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HomeMy WebLinkAbout2009 10 07 Pension Plan Actuarial Services Request For Proposal Number 021/09/JDDate: October 8, 2009 The attached document was referenced during the October 7, 2009 Special Meeting of the Board of Trustees. REQUEST FOR PROPOSALS Pension Plan Actuarial Services RFP 0211091JD City of Winter Springs, Florida 1126 East SR 434 Winter Springs, FL 32708 407 327 -1800 Table of Contents I. Introduction 1 II. Background 1 III. City Contact 2 IV. Selection Process 2 V. Term of Contract 2 VI. Submittal Requirements 2 VII. Additional Information 3 VIII. Protest Bond Policy 4 IX. Scope of Services 4 Required Forms 6 -17 I. Introduction The City of Winter Springs, Florida, invites the submittal of proposals for actuarial services from qualified actuaries who are experienced in the servicing of municipal pension plans. The City intends to select one vendor to perform these services for a three (3) year period. Qualified vendors who are interested in providing these services may download the RFP from: http /www.wintersprinasfl.ora /EN /main /main /bid.htm. Any questions concerning this RFP should be directed to the City contact as listed in this RFP document. Submittal responses shall include four (4) originals plus one (1) electronic copy in a sealed package marked: RFP #021/09/JD PENSION PLAN ACTUARIAL SERVICES ATTN: PURCHASING COORDINATOR Submittal must be received by the Purchasing Coordinator, 1126 East State Road 434, Winter Springs, FL 32708, no later than 3:00 PM, Wednesday, September 16, 2009. Failure to deliver submittals to the designated office before the indicated deadline will result in said submittal not being considered. Vendors who are preparing a submittal response to this request are expected to examine this request including all relevant forms, terms, conditions, and instructions. All costs associated with preparation and submittal of proposal shall be borne entirely by the vendor. Submittals will become the property of the City and will become part of the public record, subsequent to award of the contract or rejection of all submittals. Submittals will be evaluated by a selection committee composed of City staff. Interviews may be requested at the discretion of the selection committee. A final determination on the selection of an actuary will be made by the City Commission at a date and time to be determined. The City reserves the right to reject any or all submittals in whole or in part; to re- advertise for any or all of the services; to negotiate for additional services or materials; and /or to accept the proposal(s), which, in its judgement best serves the interest of the City. 11. Background The City of Winter Springs maintains a Defined Benefit Plan and Trust for all regular full -time employees. The Plan, which was adopted as a Money Purchase Floor Offset plan on October 1, 1997 was amended and restated as a Defined Benefit Plan effective October 1, 2000. According to the latest Actuarial Valuation Report for the October 1, 2007 thru September 30, 2008 plan year, the Plan represents approximately 371 participants. The Fund has assets in the $15 million range, which are professionally managed. Employees who are within the "contributory" provisions of the Plan are required to contribute (3 of their gross salary to the Fund. The defined benefit multiplier for this group is three percent (3 The plan includes a tiered vesting schedule with 100% vesting after seven (7) years. A copy of the most recent Summary Plan Description is attached as Attachment "A 1 III. City Contact All inquiries, comments, and /or requests for clarification regarding this RFP must be submitted in writing to: Joanne Dalka, Information Services Director City of Winter Springs 1126 East State Road 434 Winter Springs, FL 32708 jdalka(a�winterspringsfl.org (email) 407 327 -6670 (facsimile) IV. Selection Process The City will select one actuary based on the selection committee's determination of the actuaries who are deemed to be the most qualified among those submitting proposals on the basis of the following: Experience (50 Fees (25 References (25 V. Term of Contract The term of this contract shall be for a period of three (3) years with an option to renew for an additional three (3) year period, providing that the services have been satisfactory, and that renewal will be in the best interest of the City. The terms, provisions and conditions of this agreement shall apply for the initial term of the agreement and for any renewal period. Proposals that do not comply with these requirements may be rejected at the option of the City. These documents constitute the complete set of terms and conditions, specification requirements, and required forms. VI. Submittal Requirements Regired Number of Copies: Vendors shall submit four (4) complete sets of their proposal, complete with all supporting documentation. Vendors shall also submit one (1) additional complete set in electronic format (Adobe PDF format) on CD or DVD media. Execution of Proposal Proposals must contain a manual signature, in ink, in the space provided on the Submittal Cover Sheet. Entire proposal document and attachments must be executed and submitted in a sealed package, on or before the due date and time. Submittal Identification and Deadline The proposals (all copies including electronic copy) shall be submitted in a sealed envelope marked as follows: RFP 021/09/JD PENSION PLAN ACTUARIAL SERVICES ATTN: Purchasing Coordinator The package must be received by the Purchasing Coordinator, 1126 East State Road 434, Winter Springs, Florida 32708, no later than 3:00 P.M., September 16, 2009. Submittals received after this time will not be considered. There will be no formal public opening. It is the sole responsibility of the Proposer to have his /her proposal delivered to the Purchasing Coordinator on or before the closing hour and date shown above for receipt of proposals. Submittal Document Order The submittal should be ordered as follows: I. Submittal Cover Sheet (provided herein) II. Letter of Interest III. Profile of proposer a. State whether your firm is national, regional, or local. b. State the location of the office from which your work is to be performed. c. Describe the firm, including the size, range of activities, etc. d. Provide a list and description of similar municipal engagements satisfactorily performed within the past two (2) years. For each engagement listed, include the name and telephone number of a representative for whom the engagement was undertaken who can verify satisfactory performance. IV. Summary of Qualifications Identify the key personnel who will work as part of the team. Include resumes for each person to be assigned. The resumes may be included as an appendix. V. Forms: a. Vendor Rate /Fee Schedule (provided herein) b. Disputes Disclosure Form (provided herein) c. Insurance Requirements Form (provided herein) d. Florida Statutes on Public Entity Crimes Form (provided herein) e. Drug -Free Work Place Form (provided herein) f. Conflict of Interest Statement (provided herein) g. Certification of Non Segregated Facilities Form (provided herein) h. Public Records Form (provided herein) VII. Additional Information a. Do not include any sub consultants in the submittal. Also, do not show project team members that are not current employees of the firm. b. Each proposer shall examine all proposal documents and judge for themselves all matters relating to the adequacy and accuracy of the documents. If the proposer is of the opinion that any part(s) of the proposal document is incorrect or obscure, or that additional information is needed, proposer shall request such information or clarification from the City Information Services Director, in writing, in order that appropriate addenda may be issued, if necessary, to all prospective proposers. c. No oral change or interpretation of the provisions contained in this RFP is valid. Written addenda will be issued when changes, clarifications, or amendments to proposal documents are deemed necessary. The issuance of a written addendum is the only official method whereby interpretation, clarification or additional information can be given. 3 d. All materials submitted in response to the RFP become the property of the City and will not be returned to the proposer. The City has the right to use any or all ideas presented in any response to the RFP whether amended or not and selection or rejection of the proposal does not affect this right, provided however, that any proposal that has been submitted to the City may be withdrawn prior to the proposal opening time stated herein, upon proper identification and signature releasing proposal documents back to proposer. e. The City reserves the right to determine, at its sole discretion, whether any aspect of a proposal satisfies the criteria established in this RFP. The City further reserves the right to negotiate with any person or firm submitting proposals and reserves the right to reject any or all proposals with or without cause. The City also reserves the right to waive minor technical defects in the proposal. In the event that this RFP is withdrawn by the City for any reason, the City shall have no liability to any applicant for any costs or expenses incurred in connection with this RFP or otherwise. All such expenses incurred in the preparation of an RFP shall be borne by the proposer. f. Failure or refusal of the successful proposer to execute a contract within thirty (30) days after award shall constitute a default. Any such proposer shall not assign, transfer, convey or otherwise dispose of any or all of its rights, title or interest therein, or its power to execute such contract to any person or firm without prior written consent of the City. g. The proposer shall furnish the City such additional information as may reasonably be required. h. The City reserves the right to conduct personal interviews with any or all proposers prior to selection. The City will not be liable for any costs incurred by the proposer in connection with such interview(s). The City reserves the right to conduct pre- contract negotiations with any proposer. The signed proposal shall be considered an offer on the part of the proposer. In case of default on the part of the successful Bidder, after acceptance, the City may take such action as it deems appropriate including legal action, for damages or specific performance. VIII. Protest Bond Policy In the event of a protest, a protest bond of 10 percent (10 or one thousand dollars ($1,000), whichever is greater, along with the protest form shall be required from the protesting vendor within forty eight (48) hours of the awarding of this bid /proposal. Monies will be submitted in the form of cash or a cashiers /certified check (deposit made with the City). The bond will be required at the time the protest is registered with the Purchasing Office. In the event the City Commission determines the bid protest is without merit the bond will be forfeited. All forms may be obtained from the Purchasing Department. IX. Scope of Services The base scope of services includes but is not limited to the following: Benefits Administration Functions Determine eligibility, benefits, and vesting for Plan participants. Perform contribution analysis and review for Plan participants. Prepare benefit calculations for Plan participants as requested. Prepare pension service time buy -back calculations, as needed. Process all documents for payments to terminated or retiring employees within one week of request. Prepare and deliver annual employee benefit statements for Plan participants within 60 days of Plan fiscal year end. Actuarial Valuation and SPD Preparation Produce an annual actuarial valuation report in accordance with State laws and regulations so as to establish required municipal contribution levels, set forth Fund assets and liabilities, provide historical data, and render observations and opinions as to the funding of the Plan. Meet, as necessary, with the Board of Trustees of the Fund, the Pension Board, or Commission to explain changes to the Fund and actuarial assumptions utilized. Prepare a Summary Plan Description (SPD) every two (2) years or as required (as requested). Review of Plan mortality tables used to calculate actuarially equivalent benefit options. Ad hoc Calculations and Analysis Calculate and report the cost of changes in benefit structure as a result of change of direction in City policy or changes in Federal or State laws impacting upon the Plan. Provide general advice and counsel on the Plan and benefit structures. Respond to any inquiries by the State of Florida regarding issues derived from their review of the Actuarial Valuation Report and obtaining State acceptance. Review current plan design to ensure the retirement program is meeting the goals of the City in benefits provided and cost control. Consult with City's financial advisors and /or legal counsel in the implementation and administration of the plan. Additional Services Additional work above and beyond stated scope of services may, from time to time, be requested by the City. All such additional work must be authorized by the City in writing. 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. SUBMITTAL COVER SHEET Submit proposal to: Purchasing Department CITY OF WINTER SPRINGS 1126 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) #021/09/JD 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: MAILING ADDRESS: City: Name /Title: Authorized Signature /Date: Email Address: State: zip: Phone Fax This Form Must Be Completed and Returned With Your Submittal. 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 SPD Preparation Ad hoc Calculations and General Analysis Total proposed annual fee for base services as per scope of work Fee /Rate Schedule for any additional services (above and beyond that stated in the base scope of services) that may be requested: Category of Employee Hourly Rate 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. 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? 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? 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? If 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. 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: Name Title: Authorized Signature Date: This Form Must Be Completed and Returned with your Submittal INSURANCE REQUIREMENTS FORM 1. 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 Statutory Commercial General Liability including Contractual Liability, Products and Completed Operations, XCU and Owners and Contractors Protective 1,000,000 Occurrence Comprehensive Auto Liability, CSL, shall include "any auto" 1,000,000 CSL Professional $1,000,000 Occurrence (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. 1 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: Name Title: Authorized Signature Date: This Form Must Be Completed and Returned with your Submittal 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: on behalf of: whose business address is: Federal Employer Identification Number (FEIN) or Social Security of the person signing this statement: 2. 1 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. 1 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. 10 5. 1 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. 1 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 Date State of Florida, County of On this day of 20 me, the undersigned Notary Public of the State of Florida, personally appeared: (Name(s) of individuals who appeared before notary) 11 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 day of 20 Notary Public My Commission expires: Personally Known Produced Identification: (Type) Did take an Oath Did Not take an Oath This Form Must Be Completed and Returned with your Submittal 12 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 contendere 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: Name Title: Authorized Signature Date: This Form Must Be Completed and Returned with your Submittal 13 CONFLICT OF INTEREST STATEMENT 1 of deposes and states that Name of Affiant Name of Company 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. 1 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, 1, on behalf of the above named entity, will immediately notify the City of Winter Springs in writing. Signature of Affiant Date Title Typed or Printed Name of Affiant State of Florida, County of On this day of 20_, before me, the undersigned Notary Public of the State of Florida, personally appeared and 14 (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 FLORIDA NOTARY PUBLIC SEAL OF OFFICE: (Name of Notary Public: Print, Stamp, or Type as Commissioned.) This Form Must Be Completed and Returned with your Submittal 15 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. 0 Date: Print Name Official Address: Title This Form Must Be Completed and Returned with your Submittal 16 PUBLIC RECORDS FORM 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) (o), Florida Statutes. Vendors must invoke any exemptions to disclosure provided by law 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 law 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 Vendor Signature /Date This Form Must Be Completed and Returned with your Submittal 17 SUMMARY PLAN DESCRIPTION Defined Benefit Plan and Trust for Employees of the City of Winter Springs, Florida February 21, 2006 Prepared by: James Linn, Esq. Glenn Thomas, Esq. Lewis, Longman, Walker, P.A. 125 S. Gadsden St. Suite 300 Tallahassee, Florida, 32301 (850) 222 -5702 TABLE OF CONTENTS (1) General 1 (2) Identification of Plan 1 (3) Type of Plan 1 (4) Plan Administrator 1 (5) Trustee /Trust Fund 1 (6) Hours of Service 2 (7) Eligibility to Participate 2 (8) Employer's Contribution 3 (10) Normal Retirement Pension 3 (11) Accrued Benefit 5 (12) Vesting 5 (13) When you Receive Your Accrued Benefit Under the Plan 5 (14) Optional Forms of Payment. 7 (15) Forfeiture of Certain Benefits 8 (16) Required Distributions 8 (17) Special Options After You Reach Normal Retirement Age 8 (18) Death Benefits 8 (20) Claims Procedure 9 (21) Retired Participant, Separated Participant with Vested Benefit, Beneficiary Receiving 10 (22) Federal Income Taxation of Benefits Paid 10 ii SUMMARY PLAN DESCRIPTION (1) General. The legal name, address and Federal employer identification number "EIN of the Employer are: City of Winter Springs 1126 East State Road 434 Winter Springs, FL 32708 EIN 59- 1026364 The Employer has established this retirement plan "Plan to supplement your income upon retirement. In addition to the retirement benefits, the Plan may provide benefits in the event of your death or your termination of employment prior to Normal Retirement Age. If after reading the summary you have any questions, please ask the Plan Administrator. We emphasize this summary is a highlight of the more important provisions of the Plan. If there is a conflict between a statement in the summary plan description and the Plan, the terms of the Plan control. (2) Identification of Plan. The Plan is known as Defined Benefit Plan and Trust for Employees of the City of Winter Springs The Employer has assigned 002 as the Plan identification number. The Plan year is the period on which the Plan maintains its records: October 1 through September 30. (3) Type of Plan. The Plan is a defined benefit pension plan. Under this type of plan, a participant who retires after reaching the Normal Retirement Date will receive a monthly pension based on a formula that reflects years of service, average compensation and a benefit multiplier. Section (10) explains the benefit formula. (4) Plan Administrator. The Employer is the Plan Administrator. The Employer's telephone number is (407) 327 -1800. You may contact the City Manager and the Human Resource Coordinator at the Employer's address. The Plan Administrator is responsible for providing you and other participants information regarding your rights and benefits under the Plan. The name of the person designated as agent for the service of legal process upon the Plan is: Ronald W. McLemore City Manager City of Winter Springs 1126 East State Road 434 Winter Springs, FL 32708 (5) Trustee /Trust Fund. The Employer has appointed a Retirement Committee to act as Trustee and assist in the administration of the Plan. The Retirement Committee has the responsibility for making certain discretionary determinations under the Plan, and approving all distribution and benefit payments from the trust fund to participants and beneficiaries. The Retirement Committee consists of the members of the Board of Trustees. The members of the Retirement Committee may change from time to time. The names of the current members of the Retirement Committee are listed on an Appendix at the end of this summary plan description. The Board of Trustees' address is: The Board of Trustees of the City of Winter Springs 1126 East State Road 434 Winter Springs, FL 32708 (6) Hours of Service. The Plan and this summary plan description include references to hours of service. For example, to advance on the vesting schedule, the Plan requires you to complete a minimum number of hours of service during the plan year. The section covering vesting explains this aspect of the Plan. However, hours of service has the same meaning for all purposes of the Plan. The Plan utilizes the "actual" method for crediting hours of service. Under the actual method, you will receive credit for each hour for which the Employer pays you, directly or indirectly, or for which you are entitled to payment, for the performance of your employment duties. You also will receive credit for certain hours during which you do not work if the Employer pays you for those hours, such as paid vacation. You will further receive credit for certain unpaid leaves of absence authorized by the Employer under a uniform, nondiscriminatory policy under which the Employer specifically credits hours of service for such unpaid leaves of absence. If an employee's absence from employment is due to maternity or paternity leave, the employee will receive credit for unpaid hours of service related to his leave, not to exceed 501 hours. The Plan administrator will credit these hours of service to the first period during which the employee otherwise would incur a 1 -year break in service as a result of the unpaid absence. (7) Eligibility to Participate. You do not have to complete any form for entry into the Plan. Unless you are excluded, you will become a Participant on the first day of the month immediately following the date 6 months after your first day of employment. Excluded employees include those whose customary weekly employment is less than 29 hours. A participant who becomes an excluded employee does not accrue benefits attributable to the period he is excluded, but will receive credit for vesting. An excluded employee who is not a plan participant but becomes eligible will become a participant immediately upon satisfaction of eligibility conditions, and years of service during the period the employee was excluded will be credited for vesting. If you terminate employment after becoming a Participant in the Plan and later return to employment, you will re -enter the Plan on your re- employment date. Also, if you terminate employment after satisfying the Plan's eligibility conditions but before actually becoming a participant in the Plan, you will become a participant in the Plan on the later of your scheduled entry date or your reemployment date. 2 (8) Employer's Contribution. For each plan year, the Employer must contribute to the Trust an amount the Plan's actuary determines is necessary to fund retirement benefits under the Plan. (9) Employee's Contribution. Employees contribute 3% of compensation to the retirement plan. Employee contributions are "picked up" by the City (i.e., they are deducted from the employee's pay and paid to the retirement plan in pre -tax dollars). (10) Normal Retirement Pension. The Plan defines the Normal Retirement Pension as an amount payable every year in the normal form of annuity starting at your Normal Retirement Date (age 65). The "normal form of annuity" is a life annuity, meaning an annuity that makes payments during your lifetime. The amount payable under the Normal Retirement Pension is 2% of the your Average Compensation (as defined below) multiplied by your Years of Accrual Service for service before October 1, 2000, and 3% of the your Average Compensation multiplied by your Years of Accrual Service for service on and after October 1, 2000. However, effective October 1, 2008, a Participant's Normal Retirement Pension shall equal 3% of the Participant's Average Compensation multiplied by his Years of Accrual Service for service prior to October 1, 2000; provided that such multiplier shall increase by one -fourth of one percent (.25 each year beginning October 1, 2005, as follows: Multiplier for Service Effective Date Prior to October 1, 2000 October 1, 2005 2.25% October 1, 2006 2.50% October 1, 2007 2.75% October 1, 2008 3.00% Your Normal Retirement Pension shall be calculated by applying the multiplier for service prior to October 1, 2000 that is in effect on the date of the Participant's separation from service. Your pension will be adjusted for any distribution in accordance with Section 8.05 of the Plan. The maximum number of Years of Accrual Service taken into account in the normal retirement pension is 30. See the illustration below for an example of the calculation of your Normal Retirement Pension. Your average compensation is the highest average over 3 consecutive compensation periods. A compensation period is the 12 -month period ending on the last day of the plan year. If you have less than 3 years of employment with the Employer, your average compensation is the average over your entire employment period. The Plan defines compensation to mean all the compensation the Employer pays you for your services. Your regular salary or wages, any overtime, any commissions or any bonuses are part of your compensation under the Plan. 3 Your Normal Retirement Pension may be subject to a maximum limitation provided by the Internal Revenue Code. The Revenue Service annually announces any adjustment to the maximum limitation. Example of calculation of Normal Retirement Pension. Example 1: Assume you reach the Normal Retirement Date and retire on October 1, 2006, your average compensation at retirement is $30,000 and you have 30 Years of Accrual Service at your Normal Retirement Date credited as follows: 24 years of service prior to October 1, 2000 and 6 years of service on or after October 1, 2000. Under these circumstances, your annual Normal Retirement Pension, payable in the form of a life annuity, would be $23,400, computed as follows: Credited Serviced Prior to October 1, 2000: $30,000 (your average compensation) x 2.5% (the Plan's annual accrual percentage) x 24 (your Years of Accrual Service) $18,000 (your annual Normal Retirement Pension for service before 10 /1 /00) Credited Serviced on or after October 1, 2000: $30,000 (your average compensation) x 3% (the Plan's annual accrual percentage) x 6 (your Years of Accrual Service) 5,400 (your annual Normal Retirement Pension for service after 10 /1 /00) Total annual Normal Retirement Pension under this Example: $23,400 Example 2: Assume you reach the Normal Retirement Date and retire on or after October 1, 2008, your average compensation at retirement is $30,000 and you have 30 Years of Accrual Service at your Normal Retirement Date. Under these circumstances, your annual Normal Retirement Pension, payable in the form of a life annuity, would be $27,000, computed as follows: $30,000 (your average compensation) x 3.0% (the Plan's annual accrual percentage) x 30 (your Years of Accrual Service) $27,000 (your annual Normal Retirement Pension) As indicated above, the above examples assume you begin receiving benefit payments on your Normal Retirement Date in the normal form of annuity (i.e., a life annuity). However, as explained in Section (13), you may begin commencement of benefit payments after your Normal Retirement Date and as explained in Section (14), you may elect to have your benefits paid in a 11 form other than a life annuity. Under either of these circumstances, the amount of benefits calculated in the above Examples will change. (11) Accrued Benefit. If you qualify for a Pension from the Plan, the Plan Administrator will calculate that Pension from your Accrued Benefit. Your Accrued Benefit is the portion of the Normal Retirement Pension you have earned under the Plan. The portion of the Normal Retirement Pension you have earned depends upon your period of service credited by the Plan. The Plan refers to this period of service as your Years of Accrual Service. You will receive credit for a Year of Accrual Service for each plan year (including plan years prior to the adoption of the Plan) in which you receive credit for at least 1,000 hours of service. (12) Vesting. When the Plan pays you your benefits, you will receive only your Vested Accrued Benefit. Your Vested Accrued Benefit is the portion of your Accrued Benefit in which you have earned a vested right (ownership) under the Plan's vesting schedule. The Plan will determine your Vested Accrued Benefit according to the following schedule: Years of Service Nonforfeitable Percentage Less than 3 None 3 20% 4 40% 5 60% 6 80% 7 or more 100% A year of vesting service means each plan year (including plan years prior to the adoption of the Plan) in which you complete 1000 hours of service, except years of service prior to age 18. However, if you incur a vesting break in service (as defined below), you will lose credit for your prior years of vesting service, unless you complete a subsequent year of vesting service. Further, if you are 0% vested and you incur 5 consecutive vesting breaks in service, you lose credit for your prior years of vesting service. If your vesting percentage is less than 100% when you reach Normal Retirement Age, and you are working for the Employer, the Plan automatically increases your vesting percentage to 100 Also, if your employment with the Employer terminates because of death, disability or eligibility for an Early Retirement Pension, your vesting percentage automatically increases to 100 (13) When you Receive Your Accrued Benefit Under the Plan. When you receive your Accrued Benefit depends on when you terminate your employment with the Employer and the circumstances of your termination. The following paragraphs explain the different types of Pensions under the Plan. A reference to the "lump sum value" of your Pension means the single sum determined by the Plan to equal the actuarial value of your Accrued Benefit payable at your Normal Retirement Date (or at your current age, if later). The Plan specifies actuarial assumptions for this purpose. The actuarial assumptions consider your life expectancy, the number of years remaining to your Normal Retirement Date and a reasonable rate of return expected on Plan investments. 5 (a) Normal Retirement Pension. The Plan refers to your Pension as a Normal Retirement Pension if you terminate employment with the Employer after reaching your Normal Retirement Date. Payment of your Normal Retirement Pension begins as soon as possible after you terminate employment with the Employer. If you begin payments after your Normal Retirement Date, the Plan increases the amount of your Pension because at an older age a person is expected to live for a shorter period. The increased payment will equal the actuarial value of the Pension the Plan would have paid you at your Normal Retirement Date. The Plan's actuary will calculate these adjustments to the Pension based on the actuarial assumptions stated in the Plan. (b) Deferred Vested Pension. The Plan refers to your Pension as a Deferred Vested Pension if you terminate employment with the Employer before reaching your Normal Retirement Date or before your eligibility for an Early Retirement Pension. See Section (16) for further information on distributions. If you begin payments after your Normal Retirement Date, the Plan increases the amount of your Pension because at an older age a person is expected to live for a shorter period. The increased payment will equal the actuarial value of the Pension the Plan would have paid you at your Normal Retirement Date. The Plan's actuary will calculate these adjustments to the Pension based on the actuarial assumptions stated in the Plan. (c) Early Retirement Pension. The Plan refers to your Normal Retirement Pension as an Early Retirement Pension instead of a Deferred Vested Pension if you have not reached your Normal Retirement Date but you are at least age 55 and you have completed at least 10 Years of Accrual Service or if you have completed at least 25 Years of Accrual Service. The Plan commences payment of your Early Retirement Pension as soon as possible after you become eligible for the Early Retirement Pension (and subsequent to your termination of employment). You may elect to postpone payment of your Early Retirement pension to the first day of any month subsequent to your termination of employment. Any postponement of distributions is subject to the distribution requirements of Section (16). Your Early Retirement Pension is a subsidized benefit. If you begin payments after age 55, your Early Retirement Benefit is not reduced because of commencement of benefit payments prior to your Normal Retirement Date. Thus, your benefit payment amounts after age 55 would be the same as if you commenced benefit payments at your Normal Retirement Date. However, if you commence your Early Retirement Pension payments prior to age 55, the Plan reduces the amount of your Pension to the actuarial equivalent of your Early Retirement Pension commencing at age 55. If you delay the commencement of your Early Retirement Pension to after your Normal Retirement Date, the Plan will increase the amount of your Pension. The Plan's actuary will calculate these adjustments to the Pension based on the actuarial assumptions stated in the Plan. If you have the right to elect when your Pension commences, the Plan Administrator will provide you a form explaining your election rights. You will have at least 30 days to make your election. Your Pension may not actually commence on the date you elect. The Plan has an administratively reasonable period of time to make payment following your election. If you fail 31 to make an election, the Plan will commence payment under the "Required Distribution" rules described in Section (16). (14) Optional Forms of Payment. If you are married when your Pension commences, you will receive a Qualified Joint and Survivor Annuity. This is an actuarially adjusted benefit that provides a reduced monthly Pension for your lifetime plus a survivor Pension for your spouse (if your spouse is living at your death) equal to 50% of your lifetime monthly Pension. If you are not married when your Pension commences, the Qualified Joint and Survivor Annuity is a life annuity, meaning a monthly Pension for your lifetime with no survivor Pension continuing after your death. Since the Qualified Joint and Survivor Annuity pays a benefit for two lifetimes if a participant is married, the Plan reduces the amount of the monthly Pension payable to a married participant. This reduction makes the actuarial value of the Qualified Joint and Survivor Annuity for a married participant equal to the actuarial value of a life annuity for an unmarried participant. Instead of the Qualified Joint and Survivor Annuity, you may elect any of the following payment options. (a) Life annuity. A life annuity is a monthly payment for your lifetime. If you are unmarried, the Qualified Joint and Survivor Annuity already is a life annuity. If you are married, the life annuity option would increase your monthly lifetime Pension since this option makes payments only for your life and not also for your spouse's life. (b) Joint and Survivor annuity. If you are married, you may use this option to elect a survivor Pension equal to 100% instead of 50% of your lifetime Pension under the Qualified Joint and Survivor Annuity. Since the 100% survivor Pension is more costly, the Plan would reduce the amount of your monthly lifetime Pension to make the value of this option equal to the value of your normal Qualified Joint and Survivor Annuity. If you are unmarried, you may use this option to provide a survivor Pension to your beneficiary equal to 75% or 100% of your lifetime Pension. The Plan would adjust the amount of an unmarried participant's monthly lifetime Pension to make the actuarial value of this option equal to the actuarial value of a life annuity. (c) Life annuity with guaranteed payment. This option pays a monthly lifetime Pension, but guarantees a minimum number of payments. The minimum number of payments may not exceed your life expectancy or the joint life expectancy of you and your beneficiary. If you die before the minimum payment period, your beneficiary receives the remaining payments. The Plan would adjust the amount of the monthly lifetime Pension to make the actuarial value of this option equal to the actuarial value of a life annuity. (d) Installments. This option makes payments over a fixed period of time equal to your life expectancy or the joint life expectancy of you and your beneficiary. The Plan would limit the annual amount of the fixed period payments so the actuarial value is the same as the actuarial value of a life annuity. 7 If you are married, you may not elect an optional form of payment instead of the Qualified Joint and Survivor Annuity unless your spouse consents in writing. The Plan Administrator will provide you a form explaining the Qualified Joint and Survivor Annuity, your election rights for optional forms of payment and your spouse's consent rights. You will have at least 30 days to make your election. (15) Forfeiture of Certain Benefits. If you are not 100% vested in your Accrued Benefit, and you receive payment of your entire Vested Accrued Benefit, the Plan forfeits your Non vested Accrued Benefit. If you return to employment with the Employer, you may restore your forfeited benefit by repaying the full amount of your distribution plus interest. You must make the repayment no later than 5 years after your reemployment date or you lose your right to restore the forfeited benefit. You also lose your right to restore the forfeited benefit if you incur 5 consecutive vesting breaks in service as a result of your termination of employment with the Employer. The interest rate on your payment depends on an interest rate index published by the Internal Revenue Service. Upon your reemployment with the Employer, you may request the Plan Administrator to explain your repayment option. (16) Required Distributions. The Plan must commence payment of your Pension no later than 60 days after the close of the plan year in which you attain Normal Retirement Age, unless you elect a later commencement date. If you have attained Normal Retirement Age when you terminate employment with the Employer, the 60 -day period runs from the close of the plan year in which you terminate employment. The law, with limited exceptions, also requires you to commence payment of your Normal Retirement Pension, if you have not already done so, after you reach age 70 '/2, unless you have not retired at that time. You must start payment by April 1 of the calendar year following the calendar year you reach age 70 '/z or in which you retire (whichever occurs later). (17) Special Options After You Reach Normal Retirement Age. The Plan does not include any special options merely because you continue working for the Employer after your Normal Retirement Age. (18) Death Benefits. Whether the Plan pays a benefit after your death depends on whether your death occurs before or after your Pension commences. If your death occurs after your Pension commences, your beneficiary will receive a death benefit only if payments continue after your death under the form of distribution you are receiving. See the explanation in Section (14) of the different forms of payment. If your death occurs before your Pension commences, the Plan provides a death benefit to your beneficiary equal to the value of your Accrued Benefit. If you are married, the Plan will pay your death benefit to your surviving spouse in the form of a Preretirement Survivor Annuity, which is a life annuity payable to your surviving spouse. However, unless you elected otherwise (and your spouse consented to such election), your spouse may elect to receive payment in any optional form of payment described in Section (14) (other than any type of joint and survivor annuity). However, if the lump sum value of the Preretirement Survivor Annuity is $3,500 or less, the Plan will pay your surviving spouse a single sum equal to that lump sum value. The Preretirement Survivor Annuity benefit does not apply if you and your surviving spouse have not been married during the one -year period ending on your date of death. With the spouse's consent, you may elect not to have this death benefit payable under the Plan. The Plan Administrator will provide you information explaining the Preretirement Survivor Annuity and your election rights. If the Preretirement Survivor Annuity does not apply, the Plan permits your designated beneficiary to receive the death benefit under any optional form of payment described in Section (14) (other than any type of joint and survivor annuity), unless the participant elected otherwise. In general, death benefits under the Plan will commence as soon as administratively practicable after the participant's death. Generally, the Plan must distribute the death benefit by the end of the 5 th calendar year following your death. However, as indicated above, a designated beneficiary may receive distributions over a period not exceeding his life expectancy, but only if benefit payments commence within one year of the participant's death. A designated beneficiary is an individual designated by you as your beneficiary. The Plan Administrator will provide you with the appropriate form for naming a beneficiary. (19) Amendment and Termination of the Plan. The Employer has the right to amend the Plan in any manner, or terminate the Plan entirely. If the Employer terminates the Plan, you would receive benefits under the Plan based on your Accrued Benefit as of the date of Plan termination. Termination of the Plan could occur before you reach Normal Retirement Age. If the Employer terminates the Plan, your Accrued Benefit becomes 100% vested. The fact the Employer has established this Plan does not confer any right to future employment with the Employer. You also may not assign your interest in the Plan to another person or use your Plan interest as collateral for a loan from a commercial lender. (20) Claims Procedure. You generally need not file a formal claim with the Plan Administrator in order to receive your benefits under the Plan. When an event occurs which entitles you to a payment of your benefits under the Plan, or if an election of a benefit is required, the Plan Administrator will notify you. However, if you disagree with the Plan Administrator's determination of the amount of your benefits under the Plan or with any other decision the Plan Administrator may make regarding your interest in the Plan, the Plan contains the appeal procedure you should follow. In brief, if the Plan Administrator determines it should deny benefits to you or your beneficiary making a claim for benefits, the Plan Administrator will give you or your beneficiary adequate notice in writing setting forth specific reasons for the denial and referring you or your beneficiary to the pertinent provisions of the Plan supporting the Plan Administrator's decision. If you or your beneficiary disagrees with the Plan Administrator, you or your beneficiary, or a duly authorized representative, must appeal the adverse determination in writing to the Retirement Committee within 75 days after the receipt of the 9 notice of denial of benefits. If you or your beneficiary fails to appeal a denial within the 75 -day period, the Plan Administrator's determination will be final and binding. If you or you beneficiary appeals to the Retirement Committee, you or your beneficiary, or a duly authorized representative, must submit the issues and comments you or your beneficiary feels are pertinent to permit the Retirement Committee to re- examine all facts and make a final determination with respect to the denial. The Retirement Committee, in most cases, will make a decision within 90 days of a request on appeal unless special circumstances would make rendering a decision within the 90 -day period unfeasible. In any event the Retirement Committee must renter a decision within 120 days after its receipt of a request for review. (21) Retired Participant, Separated Participant with Vested Benefit, Beneficiary Receiving Benefits. If you are a retired participant or beneficiary receiving benefits, you are entitled to the benefits that were in effect on the date your City employment terminated. The benefits you presently are receiving will continue in the same amount and for the same period provided in the form of payment selected at the time you retired. If you are a separated participant with a Vested Accrued Benefit, you may obtain a statement of the dollar amount of your Vested Accrued Benefit upon request of the Plan Administrator. There is no Plan provision which reduces, changes, terminates, forfeits, or suspends the benefits of a retired participant or of a beneficiary receiving benefits, or a separated participant's Vested Accrued Benefit, except as explained in Section (19). (22) Federal Income Taxation of Benefits Paid. Retirement benefits that you receive upon reaching your Early or Normal Retirement Date are generally reported as taxable income. The Federal tax laws permit you to defer Federal income taxation of certain distributions by making a "rollover" contribution to your own individual retirement account. In general, the only type of distribution available under the plan that qualifies for "rollover" treatment is a lump sum distribution, which is only available under very limited circumstances. Income tax withholding rules apply to some distribution you do not rollover directly to an individual retirement account or to another plan. At the time you receive a distribution, you also will receive a notice discussing withholding requirements and the options available to you. We emphasize you should consult your own tax adviser with respect to the proper method of reporting any distribution you receive from the Plan. 10 APPENDIX Retirement Committee/ Board of Trustees A. Mark Sardo, Chairman Michael S. Blake, Vice Chairman David W. McLeod Vernon Rozelle, Jr. Damon Basco This page revised April 22, 2008 ACKNOWLEDGMENT OF RECEIPT OF SUMMARY PLAN DESCRIPTION OF THE Defined Benefit Plan and Trust For Employees of the City of Winter Springs, Florida I hereby acknowledge receipt of a copy of the Summary Plan Description "SPD on the above plan. I received a copy of the SPD on the date indicated below. Dated: Participant's Name Printed Signature of Participant