Kern County Employees’ Retirement Association Addendum #1 Proposal Title: ACTUARIAL AUDIT SERVICES REQUEST FOR PROPOSAL RFP Issue Date: FEBRUARY 13, 2015 Proposal Due Date: MARCH 18, 2015, 4:00 p.m. PST NOTICE TO SERVICE PROVIDERS SUBMITTING PROPOSALS The Service Provider is advised that changes to the Specifications have been made as follows: 1. The following questions submitted to KCERA and written responses provided by KCERA are incorporated as part of the proposal specifications. 2. Amend proposal in accordance with the attached “Questions Received via E-mail,” which shall be incorporated as part of the specifications for this service. 3. All other Terms and Conditions shall remain the same. 4. Request for Proposal – Actuarial Audit Services, Addendum #1 can be found at www.kcera.org. Gloria M. Domínguez Executive Director Date: March 6, 2015 Please sign a copy of this cover sheet and include it with your proposal to Gloria Domínguez, Kern County Employees’ Retirement Association, 11125 River Run Boulevard, Bakersfield, CA 93311. If you have already submitted your proposal and there are no changes, you may sign this cover sheet and fax to the attention of Gloria Domínguez at (661) 381-7799. Service Provider _____________________________ Signature Date _____________________________ Name Kern County Employees’ Retirement Association Addendum #1 Page 2 Questions Received via E-mail Question #1: What are the retainer services (if any) referred to on page 35, Attachment 4? We would assume that the entire audit cost would be contained within the fixed fee estimate for the “Actuarial Audit Services.” Answer #1: There is no basic retainer fee for this actuarial audit. The entire cost of the audit should be included in the fixed fee estimate. Question #2: When was the last actuarial audit performed? Please provide a copy of the last audit. Answer #2: KCERA’s last actuarial audit was completed on February 25, 2010. A copy of the 2010 audit is attached to this document. Question #3: We could not locate the June 30, 2014 GASB 67 Actuarial Valuation referenced in the RFP. Can you either provide a copy of this, or direct us to the specific location on the KCERA website? Answer #3: The GASB 67 Actuarial Valuation as of June 30, 2014 is posted on the KCERA website. Click here to view the valuation. Question #4: Section Five – Minimum Requirements states that the actuary performing the work must be a Fellow of the Society of Actuaries. Is there a tenure or experience exemption to this requirement? For example, would it be acceptable for an Associate of the Society of Actuaries with over 20 years of experience consulting to public sector retirement systems to fill this role? Answer #4: An exception will be made to Section 5, number 4: The actuary performing the work must be a Fellow of the Society of Actuaries or have 20 or more years of pension consulting experience. Question #5: Attachment 5 of the RFP contains a Sample Agreement. Section 8, starting on page 3 of the Sample Agreement, deals with “Indemnification and Insurance.” In reviewing Section 8, we did not see a limitation on direct damages clause. Our position is that such a clause is necessary before we sign any services contract. Will you allow the bidder to insert such a clause for discussion during contracting, or will you take the position that the bidder may not do so? Kern County Employees’ Retirement Association Addendum #1 Page 3 Answer #5: Section 1.12 (“Disclosure”) of the RFP states, “Submission of information indicates acceptance by the submitting firm of the terms and conditions contained in this request for proposal, unless exceptions are clearly and specifically noted in the submittal. If the Respondent objects to any term(s) in the RFP, or wishes to modify or add terms to a subsequent contract, the submittal must identify each objection, propose language for each modification and include the reasons for the modification. KCERA reserves the right to modify the contract prior to execution.” Question #6: Exhibit B – Scope of Services beginning on page 23 of the RFP indicates that the findings of the actuarial audit related to the experience study and parallel valuation must be communicated prior to KCERA’s consulting actuary completing the June 30, 2015 actuarial valuation. What is the target completion date for the June 30, 2015 actuarial valuation? How much time is needed between this target completion date and the communication of the findings of the actuarial audit? Answer #6: The target completion date for the June 30, 2015 actuarial valuation is mid-November 2015, and the findings of the actuarial audit will need to be communicated to KCERA at least one month from the target completion date for the June 30, 2015 actuarial audit. Question #7: When was the last actuarial audit performed for KCERA? Can we obtain a copy of the last actuarial audit report? What were the fees charged by the auditing actuary? Was the scope of the last actuarial audit similar to the scope of services outlined in Exhibit B (pages 23-24) of the current RFP? Answer #7: See Answer #2. The last auditing actuary charged an amount not to exceed $64,515 plus travel expenses, if such expenses were necessary to attend more than two meetings at KCERA.
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