RES 1997-2737 - Contract with Milliman and Robertson Inc for valuation services for civilian employees retirement system F
F°MAHA. , RECEIVED U���`�� 7 Finance Department
s
t;K +(� Omaha/Douglas Civic Center •
t�` y 4 1819 Farnam Street,Suite 1004
®, ' r� � � 97 SEP 29 PM2• �� Omaha,Nebraska 68183-1004
` (402)444-5416
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IP.,4 FeeR°1,s• Telefax(402)444-5423
CITY CLERK
City of Omaha O M A H A, N E #A S i 4 Louis A.D'Ercole
Director
Hal Daub,Mayor
September 30, 1997
Honorable President
and Members of the City Council,
The City of Omaha received four proposals to provide actuarial services to the City of Omaha
Employees Retirement System on August 27, 1997. Following is a recap of the cost of the
proposals:
The Segal Company, Englewood, CO $14,500
Milliman and Robertson, Inc., Omaha,NE $14,900
Mammel Associates, Inc., Omaha,NE $15,000
Coopers and Lybrand, LLP, Dallas, TX $34,500
A Pension Board committee consisting of Douglas Schrawger, Buster Brown and Stanley Timm
heard presentations from the three firms that submitted the lowest priced proposals on September
12, 1997. On September 17, 1997 the Pension Board passed by unanimous vote of six of its seven
members a recommendation to the City Council to hire Milliman and Robertson,Inc. to perform the
services.
Milliman and Robertson performed the actuarial study in 1995 to the satisfaction of the City.
Milliman and Robertson is a local firm. This fact expedites availability if Pension Board members
need to contact the firm with questions about any portion of the study or any additional concerns that
may arise at a later date.
The Pension Board hereby recommends adoption of the attached resolution to hire the second low
bid to perform the actuarial services for the City Civilian Pension System.
Sincerely, A oved:
7
9, 29
Stanley P. T mm Date Louis A. D'Erco e ate
System Administrator Finance Director
App e : Refe o ity nc.1 for Consideration:
° d3 7Ø7
vis Date Mayor's Officecate
Human Rel ions Director
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I
CONTRACT
THIS CONTRACT is entered into by and between the City of Omaha, a municipal
corporation of the State of Nebraska, and the City of Omaha Civilian Employees Retirement System
Board of Trustees, also collectively referred to as "City" and Milliman and Robertson, Inc., also
referred to as "Contractor".
PROVISIONS OF THE CONTRACT
1. EQUAL EMPLOYMENT OPPORTUNITY
Annexed hereto as Exhibit "A" and made a part hereof by reference are the equal
employment provisions of this Contract. Refusal by the Contractor or subcontractor to
comply with any portion of this program as therein stated and described will subject the
offending party to any or all of the following penalties:
(1) Withholding of all future payments under the involved contracts to the Contractor in
violation until it is determined that the Contractor or subcontractor is in compliance
with the provisions of the Contract;
(2) Refusal of all future bids for any contracts with the City or any of its departments or
divisions until such time as the Contractor or subcontractor demonstrates that he has ' •
established and shall carry out the policies of the program as herein outlined.
2. NON-DISCRIMINATION
The Contractor shall not, in the performance of this Contract, discriminate or permit
discrimination in violation of federal or state laws or local ordinances because of race, color,
sex, age, political or religious opinions, affiliations or national origin or on the basis of
disability as defined by the Americans with Disabilities Act of 1990 and Omaha Municipal
Code (13-82) and shall take all action necessary to comply with the Americans with
Disabilities Act of 1990 and Omaha Municipal Code(Chapter 13) including,but not limited
to reasonable accommodation.
3. SERVICES
Contractor covenants that it shall perform the following services:
(1) Consultation and advisory services relative to plan design. This will include
assessing the validity of current actuarial assumptions and method, alternatives as
appropriate, and commentary as to whether the existing assumptions are overly
liberal or too conservative.
(2) Contractor will conduct and submit an actuarial valuation report reflecting the assets
and liabilities of the plan as of July 1, 1997.
(3) Contractor will attend three meetings in Omaha, Nebraska. The focus of the first
meeting will include the review of assumptions, plan design and other topics as
appropriate. Subsequent to the planning meeting, there will be two additional
meetings to present the results of the study to the Board of Trustees,the City Council
and the membership of the System.
(4) Contractor will prepare an experience analysis which reviews plan experience
through July 1, 1997.
(5) Contractor will prepare estimated costs for the special topics referenced in Exhibit
"1" and the "Addendum" to the request for proposals.
4. FEES
The total amount payable under this contract shall not exceed$14,900. Said fee shall be paid
according to the general schedule as follows:
(1) Actuarial valuation and report, meetings $14,100
and special topic analysis and report
(2) Update per Government Accounting 800
Standards Board- 1997 TOTAL $14,900
5. CAPTIONS
Captions used in this contract are for convenience and are not used in the construction of this
contract.
6. APPLICABLE LAW
Parties to this contract shall conform with all existing and applicable City ordinances,
resolutions, State laws, Federal laws, and all existing and applicable rules and regulations.
Nebraska law will govern the terms and performance under this contract.
7. INTEREST OF THE CITY
Pursuant to Section 8.05 of the Home Rule Charter, no elected official or any officer or
employee of the City shall have a financial interest, direct or indirect, in any City contract.
Any violation of this section with the knowledge of the person or corporation contracting
with the City shall render the contract voidable by the Mayor or Council.
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a p.
8. INTEREST OF THE CONTRACTOR
The Contractor covenants that it presently has no interest and shall not acquire any interest,
direct or indirect, which would conflict with the performance of services required to be
performed under this contract. It further covenants that in the performance of this contract,
no person having any such interest shall be employed.
9. MERGER
This contract shall not be any mer ed intoother oral or written contract. This is the complete
g
p
and full agreement of the parties.
10. MODIFICATION
This contract contains the entire agreement of the parties. No representations were made or
were relied upon by either party other than those that are expressly set forth herein. No
agent, employee or other representative of either party is empowered to alter any of the terms
hereof unless done in writing and signed by an authorized officer of the respective parties.
11. ASSIGNMENT
The Contractor may not assign its rights under this contract without the express prior written
consent of the City.
12. STRICT COMPLIANCE
All provisions of this contract and each and every document that shall be attached shall be
strictly complied with as written and no substitution or change shall be made except upon
written direction from an authorized representative.
AUTHORIZED REPRESENTATIVE
In further consideration of the mutual covenants herein contained,the parties hereto expressly
agree that for purposes of notice including legal service of process, during the term of this contract
and for the period of any applicable statute of limitations thereafter,the following named individuals
shall be the authorized representatives of the parties.
(1) City of Omaha (2) Milliman and Robertson, Inc.
Civilian Employees Retirement System 10050 Regency Circle, Suite 500
Stanley P. Timm, Administrator Omaha,NE 68114
Omaha/Douglas Civic Center
1819 Farnam Street, Suite 1004
Omaha NE 68183
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Executed by the City of Omaha this 171 day of ali‘4' , 1997.
ATTEST: CITY OF OMAH A , A MUNICIPAL
CORPORA IO it(fi
By
C y Clerk Mayor
PPROVED AS TO FORM: RECOMMENDED:
i Attor Administrate , City of Omaha Civilian
Employees Retirement System
Executed by Milliman and Robertson, Inc. this a 74.day of p bee , 1997.
WITNESS: MILLIMAN AND ROBERTSON, INC.
QAtth, By 624 alety14
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EXHIBIT "A"
EQUAL EMPLOYMENT OPPORTUNITY CLAUSE
During the performance of this contract, the Contractor agrees as follows:
(1) The Contractor shall not discriminate against any employee or applicant for employment
because of race,religion,color,sex,national origin,or disability as defined by the Americans
With Disabilities Act of 1990 and Omaha Municipal Code 13-82. The Contractor shall take
affirmative action to ensure that applicants are employed and that employees are treated
during employment without regard to their race, religion, color, sex or national origin. The
Contractor shall take all actions necessary to comply with the Americans With Disabilities
Act of 1990 and Omaha Municipal Code (Chapter 13) including, but not limited to,
reasonable accommodation. As used herein, the word "treated" shall mean and include,
without limitation, the following: Recruited, whether advertising or by other means;
compensated; selected for training,including apprenticeship;promoted; upgraded; demoted;
downgraded; transferred; laid off; and terminated. The Contractor agrees to and shall post
in conspicuous places, available to employees and applicants for employment, notices to be
provided by the contracting officers setting forth the provisions of this nondiscrimination
clause.
(2) The Contractor shall, in all solicitations or advertisements for employees placed by or on
behalf of the Contractor, state that all qualified applicants will receive consideration for
employment without regard to race, religion, color, sex, national origin, or disability as
recognized under 42 USCS 12101 et seq.
(3) The Contractor shall send to each labor union or representative of workers with which he has
a collective bargaining agreement or other contract or understanding a notice advising the
labor union or worker's representative of the Contractor's commitments under the Equal
Employment Opportunity Clause of the City and shall post copies of the notice in
conspicuous places available to employees and applicants for employment.
(4) The Contractor shall furnish to the contract compliance officer all federal forms containing
the information and reports required by the federal government for federal contracts under
federal rules and regulations, and including the information required by Sections 10-192 to
10-194, inclusive, and shall permit reasonable access to his records. Records accessible to
the Contract Compliance Officer shall be those which are related to Paragraphs (1)through
(7) of this subsection and only after reasonable notice is given the Contractor. The purpose
for this provision is to provide for investigation to ascertain compliance with the program
provided for herein.
(5) The Contractor shall take such actions with respect to any subcontractor as the City may
direct as a means of enforcing the provisions of Paragraphs(1)through(7)herein, including
penalties and sanctions for noncompliance; however, in the event the Contractor becomes
involved in or is threatened with litigation as the result of such directions by the City, the
AN • 4
City will enter into such litigation as necessary to protect the interests of the City and to
effectuate the provisions of this division; and in the case of contracts receiving federal
assistance, the Contractor or the City may request the United States to enter into such
litigation to protect the interests of the United States.
(6) The Contractor shall file and shall cause his subcontractors, if any,to file compliance reports
with the Contractor in the same form and to the same extent as required by the federal
government for federal contracts under federal rules and regulations. Such compliance
reports shall be filed with the Contract Compliance Officer. Compliance reports filed at such
times as directed shall contain information as to the employment practices, policies,
programs and statistics of the Contractor and his subcontractors.
(7) The Contractor shall include the provisions of Paragraphs (1) through (7) of this Section,
"Equal Employment Opportunity Clause", and Section 10-193 in every subcontract or
purchase order so that such provisions will be binding upon each subcontractor or vendor.
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Exhibit 1
1997 ACTUARIAL VALUATION
CITY OF OMAHA EMPLOYEES' RETIREMENT SYSTEM
Special Topics
The following items are requested to be valued by the actuary performing the 1997 actuarial
valuation once the financial soundness of the system has been established:
- Increase service retirement factor from 1.667% to 1.75% and incrementally .05% thereafter to
2.00% for service years beginning in 1998.
- Increase service retirement factor from 1.667% to 1.70% and incrementally .025% thereafter
to 2.00% retroactive for all years of service.
- Change rule of 85 to rule of 80.
- Annual savings to the system for each 1% reduction in the interest rate paid upon withdrawals
of contributions due to separations from service (currently maximum of 5%).
- If you retire prior to meeting the rule of 85, reduce 8% per year in the pension amount for each
year under the total of 85.
- If you retire prior to meeting the rule of 85, reduce 10% per year in the pension amount for
each year under the total of 85.
asA CITY OF OMAHA
LEGISLATIVE CHAMBER
•
Omaha,Nebr
September 30: 19 97
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS, an actuarial valuation of the Civilian Employees Retirement System is
periodically required to review the system's assets and liabilities and to review the appropriateness
of the assumptions upon which the system is designed; and,
WHEREAS, the Civilian Employees Retirement System Board of Trustees on
September 17, 1997 voted to recommend a contract with Milliman and Robertson,Inc., a copy of
which is attached and by this reference made a part hereof,for such actuarial valuation services; and,
WHEREAS, Milliman and Robertson, Inc. will undertake the actuarial services
detailed in the agreement for a fee of$14,900.00.
NOW,THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OMAHA:
THAT,the contract with Milliman and Robertson,Inc.for actuarial valuation services
for the Civilian Employees Retirement System is approved.
THAT, the Finance Department is authorized to pay the cost of actuarial valuation
services performed under this contract from the Civilian Employees Pension System Actuarial
Analysis Organization 1730.
APPROVED AS TO FORM:
f
SS ST Y ATTORNEY DATE
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By Councilmember
Adopted SEP 0 i9974,/‘ .
ity Clerk
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