PLEASE NOTE: As long as you are registered for this Request for Proposals (RFP), you will continue to receive these notices. If you do not plan to respond to this RFP, you can mark "No Bid" in the Housing Agency Marketplace. Once you have done so, you will no longer receive notices regarding this RFP.
Minneapolis Public Housing Authority (MPHA) received the following question from a potential proposer. Below each question is MPHA’s response.
1. QUESTION. (a) Is your current advisor acting as a fiduciary for participant education/advice and providing one-on-one participant advisory services, or are you relying on the recordkeeper for these services? (b) Would you welcome the proposer to handle these services, or are you seeking only plan-level advisory services?
MPHA’S RESPONSE. (a) No. MPHA is relying on the recordkeeper as MPHA authorizes. (b) MPHA is only seeking plan level advisory services. This may be expanded later but not initially.
2. QUESTION. Does direct housing authority retirement plan experience matter to MPHA?
MPHA’S RESPONSE. MPHA believes it will be helpful for the successful proposer to know PHA’s statutory limits and general PHA employee knowledge on retirement plan investing.
3. QUESTION. How long has your plan’s current advisor been in place? What’s their current fee?
MPHA’S RESPONSE. MPHA’s current contract for these services has been in place since 2015. MPHA currently pays $28,000 per year.
4. QUESTION. When did you last bid out your current recordkeeper or conduct a formal benchmarking of the recordkeeping fees?
MPHA’S RESPONSE. MPHA just completed an analysis of recordkeeper services and fees.
5. QUESTION. Does your current contract allow for open architecture on investment options?
MPHA’S RESPONSE. No.
6. QUESTION. Is your recordkeeping contract a level-fee contract in which all participants/assets are assessed fees on an equal basis?
MPHA’S RESPONSE. Yes.
7. QUESTION. Recognizing that you are requesting quarterly (and as-needed) meetings, how often would you like investment due diligence reporting on the plan’s investment options?
MPHA’S RESPONSE. Quarterly.
8. QUESTION. Have you recently conducted an analysis of your target date funds’ glidepath relative to your employee demographics?
MPHA’S RESPONSE. MPHA periodically reviews the glidepath in comparison to other target date funds and the use of target date funds by participants.
9. QUESTION. Do you have a 457(b) defined contribution plan today? If so, 1) who is your recordkeeper for that plan, 2) do you have consolidated statements, and 3) why is the 457(b) plan not included in this RFP?
MPHA’S RESPONSE. MPHA offers the State of Minnesota’s 457(b) Plan. MPHA is not looking for advisory services on that Plan. Fund performance and fees are reviewed by the State of Minnesota.
10. QUESTION. Is this proposal for a single-year contract? Would you welcome pricing for a 3-5 year contract?
MPHA’S RESPONSE. As detailed in Section 9.4 of the RFP document, MPHA anticipates initially awarding a contract for a period of 12-months, with options to extend up to 48 additional months at MPHA’s discretion. The proposer should submit their fees for the initial 12-month period. The successful proposer can then request increases to their fees after the initial 12-month period as detailed in Section 9.5 of the RFP document.
Thank you for your interest in this RFP and in doing business with our agency. We look forward to receiving a proposal from your firm.
Regards,
Ayla LeRoy
Buyer
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