State of Oregon

Office of the State Treasurer

350 Winter Street NE, Suite 100

Salem, Oregon 97301-3896

ADDENDUM #1

Issued: October 13, 2016

to

REQUEST FOR PROPOSALS #170-1119-16

for

Services for Plan Administration and Management

This Addendum modifies the Request for Proposal (RFP) Document(s) only to the extent indicated herein. All other areas not changed or otherwise modified by this Addendum remain in full force and effect. This Addendum is hereby made an integral part of the Original RFP Document and Proposal shall incorporate this Addendum into the Statement of Proposal as if it were issued in the original RFP.

1. The RFP Attachment C, Questionnaire, item C.3 #71 is hereby amended (affected language is bolded with new language in amended provisions indicated by underlining and deleted language in amended provisions indicated by [brackets]) as follows:

71. Fully describe your process to reconcile [date] data and total funding amounts. Describe how you will resolve issues with the Employers or their delegates. What funding process methods do you recommend to ensure that contributions and funding match and all contributions can be posted to the Employee accounts?

2. The RFP is hereby amended to add and incorporate the following (affected language is bolded and underlined):

2.a The Table of Contents:

Attachment Q – Services by Fee Level Worksheet

Double-click icon to open attached file  /

Attachment R – Affidavit of Trade Secret

Double-click icon to open attached file  /

2.b 2.1.1 Mandatory Proposal Requirements

MANDATORY - PROPOSAL RESPONSE SUBMISSION CHECKLIST
Proposal Submission Deadline Date and Time met
One (1) original Proposal Response
Seven (7) copies of the complete Proposal Response
One (1) electronic copy of complete Proposal Response
Attachment A - Proposal Cover Sheet with authorized original signature
Attachment B –Minimum Qualifications
Attachment C –Questionnaire
Attachment D – Additional Organizational Qualifications
Appendix A – SSAE 16 or similar audit (refer to Attachment B (5.a))
Appendix B – SOC 1 Type 2 report or similar (refer to Attachment B(5.b))
Appendix C – SOC 2 Type 2 report or Treasury Security Questionnaire (refer to
Attachment B (5.c))
Appendix D – Sample fund information (refer to Attachment C (A.3 (3))
Appendix E – Sample contract, prospectus, and related document for each
investment proposed, or custodial contract (refer to Attachment C
(A.3 (14))
Appendix F – Sample of similar reporting (refer to Attachment C (A.4 (16))
Appendix G – Samples of the statement and Participant account information (refer
to Attachment C (B.3 (32))
Appendix H – Audited Financial Statement (refer to Attachment D (9))
Appendix I – Provider’s contract/agreement form
Appendix J – Service by Fee Level Worksheet (refer to Attachment Q)
Appendix K– Affidavit of Trade Secret (refer to Attachment R)

2.d 4.2 Pass/Fail Submission Criteria

Each Proposal must comply with the following Pass/Fail Submission Criteria. Proposals not meeting ALL Pass/Fail Submission Criteria and the Minimum Qualifications will be rejected, unless such failure is deemed immaterial at the sole discretion of the Treasury.

MANDATORY - PROPOSAL RESPONSE SUBMISSION CHECKLIST
Proposal Submission Deadline Date and Time met
One (1) original Proposal Response
Seven (7) copies of the complete Proposal Response
One (1) electronic copy of complete Proposal Response
Attachment A - Proposal Cover Sheet with authorized original signature
Attachment B –Minimum Qualifications
Attachment C –Questionnaire
Attachment D – Additional Organizational Qualifications
Appendix A – SSAE 16 or similar audit (refer to Attachment B (5.a))
Appendix B – SOC 1 Type 2 report or similar (refer to Attachment B(5.b))
Appendix C – SOC 2 Type 2 report or Treasury Security Questionnaire (refer to
Attachment B (5.c))
Appendix D – Sample fund information (refer to Attachment C (A.3 (3))
Appendix E – Sample contract, prospectus, and related document for each
investment proposed, or custodial contract (refer to Attachment C
(A.3 (14))
Appendix F – Sample of similar reporting (refer to Attachment C (A.4 (16))
Appendix G – Samples of the statement and Participant account information (refer
to Attachment C (B.3 (32))
Appendix H – Audited Financial Statement (refer to Attachment D (9))
Appendix I – Provider’s contract/agreement form
Appendix J – Service by Fee Level Worksheet (refer to Attachment Q)
Appendix K– Affidavit of Trade Secret (refer to Attachment R)

3. The RFP Attachment C, Questionnaire, Section F.1, Program Financing, item #1 is hereby amended (affected language is bolded with new language in amended provisions indicated by underlining and deleted language in amended provisions indicated by [brackets]) as follows:

PROPOSED PRICING & VALUE DELIVERED

1.  To ensure success, Program implementation and ongoing servicing and operations must be affordable to Participants over a reasonable contract term. While Proposers are permitted flexibility in suggesting proposed fee structures and contract terms, each Proposer is asked to provide a fee proposal that would limit fees and expenses (including investment management fees) that would be deducted annually from a Participant’s account to the following. Please use the included ORSP Assumptions – Estimated Accounts and Assets by Year (see Attachment N) for annual account and asset growth or advise if you are using different assumptions:

a.  No more than 80 bps (.80%)

b.  No more than 100 bps (1.0%)

c.  No more than 120 bps (1.2%)

Assume that under each scenario, 5 bps (.05%) is remitted to the ORSP Administrative Fund in accordance with HB 2960.

For each of the above all-in fee levels (80 bps, 100 bps, 120 bps), [please describe the services that would be offered to the Program] it is recognized that core services may vary. For each level, please describe the services that would be offered to the Program and if services would change over time as the Plan gains assets and as your firm has time to develop and desired expanded or new capabilities. Please use Attachment Q to complete your response for this portion of the question and reference example service categories in the Sample Statement of Work (see Attachment F).

-Attach as Appendix J-

As a further breakdown, your firm’s proposed fee structure(s) must be fully detailed and include all fees and expenses charged to and collected from Employee accounts to include investment management fees and all other expenses and charges. For each proposed fee structure:

a.  Describe all investment management fees charged on your proposed investment structure detailed above. Show the fees of each underlying fund that your firm is proposing to use. Break out by investment management, marketing, etc.

b.  Describe any program management or administrative fees your firm is proposing in addition to the investment management fees described above.

c.  Describe any other fees or revenue associated with or related to the Program.

d.  Describe any variations such as varying charges based on the size of an account, usage of various services or features or based on transactions such as contributions, withdrawals, investment transfers or activities.

e.  Fully describe any variations based on alternative Proposed Approaches and/or service deviations. For example, if there is an outlined service that you are not able to provide, it should be fully described and indicated that the service is not included in the proposed fee.

f.  Fully incorporate the activities and associated costs with replacing or adding investment options within the Program. Fully describe any limitations on this activity that you would require.

While there is currently no facility for the Board to provide additional startup funding to the Program, and the Board makes no such commitment, please advise how your service offering and pricing would change if the Board were able to support some of the startup costs, and what dollar amount, by year, would be required.

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