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Request for Proposal Independent Actuarial and Financial Study of Pension Plan
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City of Jonesboro
REQUEST FOR PROPOSAL
INDEPENDENT ACTUARIAL AND FINANCIAL STUDY OF PENSION PLAN
BACKGROUND INFORMATION
I. INTRODUCTION
The City of Jonesboro is seeking a qualified proposal to perform an independent actuarial study as of January 1, 2008, of its Retirement Plan for Employees of City of Jonesboro, Arkansas (the “Plan”) administered by Principal Life Insurance Company and an overall evaluation of the plan relative to its investment portfolio and management. A summary of the Plan’s provisions is attached as Exhibit “A”.
A. The City of Jonesboro is committed to providing a meaningful retirement benefit for its employees who commit their employment career to service on behalf of the City and the community. To that end, the City has established a defined benefit pension plan to assist employees in providing for their retirement security. Currently the City’s pension plan is a defined benefit plan providing a unit benefit of 1.5 percent of its final average monthly compensation times years of accredited service.
B. Several of the current employees have previously participated in the Arkansas Public Employees Retirement System (APERS). APERS provides a more valuable retirement benefit for long term employees who participate under APERS, however, the cost of participation of the plan (5% of employee contribution and a designated employer contribution) of 11.05% of pay for the upcoming year) exceeds significantly the cost of the City’s current defined benefit pension plan.
The assets of the Plan are currently invested in various funds under a defined benefit plan managed and administered by the Principal Life Insurance Company (“Principal”).
As of January 1, 2007, the total valuation assets in the Plan amounted to $6,187,027.
There is a Finance Committee that advises the City Council, who makes decisions regarding the Plan.
II. SCOPE OF SERVICES
A. Review an...
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