. Please indicate the total number of defined contribution plans for which your company serves as of July 1, 2019 3. Indicate how many defined contribution clients have terminated your investment advisory services during the past three years as well as a sampling of their reasons for this decision. Plan Investment Structure 1. Describe the process that your company follows in developing an Investment Policy Statement (IPS) for a participant-directed 401(k) plan. Please indicate the type of events that would trigger your company to revise or replace an IPS. In the context of an ERISA 3(38) client, do you require that the Plan Committee approve any changes to the IPS. 2. Describe your company's philosophy in developing the investment structure for a participant-directed 401(k) plan, including a discussion of the following factors: The number and type of asset classes to be covered in the core line-up The number and type of fund options within each asset class The use of a self-directed brokerage option or mutual fund window 3. Describe the process your company follows in selecting an appropriate Qualified Default Investment Alternative (QDIA) for a participant-directed 401(k) plan. In addition, please note the most common QDIA used by your current clients. 4. Describe the developments and trends that your company is currently observing in investments for defined contribution plans. 5. Describe your company's philosophy towards annuities and other retirement income solutions within a defined contribution plan. 6. Indicate if your company will accept fiduciary responsibility for evaluating and monitoring investment advice and or managed account programs. 7. Based on the information in Exhibits A, B and C, briefly describe how your company would structure the investment options for the participants in the PLEASANT GROVE CITY Plans. Please note the specific asset classes to be included but not specific funds or managers. Investment Selection, Monitoring, and Reporting 1. Describe the process your company follows in selecting the specific funds to be offered as part of the core investment line-up in a participant-directed defined contribution plan. Please discuss the criteria used by your company in evaluating competing options. 2. Discuss your company's philosophy on selecting the specific types of investment instruments to be offered to plan participants (such as mutual funds, separate accounts, collective investment trusts, and exchange traded funds). 3. Describe your company's philosophy on the use of active versus passive investment management as it relates to fund selection for a participant-directed plan. 4. Describe how your company decides on the appropriate share class of a fund to include as part of the core investment line-up. Please indicate how revenue sharing and or plan administrative cost implications would be communicated to the Plan Committee. 5. Describe your company's procedure and criteria for monitoring the funds in the core investment line-up. 6. Describe the steps your company follows in replacing an existing fund. Please include a discussion of your company's philosophy regarding mapping into the new option(s). 7. Describe your company's process for evaluating target date funds, including the following factors: Indicate if your company builds custom target date funds. If yes, please answer the following questions: How do you determine the glide path. Is there an additional cost for this service. Do you assist in the preparation of the communication and other required disclosures for these funds. 8. Describe your company's process for evaluating stable value funds. 9. Describe your company's philosophy regarding the use of alternative asset classes within participant-directed defined contribution plans. 10. Please provide samples of the quarterly investment report as well as any other materials that you will make available to PLEASANT GROVE CITY on a regular and consistent basis. Please provide a timeline for the delivery of these reports. ERISA 3(21) versus 3(38) Services 1. Describe your company's typical approach in working with a client who has engaged you to serve as an ERISA 3(38) rather than as a 3(21) fiduciary. As part of this discussion, please include a list of the services you normally provide to your 3(38) clients and indicate if your company charges an additional fee for performing any of these services. 2. Describe how your company will communicate with the Plan Committee regarding the actions you take as an ERISA 3(38) investment manager. Compare how these communications differ from what your company provides to its 3(21) clients. 3. In situations where your company serves as an ERISA 3(38) fiduciary, please note whether or not your clients retain full responsibility for the IPS. Potential Conflicts 1. Describe your company's approach to handling any possible conflict-of-interests, including your company's policy with regard to the acceptance of any non-monetary compensation from mutual fund companies and or 401(k) providers for such items as trips, meals and client conferences. Please describe how these policies and any other measures taken by your company limit the likelihood that a client may receive investment or other consulting advice that is not solely aligned with their best interests. 2. Does your company or any of its principals or employees hold any insurance or securities licenses. If yes, does your company receive payment for client services on any basis other than a contractually invoiced fee. 3. Do you or any related company receive any compensation from any mutual fund company or 401(k) service provider above and beyond what is specifically disclosed in a contract or agreement. 4. Does your company or any related company sponsor investment management products, such as target date funds. Engagement Fees 1. Please include a complete and detailed description of your company's proposed fee schedule for PLEASANT GROVE CITY. 2. Indicate if there are any out of pocket expenses for which PLEASANT GROVE CITY will be responsible, such as travel costs to attend their quarterly committee meetings or other expenses. 3. Disclose any additional fees that your company may charge for related services and how these additional fees will be determined and billed to PLEASANT GROVE CITY. 4. Indicate the length of time your company is willing to guarantee your fee schedule. 5. Provide a sample copy of the engagement agreement or contract that you will use for PLEASANT GROVE CITY, including all services to be provided.

Notice of Special Accommodations (ADA)

-NOTE: If you are planning to attend this public meeting and, due to disability need assistance in understanding or participating in the meeting, please notify the City Recorder, 801-785-5045, forty-eight hours in advance of the meeting and we will try to provide whatever assistance may be required.

Notice of Electronic or Telephone Participation

N/A

Meeting Information

Meeting Location

70 S 100 E
Pleasant Grove , 84062
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Contact Name

Wendy Thorpe

Contact Email

wthorpe@pgcity.org

Contact Phone

801-785-5045

Notice Posting Details

Notice Posted On

July 18, 2019 11:33 AM

Notice Last Edited On

July 18, 2019 11:33 AM

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