Request For Proposal (RFP) Investment Management Services For the Employee Defined Benefit Pension Plan
All proposals must be received by June 3, by 4 p.m. PST
All questions regarding this proposal are to be emailed to the Downstream Distribution Group buikema@cawd.org and a written response will be provided on this landing page.
Release Date: May 8, 2024
Proposal Due Date: June 10, 2024 (4:00 p.m. PST)
RFP Administrator: Barbara Buikema, General Manager
Email: buikema@cawd.org
Questions: Must be emailed to the Request for Proposal (RFP) Administrator by 4:00 p.m. PST on May 29, 2024
Responses to all questions will be posted on the District’s website: https://cawd.org by 4:00 p.m. PST on June 3, 2024
Official RFP Notices/Addendum
All requirements are specified in this RFP to ensure no respondent is provided advantage over another. Any changes to the requirements will be posted as an addendum to the RFP on the District’s website, www.cawd.org. Respondents are solely responsible for monitoring the website and adhering to the RFP notices/addendums.
Prohibited Communication
Respondents are prohibited from communicating with Board members or staff, other than the RFP Administrator, concerning this RFP or the resulting contract from the RFP release date until a contract for these services is fully executed.
CAWD investment RFP 01-2024 v4.pdfInvestment Policy Stmt April 2021.pdfActuary Report 2023.pdfCDAIC Guidelines.pdf2023-2024 Consolidated Commonwealth.pdf2022-2023 Consolidated Common Wealth Reports.pdf
RFP Questions and Responses
| Date | Question | Response |
|---|---|---|
| 5/24/2024 | 1. Why is the search being conducted at this time? | The District feels it is a good practice to periodically take a closer look at plan management. We have been with current firm for over a decade. |
| 5/24/2024 | 2. Is there a firm/firms currently providing these services for the plan? | Yes. |
| 5/24/2024 | 3. If so, what is the name of the firm/firms and are they welcome to rebid? | Hastie Financial Group/William Hastie. They are invited to rebid. |
| 5/24/2024 | 4. How many firms were invited to participate in the RFP? | We sent the RFP to six specific firms – the names were referred to us. We also posted on the CSDA – RFP Clearinghouse Community (go to CSDA website). And finally, we posted on Publicpurchase.com – also a clearing house. At this time, I cannot give you a firm number of firms that might respond via the clearing house postings |
| 5/24/2024 | 5. What are the 3 most important goals you’re looking to accomplish with this plan? | First, plan security/manage risk. Second, ensure plan is adequately funded. We have been following a “growth with income” objective. Third, perspective and long-term discipline. |
| 5/24/2024 | 6. What are the 3 most important qualifications you’re looking for in your chosen candidate? | Financial Knowledge. Analytical Skills. Confidence. |
| 5/24/2024 | 7. The plan appears to be frozen to new contributions. When do you anticipate the fund to be fully liquidated or paid out? | The plan is frozen as to service credit. The employees that are invested in the plan had their service “frozen” in 2005. However, an agreement was made that when they do retire, final benefits will be based on final salary. The youngest participant in the plan is probably late 40s or early 50s. Assuming life span of 85 years I would anticipate the plan to continue for at least another 35 years. |
| 5/24/2024 | 8. Is this plan exempt from ERISA? | This is a public pension and is not required to follow ERISA, therefore a 3(38) fiduciary will not be required of any bidder. |
| 5/29/2024 | You report that the DB plan was frozen in October 2005. What retirement benefit do you offer employees today? | The District switched to CalPers in 2005. Employees who were with the District prior to that date had their service credit frozen, and when they retire they can claim their benefits at whatever level their pay is at that date. |
| 5/29/2024 | Who is your current plan custodian? Do you wish to retain or replace said vendor? | They were offered the opportunity to bid. They were offered the opportunity to bid. |
| 5/29/2024 | Who provides plan administration, including benefit payments, tax withholdings and reporting, etc.? Do you wish to retain or replace your current plan administrator? | The plan administration is done in-house. We run all benefits through ADP. And year end reporting is done internally and then submitted to our actuarial firm Nicolay Consulting Group, 231 Sansome St., San Francisco, CA 94103. We’re fine with doing the plan administration. Currently employees have the option of either taking the payments as an annuity or a lump sum. Because of interest rates we started to bring the payments inhouse. However, should that situation turn around we would depend on our Investment Manager for assistance in finding and purchasing an annuity. |
| 5/29/2024 | Would you provide a copy of your 12/31/23 investment performance report and plan statement? | The plan statement is available on the District website: https://www.cawd.org/request-for-proposal-rfp-investment-management-services-for-the-employee-defined-benefit-pension-plan |