€¦ · Web viewThe electronic copy of the proposal must be provided on individual USB flash drives with the complete narrative and attachments in MS Word format. Any attachments

STATE OF MAINEDepartment of Administration and Financial Services

Division of Employee Health & Benefits

RFP# 201603077

Deferred Compensation Plan Administration Services

RFP Coordinator

All communication regarding this RFP must be made through the RFP Coordinator identified below.Name: Kurt Caswell Title: Director, Benefits AdministrationContact Information: [email protected]

Submitted Questions Due

All questions must be submitted to the RFP Coordinator identified above by:Date: May 24, 2016 no later than 5:00 p.m., local time

Proposal Submission

Submission Deadline: July 7, 2016, no later than 2:00 p.m., local timeSubmission Address: Division of Purchases, Burton M. Cross Building, 111 Sewall Street - 4th Floor, Augusta, ME 04330

TABLE OF CONTENTS

Page

PUBLIC NOTICE 2

RFP DEFINITIONS/ACRONYMS 3

PART I INTRODUCTION 4A. PURPOSE AND BACKGROUND 4B. GENERAL PROVISIONS 5C. ELIGIBILITY TO SUBMIT BIDS 6D. CONTRACT TERMS 7E. NUMBER OF AWARDS 7

PART II SCOPE OF SERVICES TO BE PROVIDED 8

PART III KEY RFP EVENTS 10A. BIDDERS CONFERENCE 10B. QUESTIONS 10C. SUBMITTING THE PROPOSAL

PART IV PROPOSAL SUBMISSION REQUIREMENTS 11A. PROPOSAL FORMAT 11B. APPEAL DEPOSIT 11C. PROPOSAL CONTENTS 12

PART V PROPOSAL EVALUATION AND SELECTION 33A. EVALUATION PROCESS – GENERAL INFORMATION 33B. SCORING WEIGHTS AND PROCESS 33C. SELECTION AND AWARD 35D. APPEAL OF CONTRACT AWARDS 35

PART VI CONTRACT ADMINISTRATION AND CONDITIONS 36A. CONTRACT DOCUMENT 36B. STANDARD STATE AGREEMENT PROVISIONS 36

PART VII RFP APPENDICES AND RELATED DOCUMENTS 38

APPENDIX A – PROPOSAL COVER PAGE 39APPENDIX B – DEBARMENT, PERFORMANCE AND NON-COLLUSION CERTIFICATION 40APPENDIX C – COST PROPOSAL FORM 41APPENDIX D – ECONOMIC IMPACT FORM 43APPENDIX E – APPEAL DEPOSIT REFUND FORM 45APPENDIX F – ADDITIONAL PLAN INFORMATION 46APPENDIX G– ADDITIONAL PLAN DOCUMENTATION 59

PUBLIC NOTICE

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State of MaineDepartment of Administration and Financial Services

Division of Employee Health & Benefits

RFP# 201603077Deferred Compensation Plan Administration Services

The State of Maine is seeking proposals for an administrator the State of Maine Deferred Compensation Plan. The administrator will be responsible for providing third party administration services (i.e. recordkeeping/administration, communication/education, and custodial trustee services) as well as an unbundled investment management platform.

A copy of the RFP can be obtained by contacting the RFP Coordinator: Kurt Caswell, Director of Benefits Administration. The RFP Coordinator can be reached at the following email address: [email protected]. A copy can also be obtained at www.MaineSaves457.com.

Proposals must be submitted to the State of Maine Division of Purchases, located at the Burton M. Cross Office Building, 111 Sewall Street - 4th Floor, Augusta, ME 04330. Proposals must be submitted by 2:00 pm, local time, on July 7, 2016, when they will be opened. Proposals not received at the Division of Purchases’ aforementioned address by the aforementioned deadline will not be considered for contract award.

*************************************************

State of Maine RFP# 201603077Rev. 05/05/16

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http://www.MaineSaves457.com/

mailto:[email protected]

RFP DEFINITIONS/ACRONYMS

The following terms and acronyms shall have the meaning indicated below as referenced in RFP# 201603077

1. RFP: Request for Proposals2. State: State of Maine3. Department: Department of Administration and Financial Services4. EH&B: Division of Employee Health & Benefits5. TPA: Third Party Administration 6. FSO: Financial Service Organizations7. Plan: State of Maine Deferred Compensation Plan8. FOAA: Maine Freedom of Access Act9. HR: Human Resources10. MVA: Market Value Adjustment


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State of Maine - Department of Administration and Financial ServicesDivision of Employee Health & Benefits

RFP# 201603077Deferred Compensation Plan Administration Services

PART I INTRODUCTION

A. Purpose and Background

The Department of Administrative and Financial Services (“Department”) is seeking proposals to provide Deferred Compensation Plan Administration Services as defined in this Request for Proposals (RFP) document. This document provides instructions for submitting proposals, the procedure and criteria by which the Provider(s) will be selected, and the contractual terms which will govern the relationship between the State of Maine (“State”) and the awarded Bidder(s).

The State of Maine established the State of Maine Deferred Compensation Plan (the “Plan”) for its employees on January 1, 1975. The program is administered by the Department of Administrative and Financial Services, Office of Employee Health & Benefits (EH&B) The Advisory Council on Tax Deferred Arrangements – with 12 members representing both labor and management – meets quarterly to oversee the Plan and advises EHB on policy matters.

The Plan is an eligible plan under Sections 457(b) of the Internal Revenue code of 1986 as amended. The Plan covers State of Maine employees, excluding casual and seasonal employees. The Plan is funded through Pre-Tax contributions. Rollover Contributions are also permitted.

Employees can choose to contribute to any of the three providers but can only contribute to one at a time. Employees can choose to change providers for on-going contributions and may, but are not required, to transfer their account balances at the same time.

Each of the providers now allows participants to enroll online but also offers the ability to consult with field representatives both during enrollment and on an on-going basis.

Each of the providers offers a unique set of investment options with a proprietary Fixed Fund though the asset classes have been largely standardized. Each provider has a different methodology for charging recordkeeping fees ranging from collecting all fees through direct charges to embedding all fees in the plan investments.

Providers pay a portion of the fees collected to Buck Consultants, the advisor to the Council. Buck provides investment consulting, plan administration consulting, as well as communication consulting services. Communication consulting includes designing and maintaining the plan’s website at www.mainesaves457.com

As the Plan is transitioned to a single provider, bidders must recognize the current limitations posed by limited HRIS functionality. The State is in the midst of a multi-year process scheduled to commence in mid-2016 to upgrade this capability; hence all bids need to assume that some of the following limitations will remain in place upon the scheduled July 2017 implementation of the single FSO model and adjust scope and pricing accordingly:


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There is no centralized database of HR Reps at the various locations/departments to arrange plan meetings. Each provider has developed an informal listing of authorized reps but it is not fully reliable and impinges on the ability to arrange group meetings.

There is no complete database of email addresses for different State departments. Therefore, approximately 60% of plan communications need to be routed through U.S. Mail.

The current payroll system can, except in rare circumstances, only accept bi-weekly dollar deduction elections.

The system has no ability to pend an election with a future effective date.

Key demographics for the state workforce as of December 31, 2015 is as follows:

Employee Count

Average Age

Average Annual Salary

# Actively Contributing Employees

12,744 47 $42,917.91 3,330

Summary statistics for the Plan as of December 31, 2015 is as follows:

MassMutual VALIC Voya Total

Total Assets $196,344,273 $85,369,744 $122,737,918 $404,451,935

Annual Contributions $10,294,698 $3,701,618.19 $3,881,289.08 $17,877,605

Participants>$0 3,394 1,535 1,663 6,592

Investment in the Plan is participant directed. There is no automatic enrollment and currently no default investment fund. Each FSO offers a unique investment array but the asset classes have been largely standardized. Plan assets are held primarily in non-proprietary mutual funds though each Financial Service Organization (FSO) offers a Fixed Annuity product funded through its General Account. There is also a small balance held in grandfathered variable annuities.

Information about the Plan, including the most up to date plan document is available on www.mainesaves457.com. Additional detail, including a detailed list of holdings for each FSO, is available in the Appendix.

B. General Provisions

1. From the time this RFP is issued until award notification is made, all contact with the State regarding this RFP must be made through the aforementioned RFP Coordinator. No other person/ State employee is empowered to make binding statements regarding this RFP. Violation of this provision may lead to disqualification from the bidding process, at the State’s discretion.

2. Issuance of this RFP does not commit the Department to issue an award or to pay expenses incurred by a Bidder in the preparation of a response to this RFP. This includes attendance at personal interviews or other meetings and software or system demonstrations, where applicable.

3. All proposals should adhere to the instructions and format requirements outlined in this RFP and all written supplements and amendments (such as the Summary of Questions and Answers), issued by the Department. Proposals are to follow the format and respond to all questions and instructions specified below in the “Proposal Submission Requirements” section of this RFP.

4. Bidders shall take careful note that in evaluating a proposal submitted in response to this RFP, the Department will consider materials provided in the proposal, information obtained through


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interviews/presentations (if any), and internal Departmental information of previous contract history with the Bidder (if any). The Department also reserves the right to consider other reliable references and publicly available information in evaluating a Bidder’s experience and capabilities.

5. The proposal shall be signed by a person authorized to legally bind the Bidder and shall contain a statement that the proposal and the pricing contained therein will remain valid and binding for a period of 180 days from the date and time of the bid opening.

6. The RFP and the selected Bidder’s proposal, including all appendices or attachments, shall be the basis for the final contract, as determined by the Department.

7. Following announcement of an award decision, all submissions in response to this RFP will be considered public records available for public inspection pursuant to the State of Maine Freedom of Access Act (FOAA) (1 M.R.S. §§ 401 et seq.).http://www.mainelegislature.org/legis/statutes/1/title1sec401.html

8. The Department, at its sole discretion, reserves the right to recognize and waive minor informalities and irregularities found in proposals received in response to this RFP.

9. The State of Maine Division of Purchases reserves the right to authorize other Departments to use the contract(s) resulting from this RFP, if it is deemed to be beneficial for the State to do so.

10. All applicable laws, whether or not herein contained, shall be included by this reference. It shall be Proposer’s/Vendor’s responsibility to determine the applicability and requirements of any such laws and to abide by them.

C. Eligibility to Submit Bids

All interested parties are invited to submit bids in response to this Request for Proposals.

However, any prospective bidder must meet the following minimum requirements. In order to apply for the services requested pursuant to this RFP, a prospective Vendor must certify to each of the following:

Please include this Eligibility Certification, Labelled “Eligibility Certification, PART 1.C” immediately following your Cost Proposal Summary.

ELIGIBILITY CERTICATIONQualification Vendor

Certification(Yes/No)Vendor must be qualified to provide third-party administrative services pursuant to Sections 401, 403 and 457 of the Internal Revenue Code. Vendor must have provided recordkeeping, administrative and employee communication services for defined contribution plans for a minimum of ten years.Vendor must have at least $10 billion in defined contribution plan assets under administrationVendor must be offering sole-provider administration to a minimum of fifteen (15) governmental 457(b) plans, ten (10) with at least $100M of assets and five (5) with at least $250M of assets.Vendor must be currently administering at least ten governmental 457(b) plans with 2,500 or more participants under sole administration and five governmental 457(b) plans with at least 5,000 participants


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http://www.mainelegislature.org/legis/statutes/1/title1sec401.html

D. Contract Term

The Department is seeking a cost-efficient proposal(s) to provide services, as defined in this RFP, for the anticipated contract period defined in the table below. Please note that the dates below are estimated and may be adjusted, as necessary, in order to comply with all procedural requirements associated with this RFP and the contracting process. The actual contract start date will be established by a completed and approved contract.

Contract Renewal: Following the initial term of the contract, the Department may opt to renew the contract for one (1) renewal period, as shown in the table below, and subject to continued availability of funding and satisfactory performance.

The term of the anticipated contract, resulting from this RFP, is defined as follows:

Period Start Date End DateInitial Period of Performance 7/1/2017 6/30/2022Renewal Period #1 7//1/2022 6/30/2025

E. Number of Awards

The Department anticipates making “one” award as a result of this RFP process.


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PART II SCOPE OF SERVICES TO BE PROVIDED

The Department of Administrative and Financial Services, Division of Employee Health & Benefits (“EH&B”) is soliciting proposals for the following services:

• Bundled third party administration (TPA) services (i.e., record-keeping/administration, communication/education, and custodial trustee services) and unbundled investment management services for State of Maine Public Employees Deferred Compensation Plan. The plan currently offers participants a choice of three different Financial Service Organizations (FSOs) who each offer a unique administrative and investment platform. The combined assets of the Plan are approximately $400 million as of December 31, 2015. In addition to providing administrative services, the TPA will be responsible for maintaining compliance with IRS qualification requirements, providing trust –related services and custody, and establishing and maintaining a financial education/communication program. Plan documents and other supporting information is available at MaineSaves457.com.

• The proposal should also include a Fixed Account offering or comparable stable value offering. The combined assets of the Fixed Account funds in the Plan is approximately $165 million as of December 31, 2015. Other investment funds will be offered on an unbundled basis. Insert a summary of the specific tasks and objectives. State the desired outcomes very clearly, and if there are certain expectations and/or performance measures that must be met by the Bidders, define them in this section. As much as possible, however, leave this section open for Bidders to demonstrate how they can/will deliver the services and meet your expectations. This will allow Bidders a better opportunity to demonstrate their understanding of the requested services as well as give reviewers more substantive material with which to score the proposals received. This section should also include a brief description of the location where the work will be performed. If the work can be performed at the Bidder’s own facility, say so. If the work must be performed at a State facility, say so and give the address of the facility.)

In order to successfully implement transition to a new service model, EH&B has determined that a current participant’s assets invested with their current FSO(s) will be transferred to the new vendor’s accounts unless a positive election is made in writing by the participant to maintain assets with their current FSO(s). The State and Council will have no fiduciary or administrative oversight with these remaining balances. All new contributions and transfers will only be directed to the single FSO after the transition is complete. All on-going contributions will continue at their previous deferral rate. Transfers and contributions will be mapped to the new investment line-up based on existing fund elections (i.e., fixed account to fixed account, Socially Responsible fund to Socially Responsible fund)

EH&B recognizes the need to identify a one-time period to identify those participants wishing to remain with their current provider, providing those elections to the existing FSOs, and reconciling those elections with the conversion data received.

Proposers must provide a detailed plan transition strategy along with communication materials to explain any new plan changes and enhancements. The potential transition from the current plan provider(s) to a new provider(s) will require you to provide an explanation of the process, blackout period, and reconciliation of plan assets to the individual participant records. It is expected that the selected FSO will work with participants to communicate the benefits of consolidating these assets to the new platform.

Liquidity of Plan Assets


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The plan assets are generally available to be transferred without restriction other than balances invested in the Fixed Account. Provided the total balance at MassMutual is not completely withdrawn, there will be no restrictions on any partial withdrawals. For Voya and VALIC, the FSOs will pay out the Fixed Account balance withdrawn in annual installments over 5 years or as a lump sum with a Market Value Adjustment (MVA). The MVA can be positive or negative based on a comparison of historical vs. current interest rates. The provider contracts are included as an Appendix.

Based on reporting from each provider in January 2016 (and subject to change based on the direction of interest rates), the total Fixed Account balances subject to market value adjustment will be as follows:

December 31, 2015 MassMutual VALIC Voya Total

Fixed Account Assets $82,625,582 $32,529,915 $50,529,071 $165,684,568

Participants with Fixed >$0 2,037 1,140 1,180 4,357

Contract Minimum Rate 4% 3% 3%

Liquidity Restrictions at withdrawal None Initially1 MVA/ 5 Year Payment

MVA/ 5 Year Payment

Market Value Adjustment (+/-)2 N/A $162,650 Positive

The State expects anyone subject to a negative (-) Market Value Adjustment will have their Fixed Account balances transferred over the 5 year payout period while other balances will transfer at conversion. A small amount of the non-Fixed Account assets are also individual Impact contracts (approximately $3,500) which cannot be employer directed and are identified below in the Appendix.

1 MassMutual retains the right to pay balances in 6 payments over 5 years after one year with no new contributions.2 A positive MVA is the amount paid to the Plan in addition to the accumulated value of participant balances. A negative MVA would be the amount deducted from the accumulated value.


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PART III KEY RFP EVENTS

A. Questions

1. General Instructionsa. It is the responsibility of each Bidder to examine the entire RFP and to seek clarification, in

writing, if the Bidder does not understand any information or instructions.b. Submitted Questions must be submitted by e-mail and received by the RFP Coordinator,

identified on the cover page of this RFP, as soon as possible but no later than the dates and times specified on the RFP cover page.

c. Submitted Questions should include the RFP Number and Title in the subject line. The Department assumes no liability for assuring accurate/complete/on time e-mail transmission and receipt.

d. Be sure to refer to the page number and paragraph within this RFP relevant to the question presented for clarification, if applicable.

2. Summary of Questions and Answers: Responses to all substantive and relevant questions will be compiled in writing and distributed to all registered, interested persons by e-mail no later than seven (7) calendar days prior to the proposal due date. Only those answers issued in writing by the RFP Coordinator will be considered binding. The Department reserves the right to answer or not answer any question received.

B. Submitting the Proposal

1. Proposals Due: Proposals must be received no later than 2:00 p.m. local time, on the date listed on the cover page of this RFP, at which point they will be opened. Proposals received after the 2:00 p.m. deadline will be rejected without exception .

2. Mailing/Delivery Instructions: The official delivery site is the State of Maine, Division of Purchases (Please refer to the RFP cover page for submission address).a. Only proposals received at the official delivery site prior to the stated deadline will be

considered. Bidders submitting proposals are responsible for allowing adequate time for delivery. Postmarks do not count and fax or electronic mail transmissions of proposals are not permitted. Any method of hardcopy delivery is acceptable, such as US Mail, in-person delivery by Bidder, or use of private courier services.

b. The Bidder must send its proposal submission in a sealed package and must include an original, signed copy; six(6) hardcopies; and six (6) electronic copies of their complete proposal. The electronic copy of the proposal must be provided on individual USB flash drives with the complete narrative and attachments in MS Word format. Any attachments that cannot be submitted in MS Word format may be submitted as Adobe (.pdf) files.

c. Bidders’ submission packages are to be clearly labeled and contain the following information:- Proposal submission address provided on the RFP cover page- The Bidder’s full business name and address- The RFP Number and Title


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PART IV PROPOSAL SUBMISSION REQUIREMENTS

This section contains instructions for Bidders to use in preparing their proposals. The Bidder’s proposal must follow the outline used below, including the numbering and section and sub-section headings as they appear here. Failure to use the outline specified in this section, or to respond to all questions and instructions throughout this document, may result in the proposal being disqualified as non-responsive or receiving a reduced score. The Department, and its evaluation team for this RFP, has sole discretion to determine whether a variance from the RFP specifications should result in either disqualification or reduction in scoring of a proposal. Rephrasing of the content provided in this RFP will, at best, be considered minimally responsive. The Department seeks detailed yet succinct responses that demonstrate the Bidder’s experience and ability to perform the requirements specified throughout this document.

A. Proposal Format

1. All pages of a Bidder’s proposal should be numbered consecutively beginning with number 1 on the first page of the narrative (this does not include the cover page or table of contents pages) through to the end, including all forms and attachments. For clarity, the Bidder’s name should appear on every page, including Attachments. Each Attachment must reference the section or subsection number to which it corresponds.

2. Bidders are asked to be brief and concise in responding to the RFP questions and instructions.3. The Bidder may not provide additional attachments beyond those specified in the RFP for the

purpose of extending their response. Additional materials not requested will not be considered part of the proposal and will not be evaluated.

4. Include any forms provided in the application package or reproduce those forms as closely as possible. All information should be presented in the same order and format as described in the RFP.

5. It is the responsibility of the Bidder to provide all information requested in the RFP package at the time of submission. Failure to provide information requested in this RFP may, at the discretion of the Department’s evaluation review team, result in a lower rating for the incomplete sections and may result in the proposal being disqualified for consideration.

6. Bidders should complete and submit the “Proposal Cover Page” provided in Appendix A of this RFP and provide it with the Bidder’s proposal. The cover page must be the first page of the proposal package. It is important that the cover page show the specific information requested, including Bidder address(es) and other details listed. The proposal cover page shall be dated and signed by a person authorized to enter into contracts on behalf of the Bidder.

7. Bidders should complete and submit the “Debarment, Performance and Non-Collusion Certification Form” provided in Appendix B of this RFP. Failure to provide this certification may result in the disqualification of the Bidder’s proposal, at the discretion of the Department.

8. Bidders should complete and submit the “Cost Proposal Form” provided in Appendix C of this RFP, and submit the form immediately following responses to Appendix B.

9. Immediately following Appendix C, the bidder should include responses to the Eligibility Certification in appearing in Part 1.C above. Failure to respond in the affirmative to each of the items within this certification will result in the disqualification of the Bidder’s proposal.

B. Appeal Deposit

Each Bidder of this RFP must provide a deposit in the amount of $10,000.00 to offset expenses incurred by the State of Maine during the appeal process. This deposit must be payable to the “Treasurer of the State of Maine” in the form of a certified, cashier’s or teller’s check.

In the event the award process for this RFP involves a hearing of appeal, expenses will be assessed if the


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appeal request is found to be without merit, or the hearing of appeal results in a validation of the Department’s award. Otherwise, deposits are refundable to all Bidders.

Bidders are to complete Appendix E (Appeal Deposit Refund Form) and submit that form with the appeal deposit check in a sealed envelope clearly marked “Appeal Deposit” with their proposal.

For the purposes of this Section, failure of the State of Maine to award a contract as a result of this RFP does not constitute grounds for assessing expenses.

Proposals received that do not include an Appeal Deposit will be rejected without exception and ineligible for award consideration.

C. Proposal Contents

Section I Organization Qualifications and Experience

1. Proposer Information: Provide a brief overview of your organization. The narrative shall include the following:a. Date established;b. Ownership (public, partnership, subsidiary, etc.), andc. Relationships with other entities relevant to or related to the subject matter of this RFP.

2. Can you cite the areas, if any, where the services outline in this RFP will be delivered by affiliated organizations or alliance partners?

3. Provide the following information:Type of Plan Number of

PlansParticipants Assets

401(k)403(b)401(a)Governmental 457(b)Non-governmental 457(b)Other qualified DC plans409A nonqualified deferred compHSAOther, Describe

4. Indicate the number of governmental 457 plans (all types) your firm won and lost over each time period below. Please indicate the “as of” date for the most recent data available from your firm.

Year Won Lost

201320142015Year to date: As of

5. Provide your most recent audited financial statement. If the proposing firm is an insurance company, provide your claims paying ability ratings from

a. A.M. Best


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b. Standard & Poor'sc. Duff & Phelpsd. Moody'se. Weiss Ratings Inc.

6. Describe your errors/omissions liability insurance and coverage. Describe the various types of insurance coverage and indemnification provided to protect States, including coverage for data breach expenses for participating employee personally identifiable information.

7. Has your company, or any affiliates, been a party to any litigation, investigations, or settlements during the last three years involving your defined contribution or deferred compensation recordkeeping and administration services? If yes, please provide: 1) the nature of the claim or action 2) the current status of the litigation and 3) any fines or settlements paid.

References

9. Please provide references for four(4) public deferred compensation States that have similar plan demographics (i.e., size and plan design). If available, at least one of the four should have converted within the last year. For each reference, please provide State name, contact name, address, e-mail address, phone number, services provided, and year they became a State.

Section II Proposed Services

Client Service/Quality Assurance

1. Provide a breakdown of the number of full-time equivalent employees working on defined contribution plans as indicated in the chart below:

Type of Plan Full-time Employees

401(k)403(b)401(a)Governmental 457(b)Non-governmental 457(b)Other qualified DC plans409A nonqualified deferred compHSAOther, Describe

2. Do you currently have staff located in the State of Maine? If yes, where is your office located? If no, where is the closest office?

3. Describe the team that would deal directly with the State on an ongoing basis. Indicate the average number of account relationships and number of current relationships, roles, experience, and turnover rates. In addition, provide a brief resume for each individual. Specifically include the State relationship manager, day-to-day contact, communication specialist in the information you provide.


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4. Will you need to add local or onsite employees in order to provide the required services to this Plan? If so, state the number of additional staff required, by job title and function.

5. What location(s) would provide the services described in this RFP?

6. List some of the common topics/issues provided as training to the State’s benefit and payroll staff.

7. Complete the following chart on service standards and turnaround time and any associated guarantees:

Transaction Turnaround Time Penalty (s) for Non-Conformance

Issuance of Participant Statements __days after period endProcessing Payroll Contributions In Good Order

__days after State approval

Reviewing Emergency Withdrawals Requests __days after receipt of paperwork

Reviewing requests for Distribution Upon Termination of Employment

__days after receipt of paperwork

Paying distribution requests (i.e. check processing)

__days after all paperwork is in good order

Reviewing DROs ___ days after receipt of paperwork

8. Describe your procedures for monitoring:a. Institutional State satisfaction;b. Individual participant satisfaction.

9. Are you willing to provide customized surveys, at no additional cost, to assess the success of the education program? Yes/No a. If yes, how would you implement this feature?

Recordkeeping/Administration

Proposers are required to provide detailed information about their recordkeeping and administrative systems and use of technology. Important factors include ability to conform to the State’s payroll processing, monitor compliance, process participant transactions, provide timely and accurate participant statements and financial statements for the plan sponsor. Proposers must provide extensive capabilities to support employee self-service using a variety of media as well as employee assistance through field service representation.

1. Please provide a brief summary of your recordkeeping and administrative systems and use of technology.

2. Describe your ability to provide timely and accurate participant statements and financial statements for the plan sponsor.

3. Describe your capabilities to support employee self-service using a variety of media. As a baseline, the proposer must provide superior Internet, interactive voice response system (VRS), and customer service representative capabilities to support the needs of the Plan participants including your ability to offer mobile applications for inquiry and transaction processing.

4. Describe how your administration services will meet the following minimum requirements:


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a. Support employee enrollment activities, initial and ongoing. b. Answer employee inquiries related to eligibility, plan features, and investment offerings.c. Allowing employees to model retirement scenarios, request withdrawals from the Plan,

change investment mix, change investment rates and percentages, request balances, elect and update beneficiary elections, and other similar activities.

d. Making available customer service representatives that can guide participants through the enrollment process, answer general plan inquiries, point out the tools available via the participant website, etc.

e. Providing benefits literature, such as summary plan descriptions, forms, statements, and prospectuses.

f. Administering and qualifying unforeseen emergency withdrawals and Domestic Relations Orders.

5. Currently, employee assistance through field service representation is available to the State. Are you able to provide a discrete cost of providing Field Service Representatives (as well as in some cases supplemented by a Registered Investment Advisor) to conduct one on one and group meetings at locations throughout the State? Please note that, if offered, field service representatives’ compensation cannot be structured for any bias towards any investment product or advisory services.

6. In accordance with applicable federal statutes and regulations, the selected proposer must approve all unforeseeable emergency withdrawal requests and provide a first- level appeal of that determination. The State or its designee shall conduct all second-level appeals of unforeseeable emergency requests. Please confirm your willingness to meet these requirements and briefly outline your recommended process.

7. The service provider will be required to establish two-way interface capability with all appropriate parties (e.g., State payroll) and be held accountable for timely, accurate transmission and, as appropriate, editing and validation of data for processing enrollments and contribution activity. Please describe (1) your standard interface processing, and (2) your commitment to the State of Maine in transitioning from the current manual exchange of date to a more robust Human Resources Management System (HRMS)

8. The State is in the process of selecting and implementing new HRMS/Payroll capability. Once implemented, the Plan can institute several features not currently available due to the limitations of its current systems. Please describe your ability to offer the following features on a manual basis initially and subsequently transition into a more electronic and self-service environment as the HRMS is implementeda. Participant loan featureb. Allowing participants to make deferral elections as a dollar amount or percentage of payc. Identifying participants subject to a mandatory contribution of 7.5% of pay and allowing

them to enroll online (or defaulting them if no election is received)

9. Indicate how frequently (daily, weekly, monthly, on-demand) the following transactions are processed:

Transaction Processing Frequency Deadline for inclusion in next processing cycle

Payroll Contributions ReconciledPayroll Contributions invested after fundingProviding employee deduction


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change fileNew Loan Issuance - Non-ResidenceNew Loan Issuance - ResidenceHardship Withdrawal ReviewDistribution processing

10. The State has two different bi-weekly payroll cycles, paying employees on alternating weeks. Can your system schedule reporting so bi-weekly deduction changes (dollar elections, percentage elections, loan start/stops) are provided automatically instead of on-demand? Yes/No

11. What is the deadline for you to receive contributions and complete the investment of those contributions into the appropriate fund on that same day?a. Will you invest reconciled payroll amounts while reconciling other amounts? Yes/Nob. If you require all payroll amounts to be reconciled prior to investing, what is the typical

timeframe (in business days) that it takes your firm to work with a State to reconcile amounts?

12. Does your system allow participant elections in both dollar amounts and as a percentage? Yes/Noa. If No, how does your system allow elections?

13. Certain executive branch employees who elect not to join either MainePERS or the Social Security System must contribute a minimum of 7.5% of their Salary to the Plan as of the first payroll following their appointment. Dollar elections for this group are not permitted. Assuming the State can designate these employees on its data feed, can you default this particular group of employees barring a participant election?

14. State employees at termination of employment can make a separate deferral election (either as a

dollar amount or percentage) when their accrued vacation balance is paid out. Right now, this is largely a manual election process as payroll is unable to store any elections in advance of the actual deduction. Planning for future payroll capability, does your organization have the capacity to capture a one-time deduction as well as effective date (based on a built in payroll calendar) and provide this to the State?

15. Will you track contribution limits on a per participant basis to ensure no employee defers above maximum limits?a. If yes, how often is this reconciliation completed and how is it communicated to the State?

16. How do you accept manual edits, adjustments, and indicative participant data changes to the contribution input file (i.e., the payroll/deferral file from the State)?

17. Describe how you handle negative data from the payroll files (i.e., negative compensation and contributions)?

18. Describe your capabilities and time frames for monitoring maximum deferral limits and the catch-up provisions (both the Age 50 catch-up and the 3 year pre-retirement catch-up).a. Describe how your firm will track the 3 year pre-retirement catch-up at conversion through

the third-year of recordkeeping.


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b. How do you help participants choose which of the catch-up options allow for the largest contribution?

19. How many of your current 457 plan States have implemented auto enrollment?

20. Please indicate your firms ability to handle the following automatic feature on your Section 457 Plan platform:

Feature Yes/No

Identify employees that should be auto-enrolled (if indicative data is provided) Automatically enroll employees that do not affirmatively opt- out based on a percentage of salaryAutomatically escalate deferrals for employees that elect based on a date requested by the participant (convert dollar elections to percentages for calculation of escalation)Automatically escalate deferrals for employees that elect based on a date requested by the participant (percentage to percentage)Automatically escalate based on a single point in time for all employees that elect based on a single point in time during the plan year (dollar to percent)Automatically escalate based on a single point in time for all employees that elect based on a single point in time during the plan year (percent to percent)Automatically escalate all employees based on a Plan-wide election made by the State (single point in time)

21. Confirm your firm will handle all notification processes involved in providing automatic features. Indicate if additional fees would be incurred for providing such services.

22. For systematic payment distributions, is payment made on a pro rata basis or can a participant elect systematic payment from specific fund(s)?

23. Are you able to fully qualify and process unforeseeable emergency withdrawal requests along with first-level appeals Yes/No?

24. Describe your process for searching for missing participants and participants who have not cashed their distribution payment checks.

25. Is direct deposit to a bank account available for distributions, withdrawals and loans?

26. How much historical plan information do you maintain on participants? How much information is immediately available?

27. Describe the process you use to track and maintain employee beneficiary data.a. Will you convert electronic data held by the existing FSOs during the implementation? b. What do you advise States to do with existing paper election forms?c. Is there a process you suggest for converting them to electronic media on your system?

28. How long does it take to implement an investment change requested by the Council?

Domestic Relation Orders


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1. For the following services, feel free to respond concisely with additional detail needed only if highlighting a unique capability or explaining conditions or limitations to the services requested:

Description Yes/No CommentaryProvide online information to support DRO processProvide online model DROs Provide CSR (or other telephone representatives) for participant to obtain model DROFreeze accounts automatically upon notification of pending DROQualify DC plan DROs Setup / split alternate payee accountsAutomatically notify participant of approved of a DROAutomatically notify alternate payee of approved DRO, including distribution options if appropriateProvide notification to participant and alternate payee if a DRO is rejected?How long is a DRO held until your firm considers it "inactive", no action is taken by a participant, legal representative or alternate payee?

1. How long is a DRO held until your firm considers it "inactive", no action is taken by a participant, legal representative or alternate payee?

2. Once a DRO is considered “inactive” does your firm automatically lift restrictions on the participant account or do you require the State to approve each “lift”?

Loans

Answer the following questions based on your firm’s abilities if the State implements a loan feature.

1. Will your firm allow for loan payments via ACH or other personal employee means versus requiring loans to be tracked via State payroll system (active, terminated, leave, etc.)? Yes/Nob. If yes, detail what methods an employee may use for continuing repayment of loans.

2. Will your firm allow for loan repayments for active employee via payroll deduction? Yes/Noc. If yes, please answer the following questions:

Description Yes/NoAmortize loans by individual employee payroll frequency Accept loan payments directly from an employees on approved leaveAccept loan payments directly from employee for terminated employees Automatically deposit 1 excess loan repayment into participants accountAutomatically refund 1 excess loan repayment to participantAutomatically provide loan goal amount for loan setup (or re-amortization)Automatically provide fixed loan payment amount and number of payments due for loan setup (or re-amortization)

3. Please indicate which method your firm prefers for loan repayments (personal or payroll) and why.


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4. Whether using the personal loan repayment or payroll deduction, please respond regarding if each service is available. In response please assume the State will provide any necessary information needed on employee status. Provide any additional detail only if highlighting a unique capability or explaining conditions or limitations to the services requested:

Description Yes/No CommentaryDisplay available loan amount via multiple employee touch-points (e.g. online, mobile app, employee service center)Provide final early loan payoff information to employees via multiple touch-points (e.g. online, mobile app, employee service center)Approve, collect and maintain data necessary for general purpose Approve, collect and maintain data necessary for primary residence loan, if plan allowsAllow for re-amortization of a loan, if plan allowsProvide State with report of loans going into defaultAutomatically process all defaulted loans (for terminated and/or active) based on one-time approval from State -- Client does not approve on an ongoing basisAutomatically report terminated employee loans in default as a taxable distribution on an annual basis based on one-time State approval

5. Given the State is likely to be in the midst of implementing a new HRIS system during 2017 but still would like to implement a loan provision as soon as possible after the transition is completed, is your organization willing to accept loan repayments (via ACH) for all employees, not just those on leave of absence or terminated from employment?

Regulatory Compliance Services

1. Describe how you monitor §401(a)(9) required minimum distributions including:a. Identification of individualsb. Determination of the amount of the minimum required paymentb. Solicitation of participantsc. Payment within required deadlines.d. Automatic annual adjustmente. Notice of date RMD to be initiated

2. What resources do you have to obtain legal opinions, interpretations of laws, regulations, and other matters on issues pertaining to deferred compensation plans?

3. How will you ensure that the Plan remains in compliance with all applicable federal and state statutes and regulations?

4. How do you ensure that your recordkeeping system is in compliance with all applicable federal and state statutes, rules and regulations, the State plan document, and the contract?

Systems Capabilities and Hardware


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1. Describe the security policies, standards and guidelines in place in your organization. Does your organization carry any public certifications such as ISO27001 or similar? Do you make SSAE16 type reports available to States?

a. How is compliance with your policies and procedures monitored and audited?

2. Describe the security/ confidentiality agreements your employees and contractors sign a before beginning work? Are they bonded? Attach copy of agreement and any bond.

a. Describe the security and privacy training program provided to your staff. What does it cover, how often do employees take the training, how is the program monitored?

3. Internal Network / Workstation Security: a. Describe how you manage anti-virus protection on your corporate workstations. How are

updates handled?b. What mechanism is used for internal user authentication to your systems?c. Please describe your internal network password controls, (length, composition, expiration,

history, encryption, etc.d. Do you allow internal users (employees, vendors, temps, consultants, etc.) remote access to

your systems? If yes, please describe the controls, -- do you use two factor authentication?e. How are internal users granted access to your data / systems? Do you have a process to

review user accounts and related access?

4. Do you deal with International Data Transfers and work with States who are under jurisdiction of the European Economic Community for Privacy Matters?

5. If so please describe your approach to ensuring compliance with the European Privacy Directives.

6. What precautions do you take when mailing or shipping paper materials containing Personally Identifiable Information?

7. Which couriers do you use for shipping confidential paper reports and statements?

8. Describe your procedures for managing security incidents.

9. How and when are your business partners notified of security or data privacy incidents?

10. Describe a common use of emergency response team (CERT - computer emergency response team).

11. What are your forensics and evidence preservation capabilities?.

12. What system-related reports are made available to States (audit reports, usage reports, violation reports, etc.) and how are they made available (through some dynamic capability — how?)

13. Describe the facility and operations of your hosting site.

14. Internal or external hosting?

15. Describe the staffing level and hours of operation.

16. Describe your Intrusion Detection Sensor (IDS) architecture and other network security controls.


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17. Please describe your monitoring / auditing controls (for both web servers and database servers).

18. Describe your logging of access to your web servers and application servers. Who reviews the logs and how often?

19. Describe your process for obtaining and deploying the latest patches for your systems.

20. What are the processes and procedures used to delete/discard user information when no longer needed?

21. Describe Physical Security Controls at your hosting site(s).

22. Is a SSAE16 type report available for your hosting provider (if done by a third party?).

23. Describe your scanning and penetration testing program.

24. Frequency of security "scans" against system servers?

25. Describe any reviews done by a 3rd party security consulting firm. In no reviews are traditionally done, please confirm your willingness to have a review done at the State’s request.

26. Describe your process for reviewing and vetting security for your vendors and contractors.

27. How large is your programming/development staff?

28. Briefly describe the application architecture, languages and databases used.

29. How do you ensure that proper security practices are followed during the development process?

30. How do you test your applications for security vulnerabilities before they go live?

31. Describe the way your company audits and enforces standards over the applications that you provide.

32. What hardware and operating system are you using to run your web servers?

33. Are your web servers isolated in a “DMZ” where they are protected from the internet by firewalls and reverse proxy and separated from application and database layers by firewalls? Please describe:

34. Describe how you protect your web servers from attack.

35. What form of AntiVirus protection do you run on your Web Servers?

36. Describe the logging of sessions that takes place on your web servers, the items logged and the time the logs are retained.

37. Please describe your Disaster Recovery Program – indicate your RTO, RPO and frequency of testing.

38. How is backup media physically and electronically secured?


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a. Do you share D/R test results with your States?

Custodial/Trustee Services

The service provider must provide trustee/custodial services for the Plan or arrange for trustee services with an outside party.

1. For the custody/trustee services you propose, what is the name of the trust company and the total number of years that they have been in operation?

2. What are the total public deferred compensation assets under custody as of December 31, 2015 by such Trustee?

3. Is there a limit on the number of checks/wires available to participants who rollover their distributions or take installments? Yes/No

4. List any restrictions by investment type that pertain to your custodial services.

5. Will the State be required to execute a custodial agreement with your custodial trustee or will it be part of your contract with the State? If separate, provide a copy.

Employee Engagement & Education

The prospective service provider would be required to provide a comprehensive employee communication and investment education program that includes investment advice and pre- retirement planning services. Communication services are to be supported by customer service representatives and comprehensive Internet services that provide participants with interactive financial and retirement planning tools and software. If field service representation is available, representative’s compensation cannot be structured for any bias towards any investment product or advisory services.

1. Describe your firm’s capabilities in designing and implementing a communication/education strategy for both the initial transition and ongoing process.

2. Do you make available field service representatives to provide for one-on-one counseling and investment advice? If so, please describe how you will support State of Maine employees throughout the State.

3. The service provider will be required to assist employees with the completion of enrollment forms, verify the completeness of the forms, and coordinate the institution of salary deferrals with the State’s payroll system. Describe your strategy to accommodate these services across all locations and branches of State government.

4. The service provider will be required to prepare an annual education plan. Briefly describe an annual employee education plan developed another governmental institution to promote enrollment and proper diversification of employee deferrals.

5. Briefly describe how behaviorial economics techniques will be used in bolstering plan participation.


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6. Each of the current FSOs offers access to Registered Investment Advisors (RIA) who carry a FINRA Series 65 license, on a limited basis. Does your organization offer access to an RIA? If so, describe the capacity in which the State may make use of them.

7. For the following services, please respond if such service is available (Yes/No) and included in pricing you have provided (Cost Incl’d). Add any commentary only if highlighting a unique capability or explaining conditions or limitations to the services requested. Please be concise in any commentary added.

Description Yes/No Cost Incl’d

Comment

Based on demographic feed received from the State, mail enrollment information for new hires to participant’s home address Participant website with State color and/or “look”Record and store calls for life of contract +x years (indicate x years in Comment)Provide ability for participant to schedule call-back time, "concierge hold"Allow State to review CSR scriptsProvide ability for participant to request specific CSR Provide CSR Mon-Fri (state times in Eastern Time Zone)Provide CSR Sat-Sun (state times in Eastern Time Zone) Leave blank if N/AProvide toll-free line for international callersInternational CSR availability, if different than US time zone (leave blank if the same)Provide recorded calls to State in .wav format upon requestMaintain documented process for CSRs to access plan informationCSR and participant see same information during callProvide availability for participant to take satisfaction survey after call endsProvide call-back to participant for satisfaction survey after callProvide online chat capabilitiesRecord and store chats for life of contract +x years (indicate x years in comment)Provide availability for participant to take satisfaction survey after web chat endsProvide call-back to participant for satisfaction survey after web chatProvide language line for translation servicesProvide TTY number or relay services for hearing impaired participants


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Allow terminated participants to update e-mail or physical address changes without State involvementAllow participants to first-time enroll via websiteAllow participants to first-time enroll via mobile capabilityOffer mobile capabilities for participants accessing account balance informationOffer mobile capabilities for participants to change deferral rates Offer mobile capabilities for participants to initiate fund transfersOffer mobile capabilities for participants to initiate loan requestsOffer mobile capabilities for participants to initiate hardship requestsOffer mobile capabilities for participants to request in-service/other distributionsOffer mobile capabilities for participants to request termination distributionOffer mobile capabilities for participants to update beneficiary informationOffer mobile capabilities for participants to download forms and packagesProvide pre-recorded "canned" webinars for States use Provide specific webinars developed for an individual StateProvide mail campaigns that encourage non-savers to saveProvide mail campaigns that encourage savers to save moreProvide email campaigns to participants within 10 years of retirementProvide mail campaigns to participants within 10 years of retirementProvide mail campaigns to participants within 5 years of retirementMaintain log of email and mail campaignsOffer mobile capabilities for participants to initiate hardship requestsOffer mobile capabilities for participants to request in-service/other distributionsOffer mobile capabilities for participants to request termination distributionOffer mobile capabilities for participants to update beneficiary informationOffer mobile capabilities for participants to download forms and packagesAllow participants to use camera phone to


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capture images of plan forms and upload via mobile app

8. List the different platforms (e.g. mobile enabled website, native apps built for Android, iOS, Windows, etc.) on which mobile capabilities exist. List any functionality differences between the platforms.

9. Describe the State’s role in the communication, education, and enrollment process.

10. To what extent can the Commission customize communication and investment education materials (e.g., plan name, logos)? Please state if there would be additional charges for customizing or editing these communication materials.

11. Describe your proposed strategy for coordinating and integrating plan education and communication activities and materials with those of the MainePERS (defined benefit) retirement system.

12. Can you cite specific examples of using behavioral economics to boost employee engagement and participation in the Plan? This is of great interest to the State in order to boost enrollment in a program that doesn’t offer employer contributions or auto-enrollment.

13. How do you measure the success of your educational programs?

Plan Sponsor Reporting

1. For the following services, please answer Yes/No on whether the service is available and if such service is included in your cost estimate. Add any comments only if needed. The cost of any service not included in your cost is not required in the Cost Form but will be requested separately if the State decides to implement any service.

Description Yes/No Incl’d CommentProvide sample notice for State use for §408(b)(2) (style) notices or other summaries of total plan fees as directed by Distribute, as directed by State, such §408(b)(2) (style) notices to participants Disclose amount of rollovers from Plan to proprietary IRAsProvide "pushed" quarterly management reports to StateManagement reports include website usageManagement reports include call center usageManagement reports show participant information by age, service, and/or compensationAllow State to limit access to participant information among internal team membersClient site includes pre-loaded self service reportsClient site allows State to customize reports using point-in-time rangeClient customized report template can be stored for later use by State Does your system have the ability to allow for


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single sign on from State's site to your siteDoes your system have the ability to accept file transfers from other State third-party vendors as requested by State Does your system utilize a case management system for open issuesProvide case management reports to State upon requestProvide documentation to State of your protocols for the administration of the planAllow State to post messages for participants on "splash" screen of websiteAllow State to provide special messaging for CSR useDo you provide a Plan administration manual for State use via websiteProvide reconciled funding report to State each payroll cycle

Plan/Data Aggregation Services

1. Indicate whether your system can allow participants to see legacy assets maintained with prior 457(b) vendors.

2. How does your system work as a data aggregator? Detail the process for data coordination, receipt of data from the State, receipt of data from vendors, where the information is housed, and who has access to the data.

3. What are the activities and/or information that would be required of the other vendors in conjunction with this service? Describe in detail.

4. How will the State interface with the system? What information will be accessible to staff? Will the State be required to send any data feeds separately to the vendors?

Field Service Representatives

As noted above, the State is interested in understanding the discrete cost of providing Field Service Representatives to determine if the value delivered is commensurate with the cost. The questions below presume these services will be provided and their cost will be included under Scenario One in your per head recordkeeping cost proposal. Cost Proposal. 1. How many onsite, field service representatives are you assigning to the Plan?

a. Will they be 100% full-time dedicated representatives? Yes/No b. If no, what percentage of their time will be dedicated?

2. Provide your rationale for determining the appropriate staffing for the Plan.

3. Describe the structure of how the field service representatives would be organized to service this relationship:

a. Location


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b. Staffing (including functions to be performed) c. Standard hours of operationd. How you would handle pre-scheduled consultations? e. How you would handle walk-ins?

4. What is your annual cost associated for each dedicated service representative?

5. Will you need to hire any additional staff in order to service the State’s account?

6. Briefly describe the typical credentials and related experience of local service representatives who will be assigned to the State’s account.

7. Will the representatives assigned to the State’s Plan be employees of your firm?

8. Detail the compensation structure for the local representative (e.g. 85% salary, 15% bonus). Provide an explanation of how any bonuses and incentives are determined including if representatives incentivized in any way to solicit outside products.

9. Are field service representatives available to discuss the plan and investments with participants on a one-on-one basis? If so, how often?

10. Identify the annual number of group meetings and number of one-on-one consultations you have assumed will be provided by the field service representatives.

11. Do you have a Registered Investment Advisor to augment your proposed local staffing plan? If yes, explain the services provided and indicate the amount of time the services?

Plan Investments and Stable Value Fund Offering

The Plan currently offers participants a diverse array of investment options covering all major asset classes. The Department is looking for a provider that can offer participants an open architecture platform with a wide array of investment options. The Council anticipates transitioning to a new investment array as part of implementing a single FSO model with the help of the State’s advisor, Buck Consultants. In addition, the Plan intends to continue to offer a Self-Directed Brokerage option.

The Department also requires that each bidder propose a capital preservation fund option as part of its bid. This should either be a separate account stable value fund or a general account fixed annuity. Any proposed stable value fund should must be fully diversified, limit credit risk/exposure, provide competitive returns with no benefit payment limitations and provide attractive contract termination conditions. For a general account fixed annuity, a put provision or installment distribution will be acceptable to avoid a negative market value settlement.

1. Confirm you will offer an open architecture, mutual fund based platform to the State under both scenarios.

2. Describe the process to change one or more funds in the investment line-up during the contract period.

3. List the stable value products available on your platform.


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4. What stable value product is being proposed for the State and why? Also include a copy of the contract with your proposal submission

5. Complete the tables below for your proposed stable value product as of December 31, 2015ManagerVehicleFund NameClassFund InceptionFund Assets ($B)Effective DurationMarket-to-Book Value RatioGross Crediting Rate *Net Crediting Rate *Crediting Rate Reset FrequencyMinimum Crediting RateRecommended BenchmarkBenchmark for Underlying PortfolioExpense RatioTrusteeBook Value Structure % of AllocationLiquidity Buffer

Quality Allocation PercentCash/cash equivalentsAAAAAABBBBelow Inv GradeNR

TOTAL 100%

Sector Allocation PercentCash/cash equivalentsU.S. TreasuryU.S. Govt-RelatedCorporateAgency MBSNon-agency MBSABSCMBSMunicipalOther

TOTAL 100%

1. If the manager of the proposed Stable Value option is an insurer other than an affiliate of your organization, please provide their claims paying ability ratings from

a. A.M. Best


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b. Standard & Poor'sc. Duff & Phelpsd. Moody'se. Weiss Ratings Inc.

2. What are the provisions / restrictions for a participant to withdraw assets from this account, either for distribution or to transfer to another Vendor?

3. What are the rules regarding participant transfers to competing investments 90 day equity wash provision?

4. Provide returns as of December 31, 2015 for the proposed product:Trailing Returns 3-Mo. YTD 1-Yr 3-Yr 5-Yr 7-Yr 10-Yr Inceptio

nProductBenchmark

Annual Returns 2015 2014 2013 2012 2011 2010 2009ProductBenchmark

Investment Advisory / Managed Account Services

1. Will you be offering an investment Advisory Service to participants? If so, who is the provider?

2. Can you summarize the service offering? Please distinguish among the investment education, investment advisory, and managed account components.

3. What are the costs associated with service offering? Is there a plan level fee in addition to transaction charges for anyone electing the managed account component?

4. Describe the difference between your standard Internet investment education tools and software and your investment advisory services.

5. Does your service produce asset allocation recommendations? Yes/No Does it provide recommendations of specific funds? Yes/No

6. Does your investment advisory service include savings rate recommendations? Yes/No

7. Does your investment advisory service take into account a participant’s assets outside of the State’s Plan? If so, list what assets.

8. Describe the generally accepted investment theories that form the basis for your advice model.

9. What is disclosed to participants regarding your fiduciary role and the provider’s fiduciary role with respect to these investment advisory services?

10. How many of your existing 457 deferred compensation plans States have subscribed to this investment advisory service?


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Self-Directed Brokerage

1. Confirm that you will be able to provide an in-kind brokerage transfer of existing self- directed brokerage account assets.

2. Briefly describe any third parties involved in offering of the self-directed brokerage account services and explain their role.

3. Does your self-directed brokerage account require any minimum balance? What happens if minimum balances are not maintained?

4. Please provide a fee schedule for-directed brokerage services along with your proposal.

5. Can your self-directed brokerage account restrict a participant from certain asset classes that the Council deems as inappropriate for retirement plans (precious metals, futures, margin trading, options, commodities, collectibles, short sales, real estate, etc.)?

6. Describe the rules for transferring from the core options into the brokerage accounts and vice-versa. Can you monitor any potential restrictions (e.g. equity wash) involving transfers between the core funds and the self-directed brokerage option?

7. How are self-directed brokerage account balances treated for purposes of the following:a. Regular benefit or unforeseeable emergency distributionsb. IRC required and minimum distributionsc. Domestic relations orders

8. During what hours of the day are service brokerage representatives available to respond to participant trading questions and inquiries?

9. Do participants receive a detailed account summary of all assets held in the brokerage account? How often?

10. Are quarterly plan-level reports provided to the plan sponsor regarding holdings in the self-directed brokerage account?

Plan Implementation

1. With your proposal submission, provide a timeline based upon a July 1, 2017 conversion date that details timing, roles and responsibilities. Include the responsibilities required by the State, i.e., payroll, HR, finance, etc. versus your firm and/or current vendors under the scenario where participant balances are defaulted to the new provider unless the participant elects otherwise. The participant will have to go onto a mini-site to elect to stay with their current provider and these elections will be provided to the existing FSO as part of the conversion process.

2. Do you have experience with capturing employee conversion data on an “opt-out” basis? Is there another approach you would suggest to maximizing the assets moving to the new platform?

3. Do you have any limitations as to the format/media of participant data that would require additional cost not outlined in your fee proposal? Yes/No.

a. If yes, please detail limitations and additional cost that could be incurred.


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4. Do you expect to capture and store the necessary information to track the 3 year pre-retirement catch-up feature from the prior providers? Yes/No

5. How are investments handled during the conversion process?

6. How are distributions handled to accommodate the continuity of payments to retirees during the conversion period?

7. Describe your procedures during the conversion period to communicate with the State’s non-active employees (i.e. retirees and terminated employees with value in the Plan).

8. What assurances/guarantees do you provide to the State with respect to a timely implementation?

9. How many conversions and plan implementations has your company conducted during the past two years? How many have been for comparable 457 plans?

Fees and Administrative Costs

In addition to completing the Cost Proposal in Appendix C, please respond to the following questions:

1. The State will need to embed compensation in total plan fees to compensate its advisors to the Plan. With that understanding, please answer the following:

a. At the State’s direction, can you compensate a third party out of the total per head participant charges collected by the Plan?

b. At the State’s direction, can you compensate a third party out of any revenue sharing payments collected from the Plan’s investments?

c. If your firm’s Fixed Annuity product is used, can you reduce the agreed upon annual return and forward the proceeds to a 3 rd party designated by the State?

2. What are the factors you consider in determining future fee decreases and when they are to occur?

Section III Cost Proposal

1. General Instructionsa. The Bidder must submit a cost proposal that covers the entire period of the initial contract.

Please use the expected contract start date of July 1, 2017 and an end date of June 30, 2022 in preparing this section.

b. The cost proposal shall include the costs necessary for the Bidder to fully comply with the contract terms and conditions and RFP requirements.

c. Failure to provide the requested information and to follow the required cost proposal format provided in Appendix C may result in the exclusion of the proposal from consideration, at the discretion of the Department.

d. No costs related to the preparation of the proposal for this RFP or to the negotiation of the contract with the Department may be included in the proposal. Only costs to be incurred after the contract effective date that are specifically related to the implementation or operation of contracted services may be included.


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2. Cost Proposal Form InstructionsThe Bidder should fill out Appendix C (Cost Proposal Form), following the instructions detailed here and in the form. Failure to provide the requested information, and to follow the required cost proposal format provided, may result in the exclusion of the proposal from consideration, at the discretion of the Department.

a. When completing the form, please enter one of three responses for the price of each service listed: Blank: Service is included in the per participant core recordkeeping charge. $$$: Enter the per occurrence pricing. N/A: If the service listed is not offered by your firm, please respond N/A and include

an explanation of why the service isn’t available. b. Generally, the State would expect that any implementation fees would be embedded in the

per participant charge assessed to the Plan. However, the form does allow an opportunity for any vendor who wishes to quote an additional cost for soliciting employee elections to remain with their current provider.

c. If additional cost information is required which is not specifically outlined within the primary cost matrix, please use “Fees Not Included Other Cost Areas” to record these fees/costs. Please include any additional detailed information describing these fees and their purpose directly behind the Cost Proposal form when submitting the RFP. There is a section where vendors can describe any underlying assumptions inherent in

the proposed fees for the Plan.Be sure to sum all costs in the line entitled “Total Cost Initial Contract Period.”

Section IV Economic Impact within the State of Maine

Using the form in Appendix D (Economic Impact Form), the Bidder (Bidder identified on the “Proposal Cover Page” of their proposal submission) is required to describe the Bidder’s recent and anticipated economic impact upon and within the State of Maine. The use of economic impact in making contract award decisions is required in accordance with Executive Order 2012-004, which states that certain service contracts ”…advertised for competitive bid shall include scoring criteria evaluating the responding Bidder’s economic impact on the Maine economy and State revenues.”

Section V Required Proposal Attachments

In addition to any documents required to be furnished at the beginning of each bidders responses as indicated earlier, the following documents must be attached to the back of each Bidder’s proposal in the order as numbered below. The required documents will be reviewed and rated by the Department’s evaluation team.

1. Proposal Cover Page (Appendix A)2. Debarment, Performance and Non-Collusion Certification (Appendix B)3. Cost Proposal Form (Appendix C)4. Economic Impact Form (Appendix D)5. Appeal Deposit Refund Form (Appendix E) along with sealed envelope containing $5,000

refundable appeals deposit7. Self-directed brokerage account detailed transaction fees8. Proposed Stable Value/Fixed Account contract9. Sample Service Contract10. Trustee/Custodial contract, if separate from service contract


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PART V PROPOSAL EVALUATION AND SELECTION

Evaluation of the submitted proposals shall be accomplished as follows:

A. Evaluation Process - General Information

1. An evaluation team, comprised of qualified reviewers, will judge the merits of the proposals received in accordance with the criteria defined in the RFP, and in accordance with the most advantageous financial and economic impact considerations (where applicable) for the State.

2. Officials responsible for making decisions on the selection of a contractor shall ensure that the selection process accords equal opportunity and appropriate consideration to all who are capable of meeting the specifications. The goals of the evaluation process are to ensure fairness and objectivity in review of the proposals and to ensure that the contract is awarded to the Bidder whose proposal provides the best value to the State of Maine.

3. The Department reserves the right to communicate and/or schedule interviews/presentations with Bidders if needed to obtain clarification of information contained in the proposals received, and the Department may revise the scores assigned in the initial evaluation to reflect those communications and/or interviews/presentations. Interviews/presentations are not required, and changes to proposals will not be permitted during any interview/presentation process. Therefore, Bidders should submit proposals that present their rates and other requested information as clearly and completely as possible.

4. The Department reserves the right to conduct Finalist Presentations in the event the evaluation team deems it appropriate to garner additional insight into the product and services being presented. Notification will be made to all bidders once the evaluation team concludes its initial review of written proposals.

B. Scoring Weights and Process

1. Scoring Weights: The score will be based on a 100 point scale and will measure the degree to which each proposal meets the following criteria.

Section I. Organization Qualifications and Experience (15 points)Includes all elements addressed above in Part IV, C, Section I. Section II. Specifications of Work to be Performed (50 points) Includes all elements addressed above in Part IV, C, Section II.

Section III. Cost Proposal (25 points) Includes all elements addressed above in Part IV, C, Section III.

Section IV. Economic Impact within the State of Maine (10 points)Includes all elements addressed above in Part IV, D, Section IV.

2. Scoring Process: The review team will use a consensus approach to evaluate and score Sections I & II above. Members of the review team will not score those sections individually but, instead, will arrive at a consensus as to assignment of points for each of those sections. The Cost and Economic Impact sections will be scored as described below. The contract award(s) will be made to the Bidder(s) receiving the highest number of evaluation points based upon the proposals’ satisfaction of the criteria established in the RFP.


33

3. Scoring the Cost Proposal: The total cost proposed for conducting all the functions specified in this RFP will be assigned a score according to a mathematical formula. The lowest bid will be awarded 25 points. Proposals with higher bids values will be awarded proportionately fewer points calculated in comparison with the lowest bid.

The scoring formula is:

(Lowest submitted cost proposal / Cost of proposal being scored) x (25) = pro-rated score

No Best and Final Offers: The State of Maine will not seek a best and final offer (BAFO) from any Bidder in this procurement process. All Bidders are expected to provide their best value pricing with the submission of their proposal.

4. Scoring the Economic Impact: The Economic Impact for this RFP will be assigned a score according to a mathematical formula.

Recent Economic Impact: The highest recent economic impact will be awarded 5 points . Proposals with lower recent economic impact will be awarded proportionately fewer points calculated in comparison with the highest impact.

The Recent Economic Impact scoring formula is:

(Recent Economic Impact proposal being scored / Highest submitted recent Economic Impact proposal) x 5 = pro-rated score

Projected Economic Impact*: The highest projected economic impact will be awarded 5 points. Proposals with lower projected economic impact will be awarded proportionately fewer points calculated in comparison with the highest projected economic impact.

The Projected Economic Impact scoring formula is:

(Projected Economic Impact proposal being scored / Highest submitted projected Economic Impact proposal) x 5 = pro-rated score

*Projected Economic Impact is to be based solely on the resulting contract should the Bidder be awarded the contract for these services (See Appendix E for a more detailed explanation) .

Please note: If the State determines that the Bidder’s recent and/or projected economic impact information is deemed to be substantially inaccurate, then the State may determine to not award any points for economic impact to that Bidder for the applicable section(s).

5. Negotiations: The Department reserves the right to negotiate with the successful Bidder to finalize a contract at the same rate or cost of service as presented in the selected proposal. Such negotiations may not significantly vary the content, nature or requirements of the proposal or the Department’s Request for Proposals to an extent that may affect the price of goods or services requested. The Department reserves the right to terminate contract negotiations with a selected respondent who submits a proposed contract significantly different from the proposal they submitted in response to the advertised RFP. In the event that an acceptable contract cannot be negotiated with the highest ranked Bidder, the Department may withdraw its award and negotiate with the next-highest ranked Bidder, and so on, until an acceptable contract has been finalized. Alternatively, the Department may cancel the RFP, at its sole discretion.


34

C. Selection and Award

1. The final decision regarding the award of the contract will be made by representatives of the Department subject to approval by the State Procurement Review Committee.

2. Notification of contractor selection or non-selection will be made in writing by the Department.3. Issuance of this RFP in no way constitutes a commitment by the State of Maine to award a

contract, to pay costs incurred in the preparation of a response to this request, or to pay costs incurred in procuring or contracting for services, supplies, physical space, personnel or any other costs incurred by the Bidder.

4. The Department reserves the right to reject any and all proposals or to make multiple awards.

D. Appeal of Contract Awards

Any person aggrieved by the award decision that results from this RFP may appeal the decision to the Director of the Bureau of General Services in the manner prescribed in 5 MRSA § 1825-E and 18-554 Code of Maine Rules, Chapter 120 (found here: http://www.maine.gov/purchases/policies/120.shtml). The appeal must be in writing and filed with the Director of the Bureau of General Services, 9 State House Station, Augusta, Maine, 04333-0009 within 15 calendar days of receipt of notification of contract award.


35

http://www.maine.gov/purchases/policies/120.shtml

PART VI CONTRACT ADMINISTRATION AND CONDITIONS

A. Contract Document

1. The successful Bidder will be required to execute a contract in the form of a State of Maine Agreement to Purchase Services (BP54). A list of applicable Riders is as follows:

Rider A: Specification of Work to be PerformedRider B: Method of Payment and Other ProvisionsRider C: Exceptions to Rider B Rider D: (Optional; for use by Department) Rider E: (Optional; for use by Department)Rider G: Identification of Country in Which Contracted Work Will Be Performed

The complete set of standard BP54 contract documents may be found on the Division of Purchases website at the following link: http://www.maine.gov/purchases/info/forms/BP54.doc

Other forms and contract documents commonly used by the State can be found on the Division of Purchases website at the following link: http://www.maine.gov/purchases/info/forms.html

2. Allocation of funds is final upon successful negotiation and execution of the contract, subject to the review and approval of the State Procurement Review Committee. Contracts are not considered fully executed and valid until approved by the State Procurement Review Committee and funds are encumbered. No contract will be approved based on an RFP which has an effective date less than fourteen (14) calendar days after award notification to Bidders. (Referenced in the regulations of the Department of Administrative and Financial Services, Chapter 110, § 3(B)(i): http://www.maine.gov/purchases/policies/110.shtml

This provision means that a contract cannot be effective until at least 14 days after award notification.

2. The State recognizes that the actual contract effective date depends upon completion of the RFP process, date of formal award notification, length of contract negotiation, and preparation and approval by the State Procurement Review Committee. Any appeals to the Department’s award decision(s) may further postpone the actual contract effective date, depending upon the outcome. The contract effective date listed in this RFP may need to be adjusted, if necessary, to comply with mandated requirements.

3. In providing services and performing under the contract, the successful Bidder(s) shall act as an independent contractor and not as an agent of the State of Maine.

B. Standard State Agreement Provisions

1. Agreement Administrationa. Following the award, an Agreement Administrator from the Department will be appointed to

assist with the development and administration of the contract and to act as administrator during the entire contract period. Department staff will be available after the award to consult with the successful Bidder in the finalization of the contract.

b. In the event that an acceptable contract cannot be negotiated with the highest ranked Bidder, the Department may withdraw its award and negotiate with the next-highest ranked Bidder,


36

http://www.maine.gov/purchases/policies/110.shtml

http://www.maine.gov/purchases/info/forms.html

http://www.maine.gov/purchases/info/forms/BP54.doc

and so on, until an acceptable contract has been finalized. Alternatively, the Department may cancel the RFP, at its sole discretion.

2. Payments and Other ProvisionsThe State anticipates paying the Contractor on the basis of net 30 payment terms, upon the receipt of an accurate and acceptable invoice. An invoice will be considered accurate and acceptable if it contains a reference to the State of Maine contract number, contains correct pricing information relative to the contract, and provides any required supporting documents, as applicable, and any other specific and agreed-upon requirements listed within the contract that results from this RFP.


37

PART VII LIST OF RFP APPENDICES AND RELATED DOCUMENTS

1. Appendix A – Proposal Cover Page

2. Appendix B – Debarment, Performance and Non-Collusion Certification

3. Appendix C – Cost Proposal Form

4. Appendix D – Economic Impact Form

5. Appendix E – Appeal Deposit Refund Form

6. Appendix F – Additional Plan Informationa. F-1 - Plan Highlightsb. F-2 - County of Residence for State Employeesc. F-3 - State of Maine 2016 Payroll Scheduled. F-4 - VALIC Fund Activity Report 01/01/2015 through 12/31/2015e. F-5 – Voya Fund Activity Report 01/01/2015 through 12/31/2015f. F-6 - MassMutual Plan Statement of Account for the Period 01/01/2015 to 12/31/2015g. F-7 - Breakdown of Non-$0 Plan Accounts by Participant Status

7. Appendix G– Additional Plan Documentationa. State of Maine Deferred Compensation Plan Document (Restated as of December 30,

2003)b. Investment Fund Option List as of 12/31/2015c. Fixed Account Contractsd. Additional Fund Option & Performance Information


38

APPENDIX A

State of Maine Department of Administration and Financial Services

Division of Employee Health and BenefitsPROPOSAL COVER PAGE

RFP# 201603077Deferred Compensation Plan Services

Bidder’s Organization Name:Chief Executive - Name/Title:Tel: Fax: E-mail:Headquarters Street Address:

Headquarters City/State/Zip:

(provide information requested below if different from above)Lead Point of Contact for Proposal - Name/Title:Tel: Fax: E-mail:Street Address:

City/State/Zip:

Proposed Cost: $ The proposed cost listed above is for reference purposes only, not evaluation purposes. In the event that the cost noted above does not match the Bidder’s detailed cost proposal documents, then the information on the cost proposal documents will take precedence.

This proposal and the pricing structure contained herein will remain firm for a period of 180 days from the date and time of the bid opening.

No personnel currently employed by the Department or any other State agency participated, either directly or indirectly, in any activities relating to the preparation of the Bidder’s proposal.

No attempt has been made or will be made by the Bidder to induce any other person or firm to submit or not to submit a proposal.

The undersigned is authorized to enter into contractual obligations on behalf of the above-named organization.

To the best of my knowledge, all information provided in the enclosed proposal, both programmatic and financial, is complete and accurate at the time of submission.

Name (Print): Title:

Authorized Signature: Date:


39

APPENDIX B


Division of Employee Health and BenefitsDEBARMENT, PERFORMANCE and NON-COLLUSION CERTIFICATION


By signing this document, I certify to the best of my knowledge and belief that the aforementioned organization, its principals and any subcontractors named in this proposal:

a. Are not presently debarred, suspended, proposed for debarment, and declared ineligible or voluntarily excluded from bidding or working on contracts issued by any governmental agency.

b. Have not within three years of submitting the proposal for this contract been convicted of or had a civil judgment rendered against them for:

i. Fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a federal, state or local government transaction or contract.

ii. Violating Federal or State antitrust statutes or committing embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;

iii. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or Local) with commission of any of the offenses enumerated in paragraph (b) of this certification; and

iv. Have not within a three (3) year period preceding this proposal had one or more federal, state or local government transactions terminated for cause or default.

c. Have not entered into a prior understanding, agreement, or connection with any corporation, firm, or person submitting a response for the same materials, supplies, equipment, or services and this proposal is in all respects fair and without collusion or fraud. The above mentioned entities understand and agree that collusive bidding is a violation of state and federal law and can result in fines, prison sentences, and civil damage awards.

Failure to provide this certification may result in the disqualification of the Bidder’s proposal, at the discretion of the Department.




40

APPENDIX C


Division of Employee Health and Benefits COST PROPOSAL FORM


Bidder’s Organization Name:

Reference the instructions provided in PART IV, Section III to provide the following:The State will not charge the Plan a one-time implementation fee but rather embed these costs in the on-going fees.

Implementation Fees (assuming 3 incumbent providers)

One Time Cost

Total Fees for Initial

Contract Period Comment

Developing employee communications on conversion process Drafting and producing materials explaining

default mapping process Explaining process for employee’s to elect to

remain with current provider Include with other conversion material

$xx,xxx

Build website capability to capture participant elections for those wishing to remain with current providerSend confirmation to participants on final electionProvide elections to each FSO on which accounts to omit from conversion fileReconcile conversion files with participant electionsAssist participants with election process


41

APPENDIX C (Continued)

On-Going Cost ProposalCore Participant Recordkeeping/ Transaction Costs $$ Per

OccurrenceComment

Scenario 1 ( used for “Total Cost”) Per-Head recordkeeping fee based on 7,000 participant accounts assuming Field Service Representative SupportScenario 2Per-Head recordkeeping fee based on 7,000 participant accounts assuming no requirement to provide Field Service Representative supportOther Pricing DataEnrollment kits/forms (email delivery)Enrollment kits/forms (U.S. mail delivery)Loan origination fee - General purposeLoan origination fee - Principal residence (including collecting and approving information required)Loan reamortization fee Annual loan maintenance charge Review and approval of unforeseeable withdrawal requestsDRO – Review and approval (including responding to joinders, request for information)QDRO SegregationDistribution form including tax information (email delivery)Distribution form including tax information (U.S. mail delivery)Final distribution processing - Lump sumFinal distribution processing - Periodic paymentsAnnual account fee – Self-Directed brokerage accountInvestment Guidance/Advice ToolManaged Account ToolFed wire cost for participant distributionOvernight delivery costs of participant distribution404(a)5-like fee disclosures - Annual notice (email delivery)3

404(a)5-like fee disclosures - Annual notice (U.S. delivery) 4

404(a)5-like fee disclosures – Fund change (email delivery) 4

404(a)5-like fee disclosures – Fund change (U.S. mail delivery)

Participant Quarterly Account Statement (U.S. mail delivery) 4

Other annual charges not stated above

Total Cost Initial Contract Period $____________

3,4, For purposes of this section, assume there are email addresses on file for approximately 2,500 account holders with U.S. mail required for approximately 4,000 participants.

3


42

APPENDIX D


Division of Employee Health and Benefits ECONOMIC IMPACT FORM


Instructions

In addition to all other information requested within this RFP, each Bidder should complete the tables below to quantify the Bidder’s economic impact upon and within the State of Maine. The use of economic impact in making contract award decisions is outlined in Executive Order 2012-004, which states that certain contracts “…advertised for competitive bid shall include scoring criteria evaluating the responding Bidder’s economic impact on the Maine economy and State revenues.”

For the purposes of this RFP, the term “economic impact” shall be defined as the “Economic Impact Factors” listed in the table below. To complete the “economic impact” section of the Bidder’s response, the Bidder shall provide the information requested, describing the Bidder’s overall recent economic impact with the State of Maine and, separately, the projected economic impact with the State of Maine that would specifically result from the awarded contract only, should the Bidder be selected.

Recent Economic Impact (Bidder’s overall Economic Impact over the past 24-month period)

Economic Impact Factors Factors Expressed in Dollars

Salaries paid to Maine residents in past 24-month period $Payments made to Maine-based subcontractors in past 24-month period $Payments of State and local taxes in Maine within past 24-month period $Payments of State licensing fees in Maine within past 24-month period $

Total Overall Recent Economic Impact $

Projected Economic Impact (Future 24-month economic impact resulting from the awarded contract)

Economic Impact Factors Factors Expressed in Dollars

Salaries to be paid to Maine residents in future 24-month period as a result of the awarded contract $

Payments to be made to Maine-based subcontractors in future 24-month period as a result of the awarded contract $

Payments of State and local taxes in Maine to be made in future 24-month period as a result of the awarded contract $

Payments of State licensing fees in Maine to be made in future 24-month period as a result of the awarded contract $


43

Total Projected Economic Impact only from awarded contract, if selected $APPENDIX D - (continued)

For the tables above, the following definitions are provided: “Bidder”: Organization identified on the Proposal Cover Page under “Bidder’s Organization

Name”. “Maine resident”: Any person whose primary residence is located within the State of Maine. “Maine-based”: Any organization whose primary operations are located within the State of Maine. “Past 24-month period”: The past 24-months, starting on the date that the RFP was publicly

released. “Future 24-month period”: A projection for the future 24-month period, starting upon the “Initial

Period of Performance” start date (PART I, D. of RFP).

In this section (and on no more than one typed page), please describe how the “Factors Expressed in Dollars” provided in the table above were determined.

Certification StatementTo the best of my knowledge, all information provided in the State of Maine Economic Impact Form is complete and accurate at the time of submission and I confirm that I am authorized to make such a determination on behalf of my organization.




44

APPENDIX E


Division of Employee Health and Benefits APPEAL DEPOSIT REFUND FORM


Instructions

Each Bidder is to provide an address below they wish to have the appeal deposit refund sent to. If this address is the same as either address provided on the Proposal Cover Page (Appendix A), Bidders are still required to complete this form and include it, along with the appeal deposit check, in a sealed envelope with their proposal.

The sealed envelope containing the appeal deposit should be inserted into the original proposal of the Bidder’s submission package.

Bidder’s Organization Name:

Attention to:

Mailing Address (Street or P.O. Box):

City: State: Zip Code:


45

APPENDIX F-1


Division of Employee Health and Benefits ADDITIONAL PLAN INFORMATION


Plan Highlights:


46

APPENDIX F-2




County of Residence for State Employees

Maine County of Residence Number of EmployeesAndroscoggin County 697

Aroostook County 748

Cumberland County 1571

Franklin County 242

Hancock County 309

Kennebec County 4222

Knox County 434

Lincoln County 454

Oxford County 288

Penobscot County 1219

Piscataquis County 241

Sagadahoc County 345

Somerset County 454

Waldo County 397

Washington County 346

York County 667

Outside of Maine 110

Grand Total 12744


47

APPENDIX F-3




State of Maine 2016 Payroll Schedule

Payroll Schedule B Payroll Schedule A

From To Check Ins Paid

Thru From To Check Ins Paid

Thru12/20/201

5 1/2/2016 1/13/2016 1/15/201612/13/201

512/26/201

5 1/6/2016 1/15/2016

1/3/2016 1/16/2016 1/27/2016 1/31/201612/27/201

5 1/9/2016 1/20/2016 1/31/20161/17/2016 1/30/2016 2/10/2016 2/15/2016 1/10/2016 1/23/2016 2/3/2016 2/15/20161/31/2016 2/13/2016 2/24/2016 2/29/2016 1/24/2016 2/6/2016 2/17/2016 2/29/20162/14/2016 2/27/2016 3/9/2016 3/15/2016 2/7/2016 2/20/2016 3/2/2016 3/15/20162/28/2016 3/12/2016 3/23/2016 3/31/2016 2/21/2016 3/5/2016 3/16/2016 3/31/20163/13/2016 3/26/2016 4/6/2016 4/15/2016 3/6/2016 3/19/2016 3/30/2016 3/31/20163/27/2016 4/9/2016 4/20/2016 4/30/2016 3/20/2016 4/2/2016 4/13/2016 4/15/20164/10/2016 4/23/2016 5/4/2016 5/15/2016 4/3/2016 4/16/2016 4/27/2016 4/30/20164/24/2016 5/7/2016 5/18/2016 5/31/2016 4/17/2016 4/30/2016 5/11/2016 5/15/20165/8/2016 5/21/2016 6/1/2016 6/15/2016 5/1/2016 5/14/2016 5/25/2016 5/31/2016

5/22/2016 6/4/2016 6/15/2016 6/15/2016 5/15/2016 5/28/2016 6/8/2016 6/15/20166/5/2016 6/18/2016 6/29/2016 6/30/2016 5/29/2016 6/11/2016 6/22/2016 6/30/2016

6/19/2016 7/2/2016 7/13/2016 7/15/2016 6/12/2016 6/25/2016 7/6/2016 7/15/20167/3/2016 7/16/2016 7/27/2016 7/31/2016 6/26/2016 7/9/2016 7/20/2016 7/31/2016

7/17/2016 7/30/2016 8/10/2016 8/15/2016 7/10/2016 7/23/2016 8/3/2016 8/15/20167/31/2016 8/13/2016 8/24/2016 8/31/2016 7/24/2016 8/6/2016 8/17/2016 8/31/20168/14/2016 8/27/2016 9/7/2016 9/15/2016 8/7/2016 8/20/2016 8/31/2016 8/31/20168/28/2016 9/10/2016 9/21/2016 9/30/2016 8/21/2016 9/3/2016 9/14/2016 9/15/20169/11/2016 9/24/2016 10/5/2016 10/15/2016 9/4/2016 9/17/2016 9/28/2016 9/30/2016

9/25/2016 10/8/201610/19/201

6 10/31/2016 9/18/2016 10/1/201610/12/201

6 10/15/2016

10/9/201610/22/201

6 11/2/2016 11/15/2016 10/2/201610/15/201

610/26/201

6 10/31/201610/23/201

6 11/5/201611/16/201

6 11/30/201610/16/201

610/29/201

6 11/9/2016 11/15/2016

11/6/201611/19/201

611/30/201

6 11/30/201610/30/201

611/12/201

611/23/201

6 11/30/201611/20/201

6 12/3/201612/14/201

6 12/15/201611/13/201

611/26/201

6 12/7/2016 12/15/2016

12/4/201612/17/201

612/28/201

6 12/31/201611/27/201

612/10/201

612/21/201

6 12/31/2016


48


49

APPENDIX F-4




VALICFUND ACTIVITY REPORT

01/01/2015 through 12/31/2015

INVESTMENT VEHICLETYPE BEGIN VALUE CONTRIBS/

TRANSFERSGAIN/LOSS DISTRIB INT

TRANSFERCHARGES/

ADJUSTMENTSEND VALUE

DISCONTINUED FUNDS $6,635,863.25 $0.00 $64,511.15 -$145,642.00 -$6,554,351.17 -$381.23 $0.00

SHORT TERM FIXED ACCOUNT1

A $1,186,721.39 $0.00 $16,773.18 -$1,147,532.78 -$55,951.08 $0.00 $10.71

SCIENCE & TECHNOLOGY FUND 1

A $368,580.37 $0.00 $25,181.84 -$9,027.89 -$382,225.11 $0.00 $2,509.21

ASSET ALLOCATION FUND1

A $21,084.39 $0.00 $375.32 -$1,005.68 -$16,834.89 $0.00 $3,619.14

GROWTH & INCOME FUND1

A $14,535.10 $0.00 -$182.38 $0.00 -$9,011.13 $0.00 $5,341.59

SMALL CAP FUND1 A $27,700.85 $0.00 -$1,643.85 -$108.44 -$18,884.91 $0.00 $7,063.65

MID CAP INDEX FUND A $224,633.09 $0.00 -$7,227.81 -$5,680.59 -$104,730.63 -$61.91 $106,932.15

PIMCO REAL RETURN INSTL

M $217,800.53 $0.00 -$4,568.43 -$20,688.00 -$33,279.51 -$646.06 $173,511.67

AM BEACON SMCAP VAL INST

M $23,711.47 $16,622.59 -$7,533.61 -$901.74 $162,108.07 -$1,135.45 $192,871.33

SCHWAB PCRA B $314,228.20 $186.50 -$6,981.36 -$43,917.86 -$51,537.36 $0.00 $211,978.12

STOCK INDEX FUND A $791,863.91 $0.00 $1,821.88 -$45,425.24 -$398,052.87 -$33.46 $350,174.22

FRANKLIN TMPLTN GLOBAL BOND R6

M $826,956.47 $48,307.69 -$29,691.48 -$63,093.36 -$120,662.66 -$2,158.57 $659,658.09

VANGUARD DEVELOPED MKTS ID ADM

M $650,335.52 $108,080.99 -$2,721.21 -$8,543.64 -$17,251.19 -$4,554.79 $725,345.68


50

VALICFUND ACTIVITY REPORT

01/01/2015 through 12/31/2015

INVESTMENT VEHICLETYPE BEGIN VALUE CONTRIBS/

TRANSFERSGAIN/LOSS DISTRIB INT

TRANSFERCHARGES/

ADJUSTMENTSEND VALUE

NEUBERGER BERMAN SOC RESPNS R6

M $950,428.60 $44,763.36 -$148.39 -$16,327.83 $152,570.75 -$3,274.89 $1,128,011.60

VANGUARD SM CP IDX ADM

M $904,169.99 $109,564.62 -$52,650.41 -$42,865.80 $307,377.99 -$3,527.74 $1,222,068.65

PRUD TOTAL RETURN BOND Q

M $1,337,628.29 $45,564.04 $2,610.91 -$142,042.56 $152,459.82 -$4,423.87 $1,391,796.63

VANGUARD TL BD MK IDX ADM

M $1,030,964.96 $49,919.71 $4,006.11 -$90,842.03 $421,851.76 -$4,863.03 $1,411,037.48

VAN MID CAP INDEX ADM M $2,383,458.57 $195,807.02 -$28,167.73 -$360,365.55 $390,594.10 -$8,010.35 $2,573,316.06

MFS VALUE R5 M $3,246,151.37 $153,761.01 -$10,883.71 -$176,407.85 $88,826.09 -$10,706.43 $3,290,740.48

OPPENHEIMER GLOBAL I M $3,604,520.96 $211,519.80 $145,689.98 -$107,570.58 -$10,145.92 -$10,317.99 $3,833,696.25

FIXED ACCOUNT PLUS A $6,958,106.08 $0.00 $248,339.59 -$904,252.80 -$2,419,111.42 -$83.10 $3,882,998.35

AMERICAN EUROPACIFIC GROWTH R6

M $3,921,452.59 $180,685.55 -$5,027.94 -$192,693.54 $11,965.94 -$11,349.29 $3,905,033.31

AMERICAN FUNDS AMR BALANCED R6

M $4,562,755.38 $378,346.25 $93,077.29 -$429,207.25 $326,435.57 -$13,512.33 $4,917,894.91

HARBOR CAP APPRETON INSTL

M $2,590,359.41 $164,787.50 $513,637.72 -$229,924.81 $4,113,219.32 -$17,638.71 $7,134,440.43

NEUBERGER BERMAN GENESIS R6

M $9,920,832.74 $370,886.61 $69,910.92 -$582,420.76 -$774,359.72 -$26,013.90 $8,978,835.89

VANGUARD INST IDX M $9,712,253.19 $556,705.26 $123,110.54 -$467,532.29 $749,636.98 -$60,231.44 $10,613,942.24

FIXED INTEREST OPTION A $24,572,953.97 $1,051,216.55 $743,623.23 -$1,796,800.23 $4,089,343.18 -$13,419.88 $28,646,916.82

Plan STATE OF MAINE DCP $87,000,050.64 $3,701,618.19 $1,895,241.35 -$7,030,821.10

$0.00 -$196,344.42 $85,369,744.66

Total Non-Zero Accounts 1,535


51

APPENDIX F-5




VoyaFUND ACTIVITY REPORT

01/01/2015 through 12/31/2015

Plan 066690 (On-Going Mutual Fund Platform)

Account Activity VY Oppenheimer Global Port I

Dodge & Cox International

Stock

Voya International Index Port I

VY Baron Growth Port I

TRowe Prc Value Fund

Adv

Vanguard Mid-Cap

Index Adm

Opening Balance $5,749,123.57 $2,187,620.72 $140,372.83 $3,292,000.43 $8,806,274.81 $7,928,461.52Deferral Contributions Contribution $216,360.36 $148,354.79 $12,590.84 $114,521.13 $282,826.73 $293,468.15Rollover Contribution $16,735.96 $3,243.80 $2,158.59 $10,391.49 $42,822.65 $12,904.38Withdrawals/Distributions -$271,169.32 -$146,344.00 -$24,073.86 -$150,973.80 -$553,230.13 -$435,144.13Interfund Exchange -$179,026.83 -$87,528.82 $88,698.68 -$208,058.62 -$206,755.61 -$42,770.15Miscellaneous $13,011.53 $5,445.61 $0.00 $1,625.63 $4,267.30 $9,002.65Fees -$12.86 -$8.45 -$1.94 -$2.83 -$17.12 -$12.89Appreciation/(Depreciation) $219,565.15 -$247,084.51 -$7,354.38 -$148,990.84 -$180,904.27 -$114,099.89Closing Balance $5,764,587.56 $1,863,699.14 $212,390.76 $2,910,512.59 $8,195,284.36 $7,651,809.64


52

APPENDIX F-5 (continued)


01/01/2015 through 12/31/2015

Plan 066690 (On-Going Mutual Fund Platform)

Account Activity

AllianzGI NFJ Small-Cap Val

Fd Ins

Voya Russell Sm Cp Index

Port IFidelity

Contrafund

Neuberger Berman Socially Resp Inv

Voya U.S. Stock

Index Port Inst

Vanguard Total Stock Mkt Index

Fd Adm

Opening Balance $1,181,179.51 $2,798,687.82 $10,562,833.19 $1,107,170.59 $13,498,024.66

$5,421,916.98

Deferral Contributions Contribution $66,489.02 $121,296.85 $449,481.37 $81,115.48 $110,685.27 $413,182.85

Rollover Contribution $1,285.38 $13,529.31 $26,906.45 $2,519.82 $7,325.30 $23,104.46

Withdrawals/Distributions -$123,439.57 -$113,571.22 -$745,008.11 -$68,426.53 -$1,470,842.46 -$158,908.02

Interfund Exchange -$32,584.25 $102,106.83 -$297,306.59 -$73,394.98 -$437,021.18 $454,324.75

Miscellaneous $10,451.15 $8,197.71 $15,320.59 -$32.76 $473,504.21

Fees -$5.19 -$2.89 -$29.98 -$28.08 -$35.18

Dividends/Earnings

Appreciation/(Depreciation) -$90,094.60 -$137,450.52 $659,648.19 -$628.18 $141,014.69 $7,018.81

Closing Balance $1,002,830.30 $2,795,047.33 $10,664,722.23 $1,063,676.79 $11,849,125.44

$6,634,108.86


53


Voya

FUND ACTIVITY REPORT

01/01/2015 through 12/31/2015

Account Activity

VY Invesco Eqty & Inc

Port I

Vanguard Total Bnd

Mrkt Ind Fund Adm

Templeton Global Bond

Fund Adv

PIMCO Real Return Fund

Adm

Prudential Total Return Bond Fd Z

Voya Money Market

Portfolio I

Opening Balance $7,239,335.54 $1,813,702.42 $677,250.26 $323,164.09 $1,876,018.1 $67,698.94Deferral Contributions Contribution $318,818.79 $106,006.09 $43,366.16 $23,313.04 $51,483.26 $9,254.25Rollover Contribution $41,911.75 $3,009.80 $426.33 $426.34 Withdrawals/Distributions -$293,716.42 -$20,632.23 -$11,999.80 -$18,935.28 -$202,481.14 -$11,663.89Interfund Exchange -$276,660.25 -$239,022.73 -$104,038.32 -$26,969.87 -$161,583.19 $26,046.31Miscellaneous $4,714.92 Fees $2.00 Appreciation/(Depreciation) -$150,678.44 $4,418.11 -$28,543.00 -$9,800.56 -$13,042.43 -$208.51Closing Balance $6,883,725.89 $1,667,479.46 $576,461.63 $291,197.76 $1,550,394.6 $91,127.10


54



01/01/2015 through 12/31/2015

Account ActivityFixed Account

(VFZ960)Ameritrade

SDBA Total

Opening Balance $50,755,836.93 $0.00 $125,426,673.00Deferral Contributions Contribution $1,086,167.12 $3,948,781.55Rollover Contribution $558,667.95 $767,369.76Withdrawals/Distributions -$5,321,920.17 -$10,142,480.08Interfund Exchange $1,712,329.36 -$10,784.54 $0.00Miscellaneous $144,868.44 $690,376.98Fees -$140.59 -$300.00Dividends/Earnings $1,472,616.09 $294,988.53 $1,767,604.62Appreciation/(Depreciation) -$97,215.18Closing Balance $50,408,425.10 $284,203.99 $122,360,810.62

Total Non $0 Accounts 1,647


55



01/01/2015 through 12/31/2015

Plan VY VK0179 (Grandfathered Annuity Balances)

Voya Growth and Income Port I $240,899.01

Voya Fixed Account (VK0179) $120,645.73

Voya Money Market Portfolio I $ 118.87

Voya Balanced Portfolio I $ 15,443.54

Total $377,107.15

Total Non $0 Accounts 16


56

APPENDIX F-6




MassMutualGroup Number 150006

Plan Statement of Account for the Period 01/01/2015 to 12/31/2015

Fund Name Beginning Balance

Contributions

Net Transfers

Withdrawals

Investment Gain/Loss

Closing Balance

HARTFORD DIVIDEND & GROWTH HLS $10,115,747 $416,001 -$497,789 -$849,709 -$100,352 $9,083,898

GENERAL ACCOUNT $75,515,645 $4,858,302 $4,347,668 -$5,212,902 $3,116,868 $82,625,582

AMERICAN FUNDS GROWTH FUND $13,953,861 $652,365 -$205,151 -$773,421 $697,599 $14,325,254

SSGA S&P 500 INDEX SEC LEND $36,666,159 $1,329,101 -$463,163 -$2,869,393 $453,934 $35,116,638

HARTFORD TOTAL RETURN BOND HLS $1,644,387 $74,118 -$83,360 -$118,050 -$9,719 $1,507,377

HARTFORD BALANCED HLS $1,612,539 $1,627,281 -$1 -$28,376 $43,119 $0

JANUS BALANCED $12,205,053 $676,492 $1,231,284 -$1,079,244 $27,239 $13,060,823

MFS INTERNATIONAL NEW DISC $3,084,082 $244,076 225585.43- 183243.74- $66,576 $2,985,905

SCHWABSDBA $2,563,595 $0 1662852.54- $0 48112.20- $852,631

FKLN MUTUAL GLOBAL DISCOVERY $11,031,803 $510,414 -$332,156 -$589,126 -$379,635 $10,241,301

PIMCO REAL RETURN $427,023 $63,057 -$163,062 -$1,689 -$646 $324,683

SSGA S&P MC INDEX NON-LEND SER $18,400,760 $788,824 -$401,285 -$1,254,782 -$383,257 $17,150,259

SSGA INTL IND SEC LEND SERIES $4,141,033 $282,995 -$103,290 -$283,503 -$26,905 $4,010,330

NUVEEN NWQ SMALL-CAP VALUE $656,282 $35,779 $32,212 -$150,614 -$20,796 $552,863

SSGA RUSSELL SC INDEX SEC LEND $1,803,462 $172,237 $80,910 -$74,004 -$86,605 $1,895,999

NEUBERGER BERMAN SOCIALLY RESP $1,227,041 $105,915 $113,705 -$104,850 -$6,795 $1,335,015

SSGA US INT GOV/CRD BND IND SL $542,219 $28,738 -$79,046 -$11,606 $4,823 $485,128

ROYCE SMALLER COMP GROWTH $695,290 $52,792 -$840 -$10,206 -$14,457 $722,579


57

DEUTSCHE CORE EQUITY $25,926 $0 -$27,312 $0 $1,386 $0

TEMPLETON GLOBAL BOND $0 $3,492 $66,394 $0 -$1,879 $68,006

GRAND TOTAL $193,748,311 $11,921,979 $3,515,719 -$13,411,475 $3,380,499 $196,344,273

Total Number of Non-Zero Accounts As of 12/31/2015 3,330


58

APPENDIX F-7




BREAKDOWN OF NON-$0 PLAN ACCOUNTS BY PARTICIPANT STATUS

MASS MUTUAL

Participant Status Account Balance As of Feb 22, 2016 Count

Active - Eligible for Contributions $128,715,883.35 2402 Retired - Receiving Installments under a 3 Year Annuity $16,311,095.05 188 Terminated - Awaiting Payment $44,950,402.62 763 Grand Total $189,977,381.02 3353

VOYAParticipant Status Account Balance As of February 19, 2016 Count

00 - Active $57,000,007.84 96020 - Term Receiving Install $11,307,142.70 8630 - Term Awaiting Payment $46,456,393.08 59032 - Term Payment Deferred $1,929,890.84 23Grand Total $116,693,434.46 1,659

VALICParticipant Status Account Balance As of February 19, 2016 Count

A $55,654,016.31 1008R $81,306.38 6T $26,140,352.85 439(blank) $29,524.68 1Grand Total $81,905,200.22 1454


59

APPENDIX G


Division of Employee Health and Benefits ADDITIONAL PLAN DOCUMENTATION


Documentation Provided In Separate Attachments or URLs

1. State of Maine Deferred Compensation Plan Document (Restated as of December 30, 2003)

Available at http://www.mainesaves457.com/wp-content/uploads/2014/01/4.5b-Plan-Document.pdf

2. Investment Fund Option List as of 12/31/2015

Available at: http://www.mainesaves457.com/wp-content/uploads/2015/10/3-2-1-Investment-Fund-Option-List-12-23-14.pdf

3. Fixed Account Contracts

Available by written email request to the RFP Coordinator at: [email protected] .

4. Additional Fund Option & Performance Information:

Available at: http://www.mainesaves457.com/my-investment-options/


60

http://www.mainesaves457.com/my-investment-options/

mailto:[email protected]

http://www.mainesaves457.com/wp-content/uploads/2015/10/3-2-1-Investment-Fund-Option-List-12-23-14.pdf

http://www.mainesaves457.com/wp-content/uploads/2015/10/3-2-1-Investment-Fund-Option-List-12-23-14.pdf

http://www.mainesaves457.com/wp-content/uploads/2014/01/4.5b-Plan-Document.pdf

http://www.mainesaves457.com/wp-content/uploads/2014/01/4.5b-Plan-Document.pdf

Documents

€¦ · Web viewThe electronic copy of the proposal must be provided on individual USB flash drives with the complete narrative and attachments in MS Word format. Any attachments