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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.