UNIVERSITY OF MASSACHUSETTS President’s Office REQUEST FOR PROPOSAL UP15-DF-0402 Supplemental Retirement Plans Recordkeeper

Answers to Bidder Questions

Question 1

Please provide the total unique participant count across all plans and vendors.

UMass Answer to Question 1 – Please see the recently posted UMass Request for Proposal UP15-DF-0402 Supplemental Data Report, for additional detail. However, due to the multiple providers across all Plans, UMass is not able to provide unique participant detail, although of the estimated 3,975 employees currently making contributions to the UMass 403(b) Elective Deferral Savings Plan, it is estimated that about 66 Participants are currently splitting contributions between vendors. Also, most participants with balances in the UMass Executive 403(b) Plan, Executive 401(a) Plan(s) and 457(f) Plan also have balances in the UMass 403(b) Elective Deferral Savings Plan, as well as balances in more than 1 of these Executive Plans.

Question 2

Please provide the total number of participants with mappable assets across all plans and vendors.

UMass Answer to Question 2 – as indicated in Question 1, UMass is not able to provide this specific data. However, between the Supplemental Data Report referenced in Question 1 (participant count by vendor) and on page 14 of the UMass Request for Proposal, you will find participant totals and mappable assets by vendor. 100% of the assets are mappable for Fidelity, Vanguard and VALIC (see Question8 for additional detail on VALIC). Also, about 10% of the total assets are mappable for TIAA-CREF.

Question 3

What level of custom employee communications is University of Massachusetts seeking?

UMass Answer to Question 3 – The University of Massachusetts is looking for each bidder to provide their recommendation, providing a communication and education program branded to the University of Massachusetts and driving the goals of the University to increase Plan participation, employee savings rates, and develop well-diversified investment portfolios and participant outcomes that allow for a smooth transition into retirement.

1 Question 4

For the $115,000 in professional services to be accounted for in pricing, is that total for all vendors or per each vendor in the relationship?

UMass Answer to Question 4 – As the active default for all ongoing contributions and the recipient of all mappable assets, the overlay administrator is expected to fund the $115,000 in professional services sought in this RFP. Also review the response to Questions 17 and 18 for additional detail. After the selection process we will negotiate with the secondary provider to seek additional revenue credit account funding.

Question 5

Please provide the number of unique participants across all plans.

UMass Answer to Question 5 – similar to Question 1 response – please see the response to Question 1.

Question 6

Please provide the number of participants and annual contributions for each plan by vendor.

UMass Answer to Question 6 – similar to Question 1 response – please see the response to Question 1.

Question 7

Please provide the number of actively contributing participants for each plan by vendor.

UMass Answer to Question 7 – similar to Question 1 response – please see the response to Question 1.

Question 8

Please confirm that no assets are mapping from VALIC.

UMass Answer to Question 8 – this information was still under review at the time the RFP was distributed. Please consider this response as an amendment to the RFP. It has been determined that all VALIC assets are mappable, with 100% of the variable assets (estimated to be about $28 million as of 12/31/14) available to be mapped immediately. However, the UMass Plans also have about $14 million in fixed assets, estimated as of 12/31/14, that are available to be mapped over a 5 year period (20% year 1, 25% year 2, 33% year 3, 50% year 4 and 100 of remaining balance year 5). All of these transfers are available without any penalty or surrender charge.

Question 9

For the mappable assets, please provide the number of participants per vendor.

UMass Answer to Question 9 – similar to Question 2 response – please see the response to Question 2.

2 Question 10

If one vendor is replaced, will those assets map to the new provider?

UMass Answer to Question 10 – For this project, vendors/investment options replaced/eliminated will be mapped to the extent possible, without penalty, to the overlay administrator. However, if one of the two final vendors (overlay and secondary) is later replaced, the University of Massachusetts has not yet determined how that situation would be handled.

Question 11

Regarding the mappable assets, are there any transfer restrictions and/or charges (deferred sales charges, market value adjustments) that will apply upon termination of the current providers’ contracts? If so, please describe.

UMass Answer to Question 11 – The University of Massachusetts has elected to only map assets that do not have a penalties or fee associated with the transfers. As for individual contracts, The University of Massachusetts expects that these assets will be gathered on an individual basis, provided it is in the participant’s best interest. Please see Question 8 regarding new information on VALIC assets.

Question 12

Please provide copies of the plan documents for each of the plans.

UMass Answer to Question 12 – These documents will be provided at the time of award, to the overlay and secondary providers, after the vendor selection process is completed.

Question 13

Please provide assets by investment option for both the mappable assets and the individual account/contract assets.

UMass Answer to Question 13 – the new investment lineup and mapping strategy has not yet been determined. This will be completed after the vendor selection process. However, all new contributions will default to the target date fund, on the overlay administrator’s platform, unless an employee makes an active new election directing contributions to other investment choices or to the secondary provider. The Plan currently has hundreds of current investment options and it is expected that some like-to-like (404 ©) mapping will occur. However, mappable assets that do not have a like-to-like alternative in the new investment lineup will also map to a target date fund on the overlay administrator’s platform.

3 Question 14

Is the University of Massachusetts’ intent to retain a current Contract Provider as the secondary provider or could the secondary provider be a new vendor? Can this secondary provider receive ongoing contributions?

UMass Answer to Question 14 – The University will evaluate, based upon RFP responses, whether or not the secondary provider will be selected from one of the current Contract providers. However, all new contributions will default to the target date fund, on the overlay administrator’s platform, unless an employee makes an active new election directing contributions to other investment choices or to the secondary provider. Also see the response to Questions 17 and 18 for additional detail.

Question 15

Are there any insurance contracts?

UMass Answer to Question 15 – Yes. Please see question # 8 regarding information on VALIC’s contracts. In addition, while other providers offer individual insurance/annuity contracts, none of these individual annuity contracts can be transferred at the direction of UMass. The University of Massachusetts expects that these assets will be gathered on an individual basis, provided it is in the participant’s best interest.

Question 16

Do any of the plans covered by this RFP include an automatic enrollment feature?

UMass Answer to Question 16 – not at the current time. Automatic enrollment and automatic increase could be considered as a future Plan enhancement. Therefore, the University of Massachusetts is looking to confirm these capabilities through the RFP process.

Question 17

Please confirm that it is the intent of The University of Massachusetts to select two providers for on-going contributions and new enrollments.

UMass Answer to Question 17 – Yes. However, all new contributions will default to the target date fund on the overlay administrator’s platform unless an employee makes an active new election directing contributions to other investment choices or to the secondary provider. Employees will be able to select between the two providers or split contributions between the two, with the overlay administrator coordinating the salary deferral agreement/vendor selection process on-line and over the phone. Also, see the response to Question 18.

4 Question 18

Is it the intent of The University of Massachusetts to offer a similar fund line-up for the two selected providers?

UMass Answer to Question 18 – No. The University of Massachusetts expects that the overlay administrator will support the new investment lineup and that a secondary provider will be retained with a small number (i.e., 5-7) of investment options that are widely held and meet the investment screens of the University of Massachusetts.

Question 19

Please confirm that the overlay recordkeeper may be selected from one of the incumbent providers.

UMass Answer to Question 19 – Based upon RFP responses, the University will evaluate both current and new providers with experience providing overlay administration.

Question 20

Is it the intent to have the $115,000 in permitted expenses for professional services to be shared equally by the two providers selected or will it be based on the number of participants or assets under management by the respective firms?

UMass Answer to Question 20 – similar to Question 4 response – please see the response to Question 4.

Question 21

What are the annual contributions by vendor?

UMass Answer to Question 21 – similar to Question 1 response – please see the response to Question 1 and the recently posted Supplemental Data Report, referenced in Question 1.

Question 22

What are the annual distributions by vendor and by plan?

UMass Answer to Question 22 – please see the recently posted UMass RFP Supplemental Data Report for distribution detail, also referenced in Question 1.

Question 23

What is the number of participants that have balances in multiple plans?

UMass Answer to Question 23 – similar to Questions 1 and 2 response – please see the response to Questions 1 and 2.

5