ICERS' Actuarial Audit - Questions and Answers
1. Why are the services out to bid?
Actuarial audit services are currently out to bid due to the recent adoption of ICERS’ updated Board Policies manual mandating Actuary Audits within every 7 years.
2. When was the last actuarial audit completed?
ICERS’ last actuarial audit was completed in June of 2014.
3. What firm completed the most recent actuarial audit?
ICERS’ most recent actuarial audit was completed by Cheiron.
4. What were fees paid for the most recent actuarial audit?
The cost for ICERS’ most recent actuarial audit, completed in June of 2014 was $45,000.00.
5. Was the scope of the most recent actuarial audit the same as the scope of this audit?
The scope of ICERS’ current actuarial audit request is fundamentally the same as that of the previous audit.
While the scope of the actuarial audit is for a detailed and full replication of the liabilities and contribution rates of the June 30, 2022 and a high level review of the assumptions used in that valuation based on the June 30, 2020 triennial experience study approved by the Board, Segal is expected to deliver the June 30, 2023 triennial experience study recommending assumptions for use in the 2023 valuation in April 2023.
In opining on the comparison of ICERS’ assumptions to industry norm as well as reviewing the structure and application of the assumptions, the auditor should be aware that those assumptions are being reviewed by Segal
6. What is the target completion date for this project?
The final audit report must be delivered to ICERS’ Management for review by August 1, 2023.
7. Is an in-person presentation planned?
An in-person presentation is currently planned for the August 16, 2023 Board of Retirement meeting.
8. How long has Segal been the actuary for the plan?
The Segal Company has been ICERS’ actuary since 2008.
9. To help us calibrate the project complexity, what are the annual valuation fees?
The fees for ICERS’ most current actuarial valuation ending June 30, 2022 were $68,500.00.
10. Should the pricing proposal be incorporated within the body of the proposal or submitted as a separate document?
Pricing proposals should be provided within the body of the proposal response.
11. How many on-site meetings are desired during a year, and if applicable, what is the location of the meetings?
Potentially, there will be a minimum of two on-site meetings with ICERS: a finalist interview; and a final audit presentation before the Board. Both meetings will take place in El Centro. During the progression of the project, meetings may take place virtually, if necessary.
12. Is there interest in expanding the scope of services beyond one audit?
Possibly; at the purview of the Board of Retirement.
13. Section 7, item 4.h asks about accounting systems and financial reporting methodologies. Is this asked relative to how our corporate financial statements are prepared (we think this is the answer) or to how we determine time charges and direct expenses?
The question was asked relative to how your corporate financial statements are prepared.
14. Item #3 of the Minimum Qualifications references experience with “ multi-employer” retirement plans. Is the actual reference for “multiple employer” retirement plans?
The term “multi-employer” referenced in Exhibit B, Item #3 of the RFP is meant as “multiple employer”.
15. In our experience, fidelity insurance isn't typically required in actuarial audit contracts. Would you be willing to consider proposals that don't have the full $5 million coverage, but may include higher limits on others, such as E&O / professional liability?
Yes, ICERS would consider a proposal that reflects a lower level of fidelity insurance coverage than specified in the RFP, although this would be a factor that ICERS would consider in evaluating the relative competitiveness of all proposals received.
16. Please provide a copy of the most recent actuarial audit report.
A copy of ICERS most recent actuarial audit report can be found here.