STATE OF CONNECTICUT
SECTION 457 PLAN ADMINISTRATOR QUESTIONNAIRE
| Company Name: |
| Address: |
| Marketing Contact: |
| Phone Number: |
| Fax Number: |
| Data Contact: |
| Phone Number: |
| Fax Number: |
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A. FIRM OVERVIEW |
1.In the space below, please provide a brief history of your firm, including founding date and ownership structure. Be sure to demonstrate that your firm meets the minimum qualifications set forth in the RFP.
2. Please provide the following distribution of your Defined Contribution clients as of December 31, 1996.
| Client Type | Total # of DC Clients | Total # of DC Plans | Total DC Assets | Total # of Participants |
|---|---|---|---|---|
| Full Service Only | ||||
| Recordkeeping Only | ||||
| Investment Only | ||||
| Total | ||||
| 457 Plan |
3. Please provide the following distribution of full service only/ Defined Contribution clients as of December 31, 1996.
| Asset Information | Participant Information | ||
|---|---|---|---|
| Asset Size | # of Full Service Clients | # of Participants | # of Full Service Clients |
| Less than $10 million | Less than 500 | ||
| $11 to $50 million | 501 to 1,000 | ||
| $51 to $100 million | 1,001 to 3,000 | ||
| $101 to $200 million | 3,001 to 5,000 | ||
| $201 to $500 million | 5,001 to 7,000 | ||
| $501 to $1,000 million | 7,001 to 10,000 | ||
| Over $1,001 million | Over 10,001 | ||
| Average (in $ millions) | $ | Average (in participants) | |
| List 5 Largest Clients | Clients Gained/Lost from 1991 to 1996 | ||
|---|---|---|---|
| Asset Size | # of Participants | ||
| 1. $ million | # of Clients Gained | ||
| 2. $ million | $ of Assets Gained | $ | |
| 3. $ million | # of Clients Lost | ||
| 4. $ million | $ of Assets Lost | $ | |
| 5. $ million | Primary Reasons for Losses | ||
| Average $ million | |||
4. Please provide the following distribution of recordkeeping only Defined Contribution clients as of December 31, 1996.
| Asset Information | Participant Information | ||
|---|---|---|---|
| Asset Size | # of Full Service Clients | # of Participants | # of Full Service Clients |
| Less than $10 million | Less than 500 | ||
| $11 to $50 million | 501 to 1,000 | ||
| $51 to $100 million | 1,001 to 3,000 | ||
| $101 to $200 million | 3,001 to 5,000 | ||
| $201 to $500 million | 5,001 to 7,000 | ||
| $501 to $1,000 million | 7,001 to 10,000 | ||
| Over $1,001 million | Over 10,001 | ||
| Average (in $ millions) | $ | Average (in participants) | |
| List 5 Largest Clients | Clients Gained/Lost from 1991 to 1996 | ||
|---|---|---|---|
| Asset Size | # of Participants | ||
| 1. $ million | # of Clients Gained | ||
| 2. $ million | $ of Assets Gained | $ | |
| 3. $ million | # of Clients Lost | ||
| 4. $ million | $ of Assets Lost | $ | |
| 5. $ million | Primary Reasons for Losses | ||
| Average $ million | |||
5. Please provide the following profit/revenue information on your firm and defined contribution business units.
| Profits & Revenues | Major Business Units | |
|---|---|---|
| Contribution of Full Service Product: | Start Date | % of Revenues |
| % Firm Revenues | 1. | |
| % Firm Profits | 2. | |
| Contribution of Recordkeeping Services: | 3. | |
| % Firm Revenues | 4. | |
| % Firm Profits | 5. | |
| Contribution of Investment Management Services: | 6. | |
| % Firm Revenues | 7. | |
| % Firm Profits | 8. | |
6. Please provide references for five clients. Include references for plans of similar size and complexity. Be sure to demonstrate that your firm meets the minimum qualifications set forth in the RFP.
| Contact Name/Title | Firm Name | Address | Phone # |
|---|---|---|---|
| 1. | |||
| 2. | |||
| 3. | |||
| Recently Converted: 4. |
|||
| Recently Terminated: 5. |
| B. RECORDKEEPING CAPABILITIES & ON-LINE SERVICES |
1. Please provide the following information on your recordkeeping system.
| When were recordkeeping services first offered? |
| When was the current recordkeeping system implemented? |
| Was the core recordkeeping system internally developed? (Y or N) |
| If not, please name the vendor: |
| Is the system owned? (Y or N) |
| If not, please explain: |
| What is the name of your recordkeeping system? |
| Who is responsible for maintenance? |
| Who is responsible for enhancements? |
| How many participants are currently on your system? |
| What is the largest plan your system can handle? |
| What is the maximum number of account types the system can handle? |
| What is the maximum number of investment options the system can handle? |
| When was daily valuation first offered? |
| What % of your full service clients are valued daily? |
| What other valuation frequencies do you offer? (W, M, Q, SA, A) |
| Can a plan sponsor select daily valuation but allow transfers less frequently? (Y or N) |
| Can company matches be accrued and posted at a later date? (Y or N) |
| Does the system separate pre-1986 and post-1986 after-tax contributions? (Y or N) |
| Would you consider recordkeeping for an outside investment option? (Y or N) |
| If yes, please describe any restrictions: |
| Can system track hours of service, hire and termination dates? (Y or N) |
| Can system track employee eligibility? (Y or N) |
| Can system track forfeiture reporting? (Y or N) |
2. Please describe what services you offer for non-qualified or deferred compensation plans. Can your recordkeeping system automatically transfer assets to this plan when maximums have been met in the qualified plans?
3. Briefly describe some of the differentiating features of your recordkeeping system.
4. Briefly describe your recordkeeping process.
5.Please provide the following information on hardware and software enhancements.
| What was the Defined Contribution hardware/software budget for the last 3 years? | $ million |
| What is the Defined Contribution hardware/software budget for the next 3 years? | $ million |
| Currently, what are your 3 highest priority system enhancements? | |
| (hardware and software) | Est. Completion Dates |
| 1. | 1. |
| 2. | 2. |
| 3. | 3. |
6.Please describe your record retention procedures. How many months of data are maintained on-line? How accessible are historical data?
7.Please provide the following information concerning the "on-line" services available to Defined Contribution plan sponsors.
| Is there an on-line service available to recordkeeping clients? (Y or N) |
| When was it first offered? |
| Is it inquiry only? (Y or N) |
| Is a data entry facility available? (Y or N) |
|
How many months of historical data can this service access? Hours of on-line availability (EST) Days of on-line availability |
| Under what operating system platforms can the service be run? (X where appropriate) |
| DOS Windows OS/2 Other: |
| Can on-line reports be downloaded to other software packages? (Y or N) |
| Is a custom report-writer feature available to clients? (Y or N) |
| Can you accommodate customized reporting requirements? (Y or N) |
| Is there an extra charge for these services? (Y or N) |
| Will you provide fee offsets if a deadline is not met? (Y or N) |
8. Please describe the types of reports and statements you provide to plan sponsor and participants. Please indicate the time frames for each report. Please provide samples of the reports you provide to plan sponsors and participants. Also include copies of the "monitoring" reports you would supply plan sponsors to monitor the number of phone calls, types of questions, cashflows, etc.
9. Please describe your disaster recovery procedures, particularly in terms of systems back-up and service or benefits center redundancies. Please include the name of any outside service you use in this process.
10. What was your system downtime experience over the last 2 years?
11. Describe how you have accommodated the special needs of clients, especially in the 457 Plan environment.
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C. INVESTMENT OPTIONS(if applicable, note the Plan Administrator may not be asked to provide investment alternatives) |
If yes, please indicate any restrictions that may apply, describe the
rebalancing process and indicate who would be responsible for doing this.
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D. TRUSTEE SERVICES |
1. Please provide the following information about your trustee services.
| Are your trustee services provided by an outside vendor? (Y or N) |
| Please provide the name of the trustee(s): |
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E.PARTICIPANT COMMUNICATIONS |
| How long have you been offering communications services to defined contribution plans? |
| Do you provide "off-the-shelf" communications materials? (Y or N) |
| Can you customize materials if requested? (Y or N) |
| Is an outside vendor designing materials? (Y or N) |
| If yes, please name the vendor: |
| Do you offer quarterly newsletters to participants? (Y or N) |
| Do you offer videos? (Y or N) |
| Do you provide special services for younger participants? (Y or N) |
| If yes, please describe: |
| Do you provide special services for older/retired participants? |
| If yes, please describe: |
| Do you provide special services for non-English-speaking participants? (Y or N) |
| If yes, please describe: |
| Do you provide special services for less educated participants? (Y or N) |
| If yes, please describe: |
| Do you provide retirement planning software? (Y or N) |
| If yes, can it be formatted to include a plan's specific options? (Y or N) |
| Do the assumptions include the effects of inflation? (Y or N) |
| Can it include Defined Benefit projections? (Y or N) |
3. Please provide the following information on your voice response system and customer service center:
| When did your VRS first become available? |
| Does the VRS have transactional capabilities? (Y or N) |
| If not, when will this be available? |
| Does the VRS provide option and return information? (Y or N |
| If not, when will this be available? |
| Does the VRS provide loan processing? (Y or N) |
| Does the VRS provide loan modeling? (Y or N |
If not, when will this be available?
|
| What is the average response time? |
| Are other languages available on the VRS? (Y or N) |
| If yes, which languages? |
| Can a participant elect to switch to an account representative? (Y or N) |
If yes, is there an extra charge for this service?
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| Are other languages available through account representatives? (Y or N) |
| If yes, which languages? |
| Describe how you accommodate calls coming from abroad. |
| 1. Please provide the following employee information on your firm. |
| Employees | # of Employees | Average Annual Turnover |
| # of Portfolio Managers | ||
| # of Account/Client Officers | ||
| # of Recordkeeping Staff | ||
| # of Systems Staff (DC-dedicated) | ||
| # of Communications/Education Staff | ||
| # of Service Center Representatives | ||
| # of Trustee Services Staff | ||
| # of Compliance/Legal Staff | ||
| Total # of Firm Employees |
2. Please describe what training facilities and opportunities you provide to employees. In addition, please discuss your philosophy on employee career pathing. Be sure to demonstrate that your firm meets the minimum qualifications set forth in the RFP.
3. Please describe your on-going client servicing:
| Would a client servicing team be dedicated to this account? (Y or N) |
| If yes, typically how many plans does each team handle? |
| If yes, typically how many clients are assigned to each team? |
| If not, please describe how the account would be serviced: |
| Would a team of phone account reps be dedicated to this account? (Y or N) |
| If yes, typically how many plans does each team handle? |
| If not, please describe how the account would be serviced: |
4. Please describe how you measure client satisfaction, use of client and participant surveys and what quality control measures are in place. Do you provide fee offsets if quality standards are not met?
5. Please describe what types of services you offer to terminating and retiring participants.
6.Provide specific experience-related information on the personnel you would assign to this client.
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G. CONVERSION PROCESS |
1. Please provide the following information on the plans you have converted to your system.
| Full Service Only Conversions Completed | |||
|---|---|---|---|
| Year | # of Conversions | Avg Conversion Time | Avg Blackout |
| 1992 | |||
| 1993 | |||
| 1994 | |||
| 1995 | |||
| 1996 | |||
| Scheduled Full Service Only Conversions | |
|---|---|
| Year | # of Conversions |
| 1997 | |
2. What transactions, if any, are allowed during a blackout period?
3. Briefly describe your conversion process and the role of the plan sponsor. Please describe the servicing structure and how the account is transitioned from the conversion team to the on-going servicing team. Please also provide a sample implementation timetable.
4.Is there a waiting period for new clients to begin the conversion process? (Y or N)
If yes, what is the time frame?
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H. DISCRIMINATION TESTING & OTHER LEGAL ISSUES |
1.Please provide the following information on discrimination testing services.
| Do you provide non-discrimination testing (sections 415, 401k and/or 401m? (Y or N) |
| Do you provide "what-if" scenarios for non-discrimination testing? (Y or N) |
| How many times per year do you perform these tests? |
| Do you charge separate fees for discrimination testing? (Y or N) |
| Are these services outsourced? (Y or N) |
| If yes, please name vendor: |
| Do you provide consulting services? (Y or N) |
2.Briefly describe your DOL, IRS, ERISA compliance and monitoring activity. Do you provide consulting services for ongoing legislative and regulatory compliance issues?
3.Briefly describe what services you provide the plan sponsor in terms of plan design issues, creation of the SPD, 404(c) compliance, etc.
4. Please provide the following information regarding any pending lawsuits
Are there any suits, actions or proceedings pending or threatened against your firm by any client, participant, state, Federal Government or regulatory agency arising from or connected with your investment, trust, recordkeeping or administrative services? (Y or N)
If yes, please describe.
Within the past five years, were any suits, actions or proceedings settled against your firm which were brought by any client, participant, state, Federal Government or regulatory agency which arose from or were connected with your investment, trust, recordkeeping or administrative services? (Y or N)
If yes, please describe.
| I. CONCLUSION |
1.Please feel free to discuss any other Defined Contribution features or capabilities of your firm, such as benefit consulting services.
| J. CLIENT-SPECIFIC ISSUES |
Affirmative Action
Include a summary of your firm's experience with affirmative action. This information is to include asummary of your affirmative action plan and your affirmative action policy statement.
Section 4-114a-3(10) of the regulations of Connecticut State Agencies requires agencies to consider the following factors when awarding contract which is subject to contract compliance requirements:
A "Notification to Contractors" form is attached, to be read, signed, and returned by the contractor. (Attachment I).
Also attached is a Contract Compliance Requirements reporting form, which the contractor must complete, sign and return; such form will be sent by OSC to the Commission on Human Rights and Opportunities (CHRO). (Attachment II).
| K. FEES & ATTACHMENTS |
1.Please fully describe the fees you would apply to this case, your contract guarantee term, any front or back-end charges and any options for fees available to the plan.
2. Please fully describe a suggested mechanism for fee payment given the Comptroller's interest in limiting direct budgetary impact of Plan Administrators.
3.What potential conflicts of interest might be inherent in the selection of your firm for this assignment, and how do you avoid such conflicts?