Anyone have any samples or information regarding RFP for Actuaries

[Guest Shawn Kroeger]

We are starting a search for a new Actuary and I need some information or samples of questions for an RFP. Can anyone help me out here??? Any help would be appreciated.

[Lorraine Dorsa]

I don't have an RFP for actuaries, but my firm does actuarial work for a number of TPAs and I can tell you what they usually ask us. (I'm assuming here you are looking for an outside actuary, not an employee.)

What kind/size/design of plans do you have experience with: DB plans for small companies, large companies, split funded, with FAS35/87/88 calcs, etc? Cash balance plans? DC plans (401k, ESOP, cross-tested, etc)?

What experience do you have re designing plans for above kind/size/designs?

What is your philosophy re the role of the actuary (e.g. actuary should be conservative and stay well within the tried and true; actuary should be reasonable and stay within his personal area of comfort but I'm willing to look at things with an open mind; I'm rather aggressive and willing to give any reasonable interpretation a try with client disclosure)?

What are your credentials (EA, MAAA, MSPA, FCA, FSPA, FSA, ASA, CEBS, QPA,CPC)?

Do you work alone or does your firm have a staff of DB administrators? Who would we work with?

Will you provide us with a resume for yourself (and the DB administrator(s), if any, in your firm who will be working on our plans)?

Will you do certifications only (we run the valuation under your direction)? Will you run the complete valuation (we send you the data, you do the valuation report, participant certifiates, etc)? Will you sign Schedules B we draft under your supervision? Will you prepare and sign the Schedules B yourself?

Will you prepare PBGC-1 & Schedule A forms?

Will you work with us/our attorney to draft plan documents for new/amended plans?

What are your procedures for working with firms like us?

What is your turnaround time?

What software system(s) do you work with?

How many other TPAs do you provide actuarial services to? Can we call a few of them who are similar to us (re type/size/number of plans) for references?

What are your fees?

Of course, you'll have more questions specific to the types of plans and clients you work with, but these are the types of questions we are asked over and over.

Hope this helps.

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[AndyH]

Also, I'd suggest requesting references for similarly sized clients, preferably in the same business type (manufacturing, non-profit, etc), and geographic location.

Ask whether they have E&O insurance (you'd be surprised how many do not).

Kind of a joke to me, but many RFP's ask what "disaster recovery" plans are in place-(before Y2K became a (non)issue.) But, this might be helpful if you want to keep them on their toes.