HomeMy WebLinkAbout2009 10 07 Regular 600 Gallagher Benefit Services, Inc.Submit proposal to:
SUBMITTAL COVER SHEET
Purchasing Department
CITY OF WINTER SPRINGS
1 126 East State Road 434
Winter Springs, Florida 32708
407 327 -5959
Proposal Due Date Time: September 16, 2009 3:00 p.m.
REQUEST FOR PROPOSAL (RFP)
#0211091J D
PENSION PLAN ACTUARIAL SERVICES
I hereby certify that the information contained herein is true. I agree and understand that any
misstatement or misrepresentation or falsification of facts shall be cause for disqualification of
the submittal, immediate cancellation of any contract with the City that might arise from the
representations contained herein, and forfeiture of rights for further consideration for work in the
City of Winter Springs.
VENDOR NAME: Gallagher Benefit Services, Inc.
MAILING ADDRESS: 3600 American Blvd. W. Suite 500
City: Bloomington State: MIN
Name/Title: Doug Anderson, ASA, EA, MAAA, Director of Actuarial Services
Authorized Signature /Date: R /C /e4
Email Address:
Doug_Anderson @ajg.com
Phone 952) "39F1 'RL4R Fax (800) 743 -5313
Zip: 55431
This Form Must Be Completed and Returned With Your Submittal.
G Gallagher Benefit Services, Inc
September 16, 2009
CONFIDENTIAL
Purchasing Coordinator
City of Winter Springs, Florida
1126 East State Road 434
Winter Springs, Florida 32708
Re: RFP #021/09/JD
Pension Plan Actuarial Services
Dear Sir or Madam:
A Subsidiary of Artlmr J. Gallagher Co.
Gallagher Benefit Services, Inc. (GBS) is pleased to present the City of Winter Springs, FL
(City) our proposal to provide actuarial consulting and valuation services for the City's
Defined Benefit Plan. We possess the professional credentials and experience to successfully
meet the City's needs.
GBS is highly respected in the marketplace and is backed by the strength of our parent
company, Arthur J. Gallagher Et Co. GBS Actuarial Services is located in Minneapolis, MN with
a team of six credentialed actuaries and two actuarial students. We have extensive
experience in the public sector including experience with entities in Florida, Arizona,
Georgia, Hawaii, Michigan, Minnesota, North Dakota, Tennessee, Texas, and Guam.
Our proposal includes all required information ordered as specified in the RFP. Our profile is
described in sections titled GBS Overview, Actuarial Services Overview, and GBS
Clients /References. Our qualifications are summarized in the GBS Service Team section.
Please find all required forms beginning on page 16 of our proposal.
GBS greatly appreciates the opportunity to propose our services. We look forward to applying
our approach and expertise to the City of Winter Springs' Defined Benefit Plan.
If you have any questions, please do not hesitate to contact me. You can call me at 952 -356-
3848 or e -mail me at doug_anderson @ajg.com.
Sincerely,
Douglas A. Anderson, E.A., A.S.A., M.A.A.A.
Director of Actuarial Services
Enclosures
3600 American Blvd. West
Suite 500
Bloomington, MN 55431
Main 952.356.3840
Toll Free 800.754.9867
www. gallagherbenefits .com /minneaoolis
Gallaghe
Benefit Se
e tykes Inc.
thinking ahead
3600 Minneapolis Branch
American Blvd. Wes
Bloo mington, t
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Gallagher Benefit Services, Inc.
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City of Winter Springs, FL
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Gallagher Benefit Services, Inc. (GBS) Overview
Actuarial Services Overview
GBS Clients /References
GBS Service Team
Proposal Forms
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GALLAGHER BENEFIT SERVICES OVERVIEW
WHO WE ARE Et WHAT WE DO
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Gallagher Benefit Services, Inc. (GBS) was founded in 1961 as a unit of Arthur J. Gallagher Et
Co. From the beginning, our commitment has been to Thinking Ahead about cost effective ways
to help clients attract, retain, and reward the best performers in their field.
GBS is highly respected in the marketplace. In fact, Business Insurance magazine ranks us
among the top five employee benefits consulting firms in its prestigious 2008 Readers
Choice Awards. We are backed by the strength of our parent organization, Arthur J. Gallagher
Et Co., which was founded in 1927. With operations in 13 countries and business relationships
through a network of correspondent brokers and broker consultants in more than 100 countries,
Arthur J. Gallagher Et Co. has traded on the NYSE under the symbol AJG since 1984. We are
listed among Forbes' Platinum 400 as one of the best big businesses in America.
GBS provides a total solution approach focused on cost management, offering
local /national /international resources for:
Actuarial Et retirement planning
Employee benefits consulting
Award winning health cost management consulting
Executive benefits
Compensation consulting Et surveys
Training Et development (Stanton University)
Property Et casualty services
Our Client Commitment
Managing our client's risks is our highest commitment
We try to anticipate our client's needs in advance
We seek to understand the client's business, not just our own
We always recommend that which is in the client's best interest, even if it diminishes
our revenues
We lead our clients to more effective risk management techniques
We seek long -term relationships, not quick profit
Getting the order is only the beginning of our commitment, not the end
We never promise what we cannot produce
Honesty and integrity are paramount if we make a mistake, we admit it, and we
make it right
Every client, large or small, has full access to all of our expertise and capability
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Our Mission &t Values
To build the best benefit service practice with brokers and consultants who
understand the value of building relationships, trust, and inspiring confidence to our
clients.
To provide superior, cost effective benefit products and services that meet the ever
changing needs of our current and prospective clients, while continuing to strive for
the highest professional excellence in the delivery of those products and services.
To measurably help our clients manage and grow their businesses through our
expertise and experience in benefits services.
We will accomplish our mission with the kind of leadership that will ensure the growth of our
company culture. We will honor the moral and ethical standards that are inherent to building
our clients' trust and confidence to create and maintain a GBS team that is the very best at
what we do.
The Gallagher Way
The Gallagher Way is the rock foundation of our company and culture. It is comprised of 25
shared values that guide how we conduct our business.
1. We are a Sales and Marketing Company dedicated to providing excellence in Risk
Management Services to our clients.
2. We support one another. We believe in one another. We acknowledge and respect
the ability of one another.
3. We push for professional excellence.
4. We can all improve and learn from one another.
5. There are no second -class citizens everyone is important and everyone's job is
important.
6. Were an open society.
7. Empathy for the other person is not a weakness.
8. Suspicion breeds more suspicion. To trust and be trusted is vital.
9. Leaders need followers. How leaders treat followers has a direct impact on the
effectiveness of the leader.
10. Interpersonal business relationships should be built.
11. We all need one another. We are all cogs in a wheel.
12. No department or person is an island.
13. Professional courtesy is expected.
14. Never ask someone to do something you wouldn't do yourself.
15. I consider myself support for our Sales and Marketing. We can't make things happen
without each other. We are a team.
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16. Loyalty and respect are earned not dictated.
17. Fear is a turn -off.
18. People skills are very important at Arthur J. Gallagher Et Co.
19. Were a very competitive and aggressive Company.
20. We run to problems not away from them.
21. We adhere to the highest standards of moral and ethical behavior.
22. People work harder and are more effective when they're turned on not turned off.
23. We are a warm, close Company. This is a strength not a weakness.
24. We must continue building a professional Company together as a team.
25. Shared values can be altered with circumstances but carefully and with tact and
consideration for one another's needs.
Our Value Proposition
It is our goal to help clients make the best decisions when it comes to managing their benefits,
compensation and insurance needs. This includes helping our clients:
Achieve cost savings when possible
Attract and retain employees
Minimize the risks associated with running a successful business
Increase productivity and explore new ideas
Markets Served
We are connected to the greater GBS network with over 1300 employees who specialize in the
employee benefits market in 70+ offices throughout the nation. GBS has an estimated 11,000
clients ranging from small to mid to large accounts. We have specific niche expertise including
our:
Public entity 6t scholastic group
Higher education practice group
Healthcare practice group
Religious 6t nonprofit practice group
Hospitality services group
Professionals
GBS professionals are some of the best and brightest in the industry. Our local Minneapolis
branch is pleased to say that our consultants average over 20 years of experience and account
managers average seven years. We promote a culture based on continued professional growth
and learning, ensuring that our professionals have the right tools and resources to be well
informed and up -to -date when it comes to industry trends and leading -edge solutions.
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GALLAGHER BENEFIT SERVICES OVERVIEW
WHO WE ARE Et WHAT WE DO
Actuarial &t Retirement Consulting
Defined benefit and 401 K assessments
Accounting and compliance reporting
Employee education and communication tools
Plan administration outsourcing
Plan liability audits
Retirement health benefit liability analysis
ESOP repurchase obligation studies
Employee Benefits
Employee benefits consulting, including international expertise
Executive benefits
Insurance marketing and placement
Interactive web -based technology and tools
Employee communication strategies and tools
Health cost management programs
Employer compliance and education
Compensation &t Survey Consulting
Annually published surveys
Custom surveys
Compensation planning and strategy
Executive and board of directors compensation
HR consulting
Training &t Development (Stanton University)
Benefits and HR compliance seminars and webcasts
Leadership and management workshops
Team building and organization development
Other professional development workshops
Compliance consulting
Property &t Casualty Insurance
Risk evaluation and program development
Workers' compensation, liability and property insurance
Personal insurance
Annual reviews and analysis
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1 ACTUARIAL SERVICES OVERVIEW
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GBS Actuarial Services is located in our Minneapolis office. GBS Actuarial Services provides
funding and financial accounting valuations, administration, compliance, employee
communications, plan design, and consulting services to clients throughout the country. We
have over 60 clients and serve more than 70 defined benefit and postretirement medical plans.
Our clients include public sector, publicly owned, and privately owned entities.
GBS' actuary Et retirement consultants provide services tailored to fit your organization's
specific needs. Whether you want expertly prepared actuarial and compliance reports,
assistance with product placement for defined benefit, defined contribution and non qualified
plans, or help with outsourcing your plan administration, our team can deliver the right solution
for your situation.
OUR SERVICES
Because of our broad array of services and clients and our background working in both the
private and public sector, we bring a well balanced perspective to retirement consulting
projects. GBS Actuarial Services has significant public sector experience offering a variety of
services including:
Experience with public sector plans across the United States the Actuarial Services
group has worked with public sector plans across the country including plans in Florida,
Arizona, Georgia, Hawaii, Michigan, Minnesota, North Dakota, Tennessee, Texas, and
Guam.
Actuarial audit experience We have completed approximately 15 independent actuarial
reviews of the work of other actuaries. We have seen and critiqued the work of most
public sector actuarial service providers operating in the U.S. This has exposed us to
many of the best practices currently in place. We have also seen some cases of
mistakes, poor judgment, or poor communication.
GASB No. 43 Et GASB No. 45 experience In addition to traditional defined benefit plan
valuation services, we provide postretirement medical valuation services. We have
completed projects in Florida, Minnesota, North Dakota, Tennessee, and Texas.
Retirement philosophy transition consulting We have helped cities reevaluate their
benefit philosophy. This includes transitioning from a Defined Benefit (DB) to a Defined
Contribution (DC) plan and vice versa. We have helped assess both the benefits and the
costs of each type of transition.
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Valuation and Administration Services
GBS Actuarial Services produces an annual actuarial valuation report that will provide a
determination of the employer contribution amount and calculation of all amounts required for
disclosure by the Governmental Accounting Standards Board (GASB). The report will show a
reconciliation of the current and prior contribution amounts including an analysis of actuarial
gains and losses.
Participant data will include tables showing a distribution of participants by age, service, and
compensation and tables reconciling the participant census and the compensation of
participating employees. The report will also contain a reconciliation of the value of assets, an
analysis of the investment return rate, and a valuation of the present value of accumulated
plan benefits displayed according to the different benefit groups or participants and their
vested status.
GBS Actuarial Services will match the previous actuarial valuation for the plan to ensure that
we understand the plan and are prepared for the initial valuation. As part of our valuation
work, we monitor compliance with all rules and regulations applicable for governmental plans.
Our reports meet all actuarial standards. A sample report is available upon your request.
Individual Benefit Certifications
GBS Actuarial Services offers day -to -day administration including benefit calculations and
distribution packets for terminated, retired, or disabled participants. These distribution
packets provide all communication materials (tax notices, election forms, etc.) in accordance
to each individual's requirements. A sample package is available upon request. We will
customize the distribution packets to meet your specifications.
Communication Services
GBS Actuarial Services will provide individual benefit statements for all active plan participants
on an annual basis. The statements will be completed concurrently with the actuarial
valuation. In addition to the individual benefit statements, GBS consultants can prepare custom
materials to help educate participants about their benefits as well as conduct participant
meetings. We will prepare a listing of the amounts on the statements for use by management,
too.
Sample Benefit Statement
CLIENT ABC
COMBINED BENEFIT STATEMENT
J.ntery 1, 2008
Harm.
Ion. Bate
Re late
Ruled AS Date
Nor.' P.e3Rema.
ERI.aIM 541443 MInsee Anatol
Conant Mtru. Dana. 51.473
Projected Banatat Mae A AS bale 53.177
erolec.11.4. N age el 6441e
Estimated DC Men terms. [Want..
5 r�€0 4_1994111 LIMED]
5ai09t1524a1e 5164.577 5169.577 514.7.577
Paeedai pea 581.342 5671.60( 5133,741
Ole 6S 3931.47 5%W V/ 6799,315
R4. Ratios
[4119242} Repeconet ewes let yt 311
Rump
DC Plan5003111 40 br 26
DBPW aenefa 314. 344 344,
50512Smcailly 245 245 246
T.124 let 1156 135.[
Participant Information
TA. Riot
395en5 5ens76
1611071555 Annual e.
Percentag
1112471M Stlary
1211073531 •611k1.1.rt0elm.e
171104707 Employee Defame! Pate
DnPord 5enefit (DB) Plan
Deft ed Contribution (DCI Plan
F ti
IPA
1000
51(5,56e
514345n
7330
1n. apmfera 8255 Yew a.....•w3PUm43..a•rdamen..1 sea maw. ea2ml.4 mortMatbe'.75.
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C I I €NT ABC
COMBINED BENEFIT STATEMENT
Benefit Definitions and Assumptions
Refined &meet IRS) ►W.
Ma menW.yDB plan derma!Re5nemet Peale• hdtermlrcdty the ran nr yw Benefit Credal, D I tsar dr5g.d193
you b I.003a mat lama. 031 re. eBement Gedlt equal to7.75 thnes 11123 y2ur lake., id Ile ytel, Mt
n od est van $n.
Yn a pat.,/ you data. kin Pr A.M. when 165 run 1 your ale al yea oe stn%. b
o f ermere Mule. .f55Dace)orIlpar retire altar amirentaert5 M or at Resnemam Da..
11.9.11417141657119 monthly lla11t1 ..we retcJa4.d 5.5Na4 yw*M.ryw1lo,rrmaeat 1 per, year and that am
continue to awn tell Dcnefk Cmdilsunta retirement.
oeflned CCnmibltgan (0114 Plus
DC pen Ierefln Monk* em.Pne dermas rd In awpilata .14ea.1W1045 min frtx Bed amuel ma.kmm MOD.
aa•tkl. 1320441AM1924[14ee1B1 or 0240.44e 4ef446 Wt .404
Theempl0ye& 10 BOY( MWl1ll( enfWMN. YOU MEI 00.5 3.411. N WM. and be 1Tp10.[dtll 177
ta5 ey/ d lneyea• to rer.l• 5ranplgvr males.
Me animated DC pan arrthre balances werer alnaat. am.. that year salary v011.the.at 1' pa year and that
you oom9m m x!a 0. Snore palm l d slimy Itrcpgm oel..4..I este;.,nix neavem ,11
Yw.ecaaidbelare at rmlrement mil dep441 .n 4141 rates of retain e.nx9anfr arm.,_ Ter 114.211lre
90MPlea. etc ammo. be/maw are 11m..m any.. mum Of retain elan. C., aM 5
Replacement Ratios
A replateeteetta07rla 5 e r e e t roe 96409 felkesnt. J4•14 0 By Ihle rd[5!Mown beime 1etPenrlN. Thk
a e
be tomato mesas a ralramenl plan) erne* nemy r 144 a 577 .0r e. want d 91*atrarla5
math can t
.mgt a peen well wee In aam move.. 4ralr 4Wrd 41 Thor.
Aeed waa•aa mad lea crone anal reeve wee,. mem eorrraa, 550615aeety1 ,350 rreep4ttnr..we
medlar bra them. 3 n on keys. Dermary. A repl..nmt dano d 45 to w mexveln a
pm[rtermtint •1MSd 955retedle Wparellrmm[.
The Steel kooky rteletement,eOO met. elknete6eklaadby that 1Wyrwe0e(6 are 54.4 to tataele
w ale We Yllrwsea;3.4~06aad4y4 .annual 5alt+t SetaellywtaMN tad en. Info... mead, Sts went.
171•e1• 5e5.545•n0 r.tenleeeaacm a ...Cs regime rereat.s.
Ilan! plan rapluemmt rv .11 ron..3. 3 al Wanes alale AS M•wtN71140p1lw,S
la 11da rag 0:,, t res
n, and al. ima •d.4n era 4e 1% 0,09.a1 (4 o*0441 y table.
Additional Information
GBS Actuarial Services will perform additional services as needed, such as responding to auditor
requests for information in connection with the retirement plan. Examples of other services
include preparing presentations and assumption and method reviews. Additional services would
be quoted on a case -by -case basis.
QUALITY CONTROL METHODOLOGY
Throughout the engagement, GBS Actuarial Services adheres to specific actuarial standards to
ensure the quality of services provided. GBS actuaries are required to ensure that all work
performed by them or under their direction satisfies all Actuarial Standards of Practice (ASOPs)
and Actuarial Compliance Guidelines (ACGs) as issued by the Actuarial Standards Board (ASB).
GBS actuaries take a good faith approach in applying ASOPs, exercising judgment and common
sense, and observe the ASOPs that are most relevant to each engagement. The standards most
relevant to this engagement are the following:
ASOP No. 23 Data Quality
ASOP No. 27 Selection of Economic Assumptions for Measuring Pension Obligations
ASOP No. 35 Selection of Demographic and Other Non economic Assumptions for
Measuring Pension Obligations
ASOP No. 41 Actuarial Communications
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The above ASOPs describe recommended general practices and procedures that would ensure
product quality control. A more specific listing of quality control steps relevant for this
engagement include, but are not limited to, the following review procedures:
Census data is updated and reconciled by an Actuarial Analyst. Each data field is
checked for unusual outliers. Data fields are cross checked to identify conflicting data.
Census data updates, reconciliation, and checking procedures are reviewed by an
Actuarial Manager.
Plan provisions are summarized by an Analyst /Manager and reviewed by a Lead Actuarial
Consultant. An Authority representative is requested to approve the provision summary.
Liability valuation programming is updated by an Actuarial Analyst and reviewed by an
Actuarial Manager.
Individual sample life calculations are completed and reviewed by both an Actuarial
Analyst and an Actuarial Manager.
A list of liability results by individual is checked by an Actuarial Analyst or an Actuarial
Manager for reasonableness.
Programming results are completed by an Actuarial Analyst and reviewed by an Actuarial
Manager.
A reconciliation of assets is performed by an Actuarial Analyst and reviewed by an
Actuarial Manager.
An actuarial gain /loss analysis is developed by an Actuarial Analyst /Manager and
reviewed by a Lead Actuarial Consultant.
All aspects of the valuation are reviewed by a Lead Actuarial Consultant.
Valuation reports and other large projects are subject to a Professional Standards
Review (PSR) by a Lead Actuary /Enrolled Actuary (EA) not otherwise involved.
In addition to these project specific standards, our credentialed actuaries meet ongoing
continuing education requirements to maintain their EA status.
GBS CLIENTS REFERENCES
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Below is a sample of cities who have engaged GBS Actuarial Services within the last few years
to provide ongoing defined benefit pension actuarial valuations or other related consulting
services. We encourage you to contact any of these clients to discuss our services:
City of Sanford, FL
Scope of Work:
GBS Actuarial Services determines the postretirement healthcare liability and annual
required contribution under GASB 45 for active and retired participants based on
current plan design, provides a GASB 45 actuarial valuation with required GASB No.
45 financial statement disclosure information, and reviews assumptions through
experience studies.
Effective Date of Client Relationship:
December 2007
Contact:
Jim Poulalion
Director, Finance and Administrative Services
300 N Park Ave
Sanford, FL 32772
(407) 330 -5610
City of Minot, North Dakota
Scope of Work:
GBS' services include annual pension and postretirement medical plan actuarial
valuation reports for City and Police Funds, presentations to the pension committees
and city council as needed, and completion of cost studies.
Effective Date of Client Relationship:
Spring 1994
Contact:
Ms. Sue Greenheck
Comptroller
515 2 Ave SW
Minot, ND 58701
(701) 857-4773
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City of Jamestown, North Dakota
Scope of Work:
Actuarial Services prepares an annual pension actuarial valuation report and
completes cost studies as requested. We also provided assistance regarding the
City's consideration of joining the North Dakota Public Employees' Retirement
System (NDPERS) as well.
Effective Date of Client Relationship:
Early 1980's
Contact:
Mr. Jeff Fuchs
City Administrator
102 3' Ave SE
Jamestown, ND 58401
(701) 252-5900
City of Garland, Texas*
Scope of Work:
GBS' services included a review of the City's unfunded actuarial accrued liability
(UAAL) and contribution rate related to their employee's participation in the Texas
Municipal Retirement System. The project also involved a review of the assumptions
and methods used to determine the UAAL and contribution rate. Additionally, we
forecasted expected future growth in the UAAL. At present we are providing
guidance to the City as they reconsider their future benefit philosophy.
Effective Date of Client Relationship:
2005
Contact:
Mr. George Kauffman
Managing Director for Financial Services
200 North Fifth
Garland, TX 75040
(972) 205-2469
*We also provided these services to Abilene, Amarillo, Arlington, Cedar Hill, Collegeville, Denton,
DeSoto, Duncanville, and Grand Prairie.
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City of Fort Worth, Texas
Score of Work:
GBS' services included a plan liability audit and an assumption and method review.
The assumption and method review provided estimates of the impact of some
alternative assumptions on the plan's accrued liability and contribution rate. We
have also assisted the City with an analysis of several major plan changes.
Effective Date of Client Relationship:
April 2006
Contact:
Ms. Karen Montgomery
Assistant City Manager
1000 Throckmorton Street
Fort Worth, TX 76102
(817) 392-6222
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YOUR GBS SERVICE TEAM
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The world of retirement benefits, from innovative plan design to the complexities of
regulation, demands that you have an experienced partner who is continually Thinking Ahead.
Your client team will be your committed resource that brings the entire strength of the
Gallagher team to work for your retirement program.
Each member of the service team has extensive experience providing retirement plan actuarial
consulting services to both public and private sector clients. They are experienced in working
with all types of plan designs including defined benefit and defined contribution plans. The
team consists of an Actuarial Lead Consultant and an Actuarial Manager. Other members of
GBS' Actuarial Services department will be involved in the engagement in a support role,
including a Professional Standards Review (PSR) by a senior member of the Actuarial Services
department.
Douglas A. Anderson, ASA, EA, MAAA Actuarial Lead Consultant
Doug Anderson is the Director of Actuarial Services at Gallagher Benefit Services, Inc. Doug has
a bachelor's degree in Mathematics and Statistics from the University of Minnesota. He is an
Associate of the Society of Actuaries (ASA), an Enrolled Actuary (EA), and a Member of the
American Academy of Actuaries (MAAA).
Doug manages and supervises the Actuarial Services department and provides consulting advice
and assistance to clients on all types of retirement plans. Doug's experience has included
analysis of annual funding and accounting requirements as well as analyzing costs and cash
flows related to changes in plan provisions and actuarial assumptions. Doug has worked with
plan sponsors to change current retirement plans as well as transitioning from one type of
benefit philosophy to another. His experience includes presentations to boards of directors,
pension committees, and city councils. He has presented on topics including defined benefit
trends, GASB No. 43 and No. 45, and Social Security.
Doug has over 20 years of consulting experience with public sector retirement plans including
work for the following cities in Texas: Fort Worth, El Paso, Arlington, Garland, Amarillo,
Abilene, DeSoto, Cedar Hill, Collegeville, Duncanville, Denton, and Grand Prairie. Doug is also
currently providing actuarial services to the following current North Dakota clients: City of
Bismarck, ND (City Employees Et Police Employees); City of Minot, ND; City of Jamestown, ND;
Grand Forks Park District.
Doug came to Gallagher Benefit Services, Inc. (formerly Stanton Group) in 1998 after spending
11 years with Deloitte Et Touche. His consulting experience at Deloitte Et Touche included work
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on the City of Grand Forks, ND; City of Fargo, ND; Minnesota State Retirement System;
Government of Guam; Fulton County; and Fulton County School District.
Ben Holle, EA Actuarial Manager
Ben has bachelor's degrees in both Sociology and Mathematics with an emphasis in Actuarial
Science from Minnesota State University Moorhead. He is an Enrolled Actuary and
is progressing toward becoming an Associate of the Society of Actuaries.
He has worked on many public sector pension actuarial valuations, audits, and plan design
projects including actuarial valuations and experience studies for the City of Bismarck, ND and
the City of Minot, ND. Most recently he has spent significant time with public sector plans
analyzing and comparing current plan benefit levels and associated costs with those available
under alternative plan designs.
Bruce A. Johnson, EA, MAAA Professional Standards Review
Bruce Johnson is an Actuarial Consultant within GBS' Actuarial Services. He has bachelor's
degrees in Mathematics and Business from Bethel University in Roseville, Minnesota. He is an
Enrolled Actuary and Member of the American Academy of Actuaries.
Bruce consults with clients on defined benefit plan administration, plan design services, and
nondiscrimination testing, as well as accounting under SFAS Nos. 87 and 88. In addition, he has
extensive experience with SFAS No. 106 analysis for postretirement medical and life insurance
plans.
Bruce has over 18 years of experience in employee benefit consulting and administration. Bruce
joined GBS (formerly Stanton Group) in 2000 after spending periods with both Aon Consulting
and Deloitte Et Touche.
Sarah G. Johnson, ASA, MAAA Actuarial Analyst
Sarah graduated summa cum laude with a bachelor's degree in Statistics from the University of
Minnesota Duluth. She is an Associate of the Society of Actuaries and a Member of the American
Academy of Actuaries. She is currently pursuing her EA designation.
Sarah has been involved in several public sector client projects including actuarial valuation
and benefit administration functions for the Brazos River Authority in Texas and the GASB 45
annual valuation for the City of Sanford, Florida. She has reviewed assumptions through
experience studies for numerous clients including the City of Sanford, FL; Smith County, TX;
and Morrison County, MN.
14
Primary service team:
Doug Anderson,
ASA, EA, MAAA
Ben Holle, EA
Additional client resources:
S arah Johnson,
SA, MAAA
Michael O'Brien
Actuarial Lead Consultant
primary contact
Strategic leadership: client
relationship, benefit strategies
Actuarial Manager
Account service contact: daily
questions and plan management
Professional Standards Review
Ensures quality of services and
adherence to all actuarial
standards
Actuarial Analyst
Technical support to the
Actuarial Manager
Area President,
Managing Partner, Key
Accounts
Strategic vision and direction,
people development and
marketplace differentiation.
Works closely with consultants
on key accounts.
(952) 356 -3848
(866) 743 -5313 (fax)
(952) 356 -0724
(866) 743 -5313 (fax)
(952) 356 -0718 ben holle ®aie.com
(866) 743 -5313 (fax)
(952) 356 -0732
(866) 743 -5313 (fax)
(952) 356 -3844
(866) 701 -1125 (fax)
15
G
Gallagher Benefit Services, Inc.
elhinking ahcad
Sarah joined the team in April 2008 with a varied actuarial background, from pension consulting
for non profit and private sector clients at Towers Perrin to life insurance product development
and financial reporting at Minnesota Life Insurance Company.
Actuarial Services Department
The Actuarial Services department currently employs six credentialed actuaries and two
actuarial students. Our Actuarial Services department averages 8 years of experience ranging
from one year to 20 years of individual experience working with defined benefit pension plans,
postretirement healthcare, and postretirement life insurance.
Name
i t le /Role
Direct Phone /Fax Email
doue anderson®aie.com
Name
Title /Role
Direct Phone /Fax Email
brute iohnson®aie.com
sarah_iohnson ®aie.com
mike obrien ®aie.com
Category of Employee
Actuarial Lead Consultant
Actuarial Manager
Professional Standards Review
Actuarial Analyst
VENDOR RATE /FEE SCHEDULE
Please include a breakdown of the dollar amount of and the basis for your fees as appropriate based on the
following categories (generally defined in Scope of Services):
Benefits Administration Functions
Annual Valuation and SAD Preparation
Ad hoc Calculations and General Analysis
Total proposed annual fee for base services as per scope of work
$175 /Benefit Calculation
$9,000 /year
$175 /hour
$9,000 plus fees for services
described above
Fee /Rate Schedule for any additional services (above and beyond that stated in the base scope of
services) that may be requested:
Hourly Rate
$225
$175
$200
$150
For all additional work, vendor is requested to provide a proposal which shall
include a breakdown of the hourly rate which will be applicable, in determining the
cost of these services, by major category of employee (actuary, associate, clerical,
etc.); for these additional services, billing will be broken down into time per
category by major task. These fees will be fixed for the initial period of two years,
and negotiated thereafter. Prior to accepting an assignment for additional work,
you will be requested to provide a proposed fee for the task on a "not to exceed"
basis prior to receiving authority to proceed.
This Form Must Be Completed and Returned With Your Submittal.
16
DISPUTES DISCLOSURE FORM
Answer the following questions by answering "YES" or "NO If you answer "YES please
explain in the space provided, please add a page(s) if additional space is needed.
1. Has your firm, or any of its officers, received a reprimand of any nature or been suspended by the
Department of Professional Regulation or any other regulatory agency or professional association
within the last five (5) years? see below.
I hereby certify that the statements contained herein are true. I agree and understand that any misstatement or
misrepresentation or falsification of facts shall be cause for disqualification of the submittal, immediate cancellation
of any contract with the City that might arise from the representations contained herein, and forfeiture of rights for
further consideration for work in the City of Winter Springs.
Firm:
2. Has your firm, or any member of your firm, been declared in default, terminated or removed from
a contract or job related to the services your firm provides in the regular course of business within
the last five (5) years? see below.
3. Has your firm had filed against it or filed any requests for equitable adjustment, contract claims or
litigation in the past five (5) years that is related to the services your firm provides in the regular
course of business? See beloqf yes, the explanation must state the nature of the request for
equitable adjustment, contract claim or litigation, a brief description of the case, the outcome or
status of suit and the monetary amounts or extended contract time involved.
Arthur J. Gallagher Company and Gallagher Benefit Services, Inc. face no
pending litigation that would impact our ability to provide the services
described in the proposal to the City of Winter Springs.
Gallagher Benefit Services, Inc.
Name 1 Title: Doug Anderson, ASA, EA, MAAA, Director of Actuarial Services
Authorized Signature Date:
This Form Must Be Completed and Returned with your Submittal
17
INSURANCE REQUIREMENTS FORM
The vendor shall be required to provide to the Purchasing Coordinator, prior to signing a contract for or
commencing any work, a Certificate of Insurance which verifies coverage in compliance with the requirements
outlined below. Compliance of said certificate must be acknowledged by the Purchasing Coordinator prior to
start of work. Any work initiated without completion of this requirement shall be unauthorized and the City of
Winter Springs will not be responsible.
2. The City of Winter Springs reserves the right to require coverage and limits as considered to be in its best
interests. Insurance requirements shall be on a case by case basis determined by the project, conditions and
exposure.
3. Except for Professional Liability and Workers Compensation Policies, when required, all policies are to be
endorsed to include the City of Winter Springs as Additional Insured. In the cancellation clause the
number "30" shall be inserted into the blank space provided prior to the words "days prior notice... All
vendor policies are to be considered primary to City coverage and shall not contain co- insurance provisions.
4. In the event that the insurance coverage expires prior to the completion of services, a renewal certificate shall
be issued 30 days prior to said expiration date.
5. Subvendors or sub- contractors retained by the primary vendor are the responsibility of said primary
vendor in all respects.
6. Insurance requirements:
COVERAGE REQUIRED MINIMUM POLICY LIMITS
Workers' Compensation
Commercial General Liability including Contractual Liability, Products and
Completed Operations, XCU and Owners and Contractors Protective
Comprehensive Auto Liability, CSL, shalt include "any auto"
Professional
(NOTE: All limits are per occurrence and must include Bodily Injury and Property Damage. Deductibles and
self insured retentions must be approved by the City of Winter Springs, and all insurers must have an A.M. Best
rating of at least A: VII.)
7. Bonding Required: None This Submittal
8. Vendor will be required to provide a certificate of insurance in compliance with the above, within four (4) days of
notification of award with continuing coverage, without a break.
9. I hereby certify that the insurance and bonding requirements outlined above shall be met as required, if I am
awarded a contract for the services specified herein.
Firm: Gallagher Benefit Services, Inc.
Name /Title: Doug Anderson, ASA ,E, MAAA, Director of Actuarial Services
Authorized Signature Date:
This Form Must Be Completed and Returned with your Submittal
18
Statutory
1,000,000 Occurrence
1 ,000,000 CSL
$1,000,000 Occurrence
FLORIDA STATUTES ON PUBLIC ENTITY CRIMES FORM
THIS FORM MUST BE SIGNED AND SWORN TO IN THE PRESENCE OF A NOTARY PUBLIC
OR OTHER OFFICIAL AUTHORIZED TO ADMINISTER OATHS.
1. This sworn statement is submitted to the City of Winter Springs by:
Doug Anderson
on behalf of:
Gallagher Benefit Services, Inc.
whose business address is:
3600 American Blvd W, Suite 500
Bloomington, MN 55431
Federal Employer Identification Number (FEIN)
or Social Security of the person signing this statement: 475 82 5215
2. I understand that a "public entity crime" as defined in Paragraph 287.133(1)(g), F.S., means a
violation of any state or federal law by a person with respect to and directly related to the
transaction of business with any public entity or with an agency or political subdivision of any
other state or with the United States, including, but not limited to, any bid or contract for goods or
services, any lease for real property, or any contract for the construction or repair of a public
building or public work, involving antitrust, fraud, theft, bribery, collusion, racketeering,
conspiracy, or material misrepresentation.
3. 1 understand the "convicted" or "conviction" as defined in Paragraph 287.133(1)(b), F.S.,
means a finding of guilt or a conviction of a public entity crime, with or without an adjudication of
guilt, in any federal or state trial court of record relating to charges brought by indictment or
information after July 1, 1989, as a result of a jury verdict, non -jury trial, or entry of a plea of guilt
or nolo contendere.
4. I understand that an "affiliate" as defined in Paragraph 287.133(1)(a), F.S., means:
A predecessor or successor of a person convicted of a public entity crime or an
entity under the control of any natural person who is active in the management of
the entity and who has been convicted of a public entity crime. The term "affiliate"
includes those officers, directors, executives, partners, shareholders, employees,
members, and agents who are active in the management of an affiliate. The
ownership by one person of shares constituting a controlling interest in another
person, or a pooling of equipment or income among persons when not fair market
value under an arm's length agreement, shall be a prima facie case that one
person controls another person. A person who knowingly enters into a joint
venture with a person who has been convicted of a public entity crime in Florida
during the preceding 36 months shall be considered an affiliate.
19
5. I understand that a "person" as defined in Paragraph 287.133(1)(e), F.S., means any natural
person or entity organized under the laws of any state or of the United States with the legal
power to enter into a binding contract and which bids or applies to bid on contracts let by a public
entity, or which otherwise transacts or applies to transact business with a public entity. The term
"person" includes those officers, directors, executives, partners, shareholders, employees,
members, and agents who are active in management of an entity.
6. Based on information and belief, the statement which I have marked below is true in relation
to the entity submitting this sworn statement. (Please indicate which statement applies.)
Neither the entity submitting this sworn statement, nor any of its officers, director,
executives, partners, shareholders, employees, members, or agents who are active in the
management of the entity, nor any affiliate of the entity were charged with and convicted of a
public entity crime after July 1, 1989.
The entity submitting this sworn statement, or one or more of the officers, directors,
executives, partners, shareholders, employees, members, or agents who are active in the
management of the entity, or any affiliate of the entity was charged with and convicted of a public
entity crime after July 1, 1989.
The entity submitting this sworn statement, or one of its officers, directors, executives,
partners, shareholders, employees, members, or agents who are active in the management of
the entity, or any affiliate of the entity was charged with and convicted of a public entity crime
subsequent to July 1, 1989. However, there has been a subsequent proceeding before a
Hearing Officer of the State of Florida, Division of Administrative Hearings and the Final Order
entered by the Hearing Officer determined that it was not in the public interest to place the entity
submitting this sworn statement on the convicted vendor list. (Attach a copy of the final order.)
I understand that the submission of this form to the City of Winter Springs is for the City of Winter
Springs only, and that this from is valid through December 31, 2007. I also understand that I am
required to inform the City of Winter Springs prior to entering into a contract in excess of $25,000
of any change in the information contained in this form.
Signature
State of Florida, County of g e n p, yA On this 16 day of .m r, 20 69, before
me, the undersigned Notary Public of the State of Florida., personally appeared:
Minnesota
Doug Anderson
(Name(s) of individuals who appeared before notary)
20
fiCio
Date
whose name(s) is/are Subscribed to the within instrument, and he/she /they acknowledge that
he /she /they executed it.
Sworn to and subscribed before me this x Q.A.>Onty),(
t 5 day of mile r 20 D9 Notary Public
My Commission expires:
Personally Known
Produced Identification:
(Type)
Did take an Oath
Did Not take an Oath
Julia Christine Kindy
Notary Public
Minnesota
My Commission Expires January 31, 2012
This Form Must Be Completed and Returned with your Submittal
21
DRUG -FREE WORK PLACE FORM
The undersigned, in accordance with Florida Statute 287.087 hereby certifies that the company named
below does:
1 Publish a statement notifying employees that the unlawful manufacture, distribution,
dispensing, possession, or use of a controlled substance is prohibited in the workplace and
specifying the actions that will be taken against employees for violations of such prohibition.
2. Inform employees about the dangers of drug abuse in the workplace, the business's policy
of maintaining a drug -free workplace, any available drug counseling, rehabilitation, and
employee assistance programs, and the penalties that may be imposed upon employees for
drug abuse violations.
3. Give each employee engaged in providing the commodities or contractual services that are proposed
a copy of the statement specified in subsection (1).
4. In the statement specified in subsection (1), notify the employees that, as a condition of
working on the commodities or contractual services that are under bid, the employee will abide by the
terms of the statement and will notify the employer of any conviction of, or plea of guilty or nolo
conteridere to, any violation of Chapter 893 or of any controlled substance law of the United States or
any state, for a violation occurring in the workplace no later than five (5) days after such conviction.
5. Impose a sanction on, or require the satisfactory participation in a drug abuse assistance or
rehabilitation program if such is available in the employee's community, by any employee who is so
convicted.
6. Make a good faith effort to continue to maintain a drug -free workplace through implementation of this
section.
Firm:
Gallagher Benefit Services, Inc.
Name /Title: Doug Anderson, ASA, EA, MAAA, Director of Actuarial Services
Authorized Signature Date:
This Form Must Be Completed and Returned with your Submittal
22
CONFLICT OF INTEREST STATEMENT
ACC �J•.•
of r r ..41l..lrr.:v
Name of Affiant Name of Company
23
deposes and states that
44 7; 1 c
the above named entity is submitting a proposal to the City of Winter Springs for the project identified
above.
2. The Affiant has made diligent inquiry and provides the information contained in this Affidavit based
upon his own knowledge.
3. The Affiant states that only one submittal for the above project is being submitted and that the above
named entity has no financial interest in other entities submitting qualifications for the same services.
4. Neither the Affiant nor the above named entity has directly or indirectly entered into any agreement,
participated in any collusion, or otherwise taken any action in restraint of free competitive pricing in
connection with the entity's submittal for the above project. This statement restricts the discussion of
pricing data until the completion of negotiations and execution of the Agreement for this project.
5. Neither the entity nor its affiliates, nor anyone associated with them, is presently suspended or
otherwise ineligible from participating in contract lettings by any local, state, or federal agency.
6. Neither the entity, nor its affiliates, nor anyone associated with them have any potential conflict of
interest due to any other clients, contracts, or property interests for these services.
7. I certify that no member of the entity's ownership, management, or staff has a vested interest in any
aspect of or department of the City of Winter Springs.
8. 1 certify that no member of the entity's ownership or management is presently applying for an
employee position or actively seeking an elected position with City of Winter Springs.
9. In the event that a conflict of interest is identified in the provision of services, I, on behalf of the above
named entity, ill immediately notify the City of Winter Springs in writing.
Signature of Affiant Date
Director of Actuarial Services Doug Anderson
Title Typed or Printed Name of Affiant
Minnesota
State of Florida, County of OF n nw p i
On this 1 day of '5,. 20 b before me, the undersigned Notary Public of the
State of- Florida, personally appeared
Minnesota
and
Doug Anderson
(Name(s) of individuals who appeared before notary)
whose name(s) is /are subscribed to the within instrument, and he/she/they acknowledge that he/she/they
executed it.
WITNESS my hand and official seal.
NOTARY PUBLIC, STATE OF FLORID NOTARY PUBLIC
MINNESOTA
Julia Christine Kindy
Notary Public
Minnesota
y Commission Expires January 31, 2012
SEAL OF OFFI
(Name of Notary Public: Print, Stamp, or Type as Commissioned.)
hsilt l n d AR
This Form Must Be Completed and Returned with your Submittal
24
CERTIFICATION OF NON SEGREGATED FACILITIES
FORM
By affixing his signature to this form, the consultant certifies that he does not maintain or provide for his
employees any segregated facilities at any of his establishments, and that he does not permit his
employees to perform their services at any location, under his control, where segregated facilities are
maintained. The consultant certifies further that he will not maintain or provide for his employees any
segregated facilities at any location under his control where segregated facilities are maintained. The
consultant agrees that a breach of this certification will be a violation of the Equal Opportunity clause in
any contract resulting from acceptance of this Bid. As used in this certification, the term "segregated
facilities" means any waiting rooms, work areas, restrooms and washrooms, restaurants and other eating
areas, time clocks, locker rooms and other storage and dressing areas, parking lots, drinking fountains,
recreation or entertainment area, transportation and housing facilities provided for employees which are
segregated by explicit directive, or are in fact segregated on the basis of race, color, religious disability or
national origin, because of habit, local custom, or otherwise. The consultant agrees that (except where
he has obtained identical certifications from proposed subcontractors for specific time periods) he will
obtain identical certifications from proposed subcontractors prior to the award of subcontracts exceeding
$10,000 which are not exempt from the provisions of the Equal Opportunity clause, and that he will retain
such certifications in his files.
The nondiscriminatory guidelines as promulgated in Section 202, Executive Order 11246, and as
amended by Executive Order 11375 and as amended, relative to Equal Opportunity for all persons and
implementations of rules and regulations prescribed by the United States Secretary of Labor are
incorporated herein.
NOTE: The penalty for making false statements in offers is prescribed in 18 U.S.C. 1001.
By: ✓y
Doug Anderson
Print Name
Official Address: 3600 American Blvd, W, Suite 500, Bloomington, MN 55431
This Form Must Be Completed and Returned with your Submittal
25
Title
Date: 947/
Director of Actuarial Services
All proposals are subject to the Florida Public Records Act, F.S. 119. The
submission of a proposal authorizes release of your firm's credit data to the City
of Winter Springs. Responsive proposals are "public records" and shall be subject to
public disclosure consistent with Chapter 119.07(3) (0), Florida Statutes. Vendors must
invoke any exemptions to disclosure provided by Iaw in the response to the proposal,
and must identify the data or other materials to be protected, and must state the
applicable statutory exemption for exclusion from public disclosure. Please list below
any exemptions to disclosure as provided by Iaw and sign and date the form where
indicated.: If you are not claiming any Public Records Exemptions, please check the
box below and sign and date the form where indicated.
We are claiming no exemptions
PUBLIC RECORDS FORM
Vendor Signature /Date
This Form Must Be Completed and Returned with your Submittal
26