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HomeMy WebLinkAboutLetter - SegalV ,SEAL 2018 Powers Ferry Road SE Suite 850 Atlanta, GA 30339-7200 T 678.306.3100 F 678.306.3190 www.segalco.com March 1, 2013 Ms. Maritza Suarez Procurement Supervisor City of Miami Purchasing Department 444 S.W. 2nd Avenue Miami, Florida 33130 Re: Proposal to Provide Consulting Services to the City for the City of Miami Fire Fighters' and Police Officers' Retirement Trust Dear Ms. Suarez: This letter will serve as the required Executive Summary for our proposal to perform the requested services. The Segal Company was established in 1939 and provides actuarial and benefits consulting services to over 2,000 different entities. Segal is independently owned by its employees, who number about 1,000 across the United States and Canada. Segal is one of the national leaders in supplying actuarial services to public sector entities such as the City of Miami and has a long track record in helping our clients find workable solutions for the issues they face. The Segal lead contacts for Miami each have over 30 years of experience working with public sector entities, including cities, counties, states, public utilities and territories. Ms. Eitelberg and Mr. Joyner are well -respected experts of all aspects of public sector retirement programs. Specific clients and company experience is included in the attached information. We were requested to provide Ms. Janice Lamed a proposal to analyze the potential impact to the plan noted above of particular changes. The following describes our understanding of the proposed changes, the services Segal will provide to analyze these changes and our proposed fee for such services. The attached document contains specific details requested by your office, including staff biographies, relevant experience, references and details of the Segal organization. Benefits, Compensation and HR Consulting Offices throughout the United States and Canada ror•. U Founding Member of the Multinational Group of Actuaries and Consultants, a global affiliation of independent firms n f71t c March 1, 2013 Page 2 Background The City currently provides retirement benefits to fire fighters and police officers through the Retirement Trust, which was established January 1, 1940. The City's required contributions have increased in recent years due to investment performance less than assumed and the maturation of the System. The City would like to consider options to lessen some of the budget pressure caused by higher pension contributions. It is our understanding that the City is requesting an initial analysis and review of these options: 1. Replace the current COLA that is a COLA based on the investment return of the Plan, with a fixed rate COLA. 2. Create a fixed income investment instrument by which the City would provide a bond to the Retirement Trust at a fixed coupon rate. Scope of Services The following summarizes our proposal for services: > Segal will review salient actuarial reports and Trust information but we will not gather detailed System data nor attempt to duplicate the current actuary's valuation. > After reviewing the information, Segal will analyze each option based on liability information available in the Trust's actuarial report. > Segal will provide deterministic, arithmetic projections of each option, to consider the longer -term impact on City funding requirements. > Segal will be available to meet as requested by the City. Proposed Fees Our fee for the above services will be based on actual time charges incurred. For the services listed above, we anticipate that incurred Segal time charges will be less than $20,000, including a meeting to present the results. Additional meetings, if needed, will be billed at $3,000 each plus travel expenses. Segal is available, should the City request such services, to perform a more thorough review, including processing data, developing computer models and running a parallel valuation. Additional fees for this level of service are estimated to total about $32,000. March 1, 2013 Page 3 This letter summarizes our understanding of the City's request and we trust captures the scope of our involvement as you envision it. Please feel free to contact me at (678) 306-3119 if you have any questions. Sincerely, Leon F. (Rocky) Joyner, Jr., FCA, ASA, MAAA, EA Vice President and Actuary cc: Ms. Janice Lamed Ms. Cathie Eitelberg 7773360v1/96050.902 Proposal to Provide Consulting Services to the City for the City of Miami Fire Fighters' and Police Officers' Retirement Trust The following is Segal's detailed response to specific items included in RFP No. 260247 for Health Benefits Consulting Service and Actuarial Services issued by the City of Miami. Since we are not proposing on the services requested in that proposal but rather on the services requested by Ms. Larned, we are including responses to the required sections indicated by you in your January 15 and February 27 emails. Items from the RFP are shown in blue below. We have attempted to follow the requested format as closely as possible but as noted above the RFP No. 260247 is requesting different information and services from Ms. Larned's request. If any responses are unclear or incomplete, please let us know and we will immediately supply any missing information. We look forward to working with the City on this project. Section 2.7, PROPOSER'S MINIMUM QUALIFICATIONS, reflects the following: The following represent the minimum qualification requirements for a Proposer to be deemed responsive and qualified by the City, and Proposers shall satisfy each of the following minimum requirements cited below. Each must be addressed in detail to determine Proposer's responsiveness and if qualified. Failure to meet each of the following qualification requirements, and/or failure to provide sufficient detail and/or documentation in its Proposal to determine responsiveness by the City, will result in the Proposal being deemed non- responsive c) Neither Proposer nor any principal, officer, or stockholder of Proposer(s) shall be in arrears or in default of any debt or contract involving the City, (as a party to a contract, or otherwise); nor have failed to perform faithfully on any previous contract with the City. The Segal Company and its principals, officers and stockholder are not in arrears or in default of any debt or contract involving the City. To our knowledge, The Segal Company has not had any prior contracts with the City. 4 4. Submission Requirements 1. Cover Page Information Proposer's name; The Segal Company Contact Person for the RFQ; Firm's Liaison for the Contract; Primary Office Location and Local Business Address, if applicable; Business Phone and Fax Numbers, if applicable Email addresses: Cathie G. Eitelberg National Director, Public Sector Market Senior Vice President 1920 N, Street N.W. Washington DC 20036 Tel: 202 833 6437 Fax: 202 833 6490 Email: ceitelberq c�,segalco.com Leon (Rocky) Joyner, FCA, ASA, MAAA Vice President and Actuary 2018 Powers Ferry Road, Suite 850 Atlanta, GA 30339-7200 Tel: 678.306.3119 Fax: 678 306 3190 Email: rioyner(c(c�segalco.com Title of RFQ; Consulting Services to the City for the City of Miami Fire Fighters' and Police Officers' Retirement Trust RFQ Number; Requested by the Finance Director Federal Employer Identification Number: 13-1835864 (The Segal Company (Eastern States), Inc.) 2. Executive Summary - A signed and dated summary of not more than three (3) pages containing the Proposer's Overall Expertise, Qualifications and Experience, including the Categories under which Proposer is seeking to qualify. Include the name of the organization, business phone, contact person, and phone/fax/email address. Describe its overall organization, history and background, tax status, principals, owners, board of directors and/or board of trustees, number of professionals employed, and the date Proposer was incorporated/organized; State(s) incorporated/organized in. The accompanying cover letter outlines our understanding of the background, scope of services and proposed fees for the engagement. The following is additional information regarding Segal. 5 The Segal Company Consulting Philosophy ' Segal's consulting approach is based in its dedication to its corporate values and the Segal "brand promise" — "Segal is the firm of choice for clients committed to enhancing their organizations. We are the architects of programs that build and secure the trust between our clients and their people. By continually analyzing our evolving markets, we provide practical advice that looks beyond the numbers to the human side of solutions. Our consultants guide our clients through the challenges confronting them today and prepare them for tomorrow." Our consulting approach is client focused, timely, pragmatic and forward thinking. The solutions for the challenges facing public sector plan sponsors today are not rooted in the past; nor can they be based on simply applying benchmarks to what "everyone else" is doing. To be current and relevant in our work: > We strive to understand our public sector client needs and are sensitive to their unique environment; > We pride ourselves in challenging the status quo and delivering the work related to the basic consulting tasks needed to support complex health plans; > We are unmatched in the consulting industry as creative and innovative thought leaders dedicated to excellent solutions; > We are committed to integrity, professionalism, and exceeding expectations. Why Segal? The Segal Company has over 70 years of providing consulting services to the public sector entities. We consult to public entities nationwide, including transit authorities, states, counties, cities, hospitals and other healthcare organizations and special districts. From our work with such a wide variety of clients, we understand the unique nature of the different groups covered and the impact retirement and health plans have on staffing, recruitment, retention and succession planning. We also understand the importance of participants' retirement security and the role the plan plays in meeting human resource objectives. Segal is keenly aware of the economy and the competing demands for resources that you are facing as it seeks to fund its health and retirement cost. We believe we are the right choice for this engagement for the following reasons: > Our Public Sector Experience: The public sector is a core business for Segal. Our research and tools are designed to meet the unique needs of that sector. Firms that specialize in the private sector are not positioned to meet the needs of this market. We understand the budgetary pressure and media scrutiny many public entities face related to their health and retirement plans. > We understand Collective Bargaining — Segal is the preeminent benefits consulting firm in the multiemployer market and has extensive experience handling collectively bargained plans. Many of our clients contain collectively bargained employees so we are intimately familiar with the bargaining process and can share our experiences with you. . 6 > Our Team — We have staffed the proposed team with seasoned consultants and actuaries that are knowledgeable about the public sector. Our team has worked together on multiple public sector clients in various capacities. We have all the resources necessary and will engage various subject matter experts required. The combination of the points listed above makes Segal qualified to work with you on this challenging assignment. Our Commitments Segal is dedicated to total client satisfaction and to responsive and creative solutions for our clients' benefit needs. We want to highlight the following points that summarize Segal's commitments for our clients: > Commitment to the Public Sector: For over 70 years, Segal has provided actuarial and consulting services to public sector employers and benefit plans. We have both the historical perspective and the broad base of experience to support the benefit consulting needs for you. > Commitment to Service: Our highly experienced consulting team brings both technical and strategic perspectives to our work on this engagement. The team we will assign brings a full understanding of how public systems work and the opportunities and limitations you face. > Commitment to Quality: Actuarial and health analytical work requires complex calculations and high-level computer programming combined with full understanding of the ramifications that will follow from any changes considered. Our intensive quality review process helps to assure that the results are accurate and meaningful. > Commitment to Dependability: We will work with you to establish mutually attainable work schedules and will dedicate the staff and resources necessary to meet those deadlines. The trust that is developed over time with our long-term clients is something we value and strive to reinforce. > Commitment to Innovation: We believe our role as consultant is to provide technical assistance and to add value to the management of your benefit programs. We will identify emerging issues and propose innovative solutions to assist you. 4. Provide the branch or other subordinate units or divisions that will perform or assist in performing any work resulting from this RFQ; the number of years the firm has been in existence and number of years firm has been providing this type of service; the overall size of the firm; and the primary sector (public vs. private) and markets the firm serves. Segal is privately held and is owned by its officers and employees. Segal is an independent organization with no ties to any financial, insurance or other companies. Our only interest is in providing unbiased solutions to our clients' benefits concerns and needs. 7 Segal History The Segal Company was founded as the Martin E. Segal Company in 1939, early in the development of employee benefit plans in American industry. From the beginning, Segal has been involved in developing health benefit and retirement programs that meet the needs of employees and employers. In 1967, the Martin E. Segal Company became part of Wertheim & Co. and in 1978 it again became independent when it was repurchased by company management, where the ownership has remained ever since. In 1991, the company name was officially changed to The Segal Company. Segal is a founding member of the Multinational Group of Actuaries and Consultants (MGAC), whose member companies in Belgium, Canada, France, Germany, Great Britain, Netherlands, Spain, Sweden, Switzerland, many countries in Africa, and the United States, meet clients' needs for assistance in international benefits planning. Most of our growth over the years has been through winning and developing our own clients, although we have, from time to time, made acquisitions that enhance our ability to provide independent consulting services: > 2001. Segal acquired Marjorie Gross and Company, an award -winning firm specializing in communicating benefits and compensation information, as well as building strategies for effective employer communications. The MGC team was fully integrated into Segal and now provides employee communications consulting services for all Segal clients. > 2002. Segal acquired Sibson Consulting, a human resources consulting firm dedicated to helping private sector employers improve the return on human capital through talent strategies, effective organization practices, change management, rewards and compensation design, work/life programs and other solutions that help enhance employee performance. Our Sibson consulting division now combines all our corporate consulting services. > 2006. Segal acquired Irwin Tepper Associates, Inc., a consulting firm that specializes in asset/liability analysis for employee benefit programs and other organizations. > 2010. Segal acquired Aon Consulting's multiemployer defined benefit plan and related consulting business in the United States. > 2012. Segal Advisors, Inc., Segal's independent investment consulting subsidiary announced its acquisition of Rogerscasey, Inc., a similar, independent investment consultancy. 8 Segal Client Breakdown Our client breakdown, including a simplified breakdown, is as follows: > Public Sector — 389 Simplified Breakdown: Health: 193 Retirement: 123 Other: 73 > Multiemployer —1,441 Simplified breakdown: Taft -Hartley Retirement Funds: 707 Health & Welfare Funds: 588 Other: 146 > Sibson (Corporate) - 448 > Segal Rogerscasey - 350 (Investment consulting) Segal's independent investment consulting subsidiary announced its acquisition of Rogerscasey, Inc., a similar, independent investment consultancy. Their total number of clients, now Segal clients, is listed above. Segal Client Base For over 70 years, Segal has been a trusted advisor to public sector entities, multiemployer benefit funds, federal government, corporate and non-profit organizations, and higher education institutions. Public Sector Entities As one of the nation's leading consultants to the public sector, Segal has the knowledge, expertise and experience to understand the environment in which public sector total rewards decisions are made. As your trusted advisor, we are a committed partner in finding the best possible compensation and benefit solutions. These total reward solutions must balance your entity's workforce needs while you continue to meet the service demands of your constituents. We understand the pressures of increasing workforce costs and shrinking revenues, the need to accommodate a growing population of baby boomer retirees, and the difficulties - and necessity - of adopting new technologies to replace older, labor-intensive systems. Our consultants have been assisting a wide range of public sector entities with compensation and benefits solutions throughout our history. 9 Multiemployer Benefit Trust Funds Since our founding in 1939, Segal has been the consulting firm of choice for multiemployer benefit trust funds. We are the only firm with a national commitment to the multiemployer environment. We are actively involved with multiemployer legislation and research and work closely with industry advocacy groups. Segal offers unparalleled benefit plan expertise. Working with hundreds of multiemployer plans enables us to understand and provide innovative, cost-effective solutions to the challenges facing funds. Our unbiased, objective advice allows our clients to make decisions in the broader context of what other multiemployer plans are doing. In addition, our ability to aggregate multiemployer data from our extensive client base enables us to determine trends and offer timely advice on emerging developments. Federal Government Segal is certified by the General Services Administration (GSA) through both MOBIS and 738X schedules to serve branches of the Federal government as employee benefits, actuarial, compensation and human resources consultants. Our consulting services under this GSA contract include the planning, design, qualification, implementation, operation and communication of: > Human resources policies and programs > Administration and technology consulting > Compensation strategies > Position classification > Total reward services • Collective bargaining > Employee opinion and satisfaction surveys > Employee communication services, including personalized communication/benefits statements > Benefits consulting services Other Markets In addition to our core work with multiemployer funds and public sector entities, we offer services to: > Corporate and non-profit organizations (Sibson) > Higher education institutions 10 Organization chart Below is our organizational Corporate organizational chart: Directors Joseph A.. L Cuero Howard FJiahr Eugen:eJ.Ker'1ir Merril S. Delon J. Tin Biddle John [7ehlairo Ann D. GRneo Andrew D. hetman 4ohnFinn .. David Diemen stain Myrna Hetlermert Me Segal Group A. Inc Corporate O icers-4llCompanle5 ItweardFlahr; Chairman JosaphALvekero. f'rasiderrtand Chief xeccfliva Officer J. Tim Bi'ddfe, Vice Chairman liar The Sage Grixfp, inc, Only) Rica oroM. DiBa!olo;'SVP, Treasurer and Chia! Fioancia Officer Margery Sir.derFrsedma, Esq.,SVF, SecieteryandGeneralCaurrs '. " DE wA Segal Roo erscase r l ogerscaseyDanac Segel Advisors am any;Eiagerscasay; a SagalAriviiatscorr`ipar r Local and Regional Offices Segal is headquartered in New York City and has 22 offices throughout the United States and Canada. Our offices are located in Atlanta, Boston, Calgary, Chicago, Cleveland, Denver, Detroit, Glendale, Hartford, Houston, Los Angeles, Minneapolis, Montreal, New Orleans, New York, Philadelphia, Phoenix, Princeton, Raleigh, San Francisco, Toronto, and Washington, DC. 11 Segal will provide employee benefit consulting and actuarial services to you primarily from our Atlanta and Washington, DC offices. 5. State number of partners, managers, supervisors, seniors and other professional staff employed at the office from which the work for the City is to be performed. The Washington, D. C. office and the Atlanta office have about 100 and 40 employees respectively. Ms. Eitelberg and Mr. Joyner will be the City's contacts. Cathie G. Eitelberg National Director, Public Sector Market Senior Vice President 1920 N. Street N.W. Washington DC 20036 Tel: 202 833 6437 Fax: 202 833 6490 Email: ceitelberg@segalco.com Leon (Rocky) Joyner, FCA, ASA, MAAA Vice President and Actuary 2018 Powers Ferry Road, Suite 850 Atlanta, GA 30339-7200 Tel: 678.306.3119 Fax: 678 306 3190 Email: rjoyner@segalco.com 12 6. Provide the Proposer's, and any employee(s), partner(s), principal(s), officer(s) or owner(s) of the firm, and/or the firm or any of its affiliates or parent, including joint ventures, most recent and/or current experience in performing these services, including any previous City of Miami experience. The Segal Company has no previous experience with the City of Miami. We do have extensive experience with other cities. Ms. Eitelberg and Mr. Joyner specifically have worked with many Public entities in recent years to evaluate and model retirement design and funding options. The following is a sample of recent work in this area. City of Atlanta — Segal assisted the City is evaluating plan options leading to a complete redesign of their retirement benefits. The work took almost two years and involved all groups with an interest in the City's long-term .welfare. The result was to move from a traditional DB only structure to a hybrid combination DB/DC model. City of Baltimore — Segal is currently working with City staff to design a reduced benefit plan for new hires that will help the City meet its budget goals in future years. This project is currently in process. Retirement System of the United States Virgin Islands — Segal is currently assisting a governor appointed task force to develop options to alleviate funding difficulties for the System. City of Vero Beach — Segal is in the process of modeling plan options for the City pursuant to changes in core City services. City of Oakland Park — Segal has worked with the City in modeling changes to its retirement plans to address budget pressures caused by recent economic events. Other cities for which Segal is either actively working to address particular issues or have done so in the past include Jacksonville, Savannah, Chattanooga, Orlando, Fort Worth, Phoenix, Kansas City, New York, and others. 7. Detail its overall health benefit consulting services and/or actuary expertise. Provide the City with a list of other individuals, municipalities, associations, or organizations who have retained the Proposer for the purposes of health benefit consulting services and/or actuary services and detail the health benefit consulting services and/or actuary services provided for client; and indicate how long the relationship existed and the periods of service. Include contact name, telephone number, and period of time representation occurred. The City reserves the right to contact any reference as part of the qualification process. Specific references and contact information are presented in response to number 11 below. At Segal, we recognize that the budgetary and social policy concerns surrounding benefit coverage for public employees and retirees carry an even greater weight than in the private sector, as economic pressures come into direct conflict with limited tax revenues. We are 13 sensitive to the fact that benefits comprise a substantial portion of employees' total compensation and that effective and efficient design, management and procurement of benefits affects not only the Plan, but the employees and retirees as well. We believe these factors and challenges must be met with a clear understanding of the forces at work, with the appropriate objectivity to take a fresh look with a mind that is open to new ideas. Retirement plans covering public safety personnel such as police and firefighters face unique challenges. Because many public safety positions have demanding physical requirements, the age at which participants in these positions retire is often lower than for the rest of the public workforce. Public safety plans have evolved to reflect these lower retirement ages through enhanced early retirement provisions. This design element, which results in shorter accrual periods to fund the benefit, requires careful tracking of retirement patterns, disability pensions and the ongoing relationship between assets and liability growth. Our work goes beyond just performing "routine" actuarial valuations for our clients. The following are some examples of our actuarial work for other public plans: > Segal recently worked with the Chief of Firefighters for a local municipality and provided assistance to develop a contribution -flexibility relief plan due to the economic crisis, as legislatively created through state law. > We also recently completed a plan review and design study for a mid -sized southern city with a defined benefit pension plan. In this study, we benchmarked the city's plan against a grouping of its peers, including a comparison of plan provisions, assumptions, methods, and funded status; calculated the plan's retirement income replacement ratio and compared it to the ratios of its peer group; as well as suggested and valued alternative plan designs that would meet the city's goals. > We have completed an engagement for a large city that does not participate in Social Security, to help them develop a sustainable and competitive retirement plan. We were selected to perform the actuarial calculations and projections by a Panel created by the Mayor to study the city's pension issues. This work involved modeling pension plan changes for current and future hires for the city's plans. We collaborated with Panel members and other professionals to develop future options that included Defined Benefit Plans, Defined Contribution Plans, Social Security and Hybrid Plans. > We recently assisted a mid -sized metro -Atlanta county in amending its retirement plan to obtain a manageable cost structure while supporting its human resources objectives. The County had a non-contributory plan for general employees, police, and fire that the County could not afford to continue without making changes. We helped the County establish guiding principles as it amended the benefit structure and implemented employee contributions for the first time. By reviewing projections with the county Pension Board, we were able to help the county identify potential funding and compliance issues early, thus allowing time to analyze potential changes and communicate them appropriately to employees. > We recently assisted a smaller city in developing a hybrid pension program for new employees. The new program was designed to accomplish several goals, as agreed upon by the City. These goals included maintaining a competitive benefits offering, encouraging greater employee participation in saving for retirement, reducing the potential volatility of required city contributions and allocating a portion of investment 14 risk to the employees. The resultant program included a contributory base final average pay defined benefit plan overlaid with a "401(k)"-type defined contribution plan with a city matching contribution. > In a large County in east Georgia, employees were in a variety of pension plans with very differing plan designs and objectives. Segal, together with GMEBS, developed a new defined benefit plan that consolidates almost all County employees into one pension system. This greatly reduced administrative complexities and provides a more equitable benefit program for County employees. 8. Describe in detail, on a per Category basis, the health benefit consulting services (if proposing) and/or actuary experience and expertise of the Proposer; include resumes for the principal supervisory personnel who will be assigned to this engagement and describe their relevant experience in the past three (3) years in providing similar services and any experience. Include contact name, telephone number, and period of time representation occurred. The City reserves the right to contact any reference as part of the qualification process. Since, Segal is not proposing for health benefit consulting, we have provided the following biographies for our lead consultants. 15 *SEGAL CATHIE G. EITELBERG Senior Vice President, National Director, Public Sector Market, Washington, DC Expertise Ms. Eitelberg is a Senior Vice President in Segal's Washington, DC office. She has over 35 years of public policy experience with a focus on employee benefits and public finance. Ms. Eitelberg is the firm's National Director of the Public Sector market and a member of its Senior Management Team. Ms. Eitelberg's specialized expertise includes: > Public pension policy, design and governance, > Public finance and plan administration, and > Total rewards strategies. Ms. Eitelberg's past and current clients include: the State of Nevada Public Employees' Retirement System, the State of North Dakota Public Employees' Retirement System, the Maryland Supplemental Retirement Plan, the City of Duluth Teachers' Retirement Fund, the Indiana Public Employees' Retirement Fund and Indiana Teachers' Retirement Fund, the American Federation of Teachers, the New Jersey Education Association and the Nebraska. Public Employees Retirement System. Professional Background Ms. Eitelberg has served on the boards of the National Association of State Retirement Administrators (NASRA), the National Association of Government Defined Contribution Administrators (NAGDCA) and several committees of the International Foundation of Employee Benefits. She is an advisor to the Committee on Pension and Benefits Administration of the Government Finance Officers Association (GFOA) and is a founding member of the Arthur N. Caple Foundation. Ms. Eitelberg is listed in the Who's Who of Finance and the Elite Who's Who of American Business Women and received the 1995 Private Sector Financial Excellence Award from the Association of Government Accountants. Prior to joining Segal, Ms. Eitelberg was on the staff of the GFOA as the first Director and Founder of its Pension and Benefits Center. In this position, she oversaw the Association's Pension & Benefits Update and Public Pension Fund Survey. During Ms. Eitelberg's 14-year tenure at GFOA, she represented public officials and employee retirement systems before Congress and the administration on issues related to municipal debt, taxes and employee benefits. In addition, she managed research and developed tax and employee benefits policy. Ms. Eitelberg was a Staff Member of the National Conference of State Legislatures in the early 80's. 16 Education/Professional Designations Ms. Eitelberg graduated summa cum laude from the University of Maryland with a BS in Business Management and has completed coursework in the Executive Education program at Harvard's Business School. Ms. Eitelberg was appointed to the National Association of State Retirement Administrators' (NASRA) Associate Advisory Committee for a three-year term, beginning August 2012. Published Work/Speeches Ms. Eitelberg lectures and writes on public retirement and health topics. She is frequently quoted in the press and is an accomplished speaker. Recent articles by Ms. Eitelberg include: > "Planning a Successful Pension Funding Policy," Kim M. Nicholl, Paul Angelo, and Cathie G. Eitelberg, Segal Public Sector Letter, November 2011 > "Actual Cost vs. Market Price: Does Market Valuation of Pension Liabilities Fit the Public Sector?," Paul Angelo, Kim M. Nicholl and Cathie G. Eitelberg, Segal Public Sector Letter, June 2011 > "Eight Steps to Instituting a Successful Reduction in Force, and One Interesting Alternative," Elliot R. Susseles and Cathie G. Eitelberg, IPMA-HR News, February 2009 > "Public Employers Should Consider Benefit Design When Seeking Solutions for GASB OPEB," Cathie Eitelberg and J. Richard Johnson, IPMA-HR News Magazine, March 2008 > "Public -Sector Employers Find Alternative Medicine for Retiree Benefit Liabilities," Government Finance Review, February 2008 Benefits, Compensation and HR Consulting Offices throughout the United States and Canada Founding Member of the Multinational Group of Actuaries and Consultants, a global affiliation of independent firms 17 CATHIE G. EITELBERG ceitelberg@segalco.com 202.833.6437 www.segalco.com *SEGAL LEON F. (ROCKY) JOYNER, JR., ASA, MAAA, FCA, EA Vice President and Actuary, Atlanta Expertise Mr. Joyner is a Vice President and Actuary in Segal's Atlanta office. He has over 30 years of actuarial consulting experience with all types of pension plans. Previous positions with the company include Actuarial Assistant, Actuary, and Vice President. Mr. Joyner currently serves as a senior actuarial consultant to some of Segal's largest governmental clients in the Southeast. Mr. Joyner is the consulting actuary for many city and county government clients, including the City of Birmingham, the City of Atlanta, Memphis Light, Gas'& Water Division, San Antonio Fire and Police Retirement System, Chattanooga Fire and Police, and DeKaib County, Georgia. For the last five years, he has served as the consulting actuary for the Georgia Municipal Employees' Benefit System as well, which covers employees in nearly 300 municipalities across the state of Georgia. Education/Professional Designations Mr. Joyner is a cum laude graduate of Washington and Lee University (Lexington, VA), where he earned a BS in Mathematics and Physics -Engineering. He has also completed graduate work in Actuarial Science at Georgia State University. Mr. Joyner is an Associate of the Society of Actuaries, a Member of the American Academy of Actuaries, a Fellow in the Conference of Consulting Actuaries and an Enrolled Actuary. Published Work/Speeches Mr. Joyner has been a conference speaker on public sector funding issues for numerous organizations, including the Florida Government Finance Officers Association (GFOA), The National Conference on Public Employee Retirement Systems (NCPERS), the Conference of Consulting Actuaries (CCA), and the Society of Actuaries (SOA). He has testified before legislative committees in Texas, Kentucky, and Georgia, and has published articles on Deferred Retirement Option Program (DROP) issues and plan design. Benefits, Compensation and HR Consulting Offices throughout the United States and Canada Founding Member of the Multinational Group of Actuaries and Consultants, a global affiliation of independent firms 18 LEON F. JOYNER, JR. rjoyner@segalco.com 678.306.3119 www.segalco.com 9. Include a description of how the Proposer proposes to staff this engagement, and include the name of the principal, the names of those members of the firm designated to assist in the various areas of required expertise; the qualifications of the individuals in those areas; and the role each member of the actuarial services team will play. Provide resume(s) as necessary. Additional Segal team members include: 19 *SEGAL JEFFREY S. WILLIAMS, FCA, ASA, MAAA, EA Consulting Actuary, Atlanta Expertise Mr. Williams is a Consulting Actuary with supervisory responsibilities in Segal's Atlanta office. He joined the firm in 2003 as a Senior Actuarial Analyst. Mr. Williams works on all phases of actuarial valuations and consulting issues for a variety of public sector, multiemployer, and corporate clients, and has extensive benefit calculation experience. He is involved in client relationship management as well as performing technical work. Mr. Williams has experience working on IRS, PBGC and GASB filings, end -of -year disclosures, and expense and contribution projections. A few of the public sector funds he works on include: > Georgia Municipal Employees Benefit System > City of Birmingham Retirement and Relief System > City of Chattanooga Fire and Police Pension Fund > City of Orlando Police Officers' Pension Fund D City of Vero Beach General Employee Retirement Plan > City of Savannah Employees' Retirement Plan Professional Background Before joining The Segal Company, Mr. Williams spent five years at a retirement consulting firm specializing in corporate retirement plans. Prior to that, he worked in the pension administration department of a Fortune 100 company. Education/Professional Designations Mr. Williams holds a BS in Business Administration from Auburn University and attended the Masters of Actuarial Science program at Georgia State University in preparation for actuarial exams. He is a Fellow of the Conference of Consulting Actuaries, a Member of the American Academy of Actuaries, an Associate in the Society of Actuaries and an Enrolled Actuary. Benefits, Compensation and HR Consulting Offices throughout the United States and Canada Founding Member of the Multinational Group of Actuaries and Consultants, a global affiliation of independent firms 20 JEFFREY S. WILLIAMS jwilliams@segalco.com 678.306.3147 www.segalco.com SEGAL MALICHI WATERMAN, MAAA, EA Assistant Actuary, Atlanta Expertise Mr. Waterman joined The Segal. Company's Atlanta office in 2005 as a Senior Actuarial Analyst. He works on all phases of actuarial valuations and administrative issues for a variety of multiemployer, public, and corporate clients. He has experience working on IRS and PBGC flings, end -of -year disclosures, and expense and contribution projections, including asset liability modeling. In 2007, he became an Assistant Actuary. Professional Background Before joining The Segal Company, Mr. Waterman worked for seven years for a retirement consulting firm specializing in corporate retirement plans. Education/Professional Designations Mr. Waterman holds a Bachelor of Business Administration, specializing in Actuarial Science from Georgia State University. He is a Member of the American Academy of Actuaries and an Enrolled Actuary. Benefits, Compensation and HR Consulting Offices throughout the United States and Canada Founding Member of the Multinational Group of Actuaries and Consultants, a global affiliation of independent firms 21 MALICH! WATERMAN mwaterman@segalco.com 678.306.3125 www.segalco.com *SEGAL MATTHEW A. POWELL Senior Actuarial Analyst, Atlanta Expertise Mr. Powell is a Senior Actuarial Analyst in Segal's Atlanta office. He works on all phases of actuarial valuations and helps navigate administrative issues for a variety of governmental and multiemployer clients. Professional Background Mr. Powell has experience working on IRS filings, benefit calculations and expense and contribution projections, including deterministic forecasting. Education/Professional Designations Mr. Powell graduated from Georgia Institute of Technology in December 2005 with a BS in Discrete Mathematics. He is currently taking exams given by the Society of Actuaries. Benefits, Compensation and HR Consulting Offices throughout the United States and Canada Founding Member of the Multinational Group of Actuaries and Consultants, a global affiliation of independent firms ody MATTHEW A. POWELL mpowell@segalco.com 678.306.3131 www.segalco.com 22 10. List the most significant accomplishments related to health benefit consulting services and/or actuarial services performed in the past three (3) years; summarize scope of services, term of service, engagement partners, and the name and telephone number of the principal client contact. Please see the answers to 6 and 7 above. 11. Provide a minimum of two (2) references on the letterhead of the client to whom services of a similar nature were provided. The City reserves the right to contact any reference as part of the qualification process. Letters of reference have been requested and should be received by you today for two current clients for which we have performed similar services. The following are additional references that you may feel free to contact. z ,x FCl�ent Georgia Municipal Employees Benefit System (GA) 201 Pryor Street, SW Atlanta, GA 30303 , , ` z Contact Information z Mr. Calvert (Cal) Wray Plan Administrator 404.688.0472 cwray@ QManet.com . + Description/Scope-of Work F Segal provides routine pension and OPEB actuarial consulting services and special projects for almost 300 separate municipal plans of varying sizes within the State of Georgia City of Jacksonville General Employees' Retirement Plan and City of Jacksonville Correction Officers' Retirement Plan 117 West Duval Street Suite 302 Jacksonville, FL 32202 Mr. Patrick (Joey) Greive Acting Treasurer 904.630.5940 pereive a coj.net The General Employees' Retirement Plan has 10,800 participants and $1.4 billion in assets. The Correction Officers' Retirement Plan has 875 participants and $93 million in assets. Segal provides routine pension actuarial consulting services, multi -year experience studies and special projects, including extensive plan design studies for the City. Orlando Police Officers' Pension Fund 400 South Orange Avenue 4th Floor Orlando, FL 32801-3360 Mr. Jay L. Smith Pension Fund Chairman 407.246.2110 jay.l.smithncitvoforlando.net The Pension Fund has approximately 1,000 participants and $350 million in assets. Segal provides routine pension valuation services, multi -year experience studies, plan design studies and special projects. Ms. Shelly Burlon Plan Administrator 407.246.2603 shelly .burlon(@,citvoforlando.net City of Birmingham Retirement and Relief System and City of Birmingham Firemen's and Policemen's Supplemental Pension System 710 North 20th Street GA 100 City Hall Birmingham, AL 35203 Martin P. (Marty) Leonard, CPA Retirement System Chairman 205.699.4905 mplcpa(windstream.net The Retirement and Relief System has almost 6,900 participants and $900 million in assets. The Supplemental Fire and Police Fund provides benefits from retirement after 20 years of service until the participant would have had 30 years of service. The Supplemental Fund has 1,800 participants and $47 million in assets. Segal provides routine pension and OPEB actuarial consulting services, multi -year experience studies, plan design studies and special projects. Chattanooga Fire and Police Pension Fund 6009 John Douglass Drive Chattanooga, TN 37421 Mr. Frank Hamilton Business Manager 423.698.9599 familton a,cfppf.org The Pension Fund has 1,500 participants and $200 million in assets. Segal provides routine pension valuation services, multi -year experience studies, plan design studies and special projects. 12. Provide details of any lawsuits, bankruptcies, indictments, or investigations involving the Proposer, an employee(s), partner(s), principal(s), officer(s) or owner(s) of the firm, and/or the firm or any of its affiliates or parent, including joint ventures, or any of its principals. The Segal Company does not have any actions placed against them. With over 2,500 clients, The Segal Company is occasionally named as a party in litigation involving the performance of its services. Past litigation did not affect Segal's ability to perform services for its clients nor did any litigation have a material effect on its financial position. 13. Indicate whether the selection of Proposer would result in any current or future potential conflict of interest. If so, your response must specify the party with which the conflict exists or might arise, the nature of the conflict, and whether your firm or any of its affiliates or parent, would step aside or resign from the engagement or representation creating the conflict. Please also disclose any financial or contractual relationship an employee(s), partner(s), principal(s), officer(s) or owner(s) of the firm, and/or the firm or any of its affiliates or parent, including joint ventures, has, or have had, over the past five (5) years with any City of Miami elected or appointed official, or with a firm in which they were employed. This information is subject to verification as part of the qualification process. We know of no current nor do we anticipate any future conflicts of interest. g