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Actuarial Valuation of Post Employment Benefit Plans_SilverStone GroupMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Actuarial Valuation of Post Employment Benefit Plans DATE: January 7, 2011 The City completed an actuarial valuation of the post employment benefit plan in 2009 and the City is required to do another actuarial valuation in 2011. Personnel Manager Randy Peck is recommending that the SilverStone Group be selected to conduct the GASB -45 actuarial valuation. They have performed GASB -45 actuarial valuations for several Iowa Cities, counties and community colleges. concur with the recommendation and respectfully request Mayor and City Council approval. MCVM:Iw Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Randy Peck, Personnel Manager Michel C. Van Milligen Dubuque hail AUineiica City I m 2007 Masterpiece on the Mississippi TO: FROM: SUBJECT: DATE: RP:tlb Michael C. Van Milligen, City Manager Randy Peck, Personnel Manager Actuarial Valuation of Post Employment Benefit Plans December 29, 2010 Dubuque All America City 2007 We completed an actuarial valuation of our post employment benefit plans in 2009 and are required to do another actuarial valuation in 2011. The City provides post employment benefits for eligible participants who are enrolled in City sponsored health plans. The benefits are provided in the form of an implicit rate subsidy where pre -age 65 retirees receive health insurance coverage by paying a combined retiree /active rate for the self- insured medical and prescription drug plan and an explicit rate subsidy where the City pays for the full cost of the fully insured life insurance plan. I received quotes from three actuarial firms to perform the actuarial valuation. Quotes were received from: • SilverStone Group, Omaha, Nebraska — Cost - $5000 • Gallagher Benefit Services, Inc., Greenwood Village, Colorado — Cost - $6750 • Nyhart, Indianapolis, Indiana — Cost - $5000 I recommend that SilverStone Group be selected to conduct the GASB -45 actuarial valuation. They have performed GASB -45 actuarial valuations for several Iowa cities, counties and community colleges. The Actuarial Services Agreement has been reviewed by City Attorney Barry Lindahl and he found the terms to be acceptable. I request that the City Council pass a motion approving the Agreement and authorizing you to sign the Agreement. SILVESTONE P 0 U P SilverStone Group Omaha, Nebraska www.silverstonegroup.com City of Dubuque, Iowa Wisdom at Work Sw ERSToN G R O L Y October 21, 2010 Mr. Randy Peck Personnel Manager City of Dubuque 50 West 13th Street Dubuque, IA 52001 RE: GASB 45 Actuarial Services Proposal Dear Mr. Peck: We are pleased to present our proposal for actuarial and consulting services. Our proposal is based on information you provided regarding the post- employment benefits to be addressed by GASB 45. We understand your intention to perform a renewal GASB 45 for your 2011 fiscal year, with a valuation date consistent with the valuation from the 2009 fiscal year. In submitting this proposal, we certify: a. Our firm is a full - service actuarial consulting firm that provides services for employee benefit plans, post - employment plans and has expertise in GASB 45 valuations. b. We have provided actuarial services and administrative recommendations related to GASB 45 valuations to many employers of comparable size and scope. c. We understand the Scope of Services and are fully qualified and committed to perform the services requested. We appreciate this opportunity to present our proposal and are interested in providing any additional information you may need to complete your evaluation. To engage SilverStone Group for the services outlined, please sign two copies of the attached Actuarial Services Agreement (see the attachments for this proposal) and return in the self- addressed envelope. We will sign and return one of the copies to you. Please call me if you have any questions. Sincerely, Donn B. Jon FSA Principal Phone 402.964.5505 E -mail diones @ssgi.com DBJ/kk Enclosures 11516 Miracle Hilts Drive, Suite 100, Omaha, NE 63154 phone 402.964.5400 toll free 800.288.5501 fax 402.964.5454 Table of Contents Page Proposal Section Number Scope of Services 1 Assigned Professional Staff 3 Work Plan 4 Fees 5 Scope of Services We will prepare the following Core GASB 45 Services for the fiscal year ending June 30, 2011, with a valuation date consistent with the valuation from the 2009 fiscal year. Actuarial Valuation Reporting Services The Actuarial Valuation Reporting Services include everything needed to satisfy the GASB 45 reporting requirements and include: 1. Determine the actuarialvalue of benefits, separately identifying amounts for actives and retirees including present value of future benefits; actuarial accrued liabilities; plan assets and unfunded actuarial accrued liability; and normal cost. 2. Evaluate and highlight the following valuations assumptions: a. Turnover b. Retirement age c. Disability retirement age d. Mortality e. Projected post- retirement benefit increases f. Inflation rate g. Amortization timeframe h. Investment return 3. Provide the GASB 45 financial information and footnote disclosures required for the Comprehensive Annual Financial Report, as well as the following: a. Annual required contribution as a dollar amount and a percentage of payroll, identifying normal cost, the outstanding balance and amortization amount for each component of the unfunded actuarial accrued liability b. Annual OPEB cost as a dollar amount and a percentage of payroll c. Reconciliation of net OPEB obligation during the current year and projected Net OPEB obligation at the end of the year 4. Provide descriptions of: a. Plan provisions, including group(s) covered and benefits valued; b. Actuarial methods used, including actuarial funding method and UAAL amortization policy; c. Actuarial assumptions; and d. Data used in the valuation, including age /service distribution table(s) 5. Provide an actuarial certification including indication of compliance with Actuarial Standards of Practice No. 41 "Actuarial Communications" and American Academy of Actuaries "Prescribed Statement of Actuarial Opinion." 6. Provide electronic and paper copies of all studies performed. 1 Additional Services Additional Services may be selected and include: 1. Schedule and meet with the City administration or Board to review the valuation results. 2. Provide recommendations on managing the OPEB liability. This may include changes in plan design. 3. Review the City's OPEB plan documents and design. Make recommendations as to formalizing practices for any informal plans encountered or modifying existing documented plans. 4. Prepare a sensitivity analysis showing the impact of alternative assumptions on the City's OPEB plans (e.g., healthcare trend rates, investment rate assumptions, etc.). 5. Prepare an analysis to determine how various funding options would affect the valuation results. Interim Year Reporting As we interpret GASB 45, a full actuarial valuation will be required every other year, or every third year. For reporting, these options may be considered. 1. Estimate —Use the prior year valuation detail without adjustment or modify using information estimation procedures. 2. Roll Forward Valuation — Prepare a valuation for the "off year" based on the prior year member data, claim detail and assumptions, and "roll forward" using standard actuarial procedures. 3. Full Actuarial Valuation— Prepare an actuarial valuation based on updated member data, claim detail and assumptions. 2 OPEB Actuarial Actuary— Michael Vech will serve as the Principal Actuary and will be responsible for the planning and execution of all services. Society of Actuaries American Academy of Actuaries Member (MAAA) Relevant Experience Actuarial Career Relevant Experience Assigned Professional Staff Associate (ASA) OPEB Retiree Valuations – 2 years Health Benefit Pricing – 2 years Medicare Pricing – 2 years Career SilverStone Group Mutual of Omaha SilverStone Group 2008 to present Mutual of Omaha 2004 to 2008 Group Benefit Consultant —Tony Sorrentino will assist Michael Vech in any analysis of post - employment benefit design or retiree contributions. International Society of Certified Certified Employee Benefit Specialist (CEBS) Employee Benefit Specialist Group Medical Underwriting – Licenses State of Nebraska Group and 3 18 years 1989 to present 1984 to 1989 Health Welfare Work Plan We will work with the City to assemble a timetable for the GASB 45 valuation that provides adequate time to integrate the reporting and disclosure requirements with the fiscal year -end financial report. During the pre - valuation discussion, after confirmation of our engagement, we will discuss and confirm a work plan. The typical work plan will extend over a six to eight week period following the date we receive all supporting benefit descriptions, participant census data and claims detail. The following work plan will provide a guide: Activity Responsible Party Completion Date Engagement confirmed City Pre - Valuation discussion City /SilverStone Group Within the week following our Engagement Submit data request including: SilverStone Group Week One — Benefits descriptions — Participant census data Historical claims detail Provide requested data City Week Four All data questions resolved City /SilverStone Group Week Six Assumptions and methods City /SilverStone Group Week Eight selected GASB valuation report SilverStone Group Week Twelve 4 GASB Valuation and Reporting Actuarial Valuation Reporting $ 3,250, plus $3 for each active and retired employee Interim Year Reporting Fees Additional Services SilverStone Group can provide optional services as listed in the Scope of Services. Charges will be based on recorded time, our hourly billing rates and any incurred travel expenses. We will provide an estimate of fees for any additional services, as requested. Fees Analysis to illustrate pre- funding options Time charges* Sensitivity Analysis to show impact of alternative assumptions Time charges* Recommendations on managing OPEB liability Time charges* Review Plan Documents and Plan Design Time charges* Meeting with City or Board Time charges* * Fee estimates will be provided after clarification of project scope. 5 A fee estimate will be provided, as requested, following your review of the Year Valuation. SilverStone GASB 45 Services The following pages provide additional information about SilverStone Group and GASB 45 Services. SilverStone Group for GASB 45 Services Qualifications, Experience and Commitment to Serve You Donn Jones, FSA, ,FCA, IVIAAA, EA SilverStone Group, Incorporated was selected and introduced as a GASB 45 Actuarial Service Provider for members of the Iowa League of Cities. This article will provide additional information about SilverStone Group, the GASB 45 process, available services and fees. Consider SilverStone Group for GASS 45 SilverStone Group is considered a good choice for GASB 45 services for these reasons: Qualifications —The assigned actuaries and consultants are fully qualified. Experience — Actuarial services related to the financial reporting of Other Post Employment Benefit (OPEB) plans have been provided for over 15 years. Responsiveness —The assigned actuaries and consultants place the highest priority on delivering quality work with adequate time margins to satisfy reporting deadlines. Commitment —Our clients are an important extension of our actuaries and consultants. Economy —We respect the desire for quality work at a reasonable cost. SilverStone Group Profile SilverStone Group is an employee -owned consulting and risk management firm with offices in Omaha, Lincoln, Council Bluffs, Des Moines and Sioux Falls. Guided by Midwestern values and a strong work ethic, we have become an industry leader for employee benefits, retirement plans, risk management and human resource April 2009 — ILC Business and P. rsoral Resource Eiianagamen; consulting. Our reputation is based on more than 60 years of dedication to our clients. More than 175 consultants, actuaries and administrators bring together diverse back- grounds in actuarial science, law, underwriting, loss control, accounting, financial services and human resource consulting. The actuarial staff of SilverStone Group includes two Fellows of the Society of Actuaries, four Associates of the Society of Actuaries and a support staff of 15 actuarial analysts and administrators. Professional Credentials and Experience The actuaries of SilverStone Group have the qualifications and experience to address the financial reporting requirements of GASB 45. We are qualified to issue a Public Statement of Actuarial Opinion and to undertake this project by observing Precept 2 of the Code of Professional Conduct of the American Academy of Actuaries. We have completed GASB 45 valuations in Iowa, Nebraska, Kansas, South Dakota and surrounding States. The GASB 45 Process Communication is the key to the effective delivery of actuarial consulting services. We will initiate each GASB 45 engagement with a pre - valuation discussion. This discussion will provide the opportunity to clarify and confirm the features of the OPEB plans. Our reports will present the detailed results of the GASB 45 valuation. The reports will include adequate descriptions of the GASB process and the terminology used to present the results. Written reports will be supplemented by discussion during a post - valuation conference call. We will also be available to meet in your offices to present and discuss the results, as desired. www.sliverstonegroup.com Services The Services requested have been separated into Core and Optional Services. A separate schedule of services and fees apply for those who are eligible and select the Alternate Measurement Method. The Core Services include everything needed satisfy the GASB 45 reporting requirements. SilverStone Group will: 1. Derive the actuarial value of benefits, separately identifying amounts for active and retired employees 2. Evaluate experience and select assumptions related to turnover, retirement age, mortality, projected post retirement benefit increases, inflation rate, amortization period and investment return 3. Display GASB 45 financial information and footnote disclosures for the Comprehensive Annual Financial Report (CAFR) including: a. annual required contribution, as a dollar amount and a percentage of payroll b. annual OPEB cost as a dollar amount and a percentage of payroll c. reconciliation of net OPEB obligation during the current year and projected net OPEB obligation at the end of the year 4. Include descriptions of: a. benefit plan provisions b. actuarial methods and amortization policy c. actuarial assumptions d. claims and member data used in the valuation 5. Provide an Actuarial Certification in compliance with Actuarial Standards Practice of the American Academy of Actuaries April 2009 — ILC 6. Provide electronic and paper copies of written reports that document the services performed and determinations reported An Alternative Measurement Method may be used by Cities with less than 100 eligible em- ployees. If the alternative method is selected to comply with GASB 45, simplified assumptions to are reflected to derive the desired financial disclosures. By selecting the alternative method the City gives up several levels of sophistication and forgoes an actuarial certification. But the cost will be less to complete the required financial disclosures. If an eligible City requests a valuation and related reporting based on the Alternative Measurement Method SilverStone Group will: 1. Display GASB 45 financial information and footnote disclosures including: a. annual required contribution, as a dollar amount and a percentage of payroll b. annual OPEB cost as a dollar amount and a percentage of payroll c. annual required contribution, as a recon- ciliation of net OPEB obligation during the current year and projected net OPEB obligation at the end of the year 2. Include descriptions of: a. benefit plan provisions b. actuarial methods and amortization policy actuarial assumptions claims and member data used in the valuation c. d. 3. Provide electronic and paper copies of written reports that document the services performed and determinations reported Optional Services may be selected and include: 1. Information necessary to forecast future budget needs including: a. annual required contributions needed to fund retiree benefits b. ten -year "pay -as- you -go" cost projections c. recommendations for managing the OPEB plan liabilities 2. Models or mechanisms for forecasting changes in assumptions and their general effect on potential liability 3. Attend on -site meetings to discuss result of valuations or optional services Fees for Core Services Fees for the Core Services will be composed of a base fee, plus an addition for each active and retired employee. The Core Services will include everything required to satisfy the GASB 45 reporting requirements. If limited to pre -65 OPEB plan benefits: • $2,750 with less than 100 employees • $3,250 with 100 to 200 employees • $3,250 plus $3 for each active and retired, if 200 or more employees If OPEB plan includes both pre -65 and post -65 benefits, the schedules above are increased by $1,000. For eligible Cities, the Alternative Measurement Method fee is $1,750. Optional Services Fees Cities who want to meet to discuss the valua- tion results, request forecasts of future year obligations or review the impact of revised retiree contributions or benefit provisions may select these services and pay an additional fee. A fee estimate for any optional services will be provided. April 2009 — ILC Contact for Additional Information To discuss a course of action and to make plans to complete a GASB 45 valuation, please contact Donn Jones, as indicated below: Donn Jones FSA, FCA, MAAA, EA diones@ssgi.com SilverStone Group 11516 Miracle Hills Drive Omaha, NE 68154 Phone: 402.964.5505 Toll Free: 800.288.5501 ext. 5505 Fax: 402.963.4089 Actuarial Services Agreement To engage SilverStone Group for the GASB 45 Services, please: 1. Sign and date two copies of the Agreement 2. Return BOTH copies in the self- addressed envelope to: Donn Jones Principal SilverStone Group 11516 Miracle Hills Drive Omaha, NE 68154 We will sign and return one copy for your files. ACTUARIAL SERVICES AGREEMENT BETWEEN SILVERSTONE GROUP, INCORPORATED AND CITY OF DUBUQUE, IOWA TABLE OF CONTENTS Page 1. Contract for Services 1 2. Actuarial Services 1 3. Other Consulting Services 2 4. Actuarial Fees 3 5. Invoices 3 6. Term 3 7. Termination 3 8. Indemnification of the Plans 3 9. Insurance 4 10. Access to and Ownership of Files and Information 4 11. Confidential Treatment of Plan Files and Infolination 4 12. Integrated Agreement; Severability 5 13. Governing Law 5 14. Actuarial Personnel 6 THIS ACTUARIAL SERVICES AGREEMENT ( "Agreement ") is made and entered into effective as of the day of , 2014 (the "Effective Date "), by and between SilverStone Group, doing business from Omaha, Nebraska, (hereinafter referred to as "SilverStone Group "), and City of Dubuque (hereinafter referred to as the "City "). WITNES SETH WHEREAS, the City maintains several employee benefit plans which are under the general management and administration of the City. WHEREAS, subject to the terms and conditions set forth herein, the City deems it appropriate to engage SilverStone Group to provide certain actuarial services for the plans, and SilverStone Group desires to accept such engagement. NOW THEREFORE, in consideration of the mutual promises and covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties do hereby agree as follows: 1. Contract for Services. The City hereby contracts with SilverStone Group for their services as actuaries to the plans, and SilverStone Group hereby accepts such contract and agrees to provide such services in accordance with this Agreement. 2. Actuarial Services. SilverStone Group shall render such services as actuaries to the plans as requested by the City. Such services shall specifically include, but shall not be limited to, the services described as follows: a. Governmental Accounting Standards Board GASB 45 valuation and written report based on a Full Actuarial Valuation: • Analyze the data prepared by the City to assess any inconsistencies and make recommendations for enhancing data quality • Measurement of the Present Value of Future Benefits (PVFB) as of the date of first compliance with the GASB standard • Measurement of the Actuarial Accrued Liability (AAL) as of the date of first compliance with the GASB standard • Calculation of the Unfunded Actuarial Accrued Liability (UAAL) as of the date of first compliance with the GASB standard • Calculation of the Annual Required Contribution (ARC) for the first fiscal year in compliance with the GASB standard which would be the basis for the reported annual cost of the plans for accounting purposes, and • Illustration of the Required Supplementary Information (RSI), if requested, that will be disclosed in the City's financial reports for the first fiscal year in compliance with the GASB standard c. As appropriate and if requested, prepare an analysis on how establishing a trust or equivalent arrangement would affect the interest rate assumption. Timing considerations of establishing the trust should also be considered. d. As appropriate and if requested, provide recommendations on managing the OPEB liability. This may include changes in benefit design or retiree contributions, including specific recommendations and options. e. As appropriate and if requested, review and update plan documents and design. Make recommendations as to formalizing informal plans and procedures. f General Actuarial Consulting Services g. Relating to: (i) administration of the plans; (ii) general trends in actuarial practices; and (iii) changes in federal legislation and regulations, all upon request by the City. Attendance at Meeting If requested, the actuary may attend a meeting to review and discuss results of the annual actuarial valuation. We will distribute and discuss a management summary of the valuation at the annual meeting. h. Additional Valuation Results At the request of the City, SilverStone Group will extend the actuarial valuation analysis to determine the effect on annual costs and the funded status of the plans as a result of: • a change in actuarial assumptions or actuarial methods • a change in eligibility requirements of existing benefit provisions • changes in benefit provisions Report to Auditors /Assisting Auditors At the request of the City, SilverStone Group will respond to the auditor's request for information regarding the annual actuarial valuation and financial disclosures that may be needed to provide the audit confirmation. 3. Other Consulting Services. SilverStone Group will provide, at the City's request, additional consulting services to the plans. These services may include, but are not limited to, (i) additional meetings; (ii) plan design analysis; (iii) merger /acquisitions and impact on the existing plans or the plans of acquired entities; (iv) plan document or plan summary reviews; (v) any other actuarial or administrative consulting services deemed necessary or appropriate by the plans of the City; (vi) suggestions /recommendations by SilverStone Group. -2- 4. Actuarial Fees. As consideration for any of the services set forth in Paragraphs 2 and 3 above, the City agrees to pay SilverStone Group fees based on any direct expenses, any related travel expenses and hourly time charges based on the time recorded to complete the services and the hourly billing rates for the designated personnel as follows: Principal Actuary $250 OPEB Actuarial Analyst $150 Group Benefit Consultant $250 However, for the Initial Year Valuation, SilverStone Group will guarantee the maximum fees to complete the services in Paragraph 2a consistent with a Full Actuarial Valuation will be no more than $3,250 plus $3 per participant. Hourly rates for years following 2010 may be increased to reflect trends in hourly rates, but any increase will not exceed 5% for each year following 2010. 5. Invoices. SilverStone Group shall provide the City with quarterly invoices not later than the twenty -fifth (25th) day of the month following each calendar quarter. These invoices shall set forth the amount of fees above for the preceding calendar quarter. Payment for services must be made within 30 days of receipt of invoice. Payments made subsequent to such period, shall be subject to a late charge and reasonable interest as determined by SilverStone Group. 6. Term. The term of this Agreement shall commence on the Effective Date, and shall continue through December 31, 2011, unless terminated before that time by the City. The continuation of the agreement shall be contingent upon the periodic review by the City of the services being provided by SilverStone Group. This Agreement may be renewed for additional annual periods by mutual written agreement by both parties. 7. Termination. The City may terminate this Agreement at any time, with or without cause, by providing delivery of at least 60 days' advance written notice to SilverStone Group. In the event that the City exercises its right to terminate the Agreement as provided in this Paragraph 7, SilverStone Group shall be entitled to payment pursuant to Paragraph 5 hereof for services actually rendered to the City prior to the date of termination. SilverStone Group may terminate this agreement at any time, with or without cause, by providing delivery of at least 60 days written advance notice to the City. 8. Indemnification of the Plans. SilverStone Group shall defend, indemnify and hold the City harmless from and against any and all claims, suits, losses, liabilities, costs, damages and expenses, including reasonable attorneys' fees and court costs, suffered or incurred by the City arising from or as a result of negligence, fraud or willful misconduct by SilverStone Group or any representative, agent or employee of SilverStone Group, or any such party's failure to perform its duties and obligations under this Agreement. To the extent authorized by law, the City shall defend, indemnify and hold SilverStone Group harmless from and against any and all claims, suits, losses, liabilities, costs, damages and expenses, including reasonable attorney's fees and court costs, suffered or incurred by SilverStone Group arising from or as a result of negligence, fraud or willful misconduct by the City or any representative, agent or employee of the City or any such party's failure to perform its duties and obligations under this Agreement. 9. Insurance. From and after the Effective Date and continuing throughout the term of this Agreement, SilverStone Group shall, at their sole cost and expense, carry and maintain in full force and effect a professional liability /errors and omissions insurance policy acceptable to City with a policy limit of not less than Fifteen Million Dollars ($15,000,000), issued by an insurance company authorized to do business in Iowa and with a rating of A or better in the current A.M. Best Rating Guide. If requested, SilverStone Group shall provide the City with a certificate evidencing such coverage prior to the commencement of any services under this Agreement. SilverStone Group shall provide the City with not less than sixty (60) days prior written notice of any proposed change in the type, coverage or amount of insurance required hereunder. 10. Access to and Ownership of Files and Information. SilverStone Group hereby acknowledges and agrees that the City and the City's authorized representatives, agents and employees shall have access to and the right to examine, inspect, audit, transcribe and copy during SilverStone Group's normal business hours, any and all accounts, books, documents, records and papers relating to the services provided pursuant to this Agreement. All such examinations shall be at the City's expense and shall be conducted in a manner which preserves the confidentiality of SilverStone Group's records and business operations. All intellectual property rights (such as copyrights and trade secrets) relating to materials and information developed by or relating to the plans and disclosed or supplied to SilverStone Group under this Agreement (the "Plans Information ") will belong exclusively to the City. All intellectual property rights (such as copyrights and trade secrets) relating to SilverStone Group's work product (including all materials and information developed by SilverStone Group in the course of performing services under this Agreement, but excluding Plans Information) ( "SilverStone Group's Work ") will belong exclusively to SilverStone Group. If personnel of SilverStone Group incorporate into SilverStone Group's Work any information relating to the plans to which SilverStone Group's confidentiality obligations under this Agreement apply, the information so incorporated into SilverStone Group's work will be and remain subject to such confidentiality obligations. SilverStone Group hereby grants to the City the perpetual and unrestricted right to use, reproduce and incorporate into other work all SilverStone Group's work delivered to the City under this Agreement for any internal business purpose of the City. -4- 11. Confidential Treatment of Plan Files and Information. SilverStone Group acknowledges and agrees that, in the course of rendering their actuarial services and otherwise performing their duties and obligations hereunder, they shall be provided and entrusted with the safekeeping of certain documents and information relating to the City and its property and accounts (hereafter referred to as "Plans Files "). All such Plans Files shall at all times during the term of this Agreement and for a period of five (5) years thereafter, be treated by SilverStone Group as strictly confidential and sensitive proprietary business information. SilverStone Group shall maintain commercially reasonable policies and procedures to ensure the confidentiality and safekeeping of such Plans Files and shall not, except in accordance with the express terms of this Agreement or with the prior written consent of the City, disclose or permit the disclosure of any Plans Files to any person or entity whatsoever other than SilverStone Group's employees, officers and agents directly assigned to provide actuarial services to the plans hereunder, each of which shall be provided with such Plans Files solely on a "need -to know" basis and shall be bound by the confidentiality provisions of this Paragraph 11. The parties hereto acknowledge and agree that the confidentiality provisions set forth in this Paragraph 11 shall not apply to: (i) information which is already known to SilverStone Group prior to disclosure by the City; (ii) information which is in the public domain or is otherwise generally available to the public; (iii) information which is available to SilverStone Group from third parties, which third parties and information are not subject to non - disclosure obligations to the City or (iv) information which is independently developed by SilverStone Group. Furthermore, in the event any court or regulatory order or other service of legal process requires SilverStone Group to disclose information subject to the confidentiality provisions of this Paragraph 11, SilverStone Group, after providing written notice to the City as soon as reasonably possible after receipt of any such order or service of process, shall be permitted to make any disclosure required by law. SilverStone Group further agrees to cooperate with the City in responding to any such orders. SilverStone Group acknowledges and agrees that any breach, attempted breach or repudiation of the confidentiality requirements set forth in this Paragraph 11 would produce irreparable harm and injury to the City and therefore agree that specific performance and/or injunctive relief, in addition to any other remedies available to the City at law or in equity, shall be remedies available to prevent the breach, attempted breach or repudiation of this Paragraph 11. 12. Integrated Agreement; Severability. This Agreement constitutes the entire understanding between the parties concerning the subject matter hereof. No other prior or contemporaneous representations, inducements, promises, or agreements, oral or otherwise, between the parties relating to the subject matter hereof and not embodied in this Agreement, shall be of any force or effect. This Agreement shall not be modified except in a writing signed by all parties hereto. If any provision of this Agreement shall for any reason be held to be invalid, unenforceable, or contrary to public policy, whether in whole or in part, the remaining provisions shall not be affected by such holding. -5- CITY: 13. Governing Law. The statutes, regulations, and judicial interpretations of the laws of the State of Iowa shall determine all questions arising with respect to the provisions of this Agreement, except to the extent federal statutes supercede the laws of the State of Iowa. 14. Actuarial Personnel. SilverStone Group shall at all times throughout the term of this Agreement maintain a team of qualified professionals comprised of designated full - thne employees/ principals of SilverStone Group who are permanently assigned to monitor, oversee and provide on a daily basis all of the actuarial services to be provided to the plans hereunder, and to receive and address all concerns communicated by the City. The City, in its sole discretion, shall have the right to demand the replacement of any individuals assigned to provide actuarial services to the City hereunder, in which case SilverStone Group shall immediately replace such person(s) with qualified replacements acceptable to the City in its sole discretion. SilverStone Group shall provide the City with not less than thirty (30) days advance written notice of any personnel changes or changes in SilverStone Group's management or organizational structure which may have an impact on SilverStone Group's performance hereunder. SilverStone Group shall use their good faith best efforts to minimize any disruption or interference with the actuarial services provided to the City as a result of any such management, organizational or personnel changes. IN WITNESS WHEREOF, the City and SilverStone Group have duly executed this ACTUARIAL SERVICES AGREEIINT effective as of the day and year first above written. By: Michael C. Van Milligen Title: City Manager Date: / 0 V/ Addresses City of Dubuque 50 West 13 Street Dubuque, IA 52001 -6- SILVERSTONE GROUP: By: Title: Date: SilverStone Group, Incorporated 11516 Miracle Hills Drive Omaha, NE 63154 595403 \15691.003 INSURANCE SCHEDULE C INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES TO THE CITY OF DUBUQUE 1. All policies of insurance required hereunder shall be with an insurer authorized to do business in Iowa. All insurers shall have a rating of A better in the current A.M. Best Rating Guide. 2. All Certificates of Insurance required hereunder shall provide a thirty (30) day notice of cancellation to the City of Dubuque, except for a ten (10) day notice for non- payment, if cancellation is prior to the expiration date. 3 shall furnish a signed Certificate of Insurance to the City of Dubuque, Iowa for the coverage required in Paragraph 6 below. Such Certificates shall include copies of the following endorsements: a) Commercial General Liability policy is primary and non - contributing. b) Commercial General Liability additional insured endorsement. c) Governmental Immunities Endorsement. shall upon request, provide Certificates of Insurance for all subcontractors and sub -sub contractors who perform work or services pursuant to the provisions of this contract. Said certificates shall meet the insurance requirements as required of 4. Each certificate shall be submitted to the contracting department of the City of Dubuque. 5. Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the City of Dubuque. Failure to obtain or maintain the required insurance shall be considered a material breach of this agreement. 6. Contractor shall be required to carry the following minimum coverage /limits or greater if required by law or other legal agreement: a) COMMERCIAL GENERAL LIABILITY General Aggregate Limit $2,000,000 Products - Completed Operations Aggregate Limit $1,000,000 Personal and Advertising Injury Limit $1,000,000 E O I !mit SI.onn.000 Fire Damage limit (any one occurrence) $ 50,000 Medical Payments $ 5,000 1 of 2 January 2008 INSURANCE SCHEDULE C (Continued) INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES TO THE CITY OF DUBUQUE This coverage shall be written on an occurrence form, not claims made form. All deviations or exclusions from the standard ISO commercial general liability form CG 0001 or Business owners BP 0002 shall be clearly identified. Form CG 25 04 03 97 'Designated Location (s) General Aggregate Limit' shall be included. Governmental Immunity endorsement identical or equivalent to form attached. Additional Insured Requirement: The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees and volunteers shall be named as an additional insured on General Liability including "ongoing operations" coverage equivalent to ISO CG 20 10 07 04. b) Automobile $1,000,000 combined single limit. c) " ORKERS COMPENSATION & EMPLOYERS LIA! = ILITY Statutory for Coverage A Employers Liability: Each Accident Each Employee Disease Policy Limit Disease d) PROFESSIONAL LIABILITY e) UMBRELLA /EXCESS LIABILITY* *Coverage and/or limit of liability to be determined on a case -by -case basis by Finance Director. $ 100,000 $ 100,000 $ 500,000 $1,000,000 Completion Checklist ❑ Certificate of Liability Insurance (2 pages) ❑ Designated Location(s) General Aggregate Limit CG 25 04 03 97 (2 pages) ❑ Additional Insured CG 20 10 07 04 ❑ Governmental Immunities Endorsement 2 of 2 January 2008 ACORD CERTIFICATE OF LIABILITY INSURANCE • DATE(MM /DD/YYYY) 12/7/2007 TYPE OF INSURANCE PRODUCER (563)123-4567' lurance Agency .. _reet Address City ST FAX (563) 987 -6593 Zip Code THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, 'EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # INSURED Company Street City St Zip Code INSURER A: Insurance Company INSURER B: EACH OCCURRENCE INSURER C: DAMAGE TO RENTED PREMISES (Ea occurrence) . INSURER D: MED EXP (Any one person) INSURER E: THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR ADD'L INSRD TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MM /DD/YY) POLICY EXPIRATION DATE (MM/DD/YY) LIMITS A X GENERAL — X LIABILITY COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 DAMAGE TO RENTED PREMISES (Ea occurrence) . $ 50,000 MED EXP (Any one person) $ 5,000 CLAIMS MADE X OCCUR PERSONAL & AUV INJURY + 1,C0:',000 GENERAL AGGREGATE $ 2,000,000 PRODUCTS - COMP /OP AGG $ 1,000,000 GEN'LAGGREG LIMIT APPLIES PER: % — I POLICY I � I 1 28F I l LOC A AUTOMOBILE X LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS i i COMBINED SINGLE LIMIT (Ea accident) $ 1,000,000 BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ A GARAGE EXCESS 7 ;j1 X LIABILITY ANY AUTO /UMBRELLA OCCUR RETENTION LIABILITY $ 0 CLAIMS MADE _ ' .�' "`' i J • I J h IC : ' I s , - � e f r ,. �' f le DEDUCTIBLE } a 1 y A AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC $ AUTO ONLY: AGG $ EACH OCCURRENCE $ 1,000,000 AGGREGATE . $ 1,000,000 $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? If yes, describe under SPECIALPROVISIONSbelow i. _ P 0 j - e i 0 WC STATU- OTH- TORY LIMITS ER E.L. EACH ACCIDENT $ 100,000 EL DISEASE - EA EMPLOYEE 5 100,000 E DISEASE - POLICY LIMIT s 500,000 A OTHER Professional Liability $1,000,000 DESCRIPTION OF OPERATIONS /LOCATIONS/VEHICLES /EXCLUSIONS ADDED BY ENDORSEMENT /SPECIAL PROVISIONS The City of Dubuque is an additional insured on general liability policies including ongoing & completed operations ^.o• =• =_rte equivalent to ISO CG 2010 0704 & CG 2037 0704. General Liability policy is primary S non - contributing. Form CG 2 0397 "Designated Locations" general liability aggregate limit is included. Governmental immunities endorsei„ent is included. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE City of Dubuque 50 West 13th Street Dubuque, IA 52001 CORD 25 (2001/08) 1S025 (o1os).os AMS VMP Mortgage Solutions, Inc. (800)327 - 0545 ©ACORD CORPORATION 1988 Page l of 2 DRD 25 (2001108) 025 (0106).06 AMS IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. DISCLAIMER Page 2 of 2 POLICY NUMBER: COMMERCIAL GENERAL LIABILITY CG 25 04 03 97 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DESIGNATED LOCATION(S) GENERAL AGGREG,TE LIMIT This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Designated Location(s): ANY AND ALL COVERED LOCATIONS (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) A. For all sums which the insured becomes legally obligated to pay as damages caused by "occur- rences" under COVERAGE A (SECTION I), and for all medical expenses caused by accidents under COVERAGE C (SECTION I), which can be attributed only to operations at a single desig- nated location" shown in the Schedule above: 1. A separate Designated Location General Aggregate Limit applies to each designated location", and that limit is equal to the amount of the General Aggregate Limit shown in the Declarations. 2. The Designated Location General Aggregate Limit is the most we will pay for the sum of all damages under COVERAGE A, except dam- ages because of "bodily injury" or "property damage" included in the "products - completed operations hazard ", and for medical expenses under COVERAGE C regardless of the num- ber of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits ". 3. Any payments made under COVERAGE A for damages or under COVERAGE C for medical expenses shall reduce me Designated Loca- tion General Aggregate Limit for that desig- nated "location ". Such payments shall not re- duce the General Aggregate Limit shown in • the Declarations nor shall they reduce any other Designated Location General Aggre- gate Limit for any other designated "location" shown in the Schedule above. 4. The limits shown in the Declarations for Each Occurrence, Fire Damage and Medical Ex- pense continue to apply. However, instead of being subject to the General Aggregate Limit shown in the Declarations, such limits will be subject to the applicable Designated Location General Aggregate Limit. B. For all sums which the insured becomes legally obligated to pay as damages caused by "occur- rences" under COVERAGE A (SECTION I), and for all medical expenses caused by accidents under COVERAGE C (SECTION I), which can- not be attributed only to operations at a single designated "location" shown in the Schedule above: 1. Any payments made under COVERAGE A for damages or under COVERAGE C for medical expenses shall reduce the amount available under the General Aggregate Limit or the Products - Completed Operations Aggregate Limit, whichever is applicable; and 2. Such payments shall not reduce any Desig- nated Location General Aggregate Limit. CG 25 04 03 97 Page 1 of 2 D. For the purposes of this endorsement, the Defi- nitions Section is amended by the addition of the following definition: CG 25 04 03 97 C. When coverage for liability • arising out of the "products- completed operations hazard" is pro- vided, any payments for damages because of "bodily injury" or "property damage" included in the "products- completed operations hazard" will reduce the Products - Completed Operations Ag- gregate Limit, and not reduce the General Ag- gregate Limit nor the Designated Location Gen- eral Aggregate Limit. Page 2 of 2 Copyright, Insurance Services Office, Inc., 1996 "Location" means premises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway, waterway or right -of -way of a railroad. E. The provisions of Limits Of Insurance (SECTION III) not otherwise modified by this endorsement shall continue to apply as stipulated. CG 25 04 03 97 POLICY NUMBER: THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - SCHEDULED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Organization(s): The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and /or authorities and their board members, employees and volunteers. Location(s) Of Covered Operations Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section II — Who Is An Insured is amended to include as an additional . insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by: 1. Your acts or omissions; or r,.._ .._ +.. .. coi o f thnc artinn nn your behalf; CG 20 10 07 04 COMMERCIAL GENERAL LIABILITY CG 20 10 07 04 in the performance of your ongoing operations for the additional insured(s) at the location(s) desig- nated above. B. With respect to the insurance afforded to these additional insureds, the following additional exclu- sions apply: This insurance does not apply to "bodily injury" or "property d ai riage" occurring after: Page 1 of 2 1. All work, including materials, parts or equip- ment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or Page 2 of 2 © ISO Properties, Inc., 2004 2. That portion of "your work" out of which the injury or damage arises has been put to its in- tended use by any person or . organization other than another contractot or subcontractor engaged in performing operations for a princi- pal as a part of the same project. All terms and conditions of this policy apply unless modified by this endorsement. CG 20 10 07 04 CITY OF DUBUQUE, IOWA GOVERNMENTAL IMMUNITIES ENDORSEMENT 1. Nonwaiver of Governmental Immunity. The insurance carrier expressly agrees and states that the purchase of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does not waive any of the defenses of governmental immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time. 2. Claims Coverage. The insurance carrier further agrees that this policy of insurance shall cover only those claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms . and conditions of this insurance policy. 3. Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible for asserting any defense of governmental immunity, and may do so at any time and shall do so upon the timely written request of the insurance carrier. 4. Non - Denial of Coverage. The insurance carrier shall not deny coverage under this policy and the insurance carrier shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa under this policy for reasons of governmental immunity unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of Dubuque, Iowa. No Other Change in Policy. The above preservation of governmental immunities shall not otherwise change or alter the coverage available under the policy. 1 of 1 January 2008