|
TO: |
Board of Trustees |
|
THROUGH: |
Jay Fox, Executive Director |
|
FROM: |
Ann Green-Barton, Chief People Officer |
|
PRESENTER(S): |
Ann Green-Barton, Chief People Officer |
|
|
Lorin Simpson, Acting Director of Total Rewards |
TITLE:
Atitle
Contract: UTA Retirement Plan Pension Administration Services (Milliman, Inc.)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute the contract and associated disbursements with Milliman, Inc. for one base year starting February 1, 2025, with the option to extend the disbursement for an additional two years, ending on January 31, 2028, in a not to exceed amount of $1,324,050.00 for all three years.
BACKGROUND:
This contract provides administration services for UTA’s retirement plan through Milliman, Inc.
DISCUSSION:
UTA outsourced pension administration functions beginning in 2018 and completed a sole source agreement with Milliman, Inc. to provide administration services for UTA’s retirement plan beginning January 1, 2018 (Contract 18-2578TP). The UTA Pension Committee modified the initial contract with Milliman Inc. in 2023 to extend the contract term an additional two years, which ends on January 31, 2025.
Due to the work involved in changing vendors for administration services and the potential disruption a vendor change has on retired employees, the UTA Pension Committee completed a sole source request in 2024 that was approved by the Sole Source Committee. The sole source continues administration services with Milliman Inc. for one base year starting February 1, 2025, with two option years, from February 1, 2026 through January 31, 2028. This allows the UTA Pension Committee and Total Rewards team time to instigate the RFP process in early 2026 for a new contract and time to complete a vendor transition if a new vendor is selected during the RFP process.
The Pension Committee notes that, from a customer service standpoint, the experience with Milliman Inc. has been positive overall and the rates have been competitive.
CONTRACT SUMMARY:
|
Contractor Name: |
Milliman, Inc. |
|
Contract Number: |
24-03888PP |
|
Base Contract Effective Dates: |
February 1, 2025 - January 31, 2026 |
|
Extended Contract Dates: |
February 1, 2026 - January 31, 2028 (two option years) |
|
Existing Contract Value: |
N/A |
|
Amendment Amount: |
N/A |
|
New/Total Contract Value: |
$1,324,050.00 (including option years) |
|
Procurement Method: |
Sole Source |
|
Budget Authority: |
Included in Retirement Plan Fund |
|
|
|
ALTERNATIVES:
Pension administration work could be completed in-house, which could affect the retirement plan’s investment opportunities.
FISCAL IMPACT:
These costs are included in the Retirement Plan Fund.
The annual total pricing, including up to 5% CPI adjustments includes all fees combined (Base Fee, Participant Fees, and/or Additional Services Fees) will not exceed:
Year 1: $420,000.00
Option Year 2: $441,000.00
Option Year 3: $463,050.00
Total: 1,324,050.00
Funded through the Retirement Plan Fund account 5.50301
ATTACHMENTS:
#24-03888PP Milliman