Pension Administration

System

7/19/2019

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Table of Contents

1. Timeline ---------------------------------------------------------------------------------------------------------------------- 3

2. Introduction ----------------------------------------------------------------------------------------------------------------- 3

3. Purpose----------------------------------------------------------------------------------------------------------------------- 3

3. The MEABF’s Retirement Plan Overview----------------------------------------------------------------------------- 4

3.1 Relationship to the City of Chicago ----------------------------------------------------------------------------- 4

4. Minimum Qualifications-------------------------------------------------------------------------------------------------- 4

5. Mandatory Requirements ----------------------------------------------------------------------------------------------- 4

6. Project Scope and Requirements -------------------------------------------------------------------------------------- 5

6.1 Scope of Work-------------------------------------------------------------------------------------------------------- 5

6.2 Implementation Scope--------------------------------------------------------------------------------------------- 5

6.3 Data Conversion Scope -------------------------------------------------------------------------------------------- 5

6.4 Function Scope------------------------------------------------------------------------------------------------------- 6

6.5 Hosting Options------------------------------------------------------------------------------------------------------ 7

7. Instructions to Proposers ------------------------------------------------------------------------------------------------ 7

7.1 Communication with the Fund---------------------------------------------------------------------------------------- 7

7.2 Questions------------------------------------------------------------------------------------------------------------------- 7

7.3 Requests for Clarification ---------------------------------------------------------------------------------------------- 7

7.4 Changes to RFP ----------------------------------------------------------------------------------------------------------- 8

7.5 Proposal Submission Instructions ------------------------------------------------------------------------------------ 8

7.6 Proposal Delivery Instructions ---------------------------------------------------------------------------------------- 8

7.7 Offer and Proposal Form ----------------------------------------------------------------------------------------------- 8

8. Contract Terms and Conditions ---------------------------------------------------------------------------------------- 8

8.1 Proprietary Materials---------------------------------------------------------------------------------------------------- 8

8.2 Readability ----------------------------------------------------------------------------------------------------------------- 8

8.3 Proposer Responsibility------------------------------------------------------------------------------------------------- 9

8.4 Errors in Proposals ------------------------------------------------------------------------------------------------------- 9

8.5 Incorporation of RFP and Proposal in Contract ------------------------------------------------------------------- 9

8.6 Proposal Disposition----------------------------------------------------------------------------------------------------- 9

9. Proposal Format------------------------------------------------------------------------------------------------------------ 9

1. Cover Letter - Optional--------------------------------------------------------------------------------------------- 9

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2. Vendor Information:------------------------------------------------------------------------------------------------ 9

3. Organization Qualifications and Background----------------------------------------------------------------- 9

4. Clients and References--------------------------------------------------------------------------------------------10

5. Professional Staff---------------------------------------------------------------------------------------------------10

6. Pension Administration Software Services-------------------------------------------------------------------10

7. Hosting Option------------------------------------------------------------------------------------------------------11

8. Other ------------------------------------------------------------------------------------------------------------------11

9. Fees --------------------------------------------------------------------------------------------------------------------11

10. MEABF RFP Procedures----------------------------------------------------------------------------------------11

11. Evaluation Criteria ----------------------------------------------------------------------------------------------12

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1. Timeline

SOLICITATION SCHEDULE DATE

RFP Issued July 18, 2019

Inquiry Deadline August 19, 2019

Sealed Proposals Due to Fund September 20, 2019

Announcement of Successful Bid To Be Determined

Contract Agreement To Be Determined

2. IntroductionThe Municipal Employees’, Officers’ and Officials’ Annuity and Benefit Fund of Chicago (the "MEABF" or

the “Fund”) is a public employee defined benefit retirement system administered in accordance with the

provisions of the Illinois Pension Code (40 ILCS 5/8 et seq.). The Fund provides retirement and disability

benefits to non-sworn, non-laborer employees of the City of Chicago and the Chicago Board of

Education. The Fund serves approximately 31,285 active members and 25,638 retirees and/or

beneficiaries. The Fund assets as of December 31, 2018 were $3.91 billion.

The MEABF has a Pension Administration System (“PAS”) that was implemented in 2008. PAS is a client-

server application that is deployed on-site at MEABF’s offices. The Retirement Board of Trustees of the

MEABF of Chicago is seeking Proposals from qualified firms interested in providing proposals regarding a

possible system to replace the PAS system, if recommended by qualified firms. This Request for Proposal

("RFP") is offered to solicit responses from qualified vendors interested in providing the products and

services outlined herein for implementation, maintenance and support of the PAS system for the

MEABF. The Fund wishes to contract with a single vendor with demonstrated experience in

implementing pension administration systems for retirement systems with defined benefit plans similar

in size and complexity. The Fund may choose not to acquire all optional system components.

The Fund seeks a vendor that provides a proven and carefully structured approach to implementation.

In this context, implementation refers to all efforts required to provide a complete and functioning

system. This includes technology and implementation planning, detailed design, interfaces, software

integration, testing, training, data conversion, end-user and technical documentation and reports,

project management, and post implementation warranty support. The Fund also seeks pricing proposals

for ongoing maintenance and support.

3. PurposeThe Fund seeks to enter into a business relationship with a Pension Administration System vendor that:

1. Has a history of successful implementation of comparable projects with agencies of similar size

and complexity as the Fund

2. Has long term commitment to the pension administration system business and has long-term

viability as a company to successfully plan, manage and execute data conversion.

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3. Has a product enhancement strategy for both software and functionality and architecture that

will keep it current with industry trends, standards, compliance and regulations.

4. Can provide an efficient and proven set of implementation services to ensure the Fund

leverages the capabilities of the software to implement new business processes and achieve its

business goals.

5. As a hosted solution, will have the staffing and facilities to support the Fund's security,

performance, availability, reliability, disaster recovery, business continuity, and operational

requirements for the long term.

6. Provides high quality responsive software maintenance and support services for the installed

system.

3. The MEABF’s Retirement Plan OverviewThe summary plan description is available on the Illinois General Assembly website (www.ilga.gov). You

can access the plan through the MEABF’s website (www.meabf.org) through the INFO LINKS page for

detailed information.

3.1 Relationship to the City of ChicagoThe MEABF is a multi-tiered, multi-employer pension trust fund of the City of Chicago and as such is

included in their annual financial reporting.

4. Minimum QualificationsThe following minimum qualifications must be met in order for proposals to be eligible for evaluation:

1. The vendor must have been in the pension administration system solution delivery business for

the past five years.

2. The vendor must have three references of completed implementations of the equivalent

pension administration software solution being proposed to the MEABF. "Equivalent solution" is

defined as either the same version of the application or one major version earlier and for funds

with a multi-tiered, multi-employer, Defined Benefit (DB) plan with reciprocity to other

government DB plans in the State of Illinois and a total membership size of at least seventy-five

thousand members. These references must be for implementations that are less than seven

years old.

5. Mandatory RequirementsThe following mandatory requirements shall be met in order for proposals to be eligible for evaluation:

1. The proposal must discuss potential solutions for a potential new single integrated pension

administration system

2. The proposal must discuss the system’s capability to configure multiple employers and multiple

tiers within a plan

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3. The proposal must discuss the system’s capability to offer access to both the City Of Chicago’s

and the Chicago Board of Education’s 457 savings plans.

4. The proposal must discuss the system’s capacity to interface with the MEABF’s master

custodian.

5. The proposal must discuss utilizing Microsoft centric technology in order to easily integrate with

existing systems.

6. Vendor must provide a data protection impact assessment of their system.

7. Vendor must provide a security vulnerability assessment of their system.

6. Project Scope and Requirements

6.1 Scope of Work

The scope of work for this RFP includes:

1. Full scope of implementation services including initiation, planning, analysis, configuration,

testing, training, project management, interface development, etc.

2. Full scope of data conversion services including planning, analysis, cleansing, and conversion

from multiple data sources.

3. Assist the Fund in the development of business processes that leverage the new functional

capabilities of the PAS and align with industry best practices.

4. Possible implementation of a member portal for member self-service.

5. Specifications and pricing for the required hardware and software for the delivery model being

bid.

6. Software maintenance and support

6.2 Implementation Scope

The MEABF requires that the implementation delivers the following:

1. A stable, robust, and mature software solution integrated with other business systems

2. A clean and complete data conversion

3. Thoroughly trained staff

4. Thoroughly prepared IT support team

5. Quality system documentation and support materials

6.3 Data Conversion Scope

The data conversion is considered integral to the success of this project. The Fund is seeking a vendor

that is capable of ensuring this critical subproject is seamlessly integrated with the software delivery

process.

At a high level, the scope includes:

1. Project planning and maintenance

2. Data profiling

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3. Data cleansing

4. Data testing and conversion

5. Archiving

6. Data storage and management must comply with GDRP

The Fund has identified the following scope as being necessary for the PAS vendor to meet in order to

complete conversion and population of the highest quality data into a potential new PAS:

1. Develop and publish data conversion/conversion directives

2. Analyze and define data

3. Conduct data cleansing analysis

4. Develop and publish data cleansing reports

5. Assist with data cleansing/corrections and test

6. Map data to new PAS

7. Extract and transform data for use in new PAS

8. Develop an on-going strategy for data validation/reconciliation and cleansing to validate and

reconcile during data conversion project activities

The data subject areas that need to be converted are: [examples below]

1. Active member demographic information

2. Terminated member demographic information

3. Vested and non-vested (deferred) member demographic information

4. Deceased member demographic information

5. Retired member demographic information

6. Active member beneficiary information

7. Retired member beneficiary information

8. Active member salary history

9. Active member service credit

10. Active member retirement contributions

11. Active member accumulated contributions with interest (ACWI) information

12. Retired member benefits payments information

13. Member status information

14. Buy back/ redeposit information

15. Reciprocal status information

6.4 Function Scope

The following key business process areas are in scope for this project: [examples below]

1. Buy backs and purchasing service credit

2. Benefit estimate including all optional settlements

3. Termination and withdrawal

4. Refunds

5. Final calculation and new retiree

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6. Rehired retiree and active member

7. Qualified Illinois Domestic Relationship Order (QILDRO)

8. Member demographics

9. Active pension contribution and interest posting

10. Member statements

11. Actuarial Valuation data report

12. Provide an option for ad hoc and custom reporting

13. Electronic Content Management

14. Member/Retiree Self Service

15. Integration with Financial Software

6.5 Hosting Options

The Software vendor would host all PAS environments at the vendor's location. The system would be

accessed securely by Fund staff. The vendor-hosted solution will address the technical and hosting

requirements of this RFP. It must also include a separate disaster recovery site in the proposal. The

vendor will be responsible for the performance of the solution.

7. Instructions to Proposers

7.1 Communication with the Fund

All vendor communication concerning this acquisition shall be directed to the MEABF’s Deputy ExecutiveDirector: Stacey Ruffolo

Email: searches@meabf.org

Following the proposal submission deadline, vendors who submit a proposal shall not contact the

Deputy Executive Director or any other Fund employee except to respond to a request by the Fund.

7.2 Questions

Questions are to be submitted to the Fund's Deputy Executive Director no later than the date and time

on page 3, in order to allow sufficient time for consideration of the question before the proposals are

due. The Fund prefers such questions to be directed to the MEABF RFP email address:

searches@meabf.org. Failure to request clarification of any inadequacy, omission, or conflict will not

relieve the vendor of any responsibilities under this solicitation or any subsequent contract. It is the

responsibility of the interested vendors to assure that they received responses to questions if any are

issued.

7.3 Requests for Clarification

Upon review of proposals submitted by Respondents, the MEABF may, at its discretion, submit to

Respondents written questions and requests for clarification relating to technical and/or cost proposals.

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7.4 Changes to RFP

A change may be made by the Fund if, in the sole judgment of the Fund, the change will not compromise

the Fund's objectives in this acquisition. A change to this RFP will be made by formal written addendum.

Addenda issued by the Fund shall become part of this RFP and included as part of the contract.

7.5 Proposal Submission Instructions

Please provide 3 of hard copies of your proposal. Proposals must be received in hard-copy form no later

than the date and time specified on the solicitation schedule.

7.6 Proposal Delivery Instructions

The proposal must be received by the Fund at the address provided below, by the submission deadline.

Mailing Address: 321 North Clark Street, Suite 700, Chicago, IL 60654

Hard-copy responses should be in a sealed box or envelope. Submissions and their packaging (boxes or

envelopes) should be clearly marked with the name and address of the proposer. The proposer has full

responsibility to ensure the response arrives at the MEABF Administration Office within the deadline.

7.7 Offer and Proposal Form

Proposer shall provide the response in the format required herein.

8. Contract Terms and ConditionsNothing herein prohibits the Fund, at its sole option, from introducing or modifying contract terms and

conditions and negotiating with the highest ranked apparent successful vendor to align the proposal to

the Fund's needs, within the objectives of the RFP. The MEABF has significant and critical time frames

for this initiative; therefore, should such negotiations with the highest ranked, apparent successful

vendor fail to reach agreement in a timely manner as deemed by the MEABF, the MEABF, at its sole

discretion, retains the option to terminate negotiations and continue to the next-highest ranked

proposal.

8.1 Proprietary Materials

Under Illinois Law (5 ILCS 104/1 et seq.), the Freedom of Information Act (Release/Disclosure of Public

Records), materials received by the Fund may be considered public records. These records include but

are not limited to bid or proposal submittals, agreement documents, contract work product, or other

bid material.

8.2 Readability

Proposers are advised that the MEABF's ability to evaluate proposals is dependent in part on the

proposer's ability and willingness to submit proposals which are well ordered, detailed, comprehensive,

and readable. Clarity of language and adequate, accessible documentation is essential.

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8.3 Proposer Responsibility

It is the proposer's responsibility to examine all specifications and conditions thoroughly and comply

fully with specifications. Proposers must comply with all federal, state, and city laws, ordinances, and

rules. Prior to the proposal submission closing date and time established for this RFP, a proposer may

make changes to its proposal provided the change is initialed and dated by the proposer. No change to a

proposal shall be made after the proposal closing date and time.

8.4 Errors in ProposalsProposers are responsible for errors and omissions in their proposals. No such error or omission shall

diminish the proposer's obligations to the Fund.

8.5 Incorporation of RFP and Proposal in Contract

This RFP and the proposer's response, including all promises, warranties, commitments, and

representations made in the successful proposal, shall be binding and incorporated by reference in the

Fund's contract with the proposer.

8.6 Proposal Disposition

All material submitted in response to this RFP shall become the property of the Fund upon receipt by

the Fund.

9. Proposal FormatSubmit the proposal in the following format:

1. Cover Letter - Optional

2. Vendor Information:

Vendor 's legal name:

"Doing business as" name (DBA) if applicable

Mailing Address:

Contact person and title:

Contact person's phone number:

Contact person's fax number:

Contact person's email address:

3. Organization Qualifications and Background

a) Describe your firm's strengths, highlighting the aspects of your service that make you unique

from your competition.

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b) Provide a description of your company, including historical background, number of staff,

number and location of offices and information demonstrating the financial strength of your

company.

c) Summarize your organization's long-term strategy for business development.

d) Detail the percentage of your annual budget allocated toward research and development.

e) Explain if your organization anticipates any change in ownership or organizational structure.

f) If providing Pension Administration Systems is not your sole line of business, describe the other

services your firm provides and show the percentages of your organization's revenues

attributable to the Pension Administration System as well as the other lines of services.

g) Provide details of any litigation your firm and/or any of its principals or employees is

currently engaged in with current or former clients, employee(s), or any other person or

organization related to any of your business activities.

4. Clients and References

a) Provide a summary of your firm's clients including approximate membership size. Indicate a

breakdown by public pension funds, corporate pension funds, Taft Hartley funds, and others. At

a minimum, include:

Total Pension Administration Software clients:

Total Public Employee Pension clients:

b) Provide a list of at least three retirement systems (similar in size to this Fund) for which your

firm currently provides services. Provide the email address, telephone number, name and title

of the person who may be contacted for reference. Please obtain prior authorization for us to

contact each reference.

c) Provide a list of all Public Employee Pension clients in which your firm was terminated for cause

in the past 5 years.

5. Professional Staff

a) List the number of staff specifically involved in providing pension administration services and

the number of staff allocated to providing product support, including average years of

experience for both service and support.

b) If specific individuals will be assigned as a support and/or contact for accounts, provide the

name(s) and locations of the individuals(s) who will be responsible for this account if your firm is

awarded this contract. Provide a brief biography of each member of the team, including titles,

functions, relevant work experience, and number of years with your firm.

c) If more than one person will be assigned responsibility for the account, detail how the

responsibility be allocated among those individuals.

d) Discuss any staffing reductions and additions during the last three (3) years.

e) Describe the usage of offshore personnel, including employees and subcontractors.

6. Pension Administration Software Services

a) Is your system proprietary or did you obtain it from an outside source?

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b) Describe how your product will address the requirements as outlined in the Scope of Services.

c) Describe your methodology for project implementation and project management.

d) Provide a detailed plan regarding your process of data conversion, transition assistance and

program testing including business continuance processing.

e) Provide an estimated timeline for this project from start to completion.

7. Hosting Option

Vendors shall include detailed information on hosting and support of the application in their

response to this RFP if a vendor-hosted option is included in the proposal, and shall include the

following:

a) The data center where the system is located shall meet SOC2 compliance or an equivalent

standard.

b) The vendor shall host the system through the implementation in addition to hosting the system

in production. Determine the bandwidth requirements for the connection.

c) The vendor shall propose the standard service level agreements it plans on adhering to.

8. Other

a) Describe the equipment required to successfully host the application and any necessary

equipment updates to the MEABF’s current equipment.

b) Describe any other services you provide not covered in previous sections.

c) Provide your firm's levels of insurance coverage for general liability insurance and errors and

omission. Will you provide certificates of insurance coverage if your firm is hired and annually

thereafter?

9. Fees

a) Provide a proposed fixed fee for conversion to the new system to encompass all services

including startup, development, implementation, and testing costs and when payment is

required.

b) Provide fee information for ongoing maintenance and support.

10. MEABF RFP Procedures

Following the deadline for submissions, the Fund’s staff shall open the responses and review each for

content, quality and compliance with the RFP’s requirements. Following the review, the field of

candidates will be narrowed to a smaller list of the most qualified Respondents. The Fund’s staff

reserves the right to meet with representatives of each Respondent to obtain an independent

assessment of the Respondent’s capabilities and the Fund reserves the right to conduct background

investigations of selected individuals or firms prior to awarding a contract under this RFP.

Subject to 40 ILCS 5/1-145 of the Illinois Pension Code, no Respondent shall retain a person or entity to

influence: (i) the outcome of an investment decision; or (ii) the procurement of investment advice or

services of the Fund for compensation contingent, in whole or in part, upon the decision or

procurement.

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11. Evaluation Criteria

Proposals will be evaluated in order to ascertain which Proposal best satisfies the Scope of Services. The

following represents the principal selection criteria to be used during the evaluation process:

a) Ability of Proposal to clearly state an understanding of the work to be performed.

b) Ability to achieve completion of implementation by stated target date.

c) Technical ability of the vendor to perform requested services.

d) Proposer's experience with similar size organizations.

e) Fees.

Fees will be a particularly important factor when all other evaluation criteria are relatively equal.