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HomeMy WebLinkAboutDocumentation_Pension Joint_Tab 01_05/03/2010 Y BENEFITS USA, INC. A Third Party Administrator of Public Pensions March 4, 2010 TO: BOARD OF TRUSTEES VILLAGE OF TEQUESTA PUBLIC SAFTEY RETIREMENT PLAN RE: RFP PROPOSAL FOR PROFESSIONAL PLAN ADMINISTRATION SERVICES To Whom It May Concern: It is our pleasure to provide this proposal for the provision of professional administration services for the Village of Tequesta Public Safety Retirement Plan. Benefits USA, Inc. is a full service Third Party Pension Administrator, who is committed to meeting the needs of your current and future members through highly responsive, personalized, and technologically savvy customer service. The principal business of Benefits USA, Inc. is the administration of public pension funds in Florida. Our established background, extensive education, and years of professional experience in this field, makes us an unusually well - qualified company to provide your administration services. As you can see from the number of pension Boards that we serve, Trustees recognize our ability to provide experienced professional services to your fund. We hope that you will find the enclosed information of interest and that we will receive favorable consideration for provision of services as your plan administrator. Please feel free to contact me directly should you have any questions regarding our submission. Sincerely, Peter K. Prior, President enclosures 3810 Inverrary Blvd. Ste. 303 Lauderhill, FL 33319 954 -730 -2068 fax 954- 730 -0738 EFITS usA t Pension Administration Services Proposal Submitted to the Village of Tequesta Public Safety Retirement Plan March 4, 2010 Nli 3810 lnverrary Blvd., Suite 303, Lauderhill, FL 33319 (954) 730-2068 Phone (954) 730 -0738 F(u Table of Contents Specific Proposal Submission Requirements and Fee Proposal Tab 1 About Benefits USA Our Beliefs & Philosophy Tab 2 Our Ethics Policy Tab 2 Our Services Tab 3 Our Service Partners Tab 3 Our Communications Tab 4 Our Clients & References Tab 5 Our Principals & Staff Tab 6 Certifications & Insurances Tab 7 Fee Proposal r The monthly flat fee that we propose is $1 Benefits USA, Inc. will be responsible for telephone expenses, routine copies and postage (with the exception of mass mailings), and basic computer programming. Benefits USA, Inc. will not be responsible for the cost of printing, postage for mass mailings and non - routine major expenses for special tasks requested by the Trustees. FFITS E SA Fee Proposal (continued) Termination y We agree to a thirty -day notice of termination by the Board. We further agree to provide ninety days written notice to the Board in the event of termination by Benefits USA, Inc. In the event of termination, participant records will be turned over to the Trustees or a new administrator in electronic and /or paper format. Public Entity Crimes Neither the entity submitting this proposal, nor any officers, directors, executives, shareholders, employees, members or agents who are active in management of the entity, nor any affiliate of the entity, have at any time been charged with and /or convicted of a public entity crime. Litigation r No legal action has been taken against Benefits USA, Inc. for any reason. No claims have been filed that have been settled or that are pending. r 001 '�a Our Beliefs and Philosophy • The Mission of Benefits USA is to deliver the highest quality pension benefit administration services to our public fund clients. We will strive to always respond to our clients' needs and requests not only with speed, but with integrity and with actions totally for the benefit of the client and the benefit recipient. • The philosophy of Benefits USA mirrors that of author David Everett who wrote: "Tall oaks from little acorns grow." In this same spirit, Benefits USA has grown since its inception in 1997 to a firm well respected in the public pension arena for the knowledge of our staff, the quality of our service, the integrity of our actions, our accessibility to our clients, and our commitment to continue to grow ourselves by finding new, innovative, and ever more efficient ways to provide pension administrative services. Our Ethics Policy I. 1 will put the interests of the client above my own. 11. The interests of Plan Participants will take precedence over any other form of service I may be expected to perform, particularly in those cases where the participant has not been exposed to a business or a professional background. III. I will maintain high ethical standards at all times even though it may be expedient to resolve some pending matter, however minor on its face, UNETHICALLY. IV. I will not accept instructions from any client, directly or indirectly, to commit ethical wrongdoing even though I will lose the client if I do not comply. V. I will prepare myself through continuing education to perform the duties of my occupation in the utmost knowledgeable and professional manner, and I will make such knowledge and professionalism available to all those I serve. VI. I will not violate any law duly enacted by any governmental body whose authority has been established by law. Adopted December 4 X997 a t F Uur Services or Pension Board / Trustee Meetings we will y Prepare and distribute Agenda and backup paperwork y Make all public & trustee notifications of time /place Coordinate all pending matters with Chairperson & Plan Counsel y Prepare and distribute minutes ➢ Carry out Board instructions subsequent to the meeting Our Services (continued) Monitor monthly custodian statements and reports to determine: Were contributions transferred for investment on timely basis? Do assets listed on custodian report correspond to assets listed on investment managers reports? r Are benefit payments, expense payments and other deductions from assets correct? Are fee invoices in accordance to the terms of the contract for services? Our Services (continued) Review Investment Manager & Performance Monitor reports to determine: Is asset allocation in line with fund's Investment Policy? y Are asset quality and type inline with Investment Policy? Has investment manager been notified and subsequently invested any new money (contributions and /or other cash received)? r Is cash or cash equivalent amount reasonable? Are fee invoices in accordance to the terms of the contract for services? Our Services (continued) Compliance Items y Is current Investment Policy, signed by each manager and financial service provider, on file? Have Trustees evaluated the services of custodian, investment consultant and investment manager for compliance with agreements and expectations? Provide Actuarial Valuation to State Actuary Division of Retirement for Chapter 175 / 185 Plans. y Distribute annual pension benefit statements to participants. Distribute Summary Plan Description as required. Our Services (continued) Audit Items Maintain expense records paid during plan year for plan auditor Y Provide manager and custodian reports to plan auditor y Assist auditor as needed to obtain necessary records v Assist auditor in determining accuracy and transfer of contributions y Distribute auditor's completed report to trustees, other interested parties, and as part of annual Division of Retirement Annual Report (for Police / Fire plans) LL „ rrsA Our Services (continued) We will coordinate with your Actuary by providing Updated listings of active employees with pertinent data such as new hires, vested and non - vested terminations, annual salary and contributions, refunded contributions, social security numbers, dates of birth, and dates of hire Y Updated listings of Early, Normal or Disabled retirees in pay status at plan year end y Record of beneficiaries who have selected Joint and Survivor or 10 Year Certain Life options Y Status of terminated participants who did not withdraw contributions ➢ Deaths during plan year Y Current audited financial statement Our Services (continued) Miscellaneous Services Obtain insurance premium quotes for Fidelity Bond / Trustee Fiduciary Liability / General Liability r= Arrange for attendance at educational programs such as FPPTA, NCPERS, and Florida State Conference for Police & Fire r Develop computer programs for Trustees' and members' information and education Arrange pre- retirement seminars for plan members r Report items of general interest occurring in the employee benefits field Post - Retirement Investment Option Resources Benefits USA can help your DROP retiree with post -DROP Investments We can offer institutional grade portfolio management to individual investors through an external investment partner, giving individual investors the highest levels of institutional quality management. This portfolio assistance is available to participants taking a distribution from a DROP plan and looking for the best way to minimize risk in a broadly diversified portfolio. The process begins with one -on -one personal consultation with an investment professional to design a plan based on the participant's time horizon, objectives and ability to handle risk. r This service is aimed at individuals who are not high -risk investors. Their primary concern is preserving capital, growing the value of the assets, while minimizing risk and tax consequences. The final investment portfolio is a comprehensive fee -based investment program offered by an independent 3rd party investment firm, through Benefits USA. Communications We will assist you with communications to Trustees ➢ Service Providers ➢ State of Florida ➢ Active Employees / Plan Participants ➢ Active Retirees / Beneficiaries Legal Counsel ➢ Plan Sponsor Finance Department City Clerk's Office Communication with Trustees ➢ Meeting Minutes & Agendas ➢ Back Up Materials ➢ Completed Financial Audit Reports ➢ Completed Actuarial Reports ➢ Upcoming Educational Events Custodian and Investment Manager reports and presentation materials ➢ RFP Preparations and Responses #-V M . tea' Communication with Service Providers Board Meeting Dates and Agendas Requests for Presentations to Board Members Requests for Financial & Other Written Reports y Requests for Benefit Distributions Requests for Expense Payments ham„ � Communication with the State of Florida y Provide Actuarial Valuation of plan to State Actuary (175/185 Plans) Provide Division of Retirement Annual Report for Police Officers and Firefighters, including copy of audited financial report Communication with Active Employees /Plan :Participants r Summary Plan Description as required under Florida law Updated financial & actuarial information in years SPD not required y Annual pension benefit statements r Newsletters — as desired by Board of Trustees Reminders to report address changes and /or marital status changes Y Explanation of benefit options and estimate of benefits ➢ Applications and other necessary forms for Early/ Normal Retirement Communication with Retired Participants /Benefi.ciaries y Respond to calls for assistance with lost checks, address changes, changes in banks for direct deposit, changing in withholding tax or insurance premium deductions Y Provide same communication materials furnished to active employees y Determine that annual Form 1099R is provided and reflects correct information y Administer COLA provisions as applicable Communication with Plan Sponsor y Receive payroll data r Provide information for posting to City's general ledger Exchange required information during annual audit Receive copy of transfer of contributions to custodian bank Receive advice of contributions /salaries of terminated /retiring employees Furnish minutes & other required documents to City's custodian of records y Furnish agendas and meeting notices as specified by ordinance or other rules of procedure applicable to public meetings �� r Our Clients and References Since our firms formation in December 1997, Benefits USA has been privileged to acquire the following pension funds as clients, with others currently pending: City of Aventura Police Officers' Retirement Plan y City of Cocoa Firefighters' Pension Fund y City of Cooper City Firefighters' Pension Fund y City of Coral Gables Police Pension Fund ➢ City of Deerfield Beach Non - Uniformed Employees Retirement Fun y City of Florida City Police Officers' Pension Fund y City of Hialeah Firemen's' Relief and Pension Fund y City of Hialeah Police Pension Fund r City of Homestead General Employees Pension Fund ➢ City of Homestead Firefighters Pension Fund r' City of Homestead New Elected Officials & Senior Management City of Homestead Municipal Police Officers' Pension Trust Fund r City of Lauderdale Lakes Firefighters' Retirement System City of Lauderhill Police Officers' Retirement Plan Y City of Maitland Police Officers' and Firefighters Pensio and City of Miramar General Employees Retirement System' Our Clients and References (continued) Y City of Oakland Park Police and Firefighter Retirement System City of Port Orange General Employees' Defined Benefit Plan y City of Riviera Beach General Employees' Retirement Fund r City of Riviera Beach Police Officers' Pension Plan Y City of Sanibel General Employees Pension Fund y City of Sarasota Firefighters' Insurance Trust Fund y City of South Miami Pension Plan y City of Sunrise Firefighters' Retirement Fund City of Tamarac Police Officers' Pension Trust Fund Y East Lake Tarpon Special Fire Control District r Town of Davie Firefighters Pension Plan Town of Davie Police Pension Plan v Town of Golden Beach Police Pension Fund (supplemental plan) y Town of Golden Beach Police & General Employees' Retirement Plan Our Principals & Staff Although Benefits USA has only been in existence as a firm since 1997, our principals have extensive backgrounds in the employee benefits field. Benefits USA President, Peter Prior's experience as a public pension trustee dates back to 1977. Senior Administrator Carolyn Furlong's experience as a pension and health benefits administrator dates back to 1970, and Althea Leigh -Lodge has been a benefits administrator since 1996. Each of these individuals has continued his or her education in the benefits and insurance fields as is reflected on their enclosed resumes. All three principals will be responsible for your pension fund. In addition to these three principals, other staff members include Livia Nixon, Emilie Smith, Mei Feng and Michael Lurch. Ms. Nixon, although new to our firm in 2005 has worked in the municipal pension field since 1990. Ms. Smith has her MPA, coupled with nine years of local government experience. Ms. Feng and Mr. Lurch have been with Benefits USA providing technical and administrative support. These individuals are dedicated to client support and available to assist you with your benefit needs. As we grow we will continue to look for additional qualified individuals who share our values and commitment to our clients and their continued satisfaction. use PETE PRIOR 848 Orchid Drive Plantation, Fl. 33317 (954) 730 -2068 Ext 203 (W) (954) 791 -3396 (H) PROFESSIONAL EXPERIENCE 1975 —2004 Tamarac Fire Department — Fire Lieutenant Tamarac, Fl. Education 1979 -1982 Broward Community College Associate Degree in Fire Science. 1991 -1994 Nova Southeastern University Fort Lauderdale, Fl. Bachelors Degree in Business and Professional Management with a specialty in Public Administration. 1994 -1996 Masters Degree in Human Resource Management. Many seminars on Collective Bargaining from the International Association Of Firefighters and Florida Professional Firefighters Business Affiliation 1997 to present President, Benefits USA, Inc., Lauderhill, FL ORGANIZATIONS 1976 - Present Division Vice President for Local 3080, 1992 -1996 Tamarac Professional Fire Fighters Local 2600, President 1976 -1986 BCCPFF - Division Vice President for 3 years BCCPFF - President for 5 years starting in 1985 -1987, 1990 -1992 BCCPFF - Treasurer since 1994 - 2000 Tamarac Pension Board - since 1977. Past Chairman / Vice - Chairman of the Tamarac Pension Board Trustee for Hialeah Gardens Police Pension Fund, appointed in 1997 Past Division Vice President for the AFL -CIO & past Trustee for the AFL -CIO representing public employees Current Director of the Florida Public Pension Trustees Association (FPPTA) since 1995 Past Chairman of the FPPTA Audit committee Member of the FPPTA Education Committee for the CPPTA Program Chairman of the Benefits Committee for the FPPTA PROFESSIONAL DESIGNATIONS AND AFFILIATIONS Certified Public Pension Trustee (CPPT) Participant in Global Investment Strategies in Copenhagen, Denmark , Ormt.", USA CAROLYN L FURLONG, CPCU, CLU, CEBS, CPIW CIF urloua(d;aolxotn PROFESSIONAL EXPERIENCE: 12/01/97 Employed by Benefits USA, Inc. Third party administration of public sector Defined Benefit Pension Plans and Supplemental Plans, providing full service to Boards of Trustees and participants. 4/01/89 — 8101/97 First Benefits, Inc. of Florida Florida manager for the company, a third party administrator of (a) Defined Benefit and Defined Contribution Pension Plans, b) Self- Funded Employee Group Medical and Dental Plans, and (c) Section 125 Cafeteria and Flexible Spending Account Plans. Clients included multi - employer trusts, city and county governmental units, public school and university systems, and single employer plans. Duties included managing the service offices, marketing of new business, responding to RFPs, full range of services to Boards of Trustees, writing Summary Plan Descriptions for all types of plans (pension and medical), keeping abreast of legislation affecting employee benefit plans, coordinating with legal, actuarial, investment management, consulting, accounting and other professional advisors with respect to Trustee services and providing all services required by plan participants. 1970 to 4/01/89 Self - Employed General Insurance Agent and Third Party Administrator specializing in Taft - Hartley Funds PROFESSIONAL DESIGNATIONS: Certified Professional Insurance Woman (CPIW) Chartered Property Casualty Underwriter (CPCU) Chartered Life Underwriter (CLU) Certified Employee Benefit Specialist (CEBS) Certified Retirement Administrator (CRA) Certified Retirement Counselor (CRC) INSURANCE AND EMPLOYEE BENEFITS SERVICE: National President - National Association of Insurance Women (International) South Florida President - Society of CPCU South Florida President - Intl. Society of Certified Employee Benefit Specialists South Florida President - Professional Insurance Agents Chairman - City of Coral Gables Insurance Advisory Board Bank Director - Bank of Florida White House Invitee - Invited to the White House twice representing Women- owned businesses Florida Licensed Agent - Life/Health and Property /Casualty tie ALTHEA LEIGH -LODGE althea @benefits- usa.org PROFESSIONAL EXPERIENCE 8/2002- Present Employed by: Benefits USA, Inc. Providing full Customer Service to Boards of Trustees and their participants for a third party administrator of Defined Benefit Pension Plans and Supplemental Plans. 7/97 -12/99 Employed by: First Benefits Services, Inc CSR/Claims Representative. Provided Customer Service for a third party administrator of Municipal Pension Plans, Health & Welfare Trust Funds, Section 125 Cafeteria and Flexible Spending Account Plans, and Self- Funded Employee Group Medical and Dental Plans. Duties included verification of benefits, claims status, accounts payable, checks disbursements and wire transfers to Account Holders, bank reconciliation, Liaison to Group Administrators, and coordination of Medical and Dental Benefits. EDUCATION 1977-1979 Miami Dade Community College Degree: AA Nursing ORGANIZATIONS 2000 —2003 Soccer Mom 2001 —2002 President - PTA LIVIA G. NIXON Livia @benefits - usa.org CAREER SUMMARY Extensive background as an Administrative Assistant in Employee Benefits /Customer Service. Committed to standards of professional performance. Word processing skills in Microsoft Word and Excel - Reliable — Problem Solver - Organized - Quality Service Team Player PROFESSIONAL EXPERIENCE 2005 to present Benefits USA, Inc. Working as administrator on Pension Plans. Coordinate Pension Board meetings and taking minutes. Providing full customer service to Boards of Trustees and their participants for a third party administrator of Defined Benefit Pension Plans and Supplemental Plans. Tasks include working with legal, investment management, accounting, actuarial, consulting and other professional advisors with respect to Trustee services. 1998 to 2005 Salem Trust Company, Account Associate Responsible for daily Data Input of Contributions and balance sheets; bank deposits, distributions from Trust accounts, monthly reporting for pension payments, payments of invoices, account reviews, assist in processing year end 10998 tax forms . Work directly with retirees, clients and Benefit Providers. Worked with outside auditor's in providing them information relating to various municipal pension plan audits. Monthly statement downloading for outside investment managers. Work with legal documents and interaction via phone contact with various attorneys. Capable of working with little or no supervision. 1990 —1998 Barnett Bank Trust Company, Administrative Assistant Supported three (3) Trust Officers in Corporate Trust Dept. with (40I)K and pension accounts. Responsible for the processing of lump sum distributions and monthly pension disbursements. Daily processing of contributions to trust accounts. Provided phone communication with clients and investment managers regarding trading issues, account balances and overdrafts. EDUCATION Exceptional Assistant Seminar Grammar and It's Usage Seminar American Society for Pension Actuaries Financial Accounting Course (PBCC 3.0 GPA) OFFICE SKILLS Word Processing: Microsoft Word and Excel Phone Etiquette Sungard Trust System Series 11 Independent Self Starter a EMILIE SMITH emilie@benefits-usa.org Professional Experience Director of Public Relations and Support Services, City of Lauderdale Lakes, 1 /00 to 11/02 Acting Human Resources Director in her absence; Responsible for special projects for City Manager and Assistant City Manager. Assistant to City Manager, City of Lauderdale Lakes, 12/98 to 1 /00 Supervised, coordinated, and trained support staff for administrative departments; Lead a committee to develop and implement a Special Early Retirement Program which resulted in 80% participation; Editor of the City Newsletter which is mailed to 32,000 residents and businesses; Developed a merit based performance evaluation system for all non - bargaining employee; Participated in negotiations for a collective bargaining agreement with the International Association for Firefighters (IAFF). Senior Management and Budget Analyst, City of Tamarac, 12/96 to 12/98 Promoted to senior level Management and Budget Analyst after one year of service; Responsible for complex financial and cost benefit analysis for Special Early Retirement Program; Participated on a committee to develop and implement a classification and compensation system for all non - bargaining employees. Educational Experience Currently Pursuing Ph. D. in Education, Capella University 3.9 GPA, All But Dissertation Master of Public Administration Degree, Nova Southeastern University 3.97 GPA .Bachelor of Science Degree, Legal Studies, Nova Southeastern University Professional Affiliations Government Finance Officers Association (GFOA), member since 1997 Florida Government Finance Officers Association (FGFOA), member since 1997 American Society for Public Administration (ASPA), member since 1999 Broward City County Management Association (BCCMA), member since 1999; Served as Program Chairperson from 2000 - 2002 MEI FANG mei@benefits-usa.org EXPERIENCE: Administrator, Benefits U.S.A. 10/2007 - Present Providing full Customer Service to Boards of Trustees and their participants for a third party administrator of Defined Benefit Pension Plans and Supplemental Plans Customer Service Specialist, Grampus Enterprise Inc. 09/1999 — 10/2007 Responsible for Pro -sale customer service for both individual consumers and wholesale dealers for warranty repair and replacement of merchandise. Organize and categorize customer claims and generate analysis reports to management. Inspect arriving and departing loads coming in & out of the gates. Review and processes vendor payments. Assist in planning and presenting employer training. Maintain computerized and manual files and records. EDUCATION: 9/2002 — Present Florida International University 9/1988 — 07/1998 Yunnan University of Finance and Trade Insurances Benefits USA, Inc. acknowledges that it is a fiduciary of the plan pursuant to Section 112.656, Florida Statutes r Benefits USA, Inc. agrees that this Agreement shall be construed under the laws of the State of Florida and federal law, where applicable. Benefits USA, Inc. agrees to the venue for any judicial proceeding to be in the County in which the Board sits. y Benefits USA, Inc. carries Third Party Administrator's Errors & Omissions insurance with a limit of $1,000,000 and a Fidelity Bond in the amount of $250,000. In addition, we carry General Liability with a limit of $1 Although not required for Pension Plan administration, Benefits USA, Inc. has a State of Florida Certificate of Authority to operate as a Third Party Administrator. Addendum The request asks us =ide the name of the contact person that will be assigned to th. The principal representative will be Pete Prior. As for internal control procedures for the processing of disbursements: this is done through a warrant system. We will furnish the appropriate trustee /s with a warrant containing the accounts and amounts to be paid above their signatures. Any invoices paid between meetings will be listed on the consent agenda at the next meeting for ratification. We recommend that the custodian process the pension checks for the retirees and beneficiaries. As a Trust Company, they are fully equipped to process the checks and provide alternative methods of distributing pension checks during a time of crisis. After reviewing your service providers, we do not have any relationship with your vendors other than strictly a working relationship with other clients. Benefits USA is currently in the process of setting up a new software program. We will explain the software in more detail at a presentation of this proposal. A", t New Client Check List Legal name of Plan Copy of Ordinance and Summary Plan Description Names, telephone and fax numbers or pager numbers of Board of Trustees and preferred addresses for receipt of communications from the administrator the Fund office address will be the address provided to participants and professional advisors unless the individual Trustee directs otherwise. (Home addresses of Trustees are not given out without authorization of the Trustee.) r Same information for all Fund professionals: Actuary - need copy of most recent valuation Attorney Auditor — need copy of most recent audited financial statement for each Fund Investment Performance Monitor — need copy of most recent performance report Investment Manager(s) Custodian Commission Recapture Company(s) Plan Sponsor Contacts — will administrator need to have contact with City departments? Identify key individuals) (City Clerk, Finance Director) and their phone & fax numbers. r Are there existing files for Active and Retired participants? Or M.", New Client Check List (continued) r Is there a regular set time, date and location for Trustee meetings? y Do Board members want agenda packets in advance of the meeting? Is there an existing Operating Rules and Procedures manual? How is Administrator advised of new hires and terminations? r Are beneficiary designation records up to date? When was Summary Plan Description issued last? v Letter is needed authorizing other parties (particularly the custodian) to accept instructions from Administrator? Letter should specify that the Administrator is not authorized to transfer funds out of accounts. Who is authorized to sign disbursement requests? Need copy of Investment Policy Statement Need copies of all forms used for pension plan: refund of contributions, retirement applications etc. Do all service providers have current executed contracts on file? Tax ID# of Trust Fund? Will the administrator perform the fund accounting? If so, this will have to be re- constructed to the beginning of the fiscal year in order to be able to provide the auditor the records they will need. Obtain past monthly reports from custodian. N BENEFITS USA, INC. A Third Party Administrator of Public Pensions March 4, 2010 TO: BOARD OF TRUSTEES VILLAGE OF TEQUESTA GENERAL EMPLOYEES' RETIREMENT PLAN RE: RFP PROPOSAL FOR PROFESSIONAL PLAN ADMINISTRATION SERVICES To Whom It May Concern: It is our pleasure to provide this proposal for the provision of professional administration services for the Village of Tequesta General Employees' Retirement Plan. Benefits USA, Inc. is a full service Third Party Pension Administrator, who is committed to meeting the needs of your current and future members through highly responsive, personalized, and technologically savvy customer service. The principal business of Benefits USA, Inc. is the administration of public pension funds in Florida. Our established background, extensive education, and years of professional experience in this field, makes us an unusually well - qualified company to provide your administration services. As you can see from the number of pension Boards that we serve, Trustees recognize our ability to provide experienced professional services to your fund. We hope that you will find the enclosed information of interest and that we will receive favorable consideration for provision of services as your plan administrator. Please feel free to contact me directly should you have any questions regarding our submission. Sincerely, I a �1 Peter K. Prior, President enclosures 3810 brverrary Blvd. Ste. 303 Lauderhill, FL 33319 954- 730 -2068 fax 954 -730 -0738 , Pension Administration Services Proposal Submitted to the Village of Tequesta General Employees' Retirement Plan March 4, 2010 3810 Inverrary Blvd. , Suite 303 Lauderhill, FL 33319` (954) 730 -2068 Phone (954) 730 -0738 Far Table of Contents Specific Proposal Submission Requirements and Fee Proposal Tab 1 About Benefits USA Our Beliefs & Philosophy Tab 2 Our Ethics Policy Tab 2 Our Services Tab 3 Our Service Partners Tab 3 Our Communications Tab 4 Our Clients & References Tab 5 Our Principals & Staff Tab 6 Certifications & Insurances Tab 7 Fee Proposal The monthly flat fee that we propose is $1 Benefits USA, Inc. will be responsible for telephone expenses, routine copies and postage (with the exception of mass mailings), and basic computer programming. Benefits USA, Inc. will not be responsible for the cost of printing, postage for mass mailings and non - routine major expenses for special tasks requested by the Trustees. EMS c €i Fee Proposal (continued) Termination y We agree to a thirty -day notice of termination by the Board. We further agree to provide ninety days written notice to the Board in the event of termination by Benefits USA, Inc. In the event of termination, participant records will be turned over to the Trustees or a new administrator in electronic and /or paper format. Public Entity Crimes Neither the entity submitting this proposal, nor any officers, directors, executives, shareholders, employees, members or agents who are active in management of the entity, nor any affiliate of the entity, have at any time been charged with and /or convicted of a public entity crime. Litigation No legal action has been taken against Benefits USA, Inc. for any reason. No claims have been filed that have been settled or that are pending. USA, Our Beliefs and Philosophy • The Mission of Benefits USA is to deliver the highest quality pension benefit administration services to our public fund clients. We will strive to always respond to our clients' needs and requests not only with speed, but with integrity and with actions totally for the benefit of the client and the benefit recipient. • The philosophy of Benefits USA mirrors that of author David Everett who wrote: "Tall oaks from little acorns grow." In this same spirit, Benefits USA has grown since its inception in 1997 to a firm well respected in the public pension arena for the knowledge of our staff, the quality of our service, the integrity of our actions, our accessibility to our clients, and our commitment to continue to grow ourselves by finding new, innovative, and ever more efficient ways to provide pension administrative services. Our :Ethics Policy I. 1 will put the interests of the client above my own. 11. The interests of Plan Participants will take precedence over any other form of service I may be expected to perform, particularly in those cases where the participant has not been exposed to a business or a professional background. III. I will maintain high ethical standards at all times even though it may be expedient to resolve some pending matter, however minor on its face, UNETHICALLY. IV. I will not accept instructions from any client, directly or indirectly, to commit ethical wrongdoing even though I will lose the client if I do not comply. V. I will prepare myself through continuing education to perform the duties of my occupation in the utmost knowledgeable and professional manner, and I will make such knowledge and professionalism available to all those I serve. VI. I will not violate any law duly enacted by any governmental body whose authority has been established by law. Adopted December 4, X997 14 Our Services For Pension Board / Trustee Meetings we will ➢ Prepare and distribute Agenda and backup paperwork ➢ Make all public & trustee notifications of time /place y Coordinate all pending matters with Chairperson & Plan Counsel y Prepare and distribute minutes y Carry out Board instructions subsequent to the meeting MAN Our Services (continued) Monitor monthly custodian statements and reports to determine: Were contributions transferred for investment on timely basis? i Do assets listed on custodian report correspond to assets listed on investment managers reports? r Are benefit payments, expense payments and other deductions from assets correct? Are fee invoices in accordance to the terms of the contract for services? n Our Services (continued) Review Investment Manager & Performance Monitor reports to determine: Y Is asset allocation in line with fund's Investment Policy? ➢ Are asset quality and type inline with Investment Policy? Has investment manager been notified and subsequently invested any new money (contributions and /or other cash received)? Is cash or cash equivalent amount reasonable? r Are fee invoices in accordance to the terms of the contract for services? Our Services (continued) Compliance Items y Is current Investment Policy, signed by each manager and financial service provider, on file? ;= Have Trustees evaluated the services of custodian, investment consultant and investment manager for compliance with agreements and expectations? Provide Actuarial Valuation to State Actuary Division of Retirement for Chapter 175 / 185 Plans. r Distribute annual pension benefit statements to participants. Distribute Summary Plan Description as required. Our Services (continued) Audit Items Y Maintain expense records paid during plan year for plan auditor y Provide manager and custodian reports to plan auditor Assist auditor as needed to obtain necessary records r Assist auditor in determining accuracy and transfer of contributions y Distribute auditor's completed report to trustees, other interested parties, and as part of annual Division of Retirement Annual Report (for Police / Fire plans) Our Services (continued) We will coordinate with your Actuary by providing y Updated listings of active employees with pertinent data such as new hires, vested and non - vested terminations, annual salary and contributions, refunded contributions, social security numbers, dates of birth, and dates of hire r Updated listings of Early, Normal or Disabled retirees in pay status at plan year end y Record of beneficiaries who have selected Joint and Survivor or 10 Year Certain Life options y Status of terminated participants who did not withdraw contributions y Deaths during plan year Current audited financial statement Our Services (continued) Miscellaneous Services y Obtain insurance premium quotes for Fidelity Bond / Trustee Fiduciary Liability / General Liability y Arrange for attendance at educational programs such as FPPTA, NCPERS, and Florida State Conference for Police & Fire y Develop computer programs for Trustees' and members' information and education Arrange pre- retirement seminars for plan members ➢ Report items of general interest occurring in the employee benefits field Y sl Post - Retirement Investment Option Resources Benefits USA can help your DROP retiree with post -DROP Investments We can offer institutional grade portfolio management to individual investors through an external investment partner, giving individual investors the highest levels of institutional quality management. This portfolio assistance is available to participants taking a distribution from a DROP plan and looking for the best way to minimize risk in a broadly diversified portfolio. The process begins with one -on -one personal consultation with an investment professional to design a plan based on the participant's time horizon, objectives and ability to handle risk. r This service is aimed at individuals who are not high -risk investors. Their primary concern is preserving capital, growing the value of the assets, while minimizing risk and tax consequences. The final investment portfolio is a comprehensive fee -based investment program offered by an independent 3rd party investment firm, through Benefits USA. Communications We will assist you with communications to ➢ Trustees ➢ Service Providers ➢ State of Florida ➢ Active Employees / Plan Participants ➢ Active Retirees / Beneficiaries ➢ Legal Counsel ➢ Plan Sponsor y Finance Department ➢ City Clerk's Office v Communication with Trustees ➢ Meeting Minutes & Agendas ➢ Back Up Materials ➢ Completed Financial Audit Reports ➢ Completed Actuarial Reports ➢ Upcoming Educational Events ➢ Custodian and Investment Manager reports and presentation materials ➢ RFP Preparations and Responses �; tMA Communication with Service Providers Board Meeting Dates and Agendas Requests for Presentations to Board Members y Requests for Financial & Other Written Reports ➢ Requests for Benefit Distributions ➢ Requests for Expense Payments Communication with the State of Florida Provide Actuarial Valuation of plan to State Actuary (175/185 Plans) Y Provide Division of Retirement Annual Report for Police Officers and Firefighters, including copy of audited financial report Communication with Active Employees /Plan. Participants y Summary Plan Description as required under Florida law y Updated financial & actuarial information in years SPD not required r Annual pension benefit statements Newsletters — as desired by Board of Trustees Reminders to report address changes and /or marital status changes y Explanation of benefit options and estimate of benefits y Applications and other necessary forms for Early/ Normal Retirement trr Communication with Retired Participants /Benefl.ci.aries Y Respond to calls for assistance with lost checks, address changes, changes in banks for direct deposit, changing in withholding tax or insurance premium deductions r Provide same communication materials furnished to active employees y Determine that annual Form 1099R is provided and reflects correct information v Administer COLA provisions as applicable resuse - Communication with Plan Sponsor Receive payroll data y Provide information for posting to City's general ledger r Exchange required information during annual audit Receive copy of transfer of contributions to custodian bank Receive advice of contributions /salaries of terminated /retiring employees ➢ Furnish minutes & other required documents to City's custodian of records Furnish agendas and meeting notices as specified by ordinance or other rules of procedure applicable to public meetings i Our Clients and References Since our firms formation in December 1997, Benefits USA has been privileged to acquire the following pension funds as clients, with others currently pending: City of Aventura Police Officers' Retirement Plan City of Cocoa Firefighters' Pension Fund Y City of Cooper City Firefighters' Pension Fund y City of Coral Gables Police Pension Fund ➢ City of Deerfield Beach Non - Uniformed Employees Retirement Fun ➢ City of Florida City Police Officers' Pension Fund City of Hialeah Firemen's' Relief and Pension Fund Y City of Hialeah Police Pension Fund City of Homestead General Employees Pension Fund City of Homestead Firefighters Pension Fund City of Homestead New Elected Officials & Senior Management y City of Homestead Municipal Police Officers' Pension Trust Fund y City of Lauderdale Lakes Firefighters' Retirement System y City of Lauderhill Police Officers' Retirement Plan City of Maitland Police Officers' and Firefighters Pensio and ➢ City of Miramar General Employees Retirement System Our Clients and References (continued) Y City of Oakland Park Police and Firefighter Retirement System r City of Port Orange General Employees' Defined Benefit Plan City of Riviera Beach General Employees' Retirement Fund City of Riviera Beach Police Officers' Pension Plan City of Sanibel General Employees Pension Fund City of Sarasota Firefighters' Insurance Trust Fund Y City of South Miami Pension Plan Y City of Sunrise Firefighters' Retirement Fund y City of Tamarac Police Officers' Pension Trust Fund ➢ East Lake Tarpon Special Fire Control District Town of Davie Firefighters Pension Plan Town of Davie Police Pension Plan Town of Golden Beach Police Pension Fund (supplemental plan) r Town of Golden Beach Police & General Employees' Retirement Plan Our Principals & Staff Although Benefits USA has only been in existence as a firm since 1997, our principals have extensive backgrounds in the employee benefits field. Benefits USA President, Peter Prior's experience as a public pension trustee dates back to 1977. Senior Administrator Carolyn Furlong's experience as a pension and health benefits administrator dates back to 1970, and Althea Leigh -Lodge has been a benefits administrator since 1996. Each of these individuals has continued his or her education in the benefits and insurance fields as is reflected on their enclosed resumes. All three principals will be responsible for your pension fund. In addition to these three principals, other staff members include Livia Nixon, Emilie Smith, Mei Feng and Michael Lurch. Ms. Nixon, although new to our firm in 2005 has worked in the municipal pension field since 1990. Ms. Smith has her MPA, coupled with nine years of local government experience. Ms. Feng and Mr. Lurch have been with Benefits USA providing technical and administrative support. These individuals are dedicated to client support and available to assist you with your benefit needs. As we grow we will continue to look for additional qualified individuals who share our values and commitment to our clients and their continued satisfaction. PETE PRIOR 848 Orchid Drive Plantation, Fl. 33317 (954) 730 -2068 Ext 203 (W) (954) 791- 3396 (1-I) PROFESSIONAL EXPERIENCE 1975 —2004 Tamarac Fire Department — Fire Lieutenant Tamarac, Fl. Education 1979 -1982 Broward Community College Associate Degree in Fire Science. 1991 -1994 Nova Southeastern University Fort Lauderdale, Fl. Bachelors Degree in Business and Professional Management with a specialty in Public Administration. 1994 -1996 Masters Degree in Human Resource Management. Many seminars on Collective Bargaining from the International Association Of Firefighters and Florida Professional Firefighters Business Affiliation 1997 to present President, Benefits USA, Inc., Lauderhill, FL ORGANIZATIONS 1976 - Present Division Vice President for Local 3080, 1992 -1996 Tamarac Professional Fire Fighters Local 2600, President 1976 -1986 BCCPFF - Division Vice President for 3 years BCCPFF - President for 5 years starting in 1985 -1987, 1990 -1992 BCCPFF - Treasurer since 1994 - 2000 Tamarac Pension Board - since 1977. Past Chairman / Vice - Chairman of the Tamarac Pension Board Trustee for Hialeah Gardens Police Pension Fund, appointed in 1997 Past Division Vice President for the AFL -CIO & past Trustee for the AFL -CIO representing public employees Current Director of the Florida Public Pension Trustees Association ( FPPTA) since 1995 Past Chairman of the FPPTA Audit committee Member of the FPPTA Education Committee for the CPPTA Program Chairman of the Benefits Committee for the FPPTA PROFESSIONAL DESIGNATIONS AND AFFILIATIONS Certified Public Pension Trustee (CPPT) A Participant in Global Investment Strategies in Copenhagen, Denmark CAROLYN L FURLONG, CPCU, CLU, CEBS, CPIW CIFurlong(ci?aolxoni t4/01/89 ROFESSIONAL EXPERIENCE: /01/97 Employed by Benefits USA, Inc. hird parry administration of public sector Defined Benefit Pension Plans and Supplemental Plans, providing full service to Boards of rustees and participants. — 8101/97 First Benefits, Inc, of Florida Florida manager for the company, a third party administrator of (a) Defined Benefit and Defined Contribution Pension Plans, b) Self- Funded Employee Group Medical and Dental Plans, and (c) Section 125 Cafeteria and Flexible Spending Account Plans. Clients included multi - employer trusts, city and county governmental units, public school and university systems, and single employer plans. Duties included managing the service offices, marketing of new business, responding to RFPs, full range of services to Boards of Trustees, writing Summary Plan Descriptions for all types of plans (pension and medical), keeping abreast of legislation affecting employee benefit plans, coordinating with legal, actuarial, investment management, consulting, accounting and other professional advisors with respect to Trustee services and providing all services required by plan participants. 1970 to 4/01/89 Self Employed General Insurance Agent and Third Party Administrator specializing in Taft- Hartley Funds PROFESSIONAL DESIGNATIONS: Certified Professional Insurance Woman (CPIW) Chartered Property Casualty Underwriter (CPCU) Chartered Life Underwriter (CLU) Certified Employee Benefit Specialist (CEBS) Certified Retirement Administrator (CRA) Certified Retirement Counselor (CRC) INSURANCE AND EMPLOYEE BENEFITS SERVICE: National President - National Association of Insurance Women (International) South Florida President - Society of CPCU South Florida President - Intl. Society of Certified Employee Benefit Specialists South Florida President - Professional Insurance Agents Chairman - City of Coral Gables Insurance Advisory Board Bank Director - Bank of Florida White House Invitee - Invited to the White House twice representing Women- owned businesses Florida Licensed Agent - Life/Health and Property/Casualty �` _ ALTHEA LEIGH -LODGE althea @benefits- usa.org PROFESSIONAL EXPERIENCE 8 /2002 - Present Employed by: Benefits USA, Inc. Providing full Customer Service to Boards of Trustees and their participants for a third party administrator of Defined Benefit Pension Plans and Supplemental Plans. 7/97 -12/99 Employed by: First Benefits Services, Inc CSR/Claims Representative. Provided Customer Service for a third party administrator of Municipal Pension Plans, Health & Welfare Trust Funds, Section 125 Cafeteria and Flexible Spending Account Plans, and Self- Funded Employee Group Medical and Dental Plans. Duties included verification of benefits, claims status, accounts payable, checks disbursements and wire transfers to Account Holders, bank reconciliation, Liaison to Group Administrators, and coordination of Medical and Dental Benefits. EDUCATION 1977-1979 Miami Dade Community College Degree: AA Nursing ORGANIZATIONS 2000— 2003 Soccer Mom 2001— 2002 President - PTA I7S[IBA"_ LIVIA G. NIXON livia @benefits- usn.org CAREER SUMMARY Extensive background as an Administrative Assistant in Employee Benefits /Customer Service. Committed to standards of professional performance. Word processing skills in Microsoft Word and Excel - Reliable — Problem Solver - Organized - Quality Service Team Player PROFESSIONAL EXPERIENCE 2005 to present Benefits USA, Inc. Working as administrator on Pension Plans. Coordinate Pension Board meetings and taking minutes. Providing full customer service to Boards of Trustees and their participants for a third party administrator of Defined Benefit Pension Plans and Supplemental Plans. Tasks include working with legal, investment management, accounting, actuarial, consulting and other professional advisors with respect to Trustee services. 1998 to 2005 Salem Trust Company, Account Associate Responsible for daily Data Input of Contributions and balance sheets; bank deposits, distributions from Trust accounts, monthly reporting for pension payments, payments of invoices, account reviews, assist in processing year end I099R tax forms . Work directly with retirees, clients and Benefit Providers. Worked with outside auditor's in providing them information relating to various municipal pension plan audits. Monthly statement downloading for outside investment managers. Work with legal documents and interaction via phone contact with various attorneys. Capable of working with little or no supervision. 1990 —1998 Barnett Bank Trust Company, Administrative Assistant Supported three (3) Trust Officers in Corporate Trust Dept. with (401)K and pension accounts. Responsible for the processing of lump sum distributions and monthly pension disbursements. Daily processing of contributions to trust accounts. Provided phone communication with clients and investment managers regarding trading issues, account balances and overdrafts. EDUCATION Exceptional Assistant Seminar Grammar and It's Usage Seminar American Society for Pension Actuaries Financial Accounting Course (PBCC 3.0 GPA) OFFICE SKILLS Word Processing: Microsoft Word and Excel Phone Etiquette Sungard Trust System Series I I Independent Self Starter t78�. gip, EMILIE SMITH emilie@benefits-usa.org Professional Experience Director of Public Relations and Support Services, City of Lauderdale Lakes, 1 /00 to 11/02 Acting Human Resources Director in her absence; Responsible for special projects for City Manager and Assistant City Manager. Assistant to City Manager, City of Lauderdale Lakes, 12/98 to 1 /00 Supervised, coordinated, and trained support staff for administrative departments; Lead a committee to develop and implement a Special Early Retirement Program which resulted in 80% participation; Editor of the City Newsletter which is mailed to 32,000 residents and businesses; Developed a merit based performance evaluation system for all non - bargaining employee; Participated in negotiations for a collective bargaining agreement with the International Association for Firefighters (1AFF). Senior Management and Budget Analyst, City of Tamarac, 12/96 to 12/98 Promoted to senior level Management and Budget Analyst after one year of service; Responsible for complex financial and cost benefit analysis for Special Early Retirement Program; Participated on a committee to develop and implement a classification and compensation system for all non - bargaining employees. Educational Experience Currently Pursuing Ph. D. in Education, Capella University 3.9 GPA, All But Dissertation Master of Public Administration Degree, Nova Southeastern University 3.97 GPA Bachelor of Science Degree, Legal Studies, Nova Southeastern University Professional Affiliations Government Finance Officers Association (GFOA), member since 1997 Florida Government Finance Officers Association (FGFOA), member since 1997 American Society for Public Administration (ASPA), member since 1999 Broward City County Management Association (BCCMA), member since 1999; Served as Program Chairperson from 2000 - 2002 MEI FANG mei @benefits - usa.org EXPERIENCE: Administrator, Benefits U.S.A. 10/2007 - Present Providing full Customer Service to Boards of Trustees and their participants for a third party administrator of Defined Benefit Pension Plans and Supplemental Plans Customer Service Specialist, Grampus Enterprise Inc. 09/1999 — 10/2007 Responsible for Pro -sale customer service for both individual consumers and wholesale dealers for warranty repair and replacement of merchandise. Organize and categorize customer claims and generate analysis reports to management. Inspect arriving and departing loads coming in & out of the gates. Review and processes vendor payments. Assist in planning and presenting employer training. Maintain computerized and manual files and records. EDUCATION: 9/2002 — Present Florida International University 9/1988 — 07/1998 Yunnan University of Finance and Trade Insurances Benefits USA, Inc. acknowledges that it is a fiduciary of the plan pursuant to Section 112.656, Florida Statutes Benefits USA, Inc. agrees that this Agreement shall be construed under the laws of the State of Florida and federal law, where applicable. r Benefits USA, Inc. agrees to the venue for any judicial proceeding to be in the County in which the Board sits. y Benefits USA, Inc. carries Third Party Administrator's Errors & Omissions insurance with a limit of $1,000,000 and a Fidelity Bond in the amount of $250,000. In addition, we carry General Liability with a limit of $1,000,000. Although not required for Pension Plan administration, Benefits USA, Inc. has a State of Florida Certificate of Authority to operate as a Third Party Administrator. Addendum The request asks us to provide the name of the contact person that will be assigned to the Fund. The principal representative will be Pete Prior. As for internal control procedures for the processing of disbursements: this is done through a warrant system. We will furnish the appropriate trustee /s with a warrant containing the accounts and amounts to be paid -above their signatures. Any invoices paid between meetings will be listed on the consent agenda at the next meeting for ratification. We recommend that the custodian process the pension checks for the retirees and beneficiaries. As a Trust Company, they are fully equipped to process the checks and provide alternative methods of distributing pension checks during a time of crisis. After reviewing your service providers, we do not have any relationship with your vendors other than strictly a working relationship with other clients. Benefits USA is currently in the process of setting up a new software program. We will explain the software in more detail at a presentation of this proposal. New Client Check List r Legal name of Plan Copy of Ordinance and Summary Plan Description s Names, telephone and fax numbers or pager numbers of Board of Trustees and preferred addresses for receipt of communications from the administrator the Fund office address will be the address provided to participants and professional advisors unless the individual Trustee directs otherwise. (Home addresses of Trustees are not given out without authorization of the Trustee.) Same information for all Fund professionals: �= Actuary - need copy of most recent valuation r Attorney Auditor — need copy of most recent audited financial statement for each Fund r Investment Performance Monitor— need copy of most recent performance report Investment Manager(s) Custodian Commission Recapture Company(s) r Plan Sponsor Contacts — will administrator need to have contact with City departments? Identify key individuals) (City Clerk, Finance Director) and their phone & fax numbers. y Are there existing files for Active and Retired participants? lrsrts.� New Client Check List (continued) y Is there a regular set time, date and location for Trustee meetings? Do Board members want agenda packets in advance of the meeting? Is there an existing Operating Rules and Procedures manual? How is Administrator advised of new hires and terminations? Are beneficiary designation records up to date? y When was Summary Plan Description issued last? y Letter is needed authorizing other parties (particularly the custodian) to accept instructions from Administrator? Letter should specify that the Administrator is not authorized to transfer funds out of accounts. Who is authorized to sign disbursement requests? Need copy of Investment Policy Statement Need copies of all forms used for pension plan: refund of contributions, retirement applications etc. Do all service providers have current executed contracts on file? Tax ID# of Trust Fund? Will the administrator perform the fund accounting? If so, this will have to be re- constructed to the beginning of the fiscal year in order to be able to provide the auditor the records they will need. Obtain past monthly reports from custodian. u� rah