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HomeMy WebLinkAboutContract 42282 City Secretary Contract No. b PROFESSIONAL SERVICES AGREEMENT This PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into by and between the CITY OF FORT WORTH (the "City"or"Client"), a home rule municipal corporation situated in portions of Tarrant, Denton and Wise Counties, Texas, acting by and through Karen L. Montgomery, its duly authorized Assistant City Manager, and PENSION TRUSTEE ADVISORS, INC., ("Consultant"), a Colorado Company, and acting by and through William B. Fornia, its duly authorized President. The City and Consultant shall each be referred to individually as a"party"and collectively as the"parties." 1. SCOPE OF SERVICES. Consultant hereby agrees to provide the City with professional consulting services to develop objectives, educational materials, and to provide training for City leadership on retirement and pension issues. Attached hereto and incorporated for all purposes incident to this Agreement is Exhibit "A," Scope of Services, more specifically describing the services to be provided hereunder. If there is any conflict between this Agreement and Exhibit A, the terms and conditions of this Agreement shall control. The services to be performed hereunder by Consultant shall be joint services for the City of Fort Worth and the Fort Worth Employees' Retirement Fund (the "Fund"). Such services shall be provided equally for both the City and the Fund simultaneously. Consultant shall enter into separate agreements for services with the City and the Fund; however, the City and the Fund shall share equally in the total cost for Consultant's services. Consultant shall invoice the City and Fund separately for their share of the services. 2. TERM. This Agreement shall commence upon execution ("Effective Date") and shall expire on June 1, 2012 ("Expiration Date"), unless terminated earlier in accordance with the provisions of this Agreement or otherwise extended by the parties. The City shall have the option to renew this Agreement for an additional six(6)months. The City shall give Consultant thirty(30)days notice of its intent to renew. 3. COMPENSATION. The City shall pay Consultant an amount not to exceed $30,000.00 in accordance with the provisions of this Agreement. Consultant shall not perform any additional services for the City not specified by this Agreement unless the City requests and approves in writing the additional costs for such services. The City shall not be liable for any additional expenses of Consultant not specified by this Agreement unless the City first approves such expenses in writing. 4. TERMINATION. 4.1. Written Notice. The City or Consultant may terminate this Agreement at any time and for any reason by providing the other party with 30 days written notice of termination. 4.2 Non-appropriation of Funds. In the event no funds or insufficient funds are appropriated by the City in any fiscal period for any payments due hereunder, City will notify Consultant of such occurrence and this Agreement shall terminate on the last day of the fiscal period for which appropriations were received without penalty or expense to the City of any kind whatsoever, except as to the portions of the payments herein agreed upon for which funds have been appropriated. Professional Services Agreement QF[ Pension Trustee Advisors, Inc Page 1 of 8 CI T Y , 4 ='} T A F Y "7TXI � � 09-15-11 P1 :`1 OUT City Secretary Contract No. 4.3 Duties and Obligations of the Parties In the event that this Agreement is terminated prior to the Expiration Date, the City shall pay Consultant for services actually rendered up to the effective date of termination and Consultant shall continue to provide the City with services requested by the City and in accordance with this Agreement up to the effective date of termination. 5. DISCLOSURE OF CONFLICTS AND CONFIDENTIAL INFORMATION Consultant hereby warrants to the City that Consultant has made full disclosure in writing of any existing or potential conflicts of interest related to Consultant's services under this Agreement. In the event that any conflicts of interest arise after the Effective Date of this Agreement, Consultant hereby agrees immediately to make full disclosure to the City in writing. Consultant, for itself and its officers, agents and employees, further agrees that it shall treat all information provided to it by the City as confidential and shall not disclose any such information to a third party without the prior written approval of the City. Consultant shall store and maintain City Information in a secure manner and shall not allow unauthorized users to access, modify, delete or otherwise corrupt City Information in any way. Consultant shall notify the City immediately if the security or integrity of any City information has been compromised or is believed to have been compromised. 6. RIGHT TO AUDIT. Consultant agrees that the City shall, until the expiration of three(3)years after final payment under this contract, have access to and the right to examine at reasonable times any directly pertinent books, documents, papers and records of the consultant involving transactions relating to this Contract at no additional cost to the City. Consultant agrees that the City shall have access during normal working hours to all necessary Consultant facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this section. The City shall give Consultant reasonable advance notice of intended audits. Consultant further agrees to include in all its subcontractor agreements hereunder a provision to the effect that the subcontractor agrees that the City shall, until expiration of three (3) years after final payment of the subcontract, have access to and the right to examine at reasonable times any directly pertinent books, documents, papers and records of such subcontractor involving transactions related to the subcontract, and further that City shall have access during normal working hours to all subcontractor facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this paragraph. City shall give subcontractor reasonable notice of intended audits. 7. INDEPENDENT CONTRACTOR. It is expressly understood and agreed that Consultant shall operate as an independent contractor as to all rights and privileges granted herein, and not as agent, representative or employee of the City. Subject to and in accordance with the conditions and provisions of this Agreement, Consultant shall have the exclusive right to control the details of its operations and activities and be solely responsible for the acts and omissions of its officers, agents, servants, employees, contractors and subcontractors. Consultant acknowledges that the doctrine of respondeat superior shall not apply as between the City, its officers, agents, servants and employees, and Consultant, its officers, agents, employees, servants, contractors and subcontractors. Consultant further agrees that nothing herein shall be construed as the creation of a partnership or joint enterprise between City and Consultant. . It is further understood that the City shall in no way be considered a Co-employer or a Joint employer of Consultant or any officers, Professional Services Agreement Pension Trustee Advisors, Inc Page 2 of 8 City Secretary Contract No. agents, servants, employees or subcontractors of Consultant. Neither Consultant, nor any officers, agents, servants, employees or subcontractors of Consultant shall be entitled to any employment benefits from the City. Consultant shall be responsible and liable for any and all payment and reporting of taxes on behalf of itself, and any of its officers, agents, servants, employees or subcontractors. 8. LIABILITY AND INDEMNIFICATION. CONSULTANT SHALL BE LIABLE AND RESPONSIBLE FOR ANY AND ALL PROPERTY LOSS, PROPERTY DAMAGE ANDIOR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, TO THE EXTENT CAUSED BY THE NEGLIGENT ACT(S) OR OMISSION(S), MALFEASANCE OR INTENTIONAL MISCONDUCT OF CONSULTANT, ITS OFFICERS,AGENTS,SERVANTS OR EMPLOYEES. CONSULTANT COVENANTS AND AGREES TO, AND DOES HEREBY, INDEMNIFY, HOLD HARMLESS AND DEFEND THE CITY, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO CONSULTANT'S BUSINESS AND ANY RESULTING LOST PROFITS) ANDIOR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER,WHETHER REAL OR ASSERTED,ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR MALFEASANCE OF CONSULTANT, ITS OFFICERS, AGENTS,SERVANTS OR EMPLOYEES. 9. ASSIGNMENT AND SUBCONTRACTING. Consultant shall not assign or subcontract any of its duties, obligations or rights under this Agreement without the prior written consent of the City. If the City grants consent to an assignment, the assignee shall execute a written agreement with the City and the Consultant under which the assignee agrees to be bound by the duties and obligations of Consultant under this Agreement. The Consultant and Assignee shall be jointly liable for all obligations under this Agreement prior to the assignment. If the City grants consent to a subcontract, the subcontractor shall execute a written agreement with the Consultant referencing this Agreement under which the subcontractor shall agree to be bound by the duties and obligations of the Consultant under this Agreement as such duties and obligations may apply. The Consultant shall provide the City with a fully executed copy of any such subcontract. 10. INSURANCE. 10.1 The Consultant shall carry the following insurance coverage with a company that is licensed to do business in Texas or otherwise approved by the City: (a) Commercial General Liability with a combined limit of not less than$1,000,000 per occurrence. (b) Automobile Liability Insurance with a combined limit of not less that$1,000,000 per occurrence. (c) Professional Liability(Errors& Omissions) in the amount of$1,000,000 per claim and $1,000,000 aggregate limit. (d) Statutory Workers' Compensation and Employers' Liability Insurance requirements per the amount required by statute. (e) Any other insurance as required by City. 10.2 General Insurance Requirements: (a) All applicable policies shall name the City as an additional insured thereon, as its interests may appear. The term City shall include its employees, officers, officials, agents, and volunteers in respect to the contracted services. Professional Services Agreement Pension Trustee Advisors, Inc. Page 3 of 8 City Secretary Contract No. (b) The workers' compensation policy shall include a Waiver of Subrogation (Right of Recovery) in favor of the City of Fort Worth. (c) A minimum of Thirty (30) days notice of cancellation or reduction in limits of coverage shall be provided to the City. Ten (10) days notice shall be acceptable in the event of non-payment of premium. Notice shall be sent to the Risk Manager, City of Fort Worth, 1000 Throckmorton, Fort Worth, Texas 76102, with copies to the City Attorney at the same address. (d) The insurers for all policies must be licensed and/or approved to do business in the State of Texas. All insurers must have a minimum rating of A- VII in the current A.M. Best Key Rating Guide, or have reasonably equivalent financial strength and solvency to the satisfaction of Risk Management. If the rating is below that required, written approval of Risk Management is required. (e) Any failure on the part of the City to request required insurance documentation shall not constitute a waiver of the insurance requirement. (f) Certificates of Insurance evidencing that the Consultant has obtained all required insurance shall be delivered to the City prior to Consultant proceeding with any work pursuant to this Agreement. 11. COMPLIANCE WITH LAWS, ORDINANCES, RULES AND REGULATIONS Consultant agrees to comply with all applicable federal, state and local laws, ordinances, rules and regulations. If the City notifies Consultant of any violation of such laws, ordinances, rules or regulations, Consultant shall immediately desist from and correct the violation. 12. NON-DISCRIMINATION COVENANT Consultant, for itself, its personal representatives, assigns, subcontractors and successors in interest, as part of the consideration herein, agrees that in the performance of Consultant's duties and obligations hereunder, it shall not discriminate in the treatment or employment of any individual or group of individuals on any basis prohibited by law. If any claim arises from an alleged violation of this non- discrimination covenant by Consultant, its personal representatives, assigns, subcontractors or successors in interest, Consultant agrees to assume such liability and to indemnify and defend the City and hold the City harmless from such claim. 13. NOTICES. Notices required pursuant to the provisions of this Agreement shall be conclusively determined to have been delivered when (1) hand-delivered to the other parry, its agents, employees, servants or representatives, (2) delivered by facsimile with electronic confirmation of the transmission, or (3) received by the other party by United States Mail, registered, return receipt requested, addressed as follows: TO THE CITY: TO CONSULTANT: City of Fort Worth Pension Trustee Advisors, Inc. Attn: Karen L. Montgomery Attn: William B. Fornia, President Assistant City Manager 7600 E. Arapahoe Road, Ste 125 1000 Throckmorton Centennial, Colorado 80112 Fort Worth TX 76102 Facsimile: (303)770-6904 Facsimile: (817)392-6134 14. SOLICITATION OF EMPLOYEES Neither the City nor Consultant shall, during the term of this agreement and additionally for a period of one year after its termination, solicit for employment or employ, whether as employee or independent Professional Services Agreement Pension Trustee Advisors, Inc Page 4 of 8 City Secretary Contract No. contractor, any person who is or has been employed by the other during the term of this agreement, without the prior written consent of the person's employer. 15. GOVERNMENTAL POWERS. It is understood and agreed that by execution of this Agreement, the City does not waive or surrender any of its governmental powers. 16. NO WAIVER. The failure of the City or Consultant to insist upon the performance of any term or provision of this Agreement or to exercise any right granted herein shall not constitute a waiver of the City's or Consultant's respective right to insist upon appropriate performance or to assert any such right on any future occasion. 17. GOVERNING LAW/VENUE. This Agreement shall be construed in accordance with the internal laws of the State of Texas. If any action, whether real or asserted, at law or in equity, is brought on the basis of this Agreement, venue for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort Worth Division. 18. SEVERABILITY. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 19. FORCE MAJEURE. The City and Consultant shall exercise their best efforts to meet their respective duties and obligations as set forth in this Agreement, but shall not be held liable for any delay or omission in performance due to force majeure or other causes beyond their reasonable control (force majeure), including, but not limited to, compliance with any government law, ordinance or regulation, acts of God, acts of the public enemy, fires, strikes, lockouts, natural disasters, wars, riots, material or labor restrictions by any governmental authority, transportation problems and/or any other similar causes. 20. HEADINGS NOT CONTROLLING. Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 21. REVIEW OF COUNSEL. The parties acknowledge that each party and its counsel have reviewed and revised this Agreement and that the normal rules of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or exhibits hereto. 22. AMENDMENTS. No amendment of this Agreement shall be binding upon a party hereto unless such amendment is set forth in a written instrument, which is executed by an authorized representative and delivered on behalf of such parry. Professional Services Agreement Pension Trustee Advisors, Inc Page 5 of 8 City Secretary Contract No. 23. ENTIRETY OF AGREEMENT. This Agreement, including the schedule of exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the City and Consultant, their assigns and successors in interest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. 24. SIGNATURE AUTHORITY. The person signing this agreement hereby warrants that he/she has the legal authority to execute this agreement on behalf of the respective party, and that such binding authority has been granted by proper order, resolution, ordinance or other authorization of the entity. The other party is fully entitled to rely on this warranty and representation in entering into this Agreement. [SIGNATURE PAGE FOLLOWS] Professional Services Agreement Pension Trustee Advisors,Inc. Page 6 of 8 City Secretary Contract No. Executed in multiples this the 1�' day of 20_�L. AGREED: AGREED: CITY OF FORT WORTH: PENSION TRUSTEE ADVISORS, INC.: By: Karen L. Montgomery William B. Fornia Assistant City Mana er President Date: Date: ATT T: ATTEST- , '.,T ,.. By: Marty Hendrix Name City Secretary > ..� Title CC s J:. 9 f rr+ APPROVED AS-JO FO AND LEGAi, ` Wb G?A Maleshia B. F rmer Assistant City Attorney ;r CONTRACT AUTHORIZATION: M&C: _None required Date Approved: CI Y a)'!- R TARP FT. WORTH, TX Professional Services Agreement Pension Trustee Advisors, Inc Page 7 of 8 City Secretary Contract No. EXHIBIT A SCOPE OF SERVICES Professional Services Agreement Pension Trustee Advisors, Inc Page 8 of 8 William B. Fornia, FSA I President September 2, 2011 Mr.Tom Higgins Ms. Ruth Ryerson Interim City Manager Executive Director&Chief Investment Officer City of Fort Worth Fort Worth Employees' Retirement Fund 1000 Throckmorton 3801 Hulen Street,Suite 101 Fort Worth,TX 76102 Fort Worth,Texas 76107 Re: Education and Facilitation on Pension Consensus Building Dear Ruth and Tom: Thank you for inviting PTA to assist the Fort Worth Employees' Retirement Fund and the City of Fort Worth with reaching consensus on important issues. It would be a privilege to help the City Council,the City management team,and the Retirement Fund Trustees and board in being able to understand and reach consensus on the important retirement issues facing the City, its public servants,and its taxpayers.There is much turmoil in the public pension arena these days and Fort Worth has its share. The following paragraphs illustrate how PTA might work with you all on this important engagement: Phase I—Background Research We will begin by reviewing the current pension plan funding position, benefit levels and recent history of relations between the City and the Retirement Fund. We will review the Texas rules and norms including positions of the Pension Review Board.Although I am somewhat familiar with the Texas landscape, due to recent assignments with San Antonio Water System and TEXPERS, previously serving as actuary for Houston Firefighters Relief and Retirement Fund, as well as small projects with TMRS and TCDRS, I will make a more detailed analysis based on the current Fort Worth situation. I expect that we will receive the bulk of this information from the Fund,the City and other public documents. I anticipate that this review will include: • Actuarial Reports • City Council Minutes • Retirement Fund Minutes • Texas Pension Review Board Policies • Summaries of Plan Provisions • Newspaper Articles on Fort Worth Pension Issues • Public statements on Fort Worth Pension Issues While some of this review will be cursory, much will be very detailed, due to the complexity and history. I would like to follow this review with a 1-2 hour conversation with the City and the Fund where we clarify any ambiguities and learn more specifics of the issues, as discussed in Phase 11 PTA—Fort Worth—Education and Facilitation on Pension Issues, Page 2 Phase II—Initial Fact-finding Discussions with City Management Team and Fund Leadership and Review Because I have previously met with City management, and have had some ongoing discussions with them,we will spend some time by phone with Fund leadership learning their desired outcomes of this pension project and workshop.We will then keep City management updated with a summary call. The discussions will be to review the potential scope of this project, plus get a good grasp of the workshop goals of the parties. As a starting point, we will use the proposed four benefit objectives and cost objectives developed previously and shown below. Potential Benefit and Cost Objectives Benefit Cost Objectives Objectives Provide a reasonable standard of living for career Achieve and maintain an appropriate funded employees status Provide benefits that are competitive with other Attain a manageable amount of contribution Texas cities for employee recruiting and retention volatility& risk of future increases Provide benefits that are fair across the employee Attain a reasonable balance of contribution classes (General, Fire, & Police) sharing with the employees Share a reasonable amount of investment risk with Attain a cost that the City Council considers employees affordable with respect to all other competing priorities These calls can begin immediately. Following these discussions,we will review this new information and incorporate it into the remainder of the process. Phase III—Development of Objectives and Metrics for Discussion In the week following the initial discussions,we will develop a set of objectives and metrics,for later discussion and future consensus. Based on findings from the Phase 11 calls,as well as Texas standards and national norms, we will propose recommended objectives and metrics. Such objectives will build on the table above and might include: • Benefit objectives and metrics o Overall replacement income levels o Member contribution rates o Eligibilities for full or unreduced retirement o Comparison with peer employers and potential labor competitors PENSION TRUSTEE ADVISORS PTA—Fort Worth—Education and Facilitation on Pension Issues, Page 3 o Compatibility with labor objectives of employer • Financial objectives and metrics o Annual pension contribution requirement o Unfunded liabilities o Risk of insolvency o Cost sharing between City and workers o Risk of cost increases o Benchmark investment hurdle rate(actuarial assumed return on assets) The deliverable for this phase will be specific recommendations of metrics. Phase IV—Development of Fact Sheet Summary/Pension Information Kit To get started on education,we discussed the development of a 1-2 page summary of major pension issues. I would imagine that I would dedicate one page to general pension issues(e.g.,what is an unfunded liability,what is an amortization period, etc.) and the other page to issues specific to Fort Worth.This will be a high level fact sheet targeted to decision-makers and others who do not specialize in pensions. I would then supplement this with other easy-to-understand pension summaries available.These might include articles,general publications, "myth-busters" and websites with general pension information. The summary plus information kit would be reviewed by the city and the fund as recommended reading prior to the Pension Workshop. Phase V—Preparation for Pension Workshop In preparation for the Pension Workshop, I anticipate we would have another meeting and possibly conference call or two to discuss and understand precise issues that the City and the Fund want to have discussed. We will prepare more overview materials for the Council and Board,and discuss hot-button issues with your teams in advance,so we are prepared for key concerns.We will discuss the pension workshop agenda separately with the City management and Fund leadership at meetings, and possibly together at a conference call or meeting.The deliverable from this phase will be a more thorough agenda for the Pension Workshop. Phase VI—Pension Workshop and Educational Session The day of the workshop,we imagine working with City and Fund staff for an hour or so in advance of the multiple-hour workshop,for a final briefing of what to expect. We will then conduct the workshop, which might have an agenda as follows: PENSION TRUSTEE ADVISORS PTA—Fort Worth—Education and Facilitation on Pension Issues, Page 4 POTENTIAL AGENDA FOR WORKSHOP Agenda Item Participants Timing Introductions,Overview of Workshop and Agenda PTA, Staffs 10 minutes Review of general pension concepts PTA, All 10 minutes Overview of potential pension objectives and metrics PTA 15 minutes Initial group discussion of objectives All 15 minutes Review of various perspectives toward pension objectives PTA 10 minutes Break All 10 minutes Ongoing discussion of objectives with search for consensus Staffs,All 15 minutes Group exercise to confirm understanding of opposing objectives PTA, All 10 minutes Continued search for consensus PTA, All 15 minutes Wrap up,conclusions,decision on next steps All 10 minutes The major goal for this workshop would be to discuss objectives and metrics with some consensus. We will identify objectives where consensus was reached. From there,we will move toward an understanding of various perspectives toward pensions.We will attempt to build some consensus on remaining objectives and metrics, and will wrap up with discussion of next steps. Following the workshop, I believe we should have a one hour debrief with Fund staff and City management, (either separately or together)to explore what future needs might be.This could be together or with the City and Fund staffs separately. Phase VII—Future Directions Very soon after the workshop and analysis of the feedback,we will hold another one or two hour call to nail down any topics to be covered in potential subsequent sessions. If desired, 1 will propose future sessions on an ad hoc basis based on the needs that we discover in this process. Statement of Retirement Fund Objectives A key deliverable of this entire process will be for the City Council to gain decisions on objectives pertaining to the Fund, based on the eight components outlined in Phase 11.There are certain areas where either the City or the Fund may have limits on their specific influence,so the objectives will take those into consideration. But for the most part,we would expect the City and Fund to make specific joint statements of position on the objectives. Staffing This we will be conducted primarily by me.As we discussed by phone, I believe our objectives would be more likely to be met if we had a second highly-qualified public pension expert present at the Pension Workshop. With a Fund Board of 13 and City Council of 9,two leaders with two sets of ears would be very advantageous. Consequently, I've asked Paul Schrader to team with PTA on this assignment. Paul is not only one of the most experienced public plan actuaries, but truly one of the best with these types of high-level strategic endeavors. Paul has 45 years retirement plan experience, including coincidentally, working on the Fort Worth Retirement Fund in the 1960's. Our bios are attached. PENSION TRUSTEE ADVISORS PTA—Fort Worth—Education and Facilitation on Pension Issues, Page 5 Timing and Fees As we discussed,we are available to work on these issues immediately. Specifically,we are both currently available October 18 for the Pension Workshop. My hourly billing rate is$420. Paul's is$350.We might use other limited subcontractors to review calculations and drafts. If so,they would be billed at rates not to exceed$420,generally significantly lower. We also charge for travel at cost. Based on three trips to Fort Worth (two for me, one for Paul), travel would be approximately$2,500. As we discussed,these costs will be shared equally between the fund and the City. Estimated hours and fees are shown below. Estimated Hours Estimated Fee Phase I—Research 35 $13,000 Phase II—Initial Fact Finding Discussions and Review 12 $5,000 Phase III—Development of Metrics and Objectives 12 $5,000 Phase IV—Development of Fact Sheet/Pension Info. Kit 12 $5,000 Phase V—Pension Workshop Preparation 26 $10,000 Phase VI—Pension Workshop 24 $9,000 Phase VII—Future Directions To Be Determined To Be Determined Total 121+ $47,000+ 1 commend you again for taking the important step of investing in the education of key decision-makers and striving for consensus. I am pleased with the opportunity to help the Fund,the City and your stakeholders in finding solutions to the pension issues which you all face. We look forward to discussing this with you in more detail. Sincerely, M A4,e.- cc: Karen Montgomery Paul Schrader PENSION TRUSTEE ADVISORS PENSION TRUSTEE ADVISORS William B. Fornia, FSA I President William B. (Flick) Fornia is founder and President of Pension Trustee Advisors. PTA provides consulting services on public pensions with focus on pension advice. Previous Work History He was Senior Vice President at Aon Consulting, leading their public sector pension actuarial consulting practice from 2006 to 2010. Flick has more than 30 years of consulting and actuarial experience, primarily in the areas of retiree pension and healthcare benefits. Prior to Aon, he managed the Denver Retirement Practice of Buck Consultants and has served nationally as a Senior Consultant for Gabriel, Roeder, Smith & Co., both specializing in public pensions. Work Experience Flick has expertise in all retirement-related areas, including financing, plan design, bond analysis, asset- liability studies, retiree healthcare and legislative testimony. His career includes serving as corporate actuary for The Boeing Company and as consultant for numerous multinational corporations in Brazil and Argentina during his ten years at Towers Perrin. Previously, he was corporate actuary for Boeing. He has performed consulting services for 22 statewide retirement systems in Alaska, California, Colorado, Louisiana, Missouri, New Mexico, North Dakota, Oklahoma, Puerto Rico, Utah, Vermont, Wyoming and others. Other clients have included the US Department of State, Cities of Baltimore, Oakland and Philadelphia, IBM, US WEST and Ford Motor Company. Articles and Speech Presentations Flick is well known for his ability to teach complex concepts to lay audiences. He is an author and frequent speaker at organizations such as the Pension Research Council, the National Association of State Retirement Administrators (NASRA), the National Council on Teacher Retirement (NCTR), the National Association of Public Pension Attorneys (NAPPA), the National Conference on Public Employee Retirement Systems (NCPERS), the Conference of Consulting Actuaries, the Western Pension and Benefits Conference, the International Foundation of Employee Benefit Plans, The Conference Board, the Government Finance Officers Association (GFOA), and the Brazilian Association of Pension Plans (ABRAPP). Articles and speeches have addressed all aspects of retirement programs including retiree healthcare plans, and the challenges of public sector defined contribution plans. He co-authored "A Better Bang for the Buck— The Economic Efficiencies of Defined Benefit Plans"with the National Institute of Retirement Security in 2008. Professional Organizations and Education He is a Fellow of the Society of Actuaries, Enrolled Actuary, Member of the American Academy of Actuaries, and Fellow of the Conference of Consulting Actuaries. He currently serves on the steering committee of the Conference of Consulting Actuaries Public Pensions Subcommittee, and is on the faculty of the Society of Actuaries Fellowship Admissions Course. Flick earned a Bachelor of Arts in Mathematics at Whitman College. Pension Trustee Advisors,Inc. • 7600 E Arapahoe Road,Suite 125•Centennial,CO 80112•303.263.2765 Website:pensiontrusteeadvisors.com •Email:flick@pensiontrusteeadvisors.com R. PAUL SCHRADER,A.S.A. (RET. Consulting Actuary Paul Schrader has 45 years of experience with retirement and other employee benefit programs with major employers in both the private and public sectors. Paul spent most of his career with A. S. Hansen, Inc. in Denver as a consulting actuary with responsibility for the firm's activities in the Rocky Mountain region. He served as a Vice President, member of the Board of Directors and Executive Committee of Hansen, and later as a Managing Director of William M. Mercer, Inc. after their acquisition of Hansen. Paul retired from Buck Consultants as a consulting actuary with responsibility for Buck's activities in this region. Since retirement from Buck Consultants, Paul has consulted with several public retirement systems in areas of strategic planning. EXPERIENCE • Assisted in the consolidation of several independent statewide public employee retirement systems into one unified system with common benefits and practices. • Served as consulting actuary and principal consultant to a statewide public employee retirement system for over 35 years,and continues to serve as a strategic planning and policy consultant. • Designed a consolidated,total benefit plan for a multi-bank holding company after merger. • Consulted with a Fortune 500 employer on adoption of investment policy and funding actuarial assumptions and methods to match corporate objectives of minimizing future contributions to plan due to substantial over-funded status. • Conducted numerous asset/liability forecast studies to test long-term and most likely effects of alternative investment policies, actuarial assumptions and methods, and benefit changes. • Developed a strategic plan including benefit and funding policies for a retirement system covering over 50,000 members. • Led numerous retirement plan reviews for public sector retirement systems considering the conversion of a defined benefit plan to a defined contribution or hybrid plan. EDUCATION &ACHIEVEMENTS • Graduated from the University of Texas with a degree in Actuarial Science • Associate of the Society of Actuaries, Member of the American Academy of Actuaries, Member of the Western Pension & Benefits Conference and an Enrolled Actuary • A frequent speaker at professional and industry organizations, an author of several benefits articles, and has provided expert testimony in the development of public retirement policies ADMIN/PRO/BIOS/bio-Schrader