ohio deferred compensation request for proposals … documents/2014 recordkeeping modernizat… ·...

OHIO DEFERRED COMPENSATION REQUEST FOR PROPOSALS (RFP)

FOR A 457(B) PLAN FOR

Application Modernization Consulting Services

Issue Date: 05/12/2014

Mandatory Pre-Proposal Vendors’ 05/28/2014 1:00 p.m. EDT Conference: Ohio Deferred Compensation 257 E. Town St., Suite 400 Columbus, OH 43215-4623

Written Question Deadline: 06/02/2014

Proposal Deadline: 06/30/2014 4:00 p.m. EDT Ohio Deferred Compensation Doug Lepper 257 E. Town St., Suite 400 Columbus, OH 43215-4623

Description: The Ohio Deferred Compensation Program is requesting proposals for the purpose of providing consulting services for the modernization of Ohio DC’s recordkeeping system.

A copy of this RFP can be obtained from the Ohio Deferred Compensation website at www.OhioDC.org. Until the expiration date of this solicitation, it is incumbent upon the Vendor to check the website for additional information and/or addendums. RFPs can also be obtained from Ohio Deferred Compensation, 257 E. Town St., Suite 400, Columbus, OH 43215-4623. If you have any questions, please call (614) 466-7245.

Sealed Proposals are due prior to the Proposal Deadline indicated above and must be delivered to Ohio Deferred Compensation, located at 257 E. Town St., Suite 400, Columbus, OH 43215. Late proposals will not be accepted – NO EXCEPTIONS.

Summary of Key Items Required for a Valid Proposal

1. Transmittal Letter affirming authorized representative. 2. One original proposal, four hard copy proposals, and one electronic copy are due

prior to the Proposal Deadline indicated above and must be delivered to Ohio Deferred Compensation, located at 257 East Town Street, Suite 400, Columbus, OH 43215. The electronic copy can be sent to Doug Lepper ([email protected]).

3. Separate sealed hard copy cost proposal.

Late proposals will not be accepted.

http://www.ohiodc.org/

mailto:[email protected]

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Table of Contents TABLE OF CONTENTS ............................................................................................................................................................... 2

PART A PROCUREMENT INFORMATION ........................................................................................................................ 5

A.1 INTRODUCTION ................................................................................................................................................................................ 6 A.1.1 Purpose of This Procurement ................................................................................................................................... 6 A.1.2 About Ohio Deferred Compensation ...................................................................................................................... 6 A.1.3 Procurement Schedule and Milestones ................................................................................................................. 7 A.1.4 Project Objectives and Scope .................................................................................................................................... 8 A.1.5 RFP Organization .......................................................................................................................................................... 8 A.1.6 Procurement Point of Contact ................................................................................................................................. 9 A.1.7 Single Source of Support .......................................................................................................................................... 10 A.1.8 Offeror Questions about RFP and Procurement.............................................................................................. 11 A.1.9 Mandatory Pre-Bid Conference ............................................................................................................................. 11 A.1.10 Oral Statements and Commitments ..................................................................................................................... 11 A.1.11 Economy of Preparation .......................................................................................................................................... 11 A.1.12 Presentations and Product Demonstrations .................................................................................................... 12 A.1.13 Requests for Clarification or Supplementation ............................................................................................... 12 A.1.14 Best and Final Offers .................................................................................................................................................. 12 A.1.15 Clarification of Terminology .................................................................................................................................. 13

A.2 MANDATORY QUALIFICATIONS AND REQUIREMENTS............................................................................................................. 13 A.2.1 Proposer Minimum Qualifications ....................................................................................................................... 13 A.2.2 Project Manager Minimum Qualifications ........................................................................................................ 13 A.2.3 Mandatory Requirements ........................................................................................................................................ 14

A.2.3.1 Mandatory Requirements ............................................................................................................................................................ 14 A.3 PROJECT SCOPE AND BACKGROUND ........................................................................................................................................... 14

A.3.1 Nature of Desired Solution ...................................................................................................................................... 14 A.3.2 Single Source of Responsibility .............................................................................................................................. 15

A.3.2.1 Prime Contractor .............................................................................................................................................................................. 15 A.3.2.2 Sub-Contractors ................................................................................................................................................................................ 15

A.3.3 Workspace, Equipment and other Provision by Ohio Deferred Compensation .................................. 15 A.3.3.1 Workspace ........................................................................................................................................................................................... 15 A.3.3.2 Work Days and Hours .................................................................................................................................................................... 16 A.3.3.3 Dress Code ........................................................................................................................................................................................... 16 A.3.3.4 Office Equipment .............................................................................................................................................................................. 16

A.4 PROJECT TIMETABLE – MAJOR DELIVERABLES ....................................................................................................................... 16 A.4.1 Detailed Project Work Plan .................................................................................................................................... 17 A.4.2 Installation and Configuration of Proposed Hardware On-Site ............................................................... 17 A.4.3 Installation and Configuration of Proposed Software On-Site .................................................................. 17 A.4.4 Completion of Risk Management Reporting Methodology ......................................................................... 17 A.4.5 Updated Requirements Traceability Matrix ..................................................................................................... 18 A.4.6 Detailed Requirements Definition ........................................................................................................................ 18 A.4.7 Completion of Detailed System Design Specification .................................................................................... 18 A.4.8 Completion of Data Conversion and Migration Plan(s) ............................................................................... 18 A.4.9 Completion of Test Plans .......................................................................................................................................... 18 A.4.10 Completion of Change Control Methodology ................................................................................................... 18 A.4.11 Completion of Problem Incident Reporting Methodology .......................................................................... 18 A.4.12 Completion of System Security Plan .................................................................................................................... 18 A.4.13 Completion of Rollout Plan ..................................................................................................................................... 19 A.4.14 Completion of Training Plan and Training Materials .................................................................................. 19 A.4.15 Delivery of Separate Development, Test, Training, QA, and Query Environment .............................. 19 A.4.16 Completion of Training ............................................................................................................................................. 19 A.4.17 Delivery of Documentation ..................................................................................................................................... 19 A.4.18 Completion of Unit Testing By the Vendor ........................................................................................................ 19

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A.4.19 Completion of Vendor Acceptance Test per Phase ......................................................................................... 19 A.4.20 Commencement of User Acceptance Test (UAT) Per Phase ....................................................................... 20 A.4.21 Acceptance of the System by Users per Phase .................................................................................................. 20 A.4.22 Completion of the Conversion Process per Phase ........................................................................................... 20 A.4.23 Source Code ................................................................................................................................................................... 20 A.4.24 Weekly Status Reports and Meetings .................................................................................................................. 20 A.4.25 Monthly Steering Committee Meetings .............................................................................................................. 20 A.4.26 Warranty ........................................................................................................................................................................ 20

PART B PROJECT BACKGROUND AND WORKING ENVIRONMENT .................................................................... 22

B.1 CURRENT ENVIRONMENT ............................................................................................................................................................ 23 B.2 CURRENT AS IS BUSINESS FUNCTIONALITY ............................................................................................................................. 23

B.2.1 Recordkeeping System Modernization Roadmap .......................................................................................... 23 B.2.1.1 Code Inventory and Metrics ........................................................................................................................................................ 24 B.2.1.2 Business Rules Analysis and Documentation ..................................................................................................................... 24 B.2.1.3 Current Architecture ...................................................................................................................................................................... 24 B.2.1.4 Current process flow ...................................................................................................................................................................... 27

PART C SPECIFICATION OF REQUESTED SERVICES ................................................................................................ 28

C.1 HIGH LEVEL SERVICES ................................................................................................................................................................. 29 C.1.1 Roadmap Validation .................................................................................................................................................. 29 C.1.2 Technology Solution .................................................................................................................................................. 29

C.1.2.1 Cloud Services Selection ............................................................................................................................................................... 29 C.1.3 IT Staff Mentoring and Training ........................................................................................................................... 29 C.1.4 Implementation and Post-Production Support ............................................................................................... 30

C.2 FUTURE STATE VISION ................................................................................................................................................................. 30 C.2.1 New Environment ....................................................................................................................................................... 30 C.2.2 Future Architecture .................................................................................................................................................... 30 C.2.3 Private Virtual Cloud ................................................................................................................................................. 32 C.2.4 Legacy to Target Architecture Solution Mapping.......................................................................................... 32 C.2.5 Two-Wave Approach ................................................................................................................................................. 33

C.3 POTENTIAL NEW FUNCTIONALITY ............................................................................................................................................. 34 C.3.1 Will Be Included in project scope: ........................................................................................................................ 34 C.3.2 May Be Included as an option in project scope: .............................................................................................. 34 C.3.3 Will Not Be Included in project scope: ................................................................................................................ 34

C.4 PROJECT MANAGEMENT-RELATED REQUIRED SERVICES AND DELIVERABLES ................................................................. 34 C.4.1 Project Management ................................................................................................................................................. 35

C.4.1.1 Relationship ........................................................................................................................................................................................ 35 C.3.1.2 Project Oversight ....................................................................................................................................................................................... 35

PART D OFFEROR PROPOSALS ....................................................................................................................................... 37

D.1 FORMAT OF OFFEROR PROPOSALS ............................................................................................................................................. 38 D.1.1 Technical Proposal Format ..................................................................................................................................... 39 D.1.2 Cost Proposal Format ................................................................................................................................................ 45

D.2 PROPOSAL EVALUATION .............................................................................................................................................................. 46 D.2.1 Evaluation Methodology Summary ..................................................................................................................... 47

D.2.1.1 Evaluation Committee ................................................................................................................................................................... 47 D.2.1.2 Initial Activities ................................................................................................................................................................................. 47 D.2.1.3 Presentations and Product Demonstrations....................................................................................................................... 47 D.2.1.4 Best and Final Offers ...................................................................................................................................................................... 47 D.2.1.5 Negotiations ........................................................................................................................................................................................ 48 D.2.1.6 Additional Bid Requirements ..................................................................................................................................................... 48

PART E TERMS AND CONDITIONS ................................................................................................................................. 49

E.1 GENERAL TERMS AND CONDITIONS ........................................................................................................................................... 50

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E.1.1 RFP Amendments ........................................................................................................................................................ 50 E.1.2 Proposal Modification or Withdrawal ................................................................................................................ 50 E.1.3 Cost for Preparing Proposals .................................................................................................................................. 50 E.1.4 Contract .......................................................................................................................................................................... 50

E.1.4.1 Order of Precedence ....................................................................................................................................................................... 51 E.1.4.2 Invoicing, Payments, Holdbacks, and Tracking Thereof ............................................................................................... 51 E.1.4.3 Conflict Of Interest .......................................................................................................................................................................... 51 E.1.4.4 Confidentiality Requirements .................................................................................................................................................... 51 E.1.4.5 Insurance ............................................................................................................................................................................................. 51 E.1.4.6 Bond Commitment .......................................................................................................................................................................... 52 E.1.4.7 Adherence to Ohio Deferred Compensation Workplace Policies ............................................................................. 52 E.1.4.8 Ownership of Work Product and Intellectual Capital .................................................................................................... 53 E.1.4.9 Indemnification and Liability Restrictions .......................................................................................................................... 53 E.1.4.10 Negotiations with Subcontractor ............................................................................................................................................. 54 E.1.4.11 Project Termination ........................................................................................................................................................................ 54 E.1.4.12 Governing Law .................................................................................................................................................................................. 54 E.1.4.13 Declaration of Material Assistance .......................................................................................................................................... 54 E.1.4.14 Additional Provisions ..................................................................................................................................................................... 54

PART F ATTACHMENTS .................................................................................................................................................... 58

ATTACHMENT A – CURRENT FUNCTIONALITY ......................................................................................................................................... 58 ATTACHMENT B – BUSINESS RULES .......................................................................................................................................................... 64 ATTACHMENT C – CODE OF RESPONSIBILITY ....................................................................................................................................... 110 ATTACHMENT D – CLIENT REFERENCE FORM ...................................................................................................................................... 111 ATTACHMENT E – RESOURCE RESUMES FORMAT ................................................................................................................................ 113

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Part A Procurement Information

This part of the RFP contains general information.

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A.1 Introduction

A.1.1 Purpose of This Procurement

The Ohio Public Employees Deferred Compensation Board (Board) is seeking proposals from a consulting company (Vendor) to lead the design, development, and implementation of a new recordkeeping system for the Ohio Public Employees Deferred Compensation Program (Program). Over the past 15 years, Ohio DC has developed a custom recordkeeping system written in COBOL. The Board has determined that it is in the best interest of Ohio DC to enhance the recordkeeping system to include the migration of COBOL code to a more flexible, sustainable Programming language.

The Board operates through its Executive Director and staff and references to the Board in the request for proposal (RFP) should generally be construed as such for day-to-day operations and reporting.

The background and general information section that follows provides a description of Ohio DC operations. This description is not an exhaustive list of the services provided and the respondent should evaluate the services needed based on their knowledge and experience in servicing defined contribution plans in the public sector marketplace. Visit Ohio DC’s participant website at www.Ohio457.org and employer website at www.OhioDC.org to view general information about Ohio DC.

A.1.2 About Ohio Deferred Compensation

Ohio Deferred Compensation (Ohio DC) is an eligible deferred compensation plan and is administered in accordance with Section 457 of the Internal Revenue Code. Ohio DC provides a supplemental retirement savings plan for public employees in Ohio who are covered by one of the State authorized pension systems. Eligible employees are not covered by Social Security. Many public employers also provide competing 457(b) plans or 403(b) plans.

Ohio DC is a separate legal entity, and is not considered a component unit of the State of Ohio. All assets of Ohio DC are held in trust for the exclusive benefit of participants and their beneficiaries. Ohio DC's current Comprehensive Annual Financial Report, which includes statistical information regarding Program participation, is available at Ohio DC’s employer website www.OhioDC.org .

Currently, over 1,800 different public employers throughout Ohio participate in Ohio DC. Total Program assets exceed $10.5 billion.

Enrollment, education, and customer service are provided by Nationwide Retirement Solutions (NRS). The Board has a contract with NRS through June 30, 2019 to be the exclusive service provider for Ohio DC. Currently, NRS employs 46 dedicated employees to Ohio DC activities, including 15 full-time licensed salaried field account executives, who are geographically located throughout Ohio. NRS has 21 licensed telephone representatives at the Service Center office, three administrative support employees, four retirement planning specialists, and three management employees.

As the exclusive enrollment agent for Ohio DC, NRS representatives contact potential Ohio DC eligible employers to determine interest in Ohio DC. Existing Ohio DC employers are contacted regularly to schedule presentations, provide written materials, and provide Ohio DC specific information to employer payroll officers.

http://www.ohio457.org/

http://www.program.org/

http://www.program.org/

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As Ohio DC’s educator and enroller, NRS develops, designs, prints and distributes all promotional and educational materials. NRS is also responsible for providing the participant transactional based automated telephone system and transactional website at www.Ohio457.org.

NRS does not perform recordkeeping or select investment options. Participant information and activity is forwarded from NRS to Ohio DC office, and daily recordkeeping is maintained in-house on Ohio DC’s computer systems. Board Staff are responsible for the administration of Ohio DC including the recordkeeping of all investments for all Ohio DC participants. The Board employs a total of 21 administrative staff members. Each employee has a personal computer and access to the Board’s systems and network. NRS has approximately 30 employees who have access to Ohio DC’s systems and network.

A.1.3 Procurement Schedule and Milestones

The following is the time schedule for Ohio Deferred Compensation to search for Vendors to provide the requested services. All dates are subject to modification by Ohio Deferred Compensation.

Table 1 - Calendar of Events

Date Item

05/12/2014 Release of RFP

05/23/2014 Deadline for Submission of Letter of Intent

05/28/2014 Mandatory Pre-Proposal Vendors’ Conference Ohio Deferred Compensation Board office 1:00 p.m. EDT 257 East Town Street, Suite 400 Columbus, OH 43215-4623

06/02/2014 Deadline for receipt of written questions regarding this RFP

06/09/2014 Responses to all written questions will be emailed to all Vendors that submit a Letter of Intent

06/30/2014 Deadline for receipt of completed proposals 4:00 p.m. EDT 07/21/2014 Finalists Selected

08/01/2014 Deadline for request for additional information

08/14/2014 Finalists Presentation

08/25/2014 Best and Final Offers Due

11/28/2014 Contract negotiations with selected vendor and draft contract complete

Ohio Deferred Compensation reserves the right to amend the Calendar of Events as needed.

http://www.ohio457.org/

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A.1.4 Project Objectives and Scope

The primary objective of this project is to implement a stable, state-of-the-industry, fully integrated solution capable of supporting Ohio DC’s mission well into the future. It will enable Ohio DC staff to perform all of their duties associated with maintaining customer service through to actual benefit payments. Additional objectives of this procurement include:

Improved service levels to participants Improved system workflow and increased work efficiency Improved accuracy of all information maintained by Ohio DC Improved timeliness and accuracy of responses to participants' inquiries Improved management reporting features Improved system audit and control capabilities

The new solution is expected to include, but not be limited to, practices, procedures, workflow management elements, business process and organizational changes necessary to support Ohio DC‘s requirements that are detailed in the following sections of this Request for Proposal [RFP]. This includes all necessary documentation, training materials, and training in procedures and software.

The proposed solution must offer complete integration of information processing, imaging, and other proposed technologies, e.g., workflow management, as well as all proposed and authorized options.

Ohio DC requires that the new solution assist the staff in their mission of providing the best possible service to the participants. Ohio DC looks to the new solution to help move to the use of Web-based technologies.

Offerors are encouraged to present solutions that embrace enabling technologies: examples include but are not limited to browser-based, and workflow management. Ohio DC requires solutions that are based on mature, proven technologies. The solution proposed to Ohio DC must generally reflect the capabilities of commercially available technology / resources for ease of maintenance and enhancement.

A.1.5 RFP Organization

This RFP is organized as described below.

Part A - Procurement Information

This part of the RFP contains general information.

Part B - Project Background and Working Environment

This part of the RFP describes Ohio DC‘s current environment and thereby provides the background for the issuance of this procurement.

Part C - Specification of Requested Services

This part of the RFP defines in detail the scope of the effort. It addresses the business requirements to be satisfied, the project‘s technical requirements (including standards to be observed, hardware and software to be provided, and interfaces to be accommodated), and other required services and deliverables, including project management services, data-related services, staffing, training,

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testing, disaster recovery planning, and warranty, maintenance, and support requirements. Options to be proposed are also identified.

Part D - Offeror Proposals

This part of the RFP provides detailed instructions for the preparation and format of vendor proposals, both technical and cost as well as the evaluation criteria Ohio DC will use in evaluating the proposals received and how the evaluation will be conducted.

Part E - Terms and Conditions

This part of the RFP contains Ohio DC‘s Terms and Conditions.

Part F - Attachments

Included in the document are the following attachments: Attachment A – Current Functionality Attachment B – Business Rules Attachment C – Code of Responsibility Attachment D – Client Reference Form Attachment E – Resource Resumes Format

A.1.6 Procurement Point of Contact

Vendors which intend to submit a Response should not contact any member of Ohio DC Staff or members of the Board. An exception to this rule applies to vendors who currently do business with Ohio DC, but any contact made by such vendor(s) with persons should be limited to that business, and should not relate to this RFP.

All questions concerning this RFP must be received via email by the Contact person based upon the date listed in section A.1.3 Procurement Schedule and Milestones by 5:00 p.m., Eastern Standard Time.

Answers to only emailed questions received by this deadline will be sent to all offerors via email in an aggregated list.

Questions submitted after the date listed above in section A.1.3 and after 5:00 p.m. Eastern Standard Time or other than by email will not be considered. For violation of this provision, Ohio DC shall reserve the right to reject the proposal of the offending offeror.

The point of contact for questions and all other contractual matters relating to this RFP is:

RFP Contact: Doug Lepper Title: Information Technology Manager Phone: (614) 466-7245 Fax: (614) 728-2601 Email: [email protected]

Offeror‘s proposals, are due on date listed in section A.1.3 Procurement Schedule and Milestones by 4:00 p.m. Eastern Standard Time, are to be delivered to Ohio DC office, marked to the attention of:

Name: Doug Lepper Title: Information Technology Manager Address: 257 E. Town St., Suite 400

mailto:[email protected]

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Columbus, OH 43215-4623

By submitting a proposal, the offeror acknowledges that it has read this RFP, understands it, and agrees to be bound by its requirements.

A.1.7 Single Source of Support

Joint ventures shall not be acceptable for the performance of this contract. A single prime contractor will be responsible for the successful delivery of all contracted deliverables and services, including subcontractor's efforts. Multiple (alternate) proposals from a single offeror will not be accepted. Companies being proposed as subcontractors by multiple offerors will also not be allowed.

Ohio DC is seeking a single source for all activities relating to the new solution implementation. The offeror (prime contractor) shall be granted the right to subcontract a portion of the work but shall retain sole responsibility for the successful delivery of all contracted deliverables. The offeror (prime contractor) must be designated in the proposal, and any use of subcontractors must be clearly explained. All references in this RFP to the contractor, vendor, offeror, bidder, or successful offeror, vendor, bidder, etc. shall be construed to encompass both the offeror (prime contractor) and all subcontractors and infer the single source of support as the offeror (prime contractor).

If the use of subcontractors is planned, the proposal must specifically identify the tasks that each subcontractor is to perform. All subcontractor staff in key positions must meet the same qualifications for experience specified for the prime contractor. Resumes must be included for these key subcontractor staff. The proposal must also include sample copies of any agreements to be executed between the prime contractor and any subcontractors in the event of contract award. All subcontracting agreements must be signed at the time of contract award and executed copies provided to Ohio DC for review prior to the execution of a contract with the prime contractor. Proprietary or confidential information may be redacted in the copies provided to Ohio DC. Prior to contract execution, Ohio DC reserves the right to reject any subcontractor or the specific agreement between contractor and subcontractor.

All offerors must list in their proposals the complete names and addresses of all subcontractors and the type and percentage of work they will be providing. Proposals must include a signed, written statement from any proposed subcontractors verifying their commitment to perform the services indicated to be completed by them. Failure to identify subcontractors may be grounds to find the prime contractor in breach of contract.

Substitution of any proposed subcontractor is allowed only after prior written permission is received from Ohio DC Project Manager.

Although Ohio DC would prefer to execute a single contract with the prime contractor, Ohio DC recognizes that (multiple) third party sources are likely to be utilized to provide hardware maintenance and commercial (commodity) software products and related licenses. Ohio DC is willing to execute contracts with third party sources for hardware maintenance and commercially available software licenses. However, Ohio DC requires that the offeror commit in its proposal, that should any third party provider go out of business or otherwise become unable to fulfill its contractual obligations to Ohio DC with respect to this procurement, then the offeror (prime contractor) will guarantee delivery of the same or equivalent products and services at the contractually agreed upon price.

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A.1.8 Offeror Questions about RFP and Procurement

Offeror questions relating to this RFP and/or procurement may be submitted to the Point of Contact named in section 0. Questions are to be submitted as a Word document using the format specified in Table 2 below.

Table 2 Format for Submission of Offeror Questions

NO. RFP SECTION RFP PAGE QUESTION

Q1

A1

Q2

A2

Email is the preferred method of communications. All written questions must include the name of the firm and the person submitting the questions. A compilation of all questions and answers, along with any RFP addenda, will be emailed to all offerors.

A.1.9 Mandatory Pre-Bid Conference

A site tour and Pre-Proposal Vendors’ Conference will be held at Ohio DC offices, 257 East Town Street, Suite 400, Columbus, Ohio on Wednesday, May 28, 2014 at 1:00 p.m. EDT. Any Vendor intending to respond to this RFP must attend this conference in person. A tour of Ohio DC facility will follow the Vendors’ conference. Attendance is limited to 3 individuals from each Vendor’s organization. Registration with the RFP Coordinator will be necessary prior to attending the Conference. Oral questions will be allowed and spontaneous answers will be provided at the conference. However, Vendors are cautioned that changes or revisions to the RFP will be accomplished only through the issuance of an addendum. No verbal response at the pre-proposal conference will, by itself, change the requirements of the RFP. Vendors are also advised that questions about the RFP over the telephone will not be accepted.

The purpose of the conference is to:

Ensure that interested Vendors understand the RFP objectives and scope of work Entertain Vendor questions and provide any clarifications or additional information

necessary regarding the RFP Provide Vendors an opportunity to tour Ohio DC facilities

A.1.10 Oral Statements and Commitments

Offeror must clearly understand that, as noted above, any verbal representation made or assumed to be made during any oral discussion held between Offeror‘s representatives and any Ohio DC personnel is not binding. Only the information issued in writing and added to the Request for Proposal specifications file by an official written addendum are binding.

A.1.11 Economy of Preparation

Proposals should be prepared simply and economically, providing a straightforward, concise description of Vendor's abilities to satisfy the requirements of the RFP. Emphasis should be placed on completeness and clarity of content.

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A.1.12 Presentations and Product Demonstrations

At Ohio DC‘s discretion, offerors who receive high scores after the initial review of proposals may be required to provide presentations and/or product demonstrations at Ohio DC‘s offices. If presentations and/or demonstrations are required, offerors will be offered alternative dates from which to select. Offerors will also be provided with scripted product demonstration scenarios on which to base their product demonstrations in order to assure an objective comparison among offerors‘ proposed solutions. Ohio DC may require offerors to use actual Ohio DC data in order to assure an objective comparison among offerors‘ proposed solutions.

Ohio DC requires that the Project Manager and other key assigned project staff conduct the demonstrations. Ohio DC‘s objective is to discern the offeror's proposed project staffs‘ familiarity with the solution and their ability to explain, communicate, converse, and interact with Ohio DC staff. While respecting the role of sales and marketing staff in the sales process, Ohio DC is most interested in interacting with key project members.

In addition, visits to existing offeror customer sites that are running the solutions in production may be conducted by Ohio DC staff.

Ohio DC reserves the right not to conduct offeror presentations, product demonstrations, and/or customer site visits.

A.1.13 Requests for Clarification or Supplementation

Upon review of proposals submitted by offerors, Ohio DC may, at its discretion submit to offerors written questions and requests for clarification, supplementation, and/or modification of their proposals. If a supplement or modification is requested, all offerors will be given an opportunity to respond. Requests for clarification will only be directed to the offeror(s) from whom a clarification is sought. Offerors will be provided a reasonable period of time in which to submit written responses to Ohio DC‘s questions and requests. Ohio DC may, in its discretion, refuse to accept in full or partially the response of an offeror to a request. Such question-and answer exchanges may be repeated until Ohio DC is satisfied that all offeror information necessary to enable a complete evaluation of proposals has been obtained.

All such written exchanges between Ohio DC and the successful offeror that Ohio DC accepts will be incorporated by reference into the contract to be executed by the two parties.

A.1.14 Best and Final Offers

At Ohio DC‘s discretion, Best and Final Offers (BAFO) may be solicited from offerors whose scores are ranked highest after the initial review of proposals and product demonstrations and site visits (if demonstrations and site visits are conducted).

BAFOs may address cost, scope changes, staffing changes, changes to approach – both those solicited by Ohio DC and those offered by offeror.

These offerors‘ best and final offers must be received at the identified address by the date specified in section A.1.3. If a Best and Final Offer is not submitted, the previous submittal will be construed as the Best and Final Offer. BAFO proposals must be prepared in the same number of copies and packaged and submitted according to the same instructions that apply to the initial proposal submission (please refer to Section D.1). After Best and Final Offers are received, final evaluations will be conducted for an award.

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Ohio DC reserves the right not to solicit Best and Final Offers.

A.1.15 Clarification of Terminology

All references in this RFP to features, functions, or deliverables provided by the offeror are to be construed as mandatory. Similarly, all references in this RFP to information that should have the ability to be provided in the offeror‘s proposal are to be construed as mandatory.

Bidders may be referred to alternatively as bidders, proposers, offerors, successful offerors, successful bidders, vendors, etc. All such references (except for those explicitly defined otherwise) are to the primary contractor who submits the proposal in response to this RFP and, if successful, who will be responsible for the successful completion of all required deliverables.

In reviewing offerors‘ technical proposals, Ohio DC will assume that all features and functionality described therein will be delivered for the quoted not-to-exceed cost presented in the offerors‘ cost proposals. Statements such as ― … [functionality x] can be provided … or ― … [functionality x] may be provided … or other similar sentence constructions will be interpreted to mean that functionality x will be provided at no additional cost. If offerors wish to discuss functionality that is feasible but not included in their cost bid, they must explicitly state as much in every applicable case.

References to days are to calendar days unless otherwise explicitly stated.

Reference is made throughout the RFP to project phases. Except as otherwise explicitly defined, the term ―phase refers to the major functional rollouts (e.g., participants, benefits) of the new solution implementation. Reference is also made to preliminary project implementation phases – e.g., completion of detailed work plan, implementation of project infrastructure.

Throughout this RFP, Ohio DC refers to awarding of the contract as if that award were a given. In fact, Ohio DC reserves to itself the right to reject all proposals and to make no award whatsoever.

A.2 Mandatory Qualifications and Requirements

An offeror must meet all of the qualifications outlined below. Failure to do so will result in the rejection of the proposal.

A.2.1 Proposer Minimum Qualifications

All references in this RFP to the ―offeror shall be construed to encompass both the offeror (prime contractor) and all subcontractors and infer the single source of responsibility as the offeror (prime contractor).

The offeror/prime contractor must be able to cite recent experience in which the offeror successfully implemented a new integrated system for a multiemployer or public entity.

The offeror must include as part of Section A.2.1 Proposer Minimum Qualifications of its Technical Proposal the projects it is using to satisfy the minimum requirements described above.

A.2.2 Project Manager Minimum Qualifications

The offeror‘s proposed Project Manager must have a minimum of three (3) years of experience in project management within the last six (6) years. That experience must include two (2) years of work similar in size and scope to that outlined in this RFP.

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While Ohio DC is not requiring the proposed Project Manager be a certified PMP they are strongly recommending that the Project Manager be PMP certified.

A.2.3 Mandatory Requirements

The mandatory requirements identified as such in this RFP must be satisfied. If any of the following mandatory requirements are NOT satisfied, the proposal will be scored accordingly. By signing and submitting a response to this RFP, the vendor agrees to all mandatory deliverables described herein unless an exception has been identified. In its response to this section, the Proposer must summarize how these mandatory requirements are fulfilled in its proposed solution.

A.2.3.1 Mandatory Requirements

Within the past 5 years the offeror must have completed at least 5 projects of like size and scope for application modernization projects.

At least 2 of the projects must be projects that are modernization of recordkeeping systems.

A.3 Project Scope and Background

A.3.1 Nature of Desired Solution

The primary objective of this project is to implement a stable, state-of-the-industry, fully integrated solution capable of supporting Ohio DC’s mission well into the future. It will enable Ohio DC staff to perform all of their duties associated with maintaining customer service through to actual benefit payments. Note: Ohio DC requires a fully browser-based application.

Additional objectives of this procurement include:

Improved service levels to participants Improved system workflow and increased work efficiency Improved accuracy of all information maintained by Ohio DC Improved timeliness and accuracy of responses to participants' inquiries Improved management reporting features Improved system audit and control capabilities

In addition to the application, the new solution is expected to include, but not be limited to, practices, procedures, workflow management elements, business process and organizational changes, as well as all computer hardware and software necessary to support Ohio DC‘s requirements detailed in this RFP. This includes all necessary documentation, training materials, and training in procedures and software.

The proposed solution must offer complete integration of information processing, imaging, and other proposed technologies, e.g., internal e-mail and workflow management, as well as all proposed and authorized options.

Finally, and perhaps most important, Ohio DC requires that the new solution continue to assist the staff in their mission of providing the best possible service to their membership.

Offerors are encouraged to present solutions that embrace enabling technologies: examples include but are not limited to browser-based, cloud based client applications, and workflow management. Ohio DC requires solutions that are based on mature, proven technologies.

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A.3.2 Single Source of Responsibility

Joint ventures shall not be acceptable for the performance of this contract. A single prime contractor will be responsible for the successful delivery of all contracted deliverables and services, including subcontractors’ efforts. Multiple (alternate) proposals from a single offeror will not be accepted. Companies being proposed as subcontractors by multiple offerors will also not be allowed.

A.3.2.1 Prime Contractor

Ohio DC is seeking a single source for all activities relating to the new administration solution implementation. The vendor (prime contractor) shall be granted the right to subcontract a portion of the work but shall retain sole responsibility for the successful delivery of all contracted deliverables. The vendor (prime contractor) must be designated in the proposal, and any use of subcontractors must be clearly explained. All references in this RFP to the contractor, vendor, vendor, bidder, or successful vendor, vendor, bidder, etc. shall be construed to encompass both the vendor (prime contractor) and all subcontractors and infer the single source of support as the vendor (prime contractor).

A.3.2.2 Sub-Contractors

If the use of subcontractors is planned, the proposal must specifically identify the tasks that each subcontractor is to perform. All subcontractor staff in key positions must meet the same qualifications for experience specified for the prime contractor.

Resumes must be included for these key subcontractor staff.

The proposal must also include sample copies of any agreements to be executed between the prime contractor and any subcontractors in the event of contract award. All subcontracting agreements must be signed at the time of contract award, and executed copies provided to Ohio DC for review prior to the execution of a contract with the prime contractor. Proprietary or confidential information may be redacted in the copies provided to Ohio DC. Prior to contract execution, Ohio DC reserves the right to reject any subcontractor or the specific agreement between contractor and subcontractor.

All vendors must list in their proposals the complete names and addresses of all subcontractors and the type and percentage of work they will be providing. Proposals must include a signed, written statement from any proposed subcontractors verifying their commitment to perform the services indicated to be completed by them. Failure to identify subcontractors may be grounds to find the prime contractor in breach of contract.

Substitution of any proposed subcontractor is allowed only after prior written permission is received from Ohio DC Project Manager.

A.3.3 Workspace, Equipment and other Provision by Ohio Deferred Compensation

A.3.3.1 Workspace

The Vendor will work side-by-side with Ohio DC staff in Ohio DC office. Ohio DC will provide workspace for Vendor staff located in the building. Ohio DC will provide for all rent, utilities, and office furniture for this workspace. On-site parking is not available and any parking costs will be the responsibility of the Vendor. Specifics of this arrangement are subject to review during contract

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negotiations.

A.3.3.2 Work Days and Hours

Ohio DC and Vendor team members will work on a Monday through Friday schedule, with a normal work day beginning at 8:00 a.m. and ending at 4:30 p.m. Eastern time. Ohio DC’s staff will also have some holidays which might be in addition to those provided by the Vendor’s own policies. Vendor must ensure sufficient, onsite coverage during 90% of the normal business hours of Ohio DC to facilitate management of the project and expeditious resolution of issues. While Ohio DC acknowledges that there will occasionally be times where a normal workday is just not possible, the Vendor should prepare its proposal based on an expectation that Ohio DC’s staff will primarily work according to the schedule previously described, and not work on all approved Ohio DC holidays. The Vendor should take Ohio DC’s expected schedule into consideration when planning the staffing model for the Vendor’s consultants. At any time during the project, Ohio DC reserves the right to modify the workdays and hours to best meet the needs of the project. If resources in other time zones need to work with Ohio DC resources, they will be expected to accommodate Ohio DC’s standard work hours.

A.3.3.3 Dress Code

Ohio DC expects the Vendor team members to present a business-like appearance during business hours and to dress conservatively and professionally. Vendor staff shall be responsible for complying with Ohio DC Dress Code Policy. This policy is typically business casual and will be provided to the selected Vendor.

A.3.3.4 Office Equipment

The selected Vendor will be responsible for providing their own personal computers. Ohio DC will provide the following resources for Vendor staff located in Ohio DC’s office:

Access to Ohio DC’s networks and applications. High-speed wireless connection point with access to the Internet. Telephones for conference calls for Ohio DC’s business if necessary. Printers and photocopying machines.

VPN access will be provided for Vendor staff as needed and with Ohio DC’s approval. The Vendor will provide a list of specific applications that it will require for the duration of the project. Ohio DC, in its sole discretion, will determine what is reasonable and necessary to meet the forgoing requirements. Specifics of this arrangement are subject to review during contract negotiation.

A.4 Project Timetable – Major Deliverables

Offerors must provide a detailed listing of deliverables that will be produced for the project with estimated completion dates. This section consists of a list of the minimum set of high-level deliverables required for the project. The due dates for the minimum set of deliverables fall into two categories: those with delivery dates contingent on the contract start date or the start date of the phase or work unit and those with delivery dates dependent on the proposed structure of the project plan.

Table 3 below lists those deliverables with delivery dates predicated on the contract start date or start of a phase or work unit. These deliverables as well as all the others listed in this section must all appear in the offeror‘s Detailed Project Work Plan.

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Table 3 - Delivery Due Dates for Major Deliverables

NBR DELIVERABLE DAYS POST

CONTRACT

START

DAYS PRIOR

TO START OF

PHASE OR

WORK UNIT

1. Detailed Project Work Plan 60

2. Installation/Configuration of Hardware 120

3. Installation/Configuration of Software 120

4. Risk Management Reporting Methodology 90

5. Ohio DC‘s Original Requirements Traceability Matrix (RTM) 60

6. Updated of RTM 90

7. Change Control Plan 90

8. Problem Incident Reporting Methodology 90

9. System Security Plan 120

The following section further identifies the minimum set of high-level deliverables required of the project. The list includes deliverables identified above (i.e., those with dates predicated on project start date or task or work unit start date) as well as deliverables due on a schedule dictated by the project plan developed by the bidder:

A.4.1 Detailed Project Work Plan

The vendor must provide a complete, detailed plan of all activities required to meet all of the project requirements including: system design; development; user, administrator and developer training; testing; conversion; and post-installation warranty. Building on the initial Sixty-Day Work Plan, the plan must include all project deliverables, all detailed tasks with start dates, completion dates, hours to complete, dependencies, vendor and Ohio DC resources assigned and project milestones. The work plan must reflect the phasing of the project. This plan must be established and maintained by the vendor throughout the life of the project using Microsoft Project. It will be reviewed at weekly meetings between Ohio DC and the vendor.

A.4.2 Installation and Configuration of Proposed Hardware On-Site

If needed, all hardware specified for the solution must be suitably installed and configured.

A.4.3 Installation and Configuration of Proposed Software On-Site

All commodity software specified for the solution must be suitably installed and configured on the specified hardware. This includes not only operating system and database management software and various software tools, but also all required commodity software associated with integrated imaging and workflow management capabilities.

A.4.4 Completion of Risk Management Reporting Methodology

The offeror must deliver a detailed Risk Management Reporting Methodology for use throughout the project in reporting risks identified during the course of the project.

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A.4.5 Updated Requirements Traceability Matrix

Ohio DC will develop and provide to the vendor the Requirements Traceability Matrix. The vendor must update and return it to Ohio DC.

A.4.6 Detailed Requirements Definition

Prior to the installation, design, and construction of each major phase, a detailed requirements definition document will be submitted for review and approval. This document will describe, for each phase, the requirements to be met by the particular phase.

A.4.7 Completion of Detailed System Design Specification

The Detailed System Design Specification must include all components of the system. It should include use cases, use case models, site map(s), data element dictionary, logical data models, physical data model, deployment diagrams, activity diagrams, integration build plans, design packages, design models, interface design models, process flowcharts where appropriate, and supplementary specification documents. The method of implementing security in each application element must also be defined in this specification. The offeror must conduct walkthroughs of the Detailed System Design with appropriate members of Ohio DC‘s project team and provide demonstrations to enhance Ohio DC‘s understanding and to facilitate review and approval by Ohio DC.

A.4.8 Completion of Data Conversion and Migration Plan(s)

A Data Conversion and Migration Plan must be provided for the project. The plan will include a detailed description of the conversion methodology and process, a description of the process for keeping new and old systems synchronized, a description of any parallel processing supported, and a description of the quality assurance process to assure that all records have been converted correctly and fully.

A.4.9 Completion of Test Plans

The offeror will be responsible for the development of all test plans for the entire system to be implemented at Ohio DC, not just for the customizations implemented specifically for Ohio DC. This includes all unit tests, system tests, and User Acceptance Tests. The offeror will design and develop test scenarios, test variants, test cases, test data, and expected test results for each phase of the rollout. Test plans and related activities will be repeated for all phases.

A.4.10 Completion of Change Control Methodology

The offeror must deliver a detailed Change Control Methodology for use throughout the project.

A.4.11 Completion of Problem Incident Reporting Methodology

The offeror must deliver a detailed Problem Incident Reporting Methodology for use throughout the project in reporting production problems as well as problems identified during testing activities.

A.4.12 Completion of System Security Plan

The offeror must deliver a completed System Security Plan that provides an overview of all of the security requirements associated with the application throughout its life cycle. The plan must describe the processes and controls that are necessary to protect the application from loss, misuse,

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or unauthorized access to or modification of information as well as the protection of data, etc., during the life of the project.

A.4.13 Completion of Rollout Plan

A detailed rollout plan for each functional cutover phase must be provided for review and approval by Ohio DC. The plan must detail tasks, responsibility, duration, deliverables, and ―ownership among all project stakeholders (i.e., Ohio DC, the vendor, and all involved third parties). The plan must detail week-by-week, day-by-day, and in some cases hour by activities.

A.4.14 Completion of Training Plan and Training Materials

A detailed training plan for each rollout phase must be delivered, specifying who will be trained, what subjects will be covered, and a schedule for all training sessions. Included in the training plan must be training for Ohio DC staff in the use of the Change Control Methodology and the Problem Incident Reporting Methodology. In addition, training materials must be developed and delivered to Ohio DC for review prior to the start of actual training activities. This deliverable must include, not only training in the use of screens and windows, pull-down menus, radio buttons, data entry, and the like, but also training in all of the functions, processes, and sub-processes that users will need to accomplish their role-specific work duties. Training must address Ohio DC’s users.

A.4.15 Delivery of Separate Development, Test, Training, QA, and Query Environment

The vendor must implement a separate processing environment for development, test, training, QA, and query purposes.

A.4.16 Completion of Training

The vendor must provide phased training for managers, users, administrators and development personnel based on the training plan and training materials delivered earlier in the project.

A.4.17 Delivery of Documentation

The vendor must deliver a complete set of systems and user documentation, which must be specific to and approved by Ohio DC. All documentation delivered must be of the as-built version of the system. User documentation must address not only the use of screens and windows, pull-down menus, radio buttons, data entry, and the like, but also all of the functions, processes, and sub-processes that users will use to accomplish their role-specific work duties.

A.4.18 Completion of Unit Testing By the Vendor

Certification that the offeror‘s staff members have successfully completed all unit tests must be delivered to Ohio DC prior to the vendor commencing it‘s version of unit acceptance testing activities, i.e., Vendor Acceptance Test. Unit testing will be performed for each functional cutover phase of the project.

A.4.19 Completion of Vendor Acceptance Test per Phase

The Vendor Acceptance Test will demonstrate the successful testing and operation of the system by the vendor, ensuring that the new solution is functioning and processing data correctly and ready for Ohio DC User Acceptance Testing. Tests to be performed by the vendor herein include end-to-end application testing, stress tests, volume tests, and performance tests to assure that the solution will meet performance requirements under expected user loads, backup and recovery testing and

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installation testing. Vendor Acceptance Testing (VAT) must be performed for each functional cutover phase of the project. As part of VAT, the vendor will provide a written statement, signed by both the vendor‘s project manager and the vendor‘s test director (an individual separate and apart from the development staff charged with only test and quality assurance responsibility) that all tests have been completed satisfactorily (at a minimum 95%) and that the system is ready for User Acceptance Testing. The final output of VAT will be both hardcopy and electronic test materials including, but not limited to: test plans, test scripts, expected test results, and tangible proof that test results were produced and compared to expected test results. UAT will not begin until one week after all VAT material has been provided to Ohio DC.

A.4.20 Commencement of User Acceptance Test (UAT) Per Phase

User Acceptance Test will commence after the vendor has certified the completion of vendor acceptance testing and readiness for UAT (including having 95 percent of major processes perform without major errors). Users will perform the testing utilizing test scripts developed and provided by the vendor. All issues will be documented according to a formalized issue tracking process. UAT will not be deemed complete until 99 percent of major processes within Ohio DC can be performed without errors or issues.

A.4.21 Acceptance of the System by Users per Phase

After successful completion of the UAT, the system will be turned over to the users for production use.

A.4.22 Completion of the Conversion Process per Phase

Completion and verification of the conversion of all data in accordance with the Data Conversion Plan referenced previously.

A.4.23 Source Code

The vendor must deliver the application source code as customized to meet Ohio DC-specific functional requirements upon the delivery of the system for use in each phase and no less frequently than every month thereafter.

A.4.24 Weekly Status Reports and Meetings

The offeror must deliver weekly written project status reports and facilitate weekly status meetings throughout the life of the project.

A.4.25 Monthly Steering Committee Meetings

The offeror must attend monthly Steering Committee meetings throughout the life of the project.

A.4.26 Warranty

The vendor must provide a warranty for the application effective from the time of the first rollout through 6 months after final acceptance by Ohio DC of the last rollout.

Depending on the options selected and authorized by Ohio DC, additional deliverables will be required.

Offerors are encouraged to identify additional project deliverables, as applicable, beyond the minimum set identified above.

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Offerors are advised that the project deliverables discussed above are not related to payment points. Deliverables – termed herein ―contractual deliverables – that, upon their written acceptance by Ohio DC, will trigger vendor payments.

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Part B Project Background and Working Environment

This part of the RFP describes Ohio DC‘s current environment and thereby provides the background for the issuance of this procurement.

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B.1 Current Environment

Ohio DC recordkeeping system was originally created in the mid-1980s using IBM AS/400 hardware with the software developed in COBOL. Initially created as an administrative system, it has been highly modified over time to function as a complete 457 retirement savings plan daily recordkeeping system. The evolution of the system provided Ohio DC with the ability to internalize the recordkeeping function, and Ohio DC took over the recordkeeping responsibility beginning in 1997.

The recordkeeping system includes five main functional areas:

Administration–functions required for administering Ohio DC and insuring compliance with Federal and State statutes as well as Ohio DC policies and procedure.

Investment Options–functions required for interaction with all investment option providers.

Employers–functions required for interaction with all employers participating in Ohio DC. Participant and Related Accounts–any functionality required to maintain accurate

participant account information. Customer Service–Tools provided to aid in any customer service related process.

A more detailed list of Ohio DC’s recordkeeping system current functionality can be found in Attachment A – Current Functionality.

The IT staff consists of the IT Manager, two Systems Analysts, a Systems Administrator, and a part-time second shift Night Operations Assistant. With the exception of the Systems Administrator, each member of the IT staff has been with Ohio DC for 15+ years. The Systems Administrator has been with Ohio DC for five years and has 20+ years of previous COBOL and IBM iSeries (AS/400) experience.

B.2 Current As Is Business Functionality

One of the primary initiatives developed in the IT strategic plan was the recommendation to modernize the recordkeeping system. Specifically the initiative was:

Enhance the recordkeeping system to include the migration of the COBOL code to a more flexible, sustainable Programming environment and implement a more user friendly report writing tool.

To this end, a Request for Information (RFI) was issued in 2012 to gather additional information on current application modernization strategies. After analyzing the RFI responses, Staff decided that the development of a detailed plan or roadmap would be the logical next step.

In 2013, Ohio DC, through an RFP process, contracted with Hewlett Packard Enterprise Services (HPES) to develop a Recordkeeping System Modernization Roadmap (Roadmap).

B.2.1 Recordkeeping System Modernization Roadmap

The roadmap project was started in July of 2013 and lasted 14 weeks. During that time, Staff worked with HPES to develop a comprehensive plan to modernize Ohio DC’s recordkeeping system.

The first step in the development of the recordkeeping system modernization roadmap was the completion of a current state analysis. A comprehensive review of Ohio DC’s current hardware, software, and infrastructure was completed as a part of this analysis. Information was gathered to

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document the current state of the recordkeeping system. The current state analysis included:

1. Development of Code Inventory and Metrics (based on the review of all source code, database structure, and data)

2. Business Rules Analysis and Documentation 3. Current Architecture 4. Current Process Flow

B.2.1.1 Code Inventory and Metrics

All of Ohio DC’s source code was reviewed by HPES and a code inventory and application metrics were developed. The results of this phase of the current state analysis provided a high level estimate of the size and complexity of Ohio DC’s recordkeeping system and are listed in the table below.

Figure 1 - Current Application File Information

B.2.1.2 Business Rules Analysis and Documentation

As a part of the current state analysis, over 600 business rules were identified and documented. Due to the project time constraints, not all of the business rules were identified during this process. However over 600+ rules were documented that represent an estimated 75 – 80% of all business rules. Ohio DC staff intends to complete the documentation of the business rules in 2014. However, the selected Vendor should be prepared to review the business rules with staff to insure completeness. A list of the documented business rules can be found in Attachment B – Business Rules.

B.2.1.3 Current Architecture

Another part of the current state analysis involved the documentation of Ohio DC’s current architecture. Ohio DC utilizes an internal Ethernet local area network (LAN) with five Dell PowerEdge servers and an IBM iSeries 520 system. The Dell servers perform as domain controllers, file servers, print servers, and a Microsoft Exchange server. The IBM iSeries 520 system hosts Ohio DC’s recordkeeping system. The internal LAN is attached to a 5 MB fiber line for access to the internet and a private T1 line connects the LAN to NRS’s data center. The diagram below provides

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more details about Ohio DC’s current technology architecture.

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Figure 2 - Current State Architecture

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B.2.1.4 Current process flow

The Current Process Flow diagram (below) provides a graphical presentation of all of the various information inputs and outputs to the recordkeeping system. It includes the flow of information both internally and externally. The recordkeeping system is the only part of the current process flow that will be included in the modernization project.

Figure 3 - Current Process Flow

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Part C Specification of Requested Services

This part of the RFP defines in detail the scope of the effort. It addresses the business requirements to be satisfied, the project‘s technical requirements (including standards to be observed, hardware and software to be provided, and interfaces to be accommodated), and other required services and deliverables, including project management services, data-related services, staffing, training, testing, disaster recovery planning, and warranty, maintenance, and support requirements. Options to be proposed are also identified.

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C.1 High Level Services

Ohio DC is seeking a Vendor to provide the technical services and staffing required to modernize Ohio DC’s recordkeeping system roadmap. The main areas of work that will be provided are as follows:

1. Roadmap Validation 2. Technology Solution 3. Staff Mentoring and Training 4. Implementation and Post-Implementation Support

All work will leverage and be guided by the Recordkeeping Modernization Roadmap with limited latitude. The roadmap and this project are based on the assumption that there will not be significant changes to business processes and that the business rules of Ohio DC will not change.

C.1.1 Roadmap Validation

As stated previously, the Recordkeeping Modernization Roadmap is the result of a 14-week comprehensive engagement. Although extensive resources were involved in its development, the Vendor should be prepared to validate the plan including its assumptions, strategies, and project plan. The Vendor will be expected to evaluate and refine the Roadmap as they develop and execute their implementation plan.

C.1.2 Technology Solution

The Vendor will be responsible for the design, development, testing, and implementation of the new recordkeeping system. This will include but not be limited to:

1. Finalization and review of business rules 2. Business process modeling 3. Requirements definition 4. Database analysis and design 5. Application layer and user interface layer design 6. ETL design 7. Application build 8. Test plan development and implementation 9. User training 10. Implementation

C.1.2.1 Cloud Services Selection

The Vendor will be expected to provide any cloud service requirements to assist Ohio DC staff with information needed for the RFP. However, they will not be responsible for selecting the Cloud Services Vendor nor will they participate in the RFP process to obtain the cloud services Vendor.

C.1.3 IT Staff Mentoring and Training

The IT staff will participate in extensive training designed to transition their skills from a procedural COBOL based environment to an object oriented C# environment. Their training, while not included in the Vendors proposal, will impact their availability and initial effectiveness as a resource. The Vendor is expected to provide mentoring during the project so that the IT staff are involved in the development and will be able to support the new environment at the end of the project.

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C.1.4 Implementation and Post-Production Support

The Vendor will be responsible for the successful implementation of the new recordkeeping system. In addition, the Vendor will be expected to provide post-production support for a period of 6 months following the implementation of the new system. The Vendor does not necessarily need to provide support onsite. However, the Vendor should be able to respond to a request for support within a four-hour window.

C.2 Future State Vision

A key component of the roadmap development process was to decide on the best option for the future state of the recordkeeping system. With the input from Ohio DC staff, HPES developed a recommended future state including information about the new environment, future architecture, virtual private cloud, solution mapping, and a two-wave approach to development.

The recommended future state is not prescriptive of the solution, but used to direct some of the architecture and design decisions. The expectation from the selected vendor is to use a best of breed approach.

More details about each of these components follow.

C.2.1 New Environment

Modernized language, platform, and database to ensure viability of long-term support Updated user interface to allow drop-down choices instead of green screen PF keys Increased flexibility to quickly incorporate changes such as new business rules or fee equity

considerations Capability to expand offerings (Roth, loans, etc.) Data that supports the ability to identify trends Ad hoc query capability SSN not used as account or image identifier Secure data, application, network, and hardware Ability to identify who viewed/edited all information and when Data at rest is encrypted

C.2.2 Future Architecture

The future architecture is based on a three-tier application architecture running on a virtualized Microsoft Windows based platform using a .Net framework and C# Programming language. See the diagram on the next page for more details.

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Figure 4 - Future State Architecture

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C.2.3 Private Virtual Cloud

To reduce expenses and simplify the maintenance of the new architecture, it was decided that the new system should be hosted on a Private Virtual Cloud. Obtaining the support of a virtual cloud hosting service will be especially useful given the IT staff’s small size and limited experience with Microsoft products. In addition, selecting a FedRAMP-certified cloud hosting vendor will insure the highest level of availability and security.

In addition to the staff size and experience level, additional benefits of a Private Virtual Cloud include the following:

FedRAMP certification promotes highest level of Participant data security No capital expense for hardware Lower total cost of ownership vs. Ohio DC hosting System support for modern infrastructure complexity Evergreen technology refreshes State and Federal (IRS) audit compliance Continuous 24x7 monitoring Scalable - pay only for what is needed

C.2.4 Legacy to Target Architecture Solution Mapping

The table below lists the legacy Architecture components of Ohio DC’s current system and maps these components to target components in the new environment. As can be seen, the Roadmap plans for extensive use of Microsoft products in the new environment. Fewer issues related to the interoperability between the target architecture components is expected by the use of components from a single vendor.

Table 4 - Legacy System Mapping

Area Legacy Component Target Architecture Components

Operating System OS/400 Microsoft Windows Server 2012

Web Server N/A Microsoft Internet Information Server (IIS)

Application Server N/A Microsoft IIS - Windows Application Server - .NET Framework

Static Reporting COBOL, CL (Custom), Catapult Microsoft SQL Server Reporting Services (SSRS)

Database DB2 Microsoft SQL Server

Monitoring, Performance & Systems Management

Spiceworks Microsoft System Center Operations Manager

File Processing COBOL Microsoft SQL Server

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Area Legacy Component Target Architecture Components

Integration Services (SSIS), C#

Ad Hoc Reports COBOL Microsoft SQL Server Reporting Services (SSRS) - Microsoft Report Builder, Power View

Job Scheduling IBM AS/400 CL Scheduling Microsoft SQL Server Agent Microsoft SQL Server Integration Services (SSIS) (outgoing notification only)

Programming Language COBOL C#

Encryption Data Transfer - Townsend Security Data Storage – N/A

Data Transfer – Microsoft WinSCP Data Storage – DB: SQL Server File: Windows Encryption

User Interface Green screens Client Access (terminal emulation)

Microsoft Internet Explorer (web browser)

Disaster Recovery SunGard Recovery Services / eVault

SunGard Recovery Services / eVault

Configuration Management PTC Implementer Microsoft Team Foundation Server (TFS)

Data Viewing / Editing FileFlash Microsoft SQL Server

Development Environment AS/400 Editor Microsoft Visual Studio

C.2.5 Two-Wave Approach

Prior to the development of the roadmap, Ohio DC staff had felt that a modular approach to system modernization would be the best option. With this type of approach, the new system could be implemented in phases reducing the risks inherent to the complete replacement of the entire system at one time (“Big Bang” approach). However, analysis of the current system during the Roadmap project showed that there was too much interdependency of the different components of the recordkeeping system to successfully develop the new system in modules.

As a result, a modified “Big Bang” approach was recommended which consisted of dividing the development into two waves and implementing the entire system after both waves were completed. The first wave will include development of all of the outputs (reports, letters, etc.), and the second wave will include all of the inputs (data entry screens, interfaces with outside entities, etc.). In addition to some reduction in risk, this approach will shorten the project timeline by allowing some of the application build to occur prior to completion of all design.

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C.3 Potential New Functionality

The Recordkeeping Modernization Roadmap was developed with the assumption that there would not be any new business functionality included and that the current set of business rules would remain unchanged. However, based on current and potential future Ohio DC Strategic Plan Objectives and other desired functionality, it’s safe to assume that there will be changes to business rules and functionality in the future.

A list of the anticipated new functionality and business rules follows. The Vendor should assume that the items listed in the first group will be included in the modernization project.

Items listed in the second group include functionality that will not be included in the modernization project scope but the new recordkeeping system should be designed to accommodate the additional potential functionality in the future.

C.3.1 Will Be Included in project scope:

1. Auto-Enrollment and Auto-Escalation -The ability to identify employers that adopted auto-enrollment for new employees, and include or exclude auto-escalation.

2. Flexible participant withdrawal dates - Currently, participants can receive a withdrawal only on the 20th of each month. New functionality would allow for several fixed withdrawal dates or allow the participant to select alternative withdrawal dates.

3. Automated participant email - Add the capability for the participant to receive correspondence from Ohio DC via email rather than via U.S. mail.

4. Roth IRA Roll-Ins - Functionality should be added that will allow after-tax money (Roth IRA) to be rolled into Ohio DC (assuming potential legislation is passed).

5. Fee leveling/flexibility - Add the necessary functionality required to provide Ohio DC with different options for assessing fees to obtain operating capital. This could include either flexible asset based fees (pro rata) or fixed dollar fees (per capita).

6. Deferral amount as a percentage of pay - Prepare for the addition of functionality required to allow participants to designate their deferral amounts as a percentage of their pay.

C.3.2 May Be Included as an option in project scope:

1. Roth 457 - Prepare for the possibility of adding a Roth 457 option including the flexibility to manage after-tax assets.

C.3.3 Will Not Be Included in project scope:

1. Ohio DC participant website - Prepare for the development of a new participant website built and owned by Ohio DC. A new website might include the ability to enter “end result” exchanges and allocation changes. It might also include the ability to update participant beneficiaries.

2. Loans - Prepare for the possibility of adding the capability for participants to take a loan from their deferred compensation assets.

3. Brokerage Window - Prepare for the possibility of adding a brokerage window option for participants.

4. Deemed IRA - Prepare for the possibility of adding a deemed IRA option.

C.4 Project Management-Related Required Services and Deliverables

In addition to the business and technology requirements specified, Ohio DC has identified several project management-related areas that are of importance in selecting an offeror. These

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requirements have been accumulated under a single heading — Project Management-Related Required Services and Deliverables. The intent of this section is to inform the offeror of its responsibilities and the expectations for its conduct over the duration of its relationship with Ohio DC in the following areas:

Project management Assisting Ohio DC staff and users Standard project management deliverables Process and organizational change recommendations and transition management Data Project staffing Training and knowledge transfer Testing

C.4.1 Project Management

Ohio DC expects the offeror to be competent in project management skills. The offeror‘s approach to project management must ensure that:

Project planning is part of normal daily activities Resource planning occurs in conjunction with Ohio DC management There is an established path for escalation of project issues Risk management is included as part of the normal process Project management is able to provide reports to Ohio DC business units and management

on the progress against project objectives, to ensure continued project support The project plan is organized in a phased approach that provides achievable and

demonstrable milestones and deliverables. The engagement should be managed to meet specific milestones with an established method of reporting project status.

C.4.1.1 Relationship

This engagement will be a long-term relationship; therefore, the nature of the relationship will be key to the success of the project. To address this issue, the proposed solution and approach must ensure that:

The offeror has a demonstrated ability to understand and deliver realistic mission-critical systems

There is a high degree of cooperation between Ohio DC and the offeror The offeror can provide technical leadership and has the courage to suggest innovative

solutions and take advantage of opportunities as they present themselves The offeror understands the aggressive nature of the schedule and will take ownership of

tasks in a proactive manner The offeror understands the vision for Ohio DC and is able to align the offeror‘s capabilities

with Ohio DC‘s needs The relationship is not an opportunity to sell untried offeror offerings that may place Ohio

DC at risk in meeting its business objectives.

C.3.1.2 Project Oversight

Ohio DC’s Executive Director (and/or his designees) will provide overall direction and oversight for the project and ensure the project meets Ohio DC’s business needs. Vendor(s) will be expected to

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cooperate fully with the Executive Director and Ohio DC staff in the day-to-day implementation and administration of the contract. In addition, Ohio DC expects to assign the following roles to its staff to work with the selected Vendor(s):

Project Sponsor – Provides business operations direction to the project and is responsible for the overall quality and completion of the project. The Assistant Director-Administration will fulfill this role.

Program Manager – Manages the Vendor and Ohio DC’s internal resources for the project and works closely with the Vendor on a day-to-day basis as well as enforces the terms and conditions of this RFP. The IT Manager will fulfill this role.

Key Business Users – Provide knowledge of the existing business requirements and provide sign-offs on key project deliverables.

Key Technical Resources – Participate in key hardware, software, communications, and infrastructure decisions and work tasks.

The specific number of business and/or technical staff to be assigned to the project (and their precise roles) will be determined at a later date in consultation with the selected Vendor.

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Part D Offeror Proposals

This part of the RFP provides detailed instructions for the preparation and format of vendor proposals, both technical and cost as well as the evaluation criteria Ohio DC will use in evaluating the proposals received and how the evaluation will be conducted.

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D.1 Format of Offeror Proposals

This section sets forth the format that must be followed by offerors in developing their proposals in response to this RFP. Proposals that vary from this prescribed format are subject to being judged non-compliant and withdrawn from consideration.

The offeror must understand that Ohio DC will view the degree of compliance with this section as an indication of the degree of cooperation to be expected from the contractor in working with Ohio DC after contract award. Ohio DC‘s request in this vein is not arbitrary; rather it is designed to enable the evaluation team to compare, in as straightforward a manner as possible, the contents of all proposals.

Offerors are to submit separately bound and packaged Technical and Cost Proposals. No cost information is to be included in the Technical Proposal.

The proposals are to be prepared on standard 8½" x 11" white paper. All proposals are to be in single-column format and page-numbered from first page to last, with the permitted exception of attachments to the proposal. A Table of Contents must be included. Foldouts containing charts, spreadsheets, and other necessary supporting documentation are permissible, but must be held to a minimum. The pages must be placed in a binder with tabs separating the major sections outlined below. Figures and tables must be numbered and referenced in the text by that number.

The following information must appear on the title page of each copy of both the Technical and Cost Proposal:

Ohio Deferred Compensation (Ohio DC)

Technical/Cost Proposal for

Application Modernization Consulting Services

Federal Tax ID Number: __________

Closing date and time for submission of proposals: __________________

[Name, title, address, voice, and fax telephone numbers of organization submitting

proposal]

Signature ___________________________

An individual authorized to bind the respondents to its provisions must sign proposals. The proposal must remain valid for at least one hundred eighty (180) days from the proposal receipt deadline.

Offerors must provide the following number and type of submissions when submitting their proposals:

Four (4) color copies and One (1) copy marked as original of the Technical Proposal. Four (4) color copies and One (1) copy marked as original of the Cost Proposal.

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One (1) electronic copy of the Technical Proposal; in Microsoft Word and/or Excel format – one folder containing technical proposal as submitted and another folder containing technical proposal with confidential information redacted and in PDF format.

One (1) electronic copies of the Cost Proposal; in Microsoft Word and/or Excel format – one folder containing cost proposal as submitted and another folder containing cost proposal in PDF format.

Note that the Word and Excel files should have no locks, controls, or other protections or restrictions that prevent reviewers from inserting comments, revisions, etc. that would expedite reviews.

All printed copies of proposals and the electronic version provided must be clearly labeled so as to be easily identifiable with the offeror‘s submission. The Word and Excel files must be provided in a ―unlocked form that will allow Ohio DC to edit, insert comments, ―cut-and-paste and annotate the documents and spreadsheets with comments and revisions during its evaluation. Finally, we point out that Ohio DC‘s internal review of the electronic version of the response is greatly facilitated if the proposal is a single MS Word document.

Ohio DC recognizes that offerors may wish to copy the required cost spreadsheets into their cost proposals in picture format (to ensure that bid information cannot be altered). While this approach is acceptable, the offeror must also provide the source Excel spreadsheets (unprotected) as .xls files in the electronic copy containing the cost proposal.

D.1.1 Technical Proposal Format

The organization and content of the offeror's Technical Proposal must conform to the outline set forth below. Section numbering of the offeror‘s proposal must agree with the outline. Following the outline is a description of the information that must be included in each section of the proposal.

Table of Contents Proposal Letter PART A Offeror Information A-1 General Information A-1.1 Offeror Information A-1.2 Statement of Understanding A-1.3 High Level Deliverables A-1.4 Assumptions A-1.5 Exceptions A-1.6 Warranty Limitations A-2 Offeror Qualifications A-2.1 Corporate Background A-2.2 Relevant Project Experience A-2.2.1 Client References A-2.2.2 Presentations and Product Demonstrations A-2.3 Offeror Staffing A-2.4 Bond Commitment PART B Offeror Response to Project Scope B-1 Response to Business Functional Requirements B-1.1 Response to “To Be” Business Functionality B-1.1.1 Functional Area 1 B-1.1.2 Functional Area 2

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B-1.2.X Functional Area X B-1.2 Response to Additional New Functional Requirements B-1.2.1 Additional Functional Requirement 1 B-1.2.2 Additional Functional Requirement 2 B-1.2.X Additional Functional Requirement X B-2 Response to Technical Requirements B-3 Response to Other Required Services and Deliverables B-4 Response to Project Options ATTACHMENTS

Specific contents to be included in each section of the offeror‘s proposal are discussed in detail below.

TABLE OF CONTENTS

Each page of the proposal must be numbered (with the possible exception of pre-printed material included in attachments), and each section heading must appear in the proposal Table of Contents.

PROPOSAL LETTER

The Proposal Letter must be included and must be signed by a person authorized to legally bind the company. Failure to include this signed proposal letter may result in needless delays.

PART A OFFEROR INFORMATION

A-1 GENERAL INFORMATION

A-1.1 OFFEROR CERTIFICATIONS AND AFFIRMATIONS

In this section, the offeror must include the following statements of affirmation:

A statement regarding the offeror's legal structure (e.g., a LLC, a corporation), Federal tax identification number, and principal place of business

A list of the people who prepared the offeror‘s proposal, including their titles The name, phone number, and fax number of a contact person who has authority to answer

questions regarding the offeror‘s proposal A list of all subcontractors, if any, that the offeror will use on the project if the offeror is selected

to do the work – for each proposed subcontractor, the offeror must include (in Attachment 13 of the technical proposal) a letter from the subcontractor, signed by someone authorized to legally bind the subcontractor, with the following information included in the letter: o The subcontractor's legal status, tax identification number, and principal place of business

address o The name and phone number of someone who is authorized to legally bind the

subcontractor to contractual obligations o A description of the work the subcontractor will do o A commitment to do the work if the offeror is selected o A statement that the subcontractor has read and understood the RFP and will comply with

the requirements of the RFP A statement indicating the proposed Project Manager is an employee of the prime contractor A statement affirming the offeror‘s commitment to develop a full set of all of the rules,

regulations, procedures, and practices that need to be accommodated in the new solution. Affirmation of the offeror‘s responsibility for the life of the contract for all contractual activities,

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products, and deliverables offered in the proposal whether or not that contractor directly performs or provides them. This includes providing an overall project plan and for each functional rollout phase, the detailed requirements definition, all necessary hardware and software components (if those options are authorized), including fully integrated workflow and imaging capabilities, an LOB solution, system integration services, enablement of all interfaces described in this RFP, test preparation and execution (including training and assisting Ohio DC with its testing responsibilities) of all elements of the offeror‘s solution (not just customized elements), data conversion, training for users, employers, and IT staff, documentation, process change recommendations, organizational recommendations, and implementation of any other proposed technologies, as well as first-line problem resolution.

Affirmation that the offeror‘s organization is the prime contractor and the primary point of contact with regard to contractual matters. The offeror must confirm that should any third party provider go out of business or otherwise become unable to fulfill its contractual obligations to Ohio DC with respect to this procurement, then the offeror (prime contractor) will guarantee delivery of the same or equivalent products and services at the contractually agreed upon price.

Affirmation that the offeror has reviewed the ―Current “As Is‘ Business Functionality, as provided in the RFP.

Affirmation that all requirements expressed in this RFP must be met by the solution implemented by the offeror unless an explicit written agreement to delete one or more of the RFP‘s provisions is signed by both Ohio DC and the offeror.

For the period of time starting six (6) months prior to the publishing of the RFP and up until the award of a resulting contact, identification of any contact that the offeror, a lobbyist, or any other third party which has been retained by the offeror in any manner has had with Ohio DC staff, Ohio DC Board members, Ohio legislators, the office of the Governor of Ohio, or legislative or gubernatorial staff related to the procurement. In addition describe the nature of the contact, the dates, and the substance thereof. Failure to do so accurately may be grounds for rejection of your proposal and/or cancellation of any subsequent contract.

Affirmation that the unless identified in the Exceptions section of its proposal, that offeror agrees to the requirements set forth in section C or the terms and conditions set forth in section E.

A-1.2 STATEMENT OF UNDERSTANDING

In this section, the offeror must summarize its understanding of the requirements set forth in the RFP. The offeror may also reference, in general terms, projects it has successfully completed that met requirements similar to those of Ohio DC.

A-1.3 HIGH LEVEL DELIVERABLES

In this section of the proposal, the offeror must identify and briefly describe the high level deliverables to be provided to Ohio DC over the course of the project. The offeror must make the commitment to include all of the high level deliverables of the RFP. The offeror is encouraged to identify additional deliverables as it deems appropriate. In the cost proposal, the offeror will be required to allocate project costs against the high level project deliverables identified in this section.

A-1.4 ASSUMPTIONS

In this section, the offeror must identify and discuss all assumptions it has made in preparing its technical and cost proposals. Further, the offeror must state that there are no further assumptions

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related to meeting requirements of the RFP other than those enumerated in this section of the proposal.

Please include any assumptions you have made with regard to facilities to be provided by Ohio DC for office space and meeting / training rooms.

Any assumptions mentioned elsewhere in the offeror‘s proposal will not be valid unless they are also listed in this section.

In setting forth their assumptions, offerors should note the difference between ―assumptions and ―exceptions and take care that no exceptions to the RFP‘s requirements are included. Valid ―assumptions are suppositions made by the offeror about issues on which the RFP is silent. ―Exceptions are suppositions made by the offeror that contradict, or fail to conform with, one or more of the requirements stated in the RFP. Any items that are actually exceptions to the RFP‘s requirements, but misrepresented by the offeror as assumptions in Section A-1.4 of the proposal, will be treated as exceptions by Ohio DC – and will, due to the misrepresentation, have a greater negative effect on the offeror‘s technical score than would be the case had the item been correctly classified by the offeror as an exception.

A-1.5 EXCEPTIONS

In this section of the proposal, the offeror must affirm that it has read and understands the RFP, any RFP amendments issued, and the questions and answers provided during the bidders conference. The offeror must state in this section of the proposal any and all exceptions it takes with the technical / functional requirements set forth in the RFP and/or with any terms and conditions contained in the RFP relating to the ensuing contract. Only those exceptions identified in this single section of the proposal will be considered by Ohio DC; any others ―distributed across the proposal will be superseded by the provisions of this RFP and will not be considered or honored by Ohio DC.

For each exception listed in Section A-1.5 of the proposal, the offeror is required to propose at least one alternative that would still be acceptable to the offeror, as a potential vendor, and that the offeror reasonably believes will be acceptable to Ohio DC. In other words, the offeror is required to be creative in addressing all exceptions by setting forth two alternative versions of each one (alternative A and B) in the hope that the offeror and Ohio DC will more quickly arrive at a mutually acceptable compromise. The alternative versions of each offeror exception may take various forms – again, the offeror is being encouraged to apply creativity in order to accommodate legitimate offeror reservations in a fashion that will not lead Ohio DC to reject the bid due to onerous exceptions.

A-1.6 WARRANTY LIMITATIONS

In this section of the proposal, the offeror must state any and all limitations and constraints with respect to software maintenance and warranty. They must be explained in terms of risk, change control, and cost implication. Only those limitations and constraints identified in this single section of the proposal will be considered by Ohio DC; any others not included in the single, appropriately labeled section will not be considered or honored by Ohio DC.

A-2.0 OFFEROR’S QUALIFICATIONS

This section shall include details on the experience of the offeror and offeror‘s recent clients having requirements similar to those of Ohio DC.

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A-2.1 CORPORATE BACKGROUND

This is an introduction to the offeror's company: its history, scope of operations, organization, size, and any other relevant information about the company that the offeror desires to include.

In this section, the offeror must provide basic information about its organization, including the following:

Describe the organization of the company and the range of services it provides, its underlying philosophy or mission statement as an application modernization consultant, and any organizational aspects that uniquely qualify the company for this assignment.

Within the last five years, has your company or an officer or principal been involved in any business litigation or other legal proceedings relating to your services to be provided? If so, provide an explanation and indicate the current status or disposition.

In the last five years, has your company had a contract terminated by a client for cause? If so, by whom and under what circumstances? Provide the name and telephone number of each client that has terminated your company’s services. Explain the circumstances for termination.

Provide a current list of five (5) comparable application modernization clients (recordkeeping systems preferred), including name, contact, telephone number, number of years the client has retained your company, and the product or services the client uses. Ohio DC may contact any of these clients as references.

Provide the resumes of all principals, other professionals, and support employees expected to be assigned to this account. Include their length and type of experience in consulting/advising services, length of employment with current company, and any specialty expertise they possess. Ohio DC reserves the right to interview the key personnel to be assigned to this account.

The same information must be provided for all subcontractors or other third party providers of products or services.

In addition, for each subcontractor or other third party, the offeror's proposal must include:

A description of all work to be subcontracted to and/or products to be provided by third parties.

Descriptive information relating to the nature and duration of the previous relationship of all subcontractors and/or third parties with the prime contractor.

Explanation of any existing contractual relationships between the prime and subcontractors, or among subcontractors.

Failure to identify subcontractors may be grounds for rejection of the proposal or, after award, cancellation of the contract.

A-2.2 RELEVANT PROJECT EXPERIENCE

The details of offeror‘s experience relevant to the project shall include a summary of the offeror‘s experience as expected in this RFP. To meet Ohio DC‘s minimum qualifications, the offeror must be able to cite five or more such previous projects, at least three of which must be complete, i.e., in the warranty period or later. This section shall also include a discussion by the offeror regarding similarities between Ohio DC and the client implementations cited.

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A-2.2.1 CLIENT REFERENCES

Offerors should submit a list of at least 5 current and former (within the past five years) clients and describe the work performed for each, together with an analysis of the degree of similarity in the scope of the project Ohio DC.

Use the form in Attachment D – Client Reference Form to complete the required information. Replicate the form as necessary to provide profiles of all client references.

A-2.2.2 PRESENTATIONS AND PRODUCT DEMONSTRATIONS

In this section, affirm the offeror‘s commitment to provide oral presentations and/or product demonstrations (led by the offeror-proposed Project Manager) at Ohio DC‘s offices, if so requested by Ohio DC, in response to Section A.1.12 of the RFP.

A-2.3 OFFEROR STAFFING

In this section, the offeror must provide detailed descriptions of how the offeror‘s team experience will meet the project requirements. Include team members‘ resumes (as discussed below), tailored to highlight experience and skills specifically relevant to their role on this effort. This section of the proposal must include the qualifications of the project manager and staff to be assigned to accomplish this project.

The offeror must designate a single full-time project manager to represent and oversee the project. This person will serve as the focal and contact point for all business matters relating to the project.

Additionally, in this section, confirm that the project manager will:

Be on-site at Ohio DC at least 80% of the time Be responsible for timely completion of all phases of the project Be responsible for meeting all contractual requirements for the duration of the project Attend status, quality review and acceptance meetings as required and present status and

progress reports on the project Remain assigned to the project full time through final cutover and acceptance by Ohio DC.

The offeror must provide a list of all the key personnel, to be assigned to any part of the project. Offerors are encouraged to specifically identify additional project staff members if possible. Each staff member proposed shall be identified by title and by firm, as well as by project responsibilities and job functions and current client / home office location. The number of other personnel to be assigned shall be identified by job function and by firm.

Ohio DC understands that the offeror may have one or more other proposals open and under consideration by other prospective clients and that offeror staff included in the Ohio DC proposal may have been included in these other proposals. For any offeror resource so allocated, the offeror shall indicate in its proposal the role for which each such resource was assigned for each open proposal and the capacity (e.g., hours, % FTE) for which they have been proposed. In addition, the offeror will indicate what method it will use to resolve any conflict arising from the award of contracts competing for these resources.

Offerors shall also include the resumes of all key employees (project manager, lead analyst, and the other key staff), and any other proposed staff members who are identified by name in the proposal. Those resumes must describe in detail the employee‘s experience in similar efforts as well as past

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education and training. Each resume shall include as its first page a Resume Summary prepared by the offeror using the form provided on the following page. Each Resume Summary must include three (3) professional personal references for the particular staff member. These professional references must be provided by offeror client staff members, from three different clients. Professional references from within the offeror organization are not acceptable.

Offeror must provide its staff volatility index, i.e., percent turnover over the past three (3) years and how that number is calculated. This volatility index should be provided both for the entire company and for the three referenced public employees‘ or teachers‘ retirement system implementation projects used as references.

Offerors must also confirm in this section of the proposal their understanding that:

Personnel whose names and resumes are submitted in the proposal shall not be removed from this project without prior approval of Ohio DC. Substitute or additional personnel shall not be used for this project until a resume is received and approved by Ohio DC.

Ohio DC shall have the right to request, and the contractor will comply with any such request, the removal of any offeror staff member from all work on this project immediately.

The replacement for any staff member who is removed from or leaves the project for any reason must match or exceed the replaced staff member in terms of skill level and experience. Such replacements are subject to Ohio DC approval/rejection at the time of the assignment as well as at any time during the 90 days after the replacement begins work on the project.

Offeror will pay to Ohio DC a penalty of $50,000 should it remove from the project any key staff member or any other staff member who was more than 50% dedicated to the Ohio DC project, except in the case of serious illness, death, or termination of employment with offeror.

Use the form in Attachment E – Resource Resumes Format to complete the required information. Replicate the form as necessary to provide profiles of all client references.

A-2.4 BOND COMMITMENT

See section E.1.4.6 Bond Commitment of this RFP for more details.

PART B OFFEROR RESPONSE TO PROJECT SCOPE

PART B of the proposal will contain the offeror‘s response to the project scope. It is to include all of the sections of PART B of the RFP, numbered identically. Each section of PART B of the proposal will provide a complete response to the corresponding section of the RFP.

ATTACHMENTS

Include the appropriate attachments documents.

D.1.2 Cost Proposal Format

A cost proposal must be prepared and submitted with the Vendor’s service proposal under separate sealed cover.

Your cost proposal must include total projected fees charged to Ohio DC, broken down by quarter for each of the 15 quarters of the anticipated contract, based on the projected service you have proposed. The cost proposal should be detailed and complete in all respects and provide all the information Ohio DC would need to calculate the fees that would be paid to the Vendor based on the variables contained within the proposed fee structure. Should Ohio DC determine to significantly

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change the level of service from those proposed, the cost proposal must provide a sufficient itemized breakdown so that Ohio DC can determine the effect on the total proposed cost. Include in your cost proposal the type and amount of extraordinary one-time start-up costs your company will incur to commence with the project, if any.

1. It is expected that the contract will be awarded on a time and materials basis with an agreed to “not to exceed” amount. And although the contract will not be based on a fixed cost, the Vendor must agree to maintain a fixed hourly rate for each resource for the length of the contract. The Vendor should provide a detailed list of the resources that will be required for the project including: Resource Position Description (Project Manager, DBA, etc.) Projected Billable Hours Hourly Rate Total amount to be billed Estimated travel expenses Other

2. Ohio DC expects to be billed monthly and an invoice should be provided within 10 days following the end of the billing month. The invoice should be accompanied by supporting documents that include a timesheet for each resource and a detailed account of each resource’s travel expenses for the month. The Vendor should include examples of the proposed supporting documents in the cost proposal.

3. Include all licenses, fees, and other costs for all proposed hardware, software, and any other cost components

4. Include all costs for warranty period support, post product support, support following post production, and all other costs periods.

D.2 Proposal Evaluation

The evaluation and offeror selection process will be based on ―best value. This procurement method will be used so as to result in the ―best buy for Ohio DC in terms of the functions to be performed.

The evaluation committee may request written clarifications of any offer received. However, Ohio DC in its sole discretion may refuse to accept in full or partially the response to a clarification request given by any offeror.

Offerors are cautioned that the evaluators are not required to request clarifications; therefore, all offers should be complete and reflect the most favorable possible terms. Ohio DC may elect to conduct negotiations with one or more offerors and make requests of offerors as may be necessary or proper for best and final offers (BAFOs).

The best and final offers must be received at the address identified above at a time and date to be specified by Ohio DC. If a best and final offer is not submitted, the previous submittal will be construed as the best and final offer. BAFO proposals must be prepared in the same number of copies and packaged and submitted according to the same instructions that apply to the initial proposal submission (please refer to Section D.1). Final ranking of responses and award of the contract will be made after Ohio DC reviews all bids and completes its evaluation, including the evaluation of best and final offers, if they are requested. An award will be made to the offeror with the most advantageous offer after it has been discussed and approved by Ohio DC’s Board.

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Evaluation Criteria For this procurement, proposals will be evaluated based on the following criteria (in decreasing order of importance):

Table 5 - Proposal Evaluation Criteria

Criteria Weight

Solution Features 50%

Offeror Qualifications (including

experience and references)_

5%

Cost 20%

Proposed Project

Methodology and Work

Plan

15%

Offeror References and

Experience

10%

D.2.1 Evaluation Methodology Summary

Presented herein is an overview of the evaluation methodology being used for this procurement.

D.2.1.1 Evaluation Committee

An Evaluation Committee will be established consisting of members of Ohio DC‘s management team. When the committee has completed the evaluation process, the committee chair will make a recommendation to Ohio DC’s Board.

D.2.1.2 Initial Activities

When the proposals are submitted, they will be evaluated and responses scored. The highest-rated offerors from this assessment will be further evaluated. Customer references and client site-visits to existing customer sites that are running the proposed software applications in production may be conducted by Ohio DC’s staff.

D.2.1.3 Presentations and Product Demonstrations

Selected offerors are also expected to demonstrate their solution and their ability to implement and customize the selected products in a scripted demonstration to be conducted at a site selected by Ohio DC.

Offerors will be offered alternative dates from which to select to provide the demonstrations.

Ohio DC reserves the right not to conduct offeror presentations and product demonstrations. Should the presentations and/or demonstrations be held, Ohio DC requires that they be led by the proposed Project Manager.

D.2.1.4 Best and Final Offers

Ohio DC intends to use a Best and Final Offers (BAFO) process to finalize the RFP process. BAFO will be solicited from Vendors whose scores are ranked highest after the initial review of proposals and product demonstrations. Offerors’ BAFO must be received at the address identified earlier in this document, at a date and time to be determined. If a BAFO is not submitted, the previous submittal will be construed as the BAFO. BAFO proposals must be prepared in the same number of copies and

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packaged and submitted according to the same instructions that apply to the initial proposal submission. After BAFOs are received, final evaluations will be conducted for an award. Ohio DC reserves the right not to solicit BAFOs.

D.2.1.5 Negotiations

Negotiation is the last step in selecting the apparent winner. Ohio DC will initiate negotiations with the top-rated offerors. If negotiations with the highest ranked offeror cannot be concluded to Ohio DC‘s satisfaction within two weeks, Ohio DC will initiate negotiations with the next lower ranked offeror. Similarly, if negotiations with the next lower ranked offeror cannot be concluded to Ohio DC‘s satisfaction within two weeks, Ohio DC will initiate negotiations with the next lower ranked offeror. This process will continue until negotiations are successfully concluded to Ohio DC‘s satisfaction.

Upon the successful conclusion of negotiations, the winning offeror will be announced.

D.2.1.6 Additional Bid Requirements

All proposals become the property of Ohio DC and will not be returned to the Offeror. All proposals submitted are subject to Ohio Public Records law, and the documents submitted pursuant to this RFP may be subject to a public records request. The Offeror must identify any material or documents that are confidential and clearly mark those items or documents at the time of submittal. If a request for records is made, Ohio DC will make reasonable efforts to contact the Offeror in sufficient time to allow the Provider to take appropriate legal steps to protect the confidential information from disclosure.

Failure to adequately furnish information specifically required in this RFP could result in the disqualification of a proposal.

Offerors must agree to honor the cost proposals for a period of six months from the date of submission.

This RFP and Offeror responses submitted in the selected proposal will become part of the resulting contract and binding through the contract term, except as amended by mutual agreement. Ohio DC will notify all unsuccessful Offerors regarding the Board’s selection of an Offeror.

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Part E Terms and Conditions

This part of the RFP contains Ohio DC‘s Terms and Conditions.

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E.1 General Terms and Conditions

E.1.1 RFP Amendments

Ohio DC reserves the right to provide any additional information or responses to questions received prior to the deadline for submission of proposals. In the event it becomes necessary to amend any part of this RFP, Ohio DC will provide copies of the amendment to all Offerors who submitted a Letter of Intent.

E.1.2 Proposal Modification or Withdrawal

Offerors who submit proposals in advance of the deadline may withdraw, modify, and resubmit proposals at any time prior to the deadline for submitting proposals. Offerors must notify Ohio DC Point of Contact, in writing if they wish to withdraw their proposals. If an offeror notifies Ohio DC of its intent to withdraw its bid prior to the bid closing deadline, the bid will be returned to the offeror unopened. Notifications of intent to withdraw proposals may be delivered electronically via email, but responsibility for confirmation of the delivery and receipt by Ohio DC rests solely with the offeror.

E.1.3 Cost for Preparing Proposals

The costs for preparation and delivery of the proposal, as well as any other costs incurred in the pursuit of contract award (e.g., travel to bidders conference, preparation and presentation of product demonstrations), are the sole responsibility of the offeror. Ohio DC will not provide reimbursement for such costs.

E.1.4 Contract

The contract that Ohio DC expects to award as a result of this Request for Proposal will be based upon the bid proposal submitted by the successful offeror and this RFP. The contract between Ohio DC and the successful offeror shall be a combination of the specifications, terms and conditions of the Request for Proposal, including the terms contained in this Part E of the RFP, the offeror‘s technical and cost proposals, written clarifications or changes made in accordance with the provisions herein, and any other terms deemed necessary by Ohio DC.

Any exceptions to the requirements set forth in Part C or terms and conditions set forth in Part E must be clearly identified and accompany the offeror's proposal. Offerors are cautioned that any exception submitted that will give the Offeror a competitive advantage over another offeror or that will cause a failure to meet a mandatory requirement of the RFP will not be accepted. See Section D.1.1 Technical Proposal Format for instructions relating to presentation of offeror‘s assumptions and exceptions.

The selected offeror will be required to enter into a written contract with Ohio DC before an award is official. Contract discussions are to be finalized and all exceptions resolved within two (2) weeks of notification; if not, the offeror's proposal may be rejected and discussions may be initiated with other offerors. No work may be started until a contract has been executed by both parties.

By submitting a proposal, each offeror acknowledges its acceptance of these specifications, terms and conditions without change except as otherwise expressly stated in its proposal.

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E.1.4.1 Order of Precedence

The executed contract between Ohio DC and the selected offeror shall have precedence over all other documents relating to the project. In the event that there is a conflict or ambiguity within the text of the contract and any other incorporated documents, the order of precedence shall be:

Any incorporated documents, in following order of precedence

Addenda to this RFP (if any) This RFP The executed Agreement, any subsequent amendments or modifications to the Agreement,

and the Statements of Work issued pursuant to the Agreement. Vendor Evaluation Questions and Answers (issued subsequent to the Bidder‘s Conference) Additional responses from selected offeror Offeror response to this RFP

E.1.4.2 Invoicing, Payments, Holdbacks, and Tracking Thereof

Invoicing and any and all payments, holdbacks, etc. will be part of the finalized negotiations and part of the signed contract

E.1.4.3 Conflict Of Interest

If an offeror has any existing client relationship(s) that involve the State of Ohio or Ohio DC that would compromise its objectivity, the offeror must disclose such relationship(s).

E.1.4.4 Confidentiality Requirements

The successful offeror staff members that are assigned by the successful offeror to this project – be they employees of the offeror, sub-contractors to the offeror or employees of sub-contractors – may be required to sign an Ohio DC non-disclosure statement.

By submitting a bid proposal, the offeror agrees that Ohio DC may copy the bid proposal for purposes of facilitating the evaluation of the bid proposal or to respond to requests for public records. The offeror consents to such copying by submitting a bid proposal and warrants that such copying will not violate its rights or the rights of any third party. Ohio DC shall have the right to use ideas or adaptations of ideas that are presented in the bid proposals.

E.1.4.5 Insurance

The following requirements shall be adhered to by Contractor throughout the duration of the Contract, and as may otherwise be specified herein. Contractor shall procure and maintain insurance, which shall protect the Contractor and Ohio DC from any claims for bodily injury, property damage, and/or personal injury, which may arise out of operations under the Contract. Contractor shall procure the insurance policies at the Contractor‘s own expense and shall furnish Ohio DC an insurance certificate of the coverage required in this Section. Contractor is required to obtain and maintain the following types of insurance coverage for the duration of the Contract:

INSURANCE / LIMITS OF LIABILITY:

Worker‘s Compensation – Statutory Unemployment Insurance – Statutory Commercial General Liability Insurance – The minimum limits of coverage of such

insurance will be $500,000 per person and $1,000,000 per occurrence for personal and

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bodily injury and $100,000 for property damages. Liability, Malpractice, and/or Errors and Omissions Insurance – The contractor shall

maintain malpractice and/or an errors and omissions insurance policy in the amount of at least $1,000,000. Additionally, the contractor shall maintain adequate business insurance to include an umbrella liability policy of at least $3,000,000 total. Coverage under these policies must include protection from the fraudulent conduct and breach of fiduciary responsibility of the contractor.

Contractor will indemnify, and save harmless Ohio Deferred Compensation, its board members, directors, officers, employees and agents from and against any and all claims, actions, damages, liabilities, costs, and expenses arising out of Contractor‘s operation and performance under this Contract including all claims for bodily and personal injuries, sickness, death and/or damages to property.

All offerors must submit within ten (10) calendar days after notification of intent to award the original or a certified true copy of insurance certificate(s) confirming coverage as stipulated above. If this information is not provided within this time frame, the proposal will be rejected. All insurance coverage costs must be exclusive of any legal costs.

New insurance shall be promptly furnished in the event of insolvency, bankruptcy or failure of any insurance company. The contractor shall notify Ohio DC thirty (30) days in advance of cancellation, termination or alteration of insurance policies as required by this RFP. A renewal policy or certificate shall be delivered to Ohio DC at least thirty (30) days prior to the expiration date of each expiring policy. If at any time, any of the policies shall be or become unsatisfactory to Ohio DC as to form or substance, or any of the carriers issuing such policies shall be or become unsatisfactory to Ohio DC, the Contractor shall promptly obtain a new and satisfactory policy in replacement. If determined necessary by Ohio DC‘s Representative/Contract Administrator, the Contractor shall deliver to Ohio DC‘s Representative upon demand a certified copy of any policy required herein for review.

Insurance certificates must be submitted and accepted by Ohio DC prior to the commencement of work under this RFP and accompanying contract. Failure to obtain insurance satisfactory to Ohio DC will result in the rescission of any Notice of Award to the offeror. Any contract awarded shall be void if this requirement is not met.

E.1.4.6 Bond Commitment

The selected offeror must provide a performance bond. The amount of the performance bond must be equal to at least ten percent (10%) of the total amount of the Contract, and the bond must remain in place through the term of the Contract and may be renewed or continued annually with the approval of Ohio DC.. Therefore, each offeror must enclose a letter of commitment from a bonding company for an appropriate performance bond with its Proposal.

E.1.4.7 Adherence to Ohio Deferred Compensation Workplace Policies

It is anticipated that a number of the offeror‘s project team will be on-site – some regularly over the course of the project; others periodically as the need arises. Regardless of their purpose in being on-site or the frequency with which they are there, all offeror staff must adhere to Ohio DC’s workplace policies as described below.

Background Check – The offeror shall ensure that all staff and subcontractor staff that perform work either on-site or remotely shall be subject to Ohio DC’s "Background Security Check Policy".

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Building Access – In addition, any staff that work on-site shall be subject to Ohio DC’s Building Access Policy. Ohio DC’s Project Manager shall be responsible for allocating building access, equipment access, and any other necessary services available from Ohio DC which may be used by the offeror.

Any use of Ohio DC’s facilities, equipment, internet access, and/or services shall only be for project purposes as authorized by Ohio DC Project Manager.

Network Connection – The offeror will be expected to provide its own personal computers which must comply with Ohio DC security policies before use is allowed at Ohio DC.

E.1.4.8 Ownership of Work Product and Intellectual Capital

Ohio DC will have sole and exclusive ownership rights to hardware and software, or modifications thereof, as well as associated documentation designed, developed, or installed. ―All data, technical information, materials gathered, originated, developed, prepared, used, or obtained in the performance of the contract, including, but not limited to, all reports, surveys, plans, charts, literature, brochures, mailings, recordings (video and/or audio), pictures, drawings, analyses, graphic representations, software computer Programs and accompanying documentation and print-outs, notes and memoranda, written procedures and documents, regardless of the state of completion, that are prepared for or are a result of the services required under this contract shall be and remain the property of Ohio DC and shall be delivered to Ohio DC upon 30 days‘ notice by Ohio DC. With respect to software computer programs and/or source codes developed for Ohio DC, the work shall be considered ―work for hire, i.e., Ohio DC, not the contractor or subcontractor, shall have full and complete ownership of all software computer programs and/or source codes developed.

All work products and deliverables produced under contracts awarded as a result of this bid will be the exclusive property of Ohio DC. Work product and deliverable includes, but is not limited to, software, documentation, and development materials.

An offeror shall not sell a work product or deliverable produced under a contract awarded as a result of bids without explicit permission from Ohio DC.

Ohio DC‘s ownership interest in both the solution and the source code delivered, for the base components of the solution, the customized elements of the solution and the enhancements provided to each through post-implementation, out year support, is a license to use them in perpetuity.

The offeror‘s proposal must clearly describe the terms of all licensing considerations, such as an End User License Agreement.

E.1.4.9 Indemnification and Liability Restrictions

The offeror will indemnify defend and hold harmless Ohio DC, its board members, officers, employees, and agents (each an Indemnified Party) against liability for any suits, actions, or claims arising out of or resulting from performance of the offeror under this contract.

The offeror will cooperate, assist, and consult with Ohio DC its board members, officers, employees, and agents in the defense or investigation of any claim made or suit filed against Ohio DC its board members, officers, employees, or agents resulting from the offeror's performance under the contract.

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The offeror agrees to indemnify, defend, and hold harmless Ohio DC, its board members, officers, employees, and agents from any and all liabilities, damages, settlements, judgments, costs and expenses, including reasonable attorney fees arising out of or resulting from:

Property damage, personal injury, death, loss costs, expense, or other harm arising out of or resulting from any act or omission by the offeror, its divisions, subsidiaries, subcontractors, partners, principals, employees, agents, elected or appointed officials, officers and directors in fulfilling this contract; or claims for infringement of patents, trademarks, trade dress, trade secrets, or copyrights arising from this contract; or any breach or any claimed breach of this contract by the offeror or by any of its subcontractors, partners, principals, officers, directors, employees and agents.

E.1.4.10 Negotiations with Subcontractor

In order to protect Ohio DC‘s interests, Ohio DC reserves the right to attempt to resolve any contractual disagreements that may arise between the offeror and its subcontractor(s) after award of the contract.

E.1.4.11 Project Termination

Offerors are advised that Ohio DC expects to complete the effort with a single offeror. However, the proposals and ensuing contracts shall provide that at the end of any phase, Ohio DC may, at its sole discretion and with no penalty, terminate the effort and not move forward with the offeror to a subsequent phase.

E.1.4.12 Governing Law

The offeror must agree that Ohio law governs the Agreement and that any action relating to the Agreement must be brought in the courts located in Franklin County, Ohio.

E.1.4.13 Declaration of Material Assistance

Before a contract is executed, the offeror must complete and deliver to Ohio DC a Declaration of Material Assistance form available at http://www.homelandsecurity.ohio.gov/dma/dma.asp

E.1.4.14 Additional Provisions

A Vendor taking exception to any provision below may be rejected as non-responsive. The following provisions shall be included in the contract between the parties:

(1) It is expected that the contract shall have a maximum term of 45 months (including 39 months for development and implementation with the remainder for post-implementation support).

(2) Ohio DC may terminate the contract if any significant or substantial change occurs in the ownership or control of the Vendor.

(3) The parties to any contract or contract amendment shall be Ohio DC and the Vendor. Any sub-contracted entity will not be party to this contract and will maintain their relationship directly with the Vendor.

(4) Ohio DC understands that not all Vendors may have the full resources and skill sets to complete all aspects of a project of this scope and understands that some elements of the work may be subcontracted. Any such proposed subcontractor must be clearly identified including resumes of key individual resources and references as required of the primary contractor. In such event, the vendor must assume the role of single prime contractor and

http://www.homelandsecurity.ohio.gov/dma/dma.asp

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be responsible for the successful delivery of the proposed services/systems, including all subcontractors’ efforts. Usage of subcontractors shall in no way relieve the prime contractor of all obligations for the delivery of services/systems to be provided.

(5) The Vendor shall agree that no offshore resources will be involved in any way for this project without the advanced approval of Ohio DC management. The Vendor may include an alternative proposal that includes the use of offshore resources but not as a part of the primary proposal.

(6) The Vendor shall ensure that an adequate number of appropriately qualified and trained personnel are employed and available at all times to provide the services required under the contract. The Vendor will provide a full-time project manager. Staff proposed for assignments shall be persons that are experts in their field (as appropriate for such job title classifications), and have significant experience in all of the technologies and solutions that are being recommended. Unless otherwise agreed, the job title classification of individuals assigned to a project shall not change during the project.

(7) The Vendor shall not assign individuals to a project other than those expressly authorized in writing. Ohio DC shall have the right, at no additional charge, to interview, check the references of, and accept or reject any individual to the positions designated as “key personnel” and any successor positions to which comparable job functions may be assigned. At Ohio DC’s request, the Vendor shall (in advance of interviews) provide the resumes and work histories of key personnel or persons whom the vendor proposes to designate as key personnel and shall, upon Ohio DC’s request, update such information as appropriate. Ohio DC shall treat the work histories and interview information as confidential.

(8) It is expected that the Vendor shall maintain continuity of its teams’ staff throughout the project. The Vendor shall not transfer or replace the project manager or other individuals designated as “key personnel” for the project for the duration of such assignment unless such transfer or replacement is at the request of Ohio DC or due to a bona fide promotion, illness, family leave, disability, termination of employment, or other circumstance beyond the vendor’s reasonable control. Prior to any permitted transfer of “key personnel” to another position, the vendor shall provide Ohio DC with at least thirty (30) days’ notice of such transfer. If Vendor staff are reassigned during the term of the assignment, the Vendor shall use commercially reasonable efforts to ensure a smooth transition at no additional cost to Ohio DC, including the provision of knowledge transfer documentation and cooperation between the replaced and the newly-assigned personnel or, where appropriate or in the case of planned replacements, an overlap in the assignment of the replaced and newly-assigned personnel for a duration of at least five (5) Business Days (excluding Ohio DC holidays). The newly-assigned personnel shall have qualifications as good as or better than those of the replaced personnel and shall be charged at the same rate or lower than the replaced personnel.

(9) Ohio DC may notify the Vendor when it finds any Vendor staff to be unacceptable for any lawful reason, including Ohio DC’s reasonable determination that he or she is not performing to Ohio DC’s satisfaction. Upon receipt of such notice the Vendor shall, within five (5) Business Days (excluding Ohio DC holidays), review the matter with Ohio DC and, unless otherwise agreed by the parties, promptly transfer or otherwise remove such individual from provision of services under the contract. If directed by Ohio DC, the Vendor shall immediately remove such vendor staff from provision of services under the contract. Ohio DC may not exercise its rights on grounds unrelated to job performance or in a manner that obligates the vendor to commit an unlawful act.

(10) If, during the contract term, the Vendor, or any subsidiary, principle owner (10% or more), affiliate or sub-contractor is involved as plaintiff or defendant in any litigation which is

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related to your Vendor servicing of Ohio DC, this fact shall be promptly disclosed to Ohio DC. (11) The Vendor shall be authorized to do business in the State of Ohio prior to the contract

initiation day. The Vendor shall comply with all applicable laws, including licensing requirements of the State and Federal government and with applicable accreditation and other standards of quality generally accepted in the field of the Vendor's activities.

(12) The Vendor shall comply with all applicable laws, including licensing requirements of the State and Federal government and with applicable accreditation and other standards of quality generally accepted in the field of Vendor activities.

(13) The officers, employees, and agents of the Vendor will act in an independent capacity concerning the terms of the contract and will neither act nor be considered as employees of Ohio DC or of any political subdivision thereof.

(14) The Vendor agrees that it will abide by Ohio DC policies and practices regarding the security of participant data and will immediately notify Ohio DC of any breach of such data.

(15) All Vendor personnel participating in this project must be willing to abide by Ohio DC’s Code of Responsibility (see Appendix C). It is the Vendor’s responsibility to obtain a signed copy of the Code of Responsibility from each participating employee indicating their agreement prior to any work performed by that individual.

(16) The Vendor shall agree that it will not use any information concerning individual Ohio DC participants, information collected under the contract or other Ohio DC data for any purpose other than to fulfill its duties under the contract.

(17) The Vendor shall provide to Ohio DC the source code for all current software and subsequent source code updates that comprise the entire new recordkeeping system, based on a schedule to be defined by Ohio DC.

(18) The Vendor shall deliver to Ohio DC a license for the use of the Recordkeeping System application software. This license shall grant Ohio DC exclusive rights to use, maintain, support, develop, and/or modify for Ohio DC’s business needs all software that comprises the entire new recordkeeping system.

(19) The Vendor shall ensure that all software licenses, warranties, and support contracts required to use, maintain, and support the entire new recordkeeping system are in Ohio DC’s name.

(20) If at any time during the existence of the contract the Vendor fails to observe or perform any term, condition, stipulation, agreement, provision, or obligation of the Vendor hereunder or becomes insolvent or if an application or petition in bankruptcy is filed by or against the Vendor, the Vendor shall be in default of the contract without any demand, notice, or putting in default, as time is of the essence to the Vendor’s satisfactory observance and performance thereof and any failure by the Vendor with respect thereto shall constitute an active breach of the contract.

(21) The Vendor shall agree to hold harmless and indemnify the State of Ohio, the Board, Ohio DC, the participants, the Board members and its employees against all losses and liability and shall defend them against all claims and legal actions arising from the acts or omissions of the Vendor or any of its officers and employees in servicing Ohio DC, insofar as such acts or omissions were not specifically directed by the Board nor were necessarily implicit therein.

(22) The Vendor must subscribe to the Ohio Ethics laws regarding business conducted with a State Board.

(23) Ohio DC may terminate the agreement without cause by providing 60 days written notice to the Vendor.

(24) Any provision of any contract arising hereunder is severable if that provision is in violation of the laws of the State of Ohio or the United States, or becomes inoperative due to changes

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in State or Federal law, or applicable State or Federal regulations. (25) Neither the benefits nor the burden of the contract will be assigned or delegated by the

Vendor either in whole or in part or in any other manner without the written consent of Ohio DC. Any assignment, pledge, sub-contract, or hypothecation of right or responsibility to any person, company, or corporation shall be fully explained and detailed in the proposal.

(26) The contract shall be subject to and governed by the laws of the State of Ohio. (27) The Vendor agrees that the Vendor, subcontractor, and any person acting on behalf of the

Vendor or subcontractor, will not discriminate, by reason of race, color, religion, gender, sexual orientation, age, handicap, national origin, or ancestry against any citizen of this State in the employment of any person qualified against any citizen of this State in the employment of any person qualified and available to perform the work under this Agreement. The Vendor further agrees that the Vendor or subcontractor shall not, in any manner, discriminate against, intimidate, or retaliate against any employee hired for the performance of work under this Agreement on account of race, creed, color, religion, gender, sexual orientation, age, handicap, national origin, or ancestry.

(28) Any exceptions, modifications, or additions to the contract requirements shall only be effective upon mutual written agreement signed by both parties.

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Part F Attachments

Included in the document are the following attachments: Attachment A – Current Functionality Attachment B – Business Rules Attachment C – Code of Responsibility Attachment D – Client Reference Form Attachment E – Resource Resumes Format

Attachment A – Current Functionality

ADMINISTRATION

Deferral Limits

Over-deferral prevented by investment processing

Separate limits maintained for regular, age 50+, and catch-up accounts.

Exchange Restrictions

Participants are placed in a restricted status if they do four exchanges in a 45 day period.

Warning letters are generated when a participant completes 3 exchanges in a 45 period.

Participants in restricted status are prohibited from completing exchanges by telephone or on the

website. Exchanges must be submitted in writing and are limited to one per week for a one year

period.

Archives/File Management

Participants with fully withdrawn accounts are archived and removed from the production data on

an annual basis.

Daily Transaction

Daily NAVs are received and daily trades are sent electronically Daily Batch Process

Each business day a batch job is executed that processes all of the applicable participant transactions

for that day.

INVESTMENT OPTIONS

Pricing

Daily pricing is computed for Stable Value Option based on a quarterly interest rate.

Daily NAVs are received electronically from investment providers for all other funds

Dividends

Dividends are posted to applicable participant accounts on the last business day of the month for all

interest earning investment options (bond funds, etc.).

Investment dividends are posted to applicable participant accounts when they are declared by the

investment providers.

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Performance

Annualized year to date, one-, three-, five-, and ten-year fund performance is computed at the end of

each month using historic NAVs.

Trades/Adjustments

Daily trade instructions are sent to each investment provider either electronically or via automated

fax.

Redemption Fees

A redemption fee process has been implemented that deducts money from a participants account

when they complete a round trip (buy and sell) within a predetermined number of days.

Redemption fees can vary in the amount of the fee and the holding period based on each investment

provider’s rules.

EMPLOYERS

Demographics

Demographic data is maintained for each employer. This includes contact name, address, contact

telephone number and email address.

Pay Cycles/Dates

A calendar system has been developed that tracks the pay dates by employer.

The system has the capability of maintaining multiple sets of pay dates for each employer. This is

used if the employer has separate pay dates for different groups of employees (i.e. monthly, biweekly,

weekly).

Billings/Change Reports

The billing system creates a list of employees that should have a deferred compensation deduction

on a future paycheck.

The employer has the option to receive a copy of the billing (prebill) either electronically or on paper.

In addition, they can choose whether the paper bill should be mailed or faxed to them.

A report listing only the participants who have had a change in amount since their last pay (reduction

report) can also be generated. The employer has the ability to choose whether or not they wish to

receive this report and whether they wish to receive it via fax or mail.

Department Maintenance

The system can organize participants by department if required by the employer. State of Ohio

employees are the only participants that are tracked by department currently.

Ohio Business Gateway

In conjunction with the Ohio Business Gateway (OBG), a system has been developed for

communication with the employer via a web portal.

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The employer can update demographic information, update the status of an employee (active or

terminated), reconcile a billing with their payroll data, and make payments using the OBG system.

Methods for Deposits/Reconciliation

All billings must be reconciled with the actual deductions taken by the employer before the money

can be invested.

Terminations

We may receive notification of termination from either the employer or the participant resulting in

the zeroing of the deferral amount.

Statements/Reporting

After participant statements are created each quarter employer statements are printed and emailed

or mailed to each employer.

Comment system

The system provides the ability to add freeform comments for each employer.

Employer Website

A static website is maintained to provide relevant information to the employers.

The website is hosted by an outside vendor and maintained by Ohio DC.

The site includes frequently asked questions section and contact information.

PARTICIPANT AND RELATED ACCOUNTS

All accounts

Account Creation/Demographics/Maintenance

New participant accounts are created either by data entry from a paper form or via the website.

Participant accounts created on the website can be created by either the participant or customer

service.

A history of address changes is maintained on the system.

Confirmation letters are printed and mailed for every new enrollment.

Comment system

The system provides the ability to add freeform comments to each participant account.

Comments can be system generated or manually entered by any authorized user.

The comment record includes the date and time that the record was created as well as the initials of

the user who entered the comment (if applicable).

A report listing all of the comments for a participant can be printed.

Interface with USPS

The system interfaces with the USPS’s address correction system to get updated participant

addresses.

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Exchanges

Participants can elect to exchange (move) money from a specific investment option to another

option.

Exchanges can be directly by the participant using the website or ATS or exchanges can be entered by

Customer Service on behalf of the participant.

The system monitors and enforces frequent trading policies of both the investment provider and

Ohio DC (see exchange restrictions and redemption fees above).

Confirmation letters are printed and mailed for every exchange transaction.

Deceased to Beneficiary Transfers

Separate beneficiary accounts are created upon notification of a participant’s death.

Transfers are data entered and verified before processing.

A deceased to beneficiary transfer moves the proper amount of money from the deceased participant

account to the beneficiary account(s) as instructed originally by the participant.

Confirmation letters are printed and mailed for every transfer transaction.

Rollovers into/out of Program

Participants can roll (move) money into or out of the plan based on the plans policy.

A separate account is created for all rollovers into Ohio DC.

Rollovers are data entered and verified before processing.

Confirmation letters are printed and mailed for every transfer transaction.

Quarterly and Annual Statements

Statements are created for each participant.

An annual statement is created which includes year-end account balances by fund, investment

allocation data, and future projections.

Participants can opt to receive all statements by either US Mail or by accessing an electronic version

on the website.

Withdrawals

Scheduled benefit withdrawals are paid monthly.

Any participant that has terminated from service is eligible for a withdrawal.

Participants can start, stop, or change the amount of a withdrawal on a monthly basis.

Participants can choose to have money withdrawn from a specific fund or to have it withdrawn from

all funds proportionately based on the current balances.

The withdrawal system includes all of the functionality required for processing Federal and State

income taxes.

Imaging

All relevant participant related paper work for participants enrolled after 2002 is scanned and stored

as an electronic image.

Images can be viewed and printed directly from the main inquiry screen.

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Participants

Deferrals/SMarT Plan

Participants designate the deferral amount and fund allocation upon enrollment.

The deferral amount and allocation can be changed by the participant at any time. Allocation changes

are effective immediately. Deferral amount changes typically take 30 days to become effective.

Changes can be made in several different ways:

o Directly by the participant using either the website or ATS

o Calling the Service Center (customer service enters the change using internal access to the

website)

o Using a paper form sent to the Service Center and data entered by us

o Automatically using the SMarT system – this system provides the ability for a participant to

designate an amount to automatically increase their deferral on an annual basis

Insurance Premiums

The system has the capability of managing premiums for life insurance policies held with Ohio

National Insurance. This is not a current investment option and is only available for participants who

selected this option when it was available.

Premium payment information is output monthly to database files which are sent securely via email

to Ohio National.

Divorce – QDRO

Separate accounts are created for a participant’s spouse when Ohio DC receives notice of a Qualified

Domestic Relations Order (QDRO) resulting from a divorce proceeding.

A QDRO transfer function is available to move money from a participant account to a QDRO account

based on the court order. This transfer is executed immediately after the account is established and is

allocated proportionally into the same investment options used by the participant.

QDRO accounts are placed in a hold status until Ohio DC receives instructions from the court to

release the money.

Upon court release, the QDRO account is released, and the QDRO account holder has all of the rights

and abilities of any other participant.

Purchase Service Credits

A participant can elect to have money withdrawn from his account to purchase service credit with

the appropriate pension system.

Rollover transfers in/out

Active participants can elect to transfer money into or out of Ohio DC to/from another qualified pre-

tax plan.

Plan to Plan Transfers

Participants can elect to transfer the cash value of an inactive account to an active account within

Ohio DC.

Transfer requests are received on a paper form and are data entered and verified before processing.

Transfers are invested into the investment options held by the inactive account.

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Unforeseen Emergency Withdrawals

A Participant may request an in-service withdrawal in the event of an unforeseeable emergency.

CUSTOMER SERVICE

Customer Service is provided limited access to the recordkeeping system.

Inquiry Access

Accounts

Demographics Inquiry/Maintenance

Quarterly Statement Inquiry/Reprints

Annual Statement Inquiry/Reprints (reprints are handled by a vendor)

Update ACH Confirmation

Enter Exchange Transactions

Withdrawals Inquiry

Account Value History

Archive Inquiry

Employers

Demographics

Pay Cycles

Termination Confirmations

Departments

Investment Funds

Fund Pricing

Fund Performance

Update Access

Exchange request entry is provided to specific authorized customer service personnel.

Comment Entry

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Attachment B – Business Rules

Administration

Account Corrections

If an incorrect investment, exchange, or transfer is made, the Participant or Beneficiary must notify the Plan Administrator within 180 days of the closing date of the statement that reported the incorrect transaction.

All Accounts

Address validation

City-State Postal Service File

The City-State details file received monthly from the US Postal Service replaces all records from the

previous months file.

The US Postal Service provides a file on a monthly basis which contains every zip code in the United

States and the corresponding cities which fall within that zip code.

Keyline File

A nightly file is received from the post office which identifies any participant by their Keyline ID who

has submitted an address change through the postal service.

A unique Keyline ID is created for each participant account and shared with the post office to track

address changes.

ODC staff review Keyline address changes and are presented options to skip, remove, overwrite or

cancel each address change proposed in the file.

New Address

Upon entry of any new address for a participant or employer account, the city and corresponding

zip code is validated against the USPS city/state/zip file to ensure a match exists.

Deferrals

AGE 50+ ACCOUNTS

ELIGIBILITY

Participants can only contribute to an Age 50+ account if they are greater than 50 years of age on

December 31 of the current year

You have a higher deferral limit once you turn 50. This is set by the IRS each year.

CATCH UP ACCOUNTS

ELIGIBILITY

Participants can only contribute to a catch up account if they are within 3 years of Normal

Retirement Age

DEFERRAL LIMITS

AGE < 50

Participants less than 50 years of age are limited by IRS regulations for the maximum annual

deferral amount in one calendar year

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AGE 50+

Participants who have attained at least 50 years of age during the calendar year can defer

additional funds as limited by the IRC

CATCH-UP ACCOUNTS

Catch up account eligible participants can defer additional funds as limited by IRS regulations in one

calendar year

Catch up deferrals offer the maximum deferral amount of all deferral types.

Catch-up deferrals cannot be used at the same time as Age 50+ deferrals

Catch-up Deferrals consideration of a 'prior year' must begin after December 31, 1978

Catch-up Participants can contribute up to two times the normal IRS annual deferral limit (non 50+)

during each of the last three years prior to normal retirement if the Participant contributed less than

the maximum amount during earlier years with the allowable amount to be reduced by any amount

excluded from the Participant's gross income for the Plan year under another Section 457 plan

maintained by any employer.

IRS LIMITS

Deferral limits for all account types are set annually by the IRS.

Employers

Add New Employer

ADDRESS VALIDATION

A zip code and city combination that is not present in the US Postal Service City-Zip code file cannot

be entered in the system (no override).

An employer’s address must contain a zip code and corresponding city that is present in the US

Postal Service City-Zip code file.

No address validations are performed on international addresses.

Once a zip code is entered, a list of corresponding cities must be displayed based upon the details in

the US Postal Service City-Zip code file.

EMPLOYER ACCOUNT NUMBER

Employers must be assigned a unique employer account number.

An employer can have more than one pay cycle.

An employer must have a separate account number for each pay cycle utilized.

For employers with multiple accounts, the first six digits of the seven digit employer account

number are identical.

For employers with multiple accounts, the last digit of the seven digit employer account number

consist of a sequential number starting with zero that is incremented by one for each pay cycle the

employer utilizes.

The 7 digit unique employer account number is comprised of a leading zero, a 5 digit incremental

number assigned by the system, followed by one digit which denotes the pay cycle for the employer.

Minimum Requirements for enrollment

Employer accounts have a maximum of two contact addresses including a financial contact address

and a payroll contact address.

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Employers must be authorized and duly licensed by the State of Ohio, and appropriate Federal

agencies regulating investments, to do business in the State of Ohio to participate in the Plan.

Enrollment Options

An employer enrollment application that does not contain the minimum required information for

enrollment will be rejected until the all missing/invalid information is provided by the employer.

To enroll, an employer must have a Contact Name.

To enroll, an employer must have a financial contact complete with address (main contact/address).

To enroll, an employer must have a payroll contact complete with address.

To enroll, an employer must have a Payroll Contact Address.

To enroll, an employer must have a Payroll Contact Name.

To enroll, an employer must have a ten digit fax number.

To enroll, an employer must have a ten digit phone number.

To enroll, an employer must have a unique Employer Name.

To enroll, an employer must have a valid address.

To enroll, an employer must have an email address.

To enroll, an employer must have at least one Billing code (pay cycle).

To enroll, an employer must select a delivery method for billing (fax, email, postal mail)

To enroll, an employer must select a delivery method for statements (fax, email, postal mail)

Edit Employer Account

Account removal

Employer accounts are never deleted, they are moved to an inactive

Employer Search

Employer Accounts must be searchable by employer name using an exact match search or "starts

with" partial search.

Exchanges

Exchanges are processed every day that the New York Stock Exchange is trading.

Exchanges received after 4:00 PM Eastern will be processed the following business day.

Transaction Shares

The oldest shares owned by a Participant are exchanged out first to minimize potential

redemption fees

Exchange Restrictions

Each individual fund may levy exchange penalties on a participant for excessive exchanges.

Restricted Status

ACCOUNT RESTRICTIONS

If a participant has multiple accounts, exchanges are counted separately for each account.

If a participant has multiple accounts, restrictions are levied separately for each account.

EXCHANGE LIMITATIONS

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Participants in a restricted status cannot submit an exchange request online if they have

completed four exchanges within a rolling 45 calendar day period.

The oldest shares owned by a Participant are exchanged out first to minimize potential

redemption fees

Participants in restricted status are limited to one mail-in exchange per five business day period

Participants in restricted status cannot complete exchanges through the website.

Participants in restricted status cannot complete exchanges via telephone.

Participants in restricted status cannot submit an exchange form in person.

Participants in restricted status cannot submit an exchange form via fax.

Participants in restricted status cannot submit an exchange request form via "overnight"

delivery.

Participants in restricted status must request a form from Ohio DC customer service in order to

request an exchange.

Participants in restricted status must submit an exchange request form via standard US mail.

Participants placed in restricted status will remain restricted for 1 calendar year from the date

they are placed in restricted status.

LIFTING RESTRICTION

Participants in a restricted status who have completed less than four exchanges in the 45 day

period prior to the expiration date of the one year restriction will have their restricted status

lifted.

Participants in restricted status who have completed four exchanges in a rolling 45 calendar day

period as of the one year restriction end date remain in a restricted status for an additional year

from their initial restriction end date.

Participants in restricted status who have completed three exchanges in a rolling 45 calendar

day period as of the one year restriction end date receive a warning letter to inform them that a

fourth exchange in the 45 day period will place them back in restricted status.

PLAN ADMINISTRATOR RESTRICTION

The Plan Administrator can place a participant’s account in restricted status for any length of

time.

The Plan administrator provides an expiration date for the manual participant account

restriction.

RESTRICTED STATUS DESIGNATION

Participants are placed in a restricted status if 4 exchanges occur within a rolling 45 calendar day

period.

RESTRICTION WARNING

Participants are issued a warning letter upon completing a third exchange in any rolling 45

calendar day period.

Restriction warning letters are mailed one business day after the transaction date of the third

exchange in any rolling 45 calendar day period.

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Imaging

A flashing indicator is present on every participant account which has an existing related image

file.

Each participant account will have a single PDF image file.

Each participant document which is scanned is appended to the existing PDF image file for the

participant.

Employer documents are not imaged.

Investment Funds

The Plan Administrator may set a minimum allocation to any investment option.

Adding New Investment Options

Entry of newly selected investment options is a manual process completed by ODC staff.

Investment Funds are manually selected by the plan administrator.

Changing Existing Investment Options

Modification of Existing Investment options is a manual process completed by ODC staff.

Deleting Existing Investment Options

Deletion of Existing Investment options is a manual process completed by ODC staff.

Participant

A Participant can be employed and deferring funds from multiple employers.

A Participant cannot exceed the maximum annual deferral amounts if contributing from multiple

employers.

Account Status

A Participant account can change account Status at any time.

A participant account in cannot have more than one account status at any given point in time.

Active Status

A participant account in "Active" status is not eligible for any type of withdrawal other than the

Unforeseeable Emergency withdrawal.

A participant account in "Active" status may exchange funds.

A participant in must be less than 50 years old to have an account in "Active" status.

A participant must be actively deferring funds into ODC for the account to be in "Active" Status.

Admin Hold

Accounts in Active, Catch-up, Continue, Terminated, Fifty Plus, Deceased, Payout, or Rollover

may have an administrative hold placed upon them.

The Admin Hold designation on any account status denotes that the account may not take a

withdrawal of any kind. All other privileges of the account in its respective status are otherwise

valid.

Beneficiary Status

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A participant account in "Beneficiary" status may exchange funds.

A Participant account in "Beneficiary" status is ineligible to defer funds into the account.

A Participant account in "Beneficiary" status is ineligible to rollover funds into the account.

A Participant account in "Beneficiary" status may withdrawal funds at any time.

Benefit Payout Status

A Participant account in "Benefit Payout" status cannot defer additional funds into ODC.

A Participant account in "Benefit Payout" status is receiving benefit payments.

A Participant account in "Benefit Payout" status may exchange funds.

Catch-up

A participant account in "Catch-up" status may exchange funds.

A participant must be actively deferring funds into ODC for the account to be in "Catch-up"

Status.

Continue, Amend to Zero Status

A participant account in "Continue, Amend to Zero" status may exchange funds.

A Participant account is placed in "Continue, Amend to Zero" status only when the participant is

expected to resume deferrals in the future.

A participant in "Continue, Amend to Zero" is temporarily not deferring any fund into ODC.

De Minimus Status

The "De Minimus" status is no longer utilized.

Deceased

A Participant account is set to "Deceased" status when the participant has been verified as deceased

following receipt of a valid death certificate.

Deceased while in Payout

The "Deceased while in Payout" Status is no longer utilized.

Fifty Plus

A participant account in "Fifty Plus" status is not eligible for any type of withdrawal other than the

Unforeseeable Emergency withdrawal.

A participant account in "Fifty Plus" status may exchange funds.

A participant in "Fifty Plus" status is eligible for an increased deferral amount over standard accounts

as set by the IRS.

A participant must be actively deferring funds into ODC for the account to be in "Fifty Plus" Status.

A participant must be 50 years old or older for the account to be in “Fifty Plus" status.

Fully Withdrawn

A participant account in "Fully Withdrawn" cannot be set back to an Active status.

A participant account in "Fully Withdrawn" status cannot defer additional funds into the account.

A participant account in "Fully Withdrawn" status has taken withdrawal(s) and the account balance

is $0.00.

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Accounts currently holding any units or shares of any investment fund cannot be moved to Fully

Withdrawn status.

Accounts in "De Minimus" or "Small Balance Distribution" status cannot be moved to "Fully

Withdrawn" status.

All accounts must be checked monthly to determine if they qualify to be moved to "Fully Withdrawn"

Status.

Only accounts that have had no deferrals in the past 90 days can be moved to "Fully Withdrawn"

status.

Inactive, Suspend

A participant account in "Inactive, Suspend" status is actively deferring funds into the account.

A participant account in "Inactive, Suspend" status may exchange funds.

An "Inactive, Suspend" status is a temporary status used to denote that the account is under

correction by the finance department.

QDRO, Alternate Payee Status

A "QDRO (Qualified Domestic Relations Order), Alternate Payee" participant account is created status

when a court order, judgment, or decree recognized someone other than the participant as an

alternate payee who has interest in the participants account.

A participant account in "QDRO, Alternate Payee” status is eligible for withdrawals immediately after

the court decision case has been verified as final (no further appeals).

A participant account in "QDRO, Alternate Payee" status participant account cannot defer additional

funds into their account.

Rollover, Not Deferring Status

A participant account in "Rollover, Not Deferring" status may exchange funds.

An account in "Rollover, Not Deferring" status is a participant account which has had funds rolled

over from another plan into ODC.

Participant accounts in "Rollover, Not Deferring" status cannot defer additional funds into the

account.

Small Balance Distribution status

A participant account in "Small Balance Distribution" status when the participant has elected to

receive a small balance distribution.

An account can never move to an active status after taking a small balance distribution. If the

participant wishes to resume deferrals after two years a new account is created.

An account in which has had a Small Balance Distribution is never moved to a fully withdrawn status.

The account will remain in "Small Balance Distribution" status until it meets the criteria for archival.

Terminated Status

A participant account in "Terminated" status cannot defer additional funds into the account.

A participant account in "Terminated" status may begin withdrawals at any time.

A participant account in "Terminated" status may exchange funds.

A Participant account is in Terminated Status when ODC has verified that the participant has

terminated employment with the employer on record for the account.

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A Participant with an account in terminated status may withdrawal funds from the terminated

account if they are employed and actively deferring from another employer.

Add New Participant

Accounts

A participant may have multiple accounts.

A participant will have a separate account for each rollover they complete into ODC.

A participant will have a separate accounts for each employer with which they hold or have held

employment.

A participant will receive a new account each time they re-establish employment with a previous

employer.

Enrollment Options

A participant may enroll through the website, by phone through a customer service representative,

or by filling out and mailing an enrollment form.

Minimum Requirements for enrollment

A participant may only have one address per account.

To enroll, a participant must be employed by an employer registered with the OPEDCP.

To enroll, a participant must elect a beneficiary which may be a person, estate, or trust.

To enroll, a participant must have a valid address.

To enroll, a Participant must provide a first and last name.

To enroll, a participant must provide a Social Security Number.

To enroll, a participant must provide the retirement account which they are participating in (OPERS,

PFPF, Program, STRS, HPRS).

To enroll, a participant must provide their date of birth.

To enroll, a participant must select a deferral amount which meets the minimum deferral

requirement.

Participant Account

A participant enrollment application that does not contain the minimum required information for

enrollment will be rejected until the all missing/invalid information is provided by the participant.

Participant Account Number

A participant account number is eighteen digits long and is comprised of three values including the

participants Social Security Number, the seven digit employer's identification number, and a 2 digit

suffix code.

A participant account number suffix code identifies the type of plan the participant holds.

For Ohio 457 plans, the suffix is incremented by one each time a participant exits employment and

then subsequently returns to employment with the same employer.

Participant Search

Participant accounts must be searchable by Last Name, First name in an exact match search or "starts

with" search.

Plan Amendments

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A 30-day written advance notice of any amendment to the Plan will be given to either the employers,

participants, or both depending on the nature of the amendment as determined by the plan

administrator.

The acceptance of additional deferred amounts can be suspended permanently by the Plan

Administrator

The Plan Administrator may at any time alter or amend this Plan with or without the consent of any

Employer, Participant, or Beneficiary

Reporting

Participant Reports

ANNUAL STATEMENTS

CREATION

Annual statements are created for each Participant that has an account balance of $1000 or more as

of the end of the statement year.

DELIVERY

Annual statements will be delivered to the Beneficiary account(s) if the Participant has died.

Participants can view their annual statements by accessing an electronic version on the web site.

Participants will receive their annual statements by US Mail at the address of record.

Participants cannot receive their annual statement via email.

Participants who opt to receive their annual statements by accessing an electronic version on the

web site will receive an email informing them of its availability.

QUARTERLY STATEMENT

ACCOUNT SUMMARY

The quarterly statement will show a totals columns with the totals for all accounts for the quarter

The quarterly statement will show the account value as of the ending statement date

The quarterly statement will show the amounts (deferrals) invested in or transferred into each

account during the quarter

The quarterly statement will show the amounts withdrawn or transferred out from each account

during the quarter

The quarterly statement will show the gains or losses representing each account's change in value

due to performance, net of fees

The quarterly statement will show the net amount moved (exchanged) between investment options

during the quarter minus any applicable redemption fees

ACCOUNT(S)

The quarterly statement will show the types of accounts held by the Participant and the employer

associated with each account

ASSETS ALLOCATION SUMMARY

The quarterly statement will show an asset allocation chart for all combined investments for the

quarter

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CREATION

Account quarterly statements are created for each Participant who has had an account balance at any

time during the quarter.

DEFERRALS SINCE

The quarterly statement will show the total Participant deferrals since initial enrollment date

DELIVERY

Participants can opt to receive their quarterly statements by accessing an electronic version on the

web site

Participants who opt to receive their quarterly statements electronically will not receive a statement

by US Mail.

Participants can opt to receive their quarterly statements by US Mail a their address of record

Participants cannot receive their quarterly statement via email.

Participants who opt to receive their quarterly statements by accessing an electronic version on the

web site will receive an email informing them of its availability.

Quarterly statements will be delivered to the Beneficiary if the Participant has died

DETAILED TRANSACTIONS

The quarterly statement will show the description of each transaction (buy or sell)

The quarterly statement will show the dollar amount of each transaction

The quarterly statement will show the name of the investment option impacted by the transaction

The quarterly statement will show the number of units or shares of the investment option bought or

sold by the transaction

The quarterly statement will show the unit or share price of the investment option on the date of the

transaction

QUARTER SUMMARY

The quarterly statement will list each investment option currently used by the Participant account

The quarterly statement will show column totals for all investment options as of the statement

ending date for each investment option used by the Participant for the quarter

The quarterly statement will show the amounts (deferrals/transfers in) contributed to each

investment option used by the participant for the quarter

The quarterly statement will show the amounts (exchanges) moved between investment options

used by the participant for the quarter minus any applicable redemption fees

The quarterly statement will show the amounts withdrawn or transferred out of each investment

option used by the participant for the quarter

The quarterly statement will show the beginning value of each investment option used by the

participant for the quarter

The quarterly statement will show the date of each transaction

The quarterly statement will show the ending value of each investment option used by the


The quarterly statement will show the gain or loss amount of each investment option used by the


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The quarterly statement will show the unit or share price as of the statement ending date for each

investment option used by the Participant for the quarter

QUARTERLY STATEMENT PERIOD

The quarterly statement will show the beginning and ending dates of the statement period

WITHDRAWAL REPORTS

Withdrawals are reported to Participants annually on a Form 1099R

All Accounts

Comments

All Comments

Comments are archived with the account when the account is archived.

Comments cannot be deleted.

Comment Report

A Comment Report listing all comments for a Participant can be printed on demand by ODC or

customer service center staff members.

Free Form Comments

The Date/Time the comment was entered will be stored with the comment text.

The maximum size of any comment is 68 characters per line with each comment having a maximum

of two lines for a total of 136 characters.

The system provides the ability to add free form comments to each account.

The User ID of the logged in user who creates a new comment will be stored with the comment text.

System Generated Comments

The system will automatically record account comments for predetermined criteria.

Correspondence

Employer

Employer Survey

An employer receives one survey per pay cycle utilized.

An employer survey is mailed every two years to each employer.

Employer corrections to pay dates or demographic information received from the survey are

manually updated in the record keeping system.

Responses to the employer survey questions are tracked outside the record keeping system.

The employer may fax or mail a response to ODC from the employer survey.

The employer survey always contains the remaining pay dates

The employer survey contains every scheduled pay date for the remainder of the calendar year it is

sent for employer verification.

The employer survey contains the financial contact name, address, phone number, fax number, and

email address for employer verification.

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The employer survey contains the payroll contact name, address, phone number, fax number, and

email address for employer verification.

The employer survey will contain additional questions that will vary with each survey.

Employer Termination VERIFICATION

A termination verification letter will be sent to an employer for each individual employee which has

been indicated as terminated.

An employee’s deferral amount is set to zero on receipt of the employer’s response to the Employer

termination letter.

An employer is expected to return the termination letter indicating the effective date of severance,

the date of the employee’s final deferral, name of the employer’s contact who verified the severance,

and any additional comments relating to the employee severance.

Employers may mail or fax a response to the termination confirmation letter.

The termination confirmation letter will contain the employer identification number for reference

purposes.

No deferral for two pay period Notification

A list of employees who have not had a deferral received in the past two pay periods is created for

each employer pay period after the funds are received from the employer.

An employer will receive a report listing all active employees who have not submitted a deduction

for the previous two pay periods and request the employer inform Ohio DC of the reason for not

receiving deferrals.

Outside Provider

Rollover to Outside Provider

The Rollover to outside provider letter is accompanied by a check for the total amount of the

rollover.

The Rollover to outside provider letter is sent to an outside provider to inform them of a participant’s

election to transfer funds out of ODC into the outside providers Program.

The Rollover to outside provider letter lists a reference number.

The Rollover to outside provider letter lists the Participant who is rolling over funds including their

full name and address.

The Rollover to outside provider letter lists the total amount being rolled into the new plan.

Participant

Accelerated Payment

The accelerated participant letter will be sent to a participant who is in payout status, whose account

value is less than $1,000, and not in payout hold.

The accelerated participant letter will be sent to a participant who is in terminated status, whose

account value is less than $1,000, and whose termination end date is less than January 1st of the

current year.

The accelerated payment letter will be sent to a participant who is a beneficiary and the account

balance is less than $1,000.

The accelerated payment letter will contain a reference number consisting of the last 4 digits of the

participants SSN and the employer ID for reference.

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The Accelerated payment letter will inform the participant of the date on which their account balance

will be paid out in full.

ACH Confirmation

An ACH confirmation letter is sent to a participant when they have requested a withdrawal of any

type and selected direct deposit as the form of payment.

The ACH confirmation letter includes the current and year to date Federal Income tax withheld.

The ACH confirmation letter includes the current and year to date Gross payment amounts.

The ACH confirmation letter includes the current and year to date Net Amount Deposited.

The ACH confirmation letter includes the current and year to date Ohio Income tax withheld.

The ACH confirmation letter includes the date of the deposit.

The ACH confirmation letter includes the last 4 digits of the participant’s bank account number.

The ACH confirmation letter includes the reason for the withdrawal.

The ACH confirmation letter includes the type of withdrawal the participant has selected.

The ACH confirmation letter may be reprinted at any time.

Address Change Letter

A copy of the address change letter is sent to the participant’s new address as well as the old address.

An address change letter is sent to any participant who modifies their mailing address through the

website or by contacting a Customer service representative.

Allocation Change Letter

The Allocation change letter is mailed to participants after a change has been made to the

participant’s allocation of their deferral amount.

The Allocation change letter will contain a reference number consisting of the last 4 digits of the


The Allocation change letter will list each fund and the new deferral amount which will be invested

into each fund every pay period.

The Allocation change letter will list the date on which the new deferral elections will take effect.

Deceased to Beneficiary Letter

The Deceased to beneficiary letter will contain a reference number consisting of the last 4 digits of

the participants SSN and the employer ID for reference.

The Deceased to beneficiary letter will list all of the funds being transferred including the dollar

amount, number of shares, and price per share at the time of the transfer.

The Deceased to beneficiary letter will list the date on which the transfer occurred.

The Deceased to beneficiary letter will list the total amount transferred into the beneficiaries

account.

Deferral Change Letter

The deferral change letter is sent to a participant who has modified their deferral amount.

The deferral change letter will list the amount deferred to each investment option.

The deferral change letter will list the date on which the new deferral will take effect.

The deferral change letter will list the funds which no longer will receive a deferral with a $0.00

dollar amount.

The deferral change letter will list the new deferral amount.

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Exchange Correction

An exchange correction letter will contain a reference number consisting of the last 4 digits of the


An exchange correction letter is issued to a participant if any correction is made to prior exchange.

An exchange correction letter will contain the date of the initial exchange that needed correction as

well as the date the exchange was corrected.

An exchange correction letter will contain the fund name and dollar amount transferred into a fund.

An exchange correction letter will contain the fund name and dollar amount transferred out of a

fund.

An exchange correction letter will contain the fund price on the date of the initial exchange which

was utilized in the correction.

Exchange Restriction

An exchange restriction letter is sent to participants who have executed 4 or more exchanges in any

45 day rolling period.

An exchange restriction letter will contain a reference number consisting of the last 4 digits of the


The Exchange restriction letter informs the participant of all restrictions placed upon their account

(also see Exchange Restrictions).

Exchange Restriction Continued

An exchange restriction continued warning letter is issues to a participant whose restricted status

was set to expire but they have completed four or more exchanges in the previous 45 day rolling

window.

An exchange restriction continued warning letter will contain a reference number consisting of the

last 4 digits of the participants SSN and the employer ID for reference.

An exchange restriction continued warning letter will detail the restrictions that are continued to be

levied upon the participants account.

Exchange Restriction Release

An exchange restriction release letter is issued to a participant whose restricted status has expired

and they have completed three or fewer exchanges in a 45 day rolling period during the past year.

An exchange restriction release letter will contain a reference number consisting of the last 4 digits of


Exchange Restriction Release Warning

An exchange restriction release warning letter is issued to a participant whose restricted status has

expired and the participant has executed three exchanges in the previous 45 day rolling window.

An exchange restriction release warning letter will contain a reference number consisting of the last

4 digits of the participants SSN and the employer ID for reference.

An exchange restriction release warning letter will inform the participant that a fourth exchange in

the 45 day rolling window will result in their account being placed back into restricted status.

Exchange Warning

An exchange warning letter is sent along with the exchange confirmation letter if the participant has

completed 3 exchanges in the previous 45 day rolling period.

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An exchange warning letter will contain a reference number consisting of the last 4 digits of the


The exchange warning letter informs the participant that they have completed 3 exchanges in the

previous 45 day rolling period and if a 4th exchange is completed in the 45 day rolling period their

account will be moved to a restricted status.

In-Service Transfer In

The In-Service Transfer In letter will list the amount transferred.

The In-Service Transfer In letter will list the investment funds selected by the participant including

number of shares purchased and the price per share at the time of purchase.

This letter is sent to a participant who makes a transfer from another 457 plan which they are

actively employed with into Ohio DC plan.

In-Service Transfer out

The In-Service Transfer out letter will list the amount transferred.

The In-Service Transfer out letter will list the investment amount that was transferred by fund

including number of shares and the price per share at the time of the transfer.

This letter is sent to an active participant who makes a transfer to another 457 plan with which they

are active and employed.

Insurance Transfer Letter

The Insurance transfer letter will contain a reference number consisting of the last 4 digits of the


The Insurance transfer letter will list the date the Insurance transfer occurred.

The Insurance transfer letter will list the target account, dollar amount, number of shares, and share

price at the time of the transfer.

The Insurance transfer letter will list the Insurance fund and dollar amount transferred.

January Beneficiary RMD Letter

The January beneficiary RMD letter is mailed out the first week of January every year to beneficiaries

who are required to take a minimum distribution for the current year.

The January beneficiary RMD letter will list the required minimum distribution amount for the

current year.

January Participant RMD Letter

The January Participant RMD letter will list the maximum distribution period for the participant (as

determined by the IRS Uniform Life table).

The January Participant RMD letter will list the participants account balance as of December 31st of

the prior year.

The January Participant RMD letter will list the participant’s age as of December 31st of the current

year.

The January Participant RMD letter will list the participant’s date of birth.

The January Participant RMD letter will list the required minimum distribution amount for the

current year.

The January Participant RMD letter is mailed out the first week of January every year to non-active

participants who will be 70 1/2 or older by December 31st the current year.

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Mandatory Exchange Confirmation

A mandatory exchange letter will contain a reference number consisting of the last 4 digits of the


A participant will receive a mandatory exchange letter if any trades are made by ODC on the

participant’s behalf.

Mandatory exchanges will be made on behalf of the participant if a fund is being closed or removed

and the participant does not reallocate the funds themselves.

The mandatory exchange confirmation letter will include the fund name, dollar amount, number of

shares and price per share being transferred out of a fund.

The mandatory exchange confirmation will include the fund name, dollar amount, number of shares

and price per share being transferred into a fund.

New Enrollment Confirmation

The New Enrollment Confirmation letter will be sent once a week to all participants newly enrolled

in ODC during the past 7 days.

The New Enrollment Confirmation letter will contain a reference number consisting of the last 4

digits of the participants SSN and the employer ID for reference.

The New Enrollment Confirmation letter will contain the list of all funds the participant has elected

to invest in along with the dollar amount to be deferred into each fund with each pay check.

The New Enrollment Confirmation letter will contain the start date of the first deferral.

The New Enrollment Confirmation letter will contain the total deferral amount per paycheck that the

participant has elected to contribute.

The SMarT registration form is included with any enrollment confirmation letter if the participant

has not enrolled in the SMarT Program.

Non Plan Transfer

The Non-Plan transfer letter will be sent to any participant who has transferred funds from another

IRS 457 plan into their ODC account.

The Non-Plan transfer letter will list the Amount transferred into the account.

The Non-Plan transfer letter will list the funds selected by the participant including the total dollar

amount, number of shares and price of each share at the time of the transfer.

November Beneficiary RMD Letter

The November Beneficiary RMD letter will list the required minimum distribution amount for the

current year.

The November Beneficiary RMD letter will list the required minimum lump sum distribution which is

required to be paid out on Dec 20th to meet the minimum distribution amount if no other action is

taken by the participant.

The November Beneficiary RMD letter will list the total amount of all distributions taken during the

calendar year as of the mail date of the letter.

November Estate/Trust Letter

The letter lists the account balance as of the date the letter is mailed.

The letter will indicate that the full account balance must be distributed by December 20th of the

current year.

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This letter is sent to the executor of the trust in November of the year that contains the 5th

anniversary of the participant’s death.

This letter is sent to the executor of the trust in the first week of January of the year that contains the

5th anniversary of the participant’s death.

November Participant RMD Letter

The November Participant RMD letter will list the maximum distribution period for the participant

(as determined by the IRS Uniform Life table).

The November Participant RMD letter will list the participants account balance as of December 31st

of the prior year.

The November Participant RMD letter will list the participant’s date of birth.

The November Participant RMD letter will list the required minimum distribution amount for the

current year.

The November Participant RMD letter will be mailed out by the end of November each year to

participants who have not met their minimum distribution amount as of the mail date of the letter.

The November Participant RMD letter will list the participant’s age as of December 31st of the

current year.

The November Participant RMD letter will list the required minimum lump sum distribution which is

required to be paid out on Dec 20th to meet the minimum distribution amount if no other action is

taken by the participant.

The November Participant RMD letter will list the total amount of all distributions taken during the

calendar year as of the mail date of the letter.

Pin Change Letter

This letter is sent to participants who have changed their IVR PIN code.

Plan to Plan Transfer Letter

The plan to plan transfer letter contains the Plan, funds, dollar amounts, shares, and share price of

the funds moved from the source account.

The plan to plan transfer letter contains the Plan, funds, dollar amounts, shares, and share price of

funds moved to the target account.

The plan to plan transfer letter will contain a reference number consisting of the last 4 digits of the


The plan to plan transfer letter will list the date the transfer occurred.

Purchase of Service Credit

The Purchase of service credit letter will contain a reference number consisting of the last 4 digits of


The Purchase of service credit letter will include the total amount transferred to purchase service

credit.

This letter is sent to a provider after a completed transfer of funds to purchase retirement service

credit.

The Purchase of service credit letter will include each fund the participant has elected to transfer

funds out of including fund name, total amount transferred, number of shares transferred, and price

per share at the time of transfer.

Regular Exchange Confirmation

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An Exchange confirmation letter is sent to a participant listing all exchanges executed during one

business day.

An exchange confirmation letter will contain a reference number consisting of the last 4 digits of the


The exchange confirmation letter will include the transaction date for all exchanges.

Regular Exchange Confirmation > 1 Page

This confirmation letter is identical to the Regular Exchange Confirmation except that it is formatted

to accommodate a large number of transactions that span more than a single page.

Rollover Transfer In

The rollover transfer in letter is mailed to a participant who has completed a rollover from another

pre-tax retirement account into the ODC plan.

The rollover transfer in letter will list the amount transferred.

The rollover transfer in letter will list the investment funds selected by the participant including

number of shares purchased and the price per share at the time of purchase.

Rollover Transfer Out

The rollover transfer out letter is mailed to a participant who has completed a rollover from the ODC

plan into another account.

The rollover transfer out letter will list the amount transferred.

The rollover transfer out letter will list the investment amount that was transferred by fund

including number of shares and the price per share at the time of the transfer.

SMarT Confirmation

The new enrollment confirmation letter will contain a reference number consisting of the last 4 digits

of the participants SSN and the employer id for reference.

The New Enrollment Confirmation letter will contain the dollar amount and frequency of the

scheduled deferral increases.

The New Enrollment with SMarT letter will be included with all New Enrollment Confirmation

Letters when the participant has elected to enroll in the SMarT Program.

Termination Letter

A termination letter will be issued to a participant when ODC has received confirmation from the

employer that employment has been severed.

A termination letter will contain a reference number consisting of the last 4 digits of the participants

SSN and the employer ID for reference.

The Termination letter will include a summary of the account options available to the participant

upon severance of employment.

The Termination letter will include the employer’s name with which the participant’s employment

has been severed.

Username/Password change

The Username/password letter is sent to each participant upon modification of their username or

password through the website or customer service representative.

The Username/password letter will contain a reference number consisting of the last 4 digits of the


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Uncashed Check Letter

An uncashed check letter is issued to a participant who has not cashed a check which was issued

more than a user defined number of days in the past.

The Uncashed check letter includes the check number of the uncashed check.

The Uncashed check letter includes date the uncashed check was issued.

Customer Service

Inquiries

Employers

Customer Service will have limited read-only access for performing employer account inquiries.

Investment Funds

Customer Service will have limited read only access for performing Investment Fund inquiries.

Participant Accounts

Customer Service will have limited access for performing account inquiries on statements, balances,

exchanges, password changes, comments, ACH/Payment information, Demographics, beneficiary

information, address history, account value, and employment history.

Updates

Exchange Requests

Exchange requests must be done by authorized Supervisor level customer service personnel.

Employer Accounts

Comments


A Comment must be created when the employer coordinator is changed and indicate both the old

and new coordinator contact name.

A Comment must be created when the employer Payroll Contact is changed and indicate both the old

and new coordinator contact name.

A comment must be created when the employer’s financial address City value is changed and indicate

both the old and new values.

A comment must be created when the employer’s financial address fax number is changed and

indicate both the old and new values.

A comment must be created when the employers Financial Address line 1 is changed and indicate

both the old and new address line 1 values.

A comment must be created when the employers Financial Address line 2 is changed and indicate

both the old and new address line 2 values.

A comment must be created when the employer’s financial address phone number extension is

changed and indicate both the old and new values.

A comment must be created when the employer’s financial address phone number is changed and


A comment must be created when the employer’s financial address State value is changed and


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A comment must be created when the employer’s financial address zip code value is changed and


A comment must be created when the employers financial email address is updated and indicate

both the prior email address and the new email address.

A comment must be created when the employers Financial Payroll line 2 is changed and indicate both

the old and new address line 2 values.

A comment must be created when the employers Payroll address City value is changed and indicate


A comment must be created when the employer’s payroll address fax number is changed and indicate


A comment must be created when the employers Payroll Address line 1 is changed and indicate both

the old and new address line 1 values.

A comment must be created when the employer’s payroll address phone number extension is

changed and indicate both the old and new values.

A comment must be created when the employer’s payroll address phone number is changed and


A comment must be created when the employers Payroll address State value is changed and indicate


A comment must be created when the employer’s payroll address zip code value is changed and


A comment must be created when the employer’s payroll contact email address is updated and

indicate both the prior email address and the new email address.

A comment must be entered indicating when the employer account was created.

A comment must be entered on the account billing code is changed and must include both the

previous billing code and the new billing code.

Employers

Billing

Future Paycheck Deduction Report (PREBILL)

DEFINITION

Employers shall receive a report showing the list of employees who should have a deferred

compensation deduction on a future paycheck.

BILLING CYCLES

Employers shall receive a separate Future Paycheck Deduction Report for each pay cycle utilized.

Employers will receive multiple Future Paycheck Deduction Reports on a single day if two or more

pay cycles overlap on a given day.

CONTENT

The Future Paycheck Deduction Report will contain the amount deferred by participant.

The Future Paycheck Deduction Report will contain the first and last name of each participant with a

reduction for the current pay period.

The Future Paycheck Deduction Report will contain the social security number of the participant if

the employer has elected to display SSN on the report.

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DEDUCTION COMMENT

The Future Paycheck Deduction Report may contain a comment that would indicate the type of

change if the deduction amount has changed.

The deduction comment will be "Decrease FP" if the current deferral represents an decrease to the

participants prior deferral amount and the participant is 50 years of age or greater.

The deduction comment will be "Decrease to zero CU" if the current deferral represents an decrease

to the participants prior deferral amount to $0.00 and the participant is in catch up status.

The deduction comment will be "Decrease to zero FP" if the current deferral represents an decrease

to the participants prior deferral amount to $0.00 and the participant is 50 years of age or greater.

The deduction comment will be "Decrease to zero" if the current deferral represents a decrease to

the participants prior deferral amount to $0.00.

The deduction comment will be "Decrease" if the current deferral represents a decrease to the

participant’s prior deferral amount.

The deduction comment will be "Increase CU" if the current deferral represents an increase to the

participant’s deferral amount and the participant is in catch up status.

The deduction comment will be "Increase FP" if the current deferral represents an increase to the

participants deferral amount and the participant is 50 years of age or greater.

The deduction comment will be "Increase" if the current deferral represents an increase to the


The deduction comment will be "New Reduction CU" if the current deferral represents the

participant’s first deferral in the catch up Program.

The deduction comment will be "New Reduction FP" if the current deferral represents an increase to

the participants deferral amount and the participant is 50 years of age or greater.

The deduction comment will be "New Reduction" if the current deferral represents the first deferral

for the participant.

DELIVERY EXCEPTIONS

A report must be generated listing any unsuccessful reports sent via fax that need to be manually

resent.

DELIVERY OPTIONS

Employers may elect to have their bill sorted alphabetically by employee last name.

Employers may elect to have their bill sorted numerically by SSN.

Employers may elect to not have employee SSN's displayed on the report.

Employers may elect to not receive a Future Paycheck Deduction Report.

Employers shall have multiple options for receiving the Future Paycheck Deduction Report including

electronically, paper with regular mail, or fax

Employers shall have the ability to view their Future Paycheck Deduction Report from the Ohio

Business Gateway.

The Future Paycheck Deduction report is sent to the employers Payroll contact address if they have

elected for paper delivery.

DELIVERY SCHEDULE

The Future Paycheck Deduction Report is sent out to employers 14 calendar days prior to the pay

period that is being billed.

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REPRINT

An ODC staff member may reprint any bill that has not yet been paid.

Reconciliation Report

A reconciliation report will be produced which lists any discrepancy in amount billed versus amount received for each employer pay period.

Reduction Report

DEFINITION

Employers shall have the option to receive a report listing only participants who have changed their

paycheck deduction amount since their last pay period in place of or in addition to the Future

Paycheck Deduction Report.

The Reduction report shall contain new deferrals in addition to increases or decreases in deferral

amounts.

BILLING CYCLES

Employers will receive multiple Reduction Reports in a single day if two or more pay cycles overlap

on a given day.

DEDUCTION COMMENT

The Reduction Report may contain a comment that would indicate the type of change if the deduction

amount has changed.

The deduction comment will be "Decrease FP" if the current deferral represents an decrease to the

participants prior deferral amount and the participant is 50 years of age or greater.

The deduction comment will be "Decrease to zero CU" if the current deferral represents an decrease

to the participants prior deferral amount to $0.00 and the participant is in catch up status.

The deduction comment will be "Decrease to zero FP" if the current deferral represents an decrease

to the participants prior deferral amount to $0.00 and the participant is 50 years of age or greater.

The deduction comment will be "Decrease to zero" if the current deferral represents a decrease to

the participants prior deferral amount to $0.00.

The deduction comment will be "Decrease" if the current deferral represents a decrease to the


The deduction comment will be "Increase CU" if the current deferral represents an increase to the

participant’s deferral amount and the participant is in catch up status.

The deduction comment will be "Increase FP" if the current deferral represents an increase to the

participants deferral amount and the participant is 50 years of age or greater.

The deduction comment will be "Increase" if the current deferral represents an increase to the


The deduction comment will be "New Reduction CU" if the current deferral represents the

participant’s first deferral in the catch up Program.

The deduction comment will be "New Reduction FP" if the current deferral represents an increase to

the participants deferral amount and the participant is 50 years of age or greater.

The deduction comment will be "New Reduction" if the current deferral represents the first deferral

for the participant.

DELIVERY OPTIONS

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Employers may elect to have their report sorted alphabetically by employee last name.

Employers may elect to have their report sorted numerically by SSN.

Employers may elect to not have employee SSN's displayed on the report.

Employers may elect to not receive a Reduction Report.

Employers shall have multiple options for receiving Reduction Report including paper via Postal

Mail, email, or Fax.

Employers shall have the ability to view their Reduction Report from the Ohio Business Gateway.

The state of Ohio (OAKS) is the only employer who may elect to receive a reduction report

electronically.

DELIVERY SCHEDULE

The Reduction Report is sent out to employers 14 calendar days prior to the pay period that is being

billed.

REPRINT

An ODC staff member may reprint any bill that has not yet been paid.

Employer Statements

CONTENT

The quarterly employer statement will contain the Gain/Loss in each fund for the entire quarter.

The quarterly employer statement will contain the name of each investment with which the

employer’s employees hold shares or units.

The quarterly employer statement will contain the start/end dates of the quarter being reported.

The quarterly employer statement will contain the total amount contributed to each fund by the

employer’s employees during the quarter.

The quarterly employer statement will contain the total dollar amount contributed to all funds for

the quarter.

The quarterly employer statement will contain the total dollar amount of withdrawals from each

fund.

The quarterly employer statement will contain the total life insurance contributions for the quarter.

The quarterly employer statement will contain the total of all exchanges/transfers from each fund.

The quarterly employer statement will contain the value of each fund as of the first day of the

quarter.

The quarterly employer statement will contain the value of each fund as of the last day of the quarter.

Employer statements are produced quarterly based on the calendar year and after the Participant

Statement is produced

Employer statements will be delivered to the financial address on record (physical address or email).

Employers do not receive annual statements.

Employers must elect to receive Employer Statements emailed or mailed to them

Employer Website

ODC will maintain a static website to provide relevant information to the employers including

frequently asked questions and contact information.

Updates to the website are implemented by the Communications Manager, Executive Assistant, or

the IT Manager.

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Investments

No money will be invested until billing has been reconciled with the actual deductions taken by the

employer

Ohio Business Gateway (OBG)

180 days of deposit history is maintained in the OBG portal.

Employer pay dates are viewable for 6 months in the future via the OBG portal.

Employers may edit the employer demographic information via the OBG portal.

Employers may make payments via the OBG portal.

Employers will have access to the OBG to update employee status to active or terminated. If an

employee is terminated a termination date is required which may be a future date.

Employers will have the ability to override the employer billing data in OBG with actual employee

deferrals for any given pay period.

Organizing by Department

Employers have the ability to organize Participants by employer department number

The State of Ohio is the only employer that currently is organized by department.

Pay Cycles

Pay Dates

A listing of all pay dates for each pay cycle in a calendar year must be created on an annual basis

taking into account holidays and dates on which the market is closed.

Pay Cycles/Dates

Each employer is allowed to maintain multiple separate pay calendars

Each employer pay calendar is allowed multiple groups of employees, each with separate pay dates

Terminations

Employers may notify Ohio DC of employee terminations via OBG, phone, or hand-written responses

to the two-paychecks with no deferral notice.

Terminations will result in the zeroing of the deferral amount as of the termination date.

Interfaces

Accuity

Definition

A file which contains a listing of all banks details and associated routing numbers is received on a

monthly basis.

Black Rock

INCOMING

NAV INFORMATION

A backup NAV file is sent via email as of market close.

A daily file containing NAV pricing as of market close is received electronically.

TRADE CONFIRMATION

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A trade confirmation file is received which contains the fund number and total dollar amount (+/-) of

all trades for that fund on a particular day.

Outgoing

TRADE INSTRUCTIONS

A trade instruction file is sent for each day the market is open which contains the net effect of all

trading on a particular day.

The trade instruction file must be sent by 8:00 AM EST for the prior trading day.

Dodge & Cox

INCOMING

NAV INFORMATION



The daily NAV file will contain dividend payout information if and when the fund pays dividends.

TRADE CONFIRMATION

A fax confirmation report is generated which lists success/failure of the trade instruction fax.

OUTGOING

TRADE INSTRUCTIONS

A trade instruction automated fax is sent for each day the market is open which contains the net

effect of all trading on a particular day.


Fidelity

INCOMING

NAV INFORMATION




TRADE CONFIRMATION

A trade confirmation file is received which contains the fund number and total dollar amount (+/-) of

all trades for that fund on a particular day.

OUTGOING

TRADE INSTRUCTIONS

A trade instruction file is sent for each day the market is open which contains the net effect of all

trading on a particular day.


First Pacific

INCOMING

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NAV INFORMATION


No backup file is received.


TRADE CONFIRMATION


OUTGOING

TRADE INSTRUCTIONS




Hartford

INCOMING

NAV INFORMATION




TRADE CONFIRMATION


OUTGOING

TRADE INSTRUCTIONS




Janus

INCOMING

NAV INFORMATION




TRADE CONFIRMATION


OUTGOING

TRADE INSTRUCTIONS



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JP Morgan

INCOMING

BENEFIT PAYMENT ACH

The benefit payment file is sent daily if there are payments made during that particular day.

The benefit payment file contains the participant SSN, amount of the payment, and the participants

Bank Name, Routing number and account number.

Ohio National Life Insurance

INCOMING

A quarterly file is received which contains any premium dollar amount changes by participant.

OUTGOING

A monthly payment file will be received containing all participants and the dollar amount of the

premium payment.

PIMCO

INCOMING

NAV INFORMATION




TRADE CONFIRMATION


OUTGOING

TRADE INSTRUCTIONS




SourceLink

AD-HOC

Any large volume letter may be sent via third party vendor which requires a letter template and data

file to be defined.

INCOMING

PARTICIPANT QUARTERLY STATEMENTS

PDF copies of all statements printed will be returned to ODC by the third party print vendor.

OUTGOING

PARTICIPANT QUARTERLY STATEMENTS

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Large print batches of participant’s quarterly statements will be printed by a third party vendor.

The participant quarterly statement data will be transmitted to the third party vendor through a data

file transmitted via FTP.

INCOMING

PARTICIPANT ANNUAL STATEMENTS

PDF copies of all statements printed will be returned to ODC by the third part print vendor.

OUTGOING

PARTICIPANT ANNUAL STATEMENTS

Large print batches of participants Annual statements will be printed by a third party vendor.

The participant annual statement data will be transmitted to the third party vendor through a data

file transmitted via FTP.

State of Ohio - OAKS

The State of Ohio will receive their reduction report via data file for each pay cycle.

The State of Ohio will send employee termination information via data file.

The State of Ohio will send their employee deferral information via data file for each pay cycle.

Templeton

INCOMING

NAV INFORMATION




TRADE CONFIRMATION


OUTGOING

TRADE INSTRUCTIONS




USPS

ADDRESS CHANGE INFORMATION

The USPS will send monthly address verification files via CD media.

Vanguard

INCOMING

NAV INFORMATION


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TRADE CONFIRMATION


OUTGOING

TRADE INSTRUCTIONS




Investment Options

Annualized Performance

Year to Date

Annualized year to date performance is computed at the end of each month using historic NAVs

One Year

Annualized one year performance is computed at the end of each month using historic NAVs

Three Year

Annualized three year performance is computed at the end of each month using historic NAVs

Five Year

Annualized five year performance is computed at the end of each month using historic NAVs

Ten Year

Annualized ten year performance is computed at the end of each month using historic NAVs

Annuities

Annuities are no longer offered by OPEDCP.

Dividends

Interest Earning Investment Options

DIVIDEND POSTING

Dividends are posted to applicable accounts on the last business day of the month

Investment Dividend Posting

Investment dividends are posted to applicable Participant accounts when they are declared by the

investment providers

Frozen Funds

Definition

A fund is considered as frozen when ODC wishes to prevent increased deferrals into that fund

pending its replacement or removal from the plan.

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Deferrals

A participant cannot add a frozen fund as a new investment option

A participant can continue to defer into a frozen fund if they were deferring into that fund before it

was frozen

A participant deferring into a frozen fund must either continue to defer the same dollar amount or

stop deferring into the fund.

Replacement

Participants still owning shares of a frozen fund at the time of its closing will have their funds moved

to a similar account as determined by the plan administrator.

Warning Letters

Participants actively deferring or holding shares of a fund which is in frozen status will be notified in

writing of the pending replacement or removal of the fund and instructed to move their funds to

another fund.

Pricing

Net Asset Value (NAV)

DAILY RECEIPT

Daily NAVs are received electronically after 4:00 PM EDT from investment providers for all funds

except the Stable Value Option

MISSING NAV

ODC will call a provider to obtain any missing NAV files through FTP. If no NAV is available

electronically, ODC will manually update the record keeping system with the NAV values obtained

through backup email or online research.

Stable Value Option

COMPUTATION

Pricing is calculated based on quarterly interest rate determined by a third party financial firm

Pricing is calculated for the next quarter based on quarterly interest rate which is updated one week

prior to the start of a new quarter.

Employer remittance

Payment

EMPLOYER CHECK

Employers may remit payment for employee deferrals via paper check.

OBG

Employer may remit payment for employee deferrals via ACH payment through the OBG.

Redemption Fees

Eligibility

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A redemption may be deducted from a Participant's account if they complete a round trip (buy and

sell) within an Investment Provider's defined number of days

Fee Amount

Redemption fees can vary based on Investment Provider rules

Holding Period

The holding period required for determining redemption fees can vary based on individual

Investment Provider rules

Taxes

Account earnings are State and Federal tax free until a withdrawal occurs

Deferred amounts are considered pre-tax and are not subject to State or Federal taxes until a

withdrawal occurs

Trades/Adjustments

Daily Processing

Daily trade instructions are sent in a format determined by each investment provider.

Daily trade instructions are sent to each investment provider either electronically or via automated

fax depending on the preference of the investment provider.

Each investment provider elects a deadline which denotes when they must receive the daily trade

instructions from ODC.

If automated sending of trade instructions fail, back up instructions can be sent via email or fax

depending on the preference of the investment provider.


Account History

A history of address changes is maintained for each Participant.

A history of all withdrawals is maintained for each participant account.

A Report of all address changes for a participant account may be viewed or printed.

Account Rules

A participant can be employed by and deferring funds from multiple employers.

A participant deferring funds from multiple employers is limited to the maximum deferral amounts

set by the IRS.

Active Participant Termination

Participants may elect to terminate active participation in the Plan

Beneficiaries

A participant must have a spouse on record in order to designate a spousal beneficiary.

A Participant or spousal beneficiary may elect to change a beneficiary at any time by filing a signed

and dated Beneficiary form with the Plan Administrator

At any time after commencing participation in the Plan, a participant, or spousal beneficiary may

designate an initial beneficiary or joint annuitant for any benefits that the participant or spousal

95 | P a g e

beneficiary is entitled to receive under the Plan and which are unpaid at the time of the participant’s

death

Beneficiaries must be designated on a form filed with and accepted by the Plan administrator.

Beneficiary changes shall be effective on the date filed with and accepted by the Plan administrator.

If a trust is elected as a Beneficiary, satisfactory evidence must be furnished to the Plan that the trust

is the only Beneficiary qualified to receive withdrawals, or withdrawals will be made as though no

primary Beneficiary had been elected. Satisfactory evidence is determined by a resource and is

outside of the system.

Participants cannot select a future date for a beneficiary to become active.

The only beneficiary who may elect other beneficiaries is a spousal beneficiary.

Archival

Criteria

To qualify for archival, a participant account and their related beneficiary accounts (if applicable)

must have a fund balance of $0.00.

To qualify for archival, a participant account must be in De Minimus, Fully Withdrawn, or Small

Balance Distribution status.

To qualify for archival, a participant account must not have a suffix key of type rollover (80-89).

To qualify for archival, a participant account must not have any future pending amendments.

Environment

Archived accounts are moved to an archive environment which does is not included in any

transaction or calculation by the record keeping system.

Archived records can still be viewed from the record keeping system.

Frequency

Accounts are archived once per year.

Preliminary Report

A report is generated prior to archival to determine the total number of accounts that will be

archived.

The Preliminary report contains the participant ID, Full name, and current status, and total number

of accounts to be archived.

Comments


A comment must be created when a plan to plan transfer is completed.

A comment must be created when an exchange restriction is lifted.

A comment must be created when a 401a rollover account is created for the participant.

A comment must be created when a 401K rollover account is created for the participant.

A comment must be created when a 403b rollover account is created for the participant.

A comment must be created when a 457 rollover account is created for the participant.

A comment must be created when a deceased to beneficiary transfer is completed.

A comment must be created when a deferral is not received on the account in two consecutive pay

periods.

A comment must be created when a financial planner is added.

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A comment must be created when a financial planner is removed.

A comment must be created when a frequent exchange warning letter is issued.

A comment must be created when a mandatory exchange is made on the participant’s behalf.

A comment must be created when a manual exchange restriction is implemented and indicates its

expiration date.

A comment must be created when a new email address is entered.

A comment must be created when a new home phone number is entered.

A comment must be created when a new work phone number is entered.

A comment must be created when a non-plan transfer is completed.

A comment must be created when a participant has elected to join the Smart Program.

A comment must be created when a participant has elected to receive statements via the website

(edelivery).

A comment must be created when a participant to alternate payee transfer is completed.

A comment must be created when a purchase of service credit transfer is completed.

A comment must be created when a QDRO alternate payee is release from hold status.

A comment must be created when a response to an employer verification letter is received.

A comment must be created when a reversal is entered for a QDRO dividend.

A comment must be created when a reversal is entered for a QDRO Transfer.

A comment must be created when a reversal is entered for a Rollover in and Dividend.

A comment must be created when a reversal is entered for a Rollover In.

A comment must be created when a Rollout is completed and indicate the destination account details.

A comment must be created when a rollover to OPEDC transfer is completed.

A comment must be created when a scheduled Smart plan deferral increase was not made due to the

participant having the maximum deferral and deferral limits did not increase.

A comment must be created when a termination date is removed and indicate the prior value for the

termination date.

A comment must be created when an alternate Payee is release from Hold status.

A comment must be created when an account I placed on Pending Court Order status.

A comment must be created when an account is archived.

A comment must be created when an account is placed on restricted payout status.

A comment must be created when an account is put on Status Hold for Court Order.

A comment must be created when an account is put on Status Pending for Court Order.

A comment must be created when an account is put on Status Restricted Payout.

A comment must be created when an account is release from Hold for Court Order.

A comment must be created when an account is released back to Active status from any other status.

A comment must be created when an address change is executed and include the old address details.

A comment must be created when an adjustment is entered for

A comment must be created when an adjustment is entered for a reverse dividend.

A comment must be created when an adjustment is entered for a reverse in-service transfer in.

A comment must be created when an adjustment is entered for a reverse roll out.

A comment must be created when an adjustment is entered for a Roll-In correction.

A comment must be created when an adjustment is entered for an in-service transfer out.

A comment must be created when an adjustment is entered for reversing or correcting an exchange.

A comment must be created when an adjustment is entered for reversing the purchase of service

credit.

A comment must be created when an adjustment is entered for to correct an allocation.

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A comment must be created when an adjustment is entered to reverse a deferral refund.

A comment must be created when an adjustment is entered to reverse an insurance refund.

A comment must be created when an adjustment is entered to reverse a withdrawal.

A comment must be created when an allocation change is requested.

A comment must be created when an alternate payee account is created for QDRO.

A comment must be created when an alternate payee is placed on Hold status.

A comment must be created when an employer verification letter is sent.

A comment must be created when an employer verification Received flag is removed due to error.

A comment must be created when an exchange correction is executed.

A comment must be created when an exchange is requested.

A comment must be created when an exchange restriction is extended for an additional year.

A comment must be created when an exchange restriction notification letter is issued.

A comment must be created when an In-service transfer to OPEDC is completed.

A comment must be created when an insurance transfer is completed.

A comment must be created when an IRA rollover account is created for the participant.

A comment must be created when an outstanding check letter is sent to a participant and indicate the

check number and date the check was initially mailed.

A comment must be created when and Address change is initiated from the Post office file.

A comment must be created when beneficiary information is entered.

A comment must be created when deferral change is requested.

A comment must be created when participation in the SMarT plan is revoked due to the participant

moving to an Inactive status with $0 deferrals.

A comment must be created when SMarT plan participation ends.

A comment must be created when the account is created.

A comment must be created when the account is put on hold status "1" (Active -Admin Hold).

A comment must be created when the account number is changed and indicate both the old and new

account number.

A comment must be created when the account status is changed from "Continue, Amend to Zero" to

"Terminated".

A comment must be created when the email address is updated.

A comment must be created when the employer notifies ODC of employment termination.

A comment must be created when the participant elects edelivery of statements.

A comment must be created when the participant elects for a regular maximum increase and note the

amount if the increase.

A comment must be created when the participant elects to defer the maximum into a 50+ account

and automatically increase when deferral limits are increased.

A comment must be created when the participant received a new password for the website.

A comment must be created when the participant receives a new PIN for the website.

A comment must be created when the SMarT plan amount is increased and must note the increase

amount.

A comment must be created when the status of an account is changed and note the prior and new

account status.

Contribution Amounts

Deferral Amount Changes

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FUTURE DEFERRAL AMOUNTS

Changes to future deferral amounts shall be effective as early as administratively possible but no

earlier than the first day of the following calendar month

Participants can change the amount to be deferred in the future

CHANGES

Participants can make changes to their deferral amount by calling an Account Executive

Participants can make changes to their deferral amount via the automated phone system

Participants can make changes to their deferral amount via the web site

Investment Option Changes

EFFECTIVE DATE

Changes to the investment options shall be effective as early as administratively

CHANGES

Participants can make changes to their investment options by calling an Account Executive

Participants can make changes to their investment options via the automated phone system

Participants can make changes to their investment options via the web site

INVESTMENT OPTION ALLOCATIONS

Participants can change the future investment amount allocated to any specific Investment option

Maximum Contribution

AGE 50+

The maximum contribution amount is limited by Section 457 of the Internal Revenue Code

CATCH UP ACCOUNTS

Catch-up Participants can contribute up to two times the normal IRS annual deferral limit during

each of the last three years prior to normal retirement if the Participant contributed less than the

maximum amount during earlier years with the allowable amount to be reduced by any amount

excluded from the Participant's gross income for the Plan year under another Section 457 plan

maintained by any employer

Limitations on the maximum amount of deferral shall be reduced by any amount excluded from the

Participant's gross income for the Plan year under another Section 457 plan maintained by any

employer

The maximum contribution amount is limited by Section 457 of the Internal Revenue Code but is up

to two times the normal annual deferral limit during each of the last 3 years prior to normal

retirement age if the Participant contributed less than the maximum amount during earlier years.

TOTAL COMPENSATION

The maximum contribution amount shall not exceed IRS limitations or 100% of the Participants

includable compensation, whichever is less

Minimum Allocation

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The minimum allocation to any investment option shall be $10 per pay period or the full deferral if it

is less than $10

Minimum Contribution

PAID BI-WEEKLY OR SEMI-MONTHLY

The minimum contribution amount is $15 per pay period per investment

PAID ONCE MONTHLY


PAID WEEKLY


Corrections

If an incorrect investment, exchange, or transfer is made, the Participant or Beneficiary must notify

the Plan Administrator within 180 days of the closing date of the statement that reported the

incorrect transaction

Crediting of Accounts

Each active Participant's account shall be credited with amounts authorized for Deferral and

rollovers and received by the Plan Administrator

Death

DECEASED TO BENEFICIARY TRANSFER

A deceased to beneficiary transfer moves the correct Participant designated amount of money to

each beneficiary account

A valid death certificate, receipt of the final deferral, and the Deceased to Beneficiary form are

required to initiate beneficiary or trust transfers

Beneficiaries must contact the Service Center to have a beneficiary account created and complete a

transfer of account due to Participant death

BENEFICIARY BENEFIT OPTION ELECTION LIMITATIONS

Beneficiaries who have not met the IRS minimum distribution criteria as of December 1st will receive

a single lump-sum payment at the end of December to bring their distribution amount up to the

minimum level required.

If a Participant dies on or after the required minimum distribution date, payments shall continue to

be paid to the beneficiary at least as rapidly as they were paid to the Participant

NON-SPOUSAL BENEFICIARY DIES AFTER PARTICIPANT BUT BEFORE FULL ACCOUNT VALUE HAS BEEN DISTRIBUTED

If a non-spousal beneficiary dies while receiving Plan benefits, any remaining benefits which the non-

spousal beneficiary is entitled to receive under the Plan and which are unpaid at the time of the

beneficiary’s death shall be paid in a lump sum amount determined under each applicable

investment option to the fiduciary of the beneficiary’s probate estate; provided, however, that if the

Plan administrator does not receive notice that a fiduciary has been appointed and qualified within

90 days after the death of the beneficiary, payment shall be made to those persons entitled to receive

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the beneficiary’s property under the intestacy laws of the jurisdiction of the beneficiary’s residence

at the time of death.

PARTICIPANT DIES BEFORE THE REQUIRED MINIMUM DISTRIBUTION DATE

BENEFICIARY IS A PERSON BUT NOT THE SURVIVING SPOUSE

If the beneficiary is someone other than the surviving spouse, distribution of the account must begin

by December 31 of the year following the participant's death

The entire Account must be withdrawn over a period not extending beyond the life expectancy of the

participant annually published IRS life expectancy tables.

BENEFICIARY IS NOT A PERSON, LIKE A TRUST OR ESTATE

If the beneficiary is not a person, such as a trust, estate or charity, the entire account must be

distributed by the end of the calendar year which contains the fifth anniversary of the participant's

death

BENEFICIARY IS SURVIVING SPOUSE

If the beneficiary is the participant's surviving spouse, distribution may be delayed until December

31 of the year in which the participant would have reached age 70 and a half

The entire Account must be withdrawn over a period not extending beyond the life expectancy of the

spousal Beneficiary as defined by the annually published IRS life expectancy tables.

SPOUSAL BENEFICIARY DIES AFTER PARTICIPANT BUT BEFORE FULL ACCOUNT VALUE HAS BEEN DISTRIBUTED

Any remaining account value will be paid to the spousal beneficiary’s designated beneficiaries in a

lump-sum payment

The Plan administrator can adjust the beneficiary's annual distribution amount if needed to comply

with the IRS minimum distribution requirements.

ESTATE

If there is no living primary or contingent beneficiary (beneficiaries must have predeceased the

participant) the Participant's estate is paid

To pay to the estate, ODC must have a copy of the Executor, Administrator, or Commissioner of Estate

letter of authority from the court.

If a Participant or spousal beneficiary dies before his or her account has been exhausted, then the

remaining account balance shall be paid to the designated beneficiary

INSURANCE CONTRACTS

In the case of the death of a participant, the face value of the insurance contract is payable to their

beneficiary as taxable ordinary income

MINORS

Whenever distribution is made to a minor, such distribution shall be made only pursuant to the order

of the court having jurisdiction over the distributee and in such case, all costs including court costs

and attorney's fees incurred by the Plan in securing the order of the court shall be paid from the

amounts available for distribution

NO BENEFICIARY

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The account value is transferred to the deceased Participant estate if no individuals or trusts have

been named as the beneficiary

PERSONS WITH LEGAL DISABILITIES

Whenever distribution is made to a person with a legal disability such distribution shall be made only

pursuant to the order of the court having jurisdiction over the distributee and in such case, all costs

including court costs and attorney's fees incurred by the Plan in securing the order of the court shall

be paid from the amounts available for distribution.

Separate beneficiary accounts are created manually for each beneficiary listed on a deceased

participants account upon receipt of a valid participant death certificate

TRUST AS THE BENEFICIARY

If a trust is named as beneficiary, satisfactory evidence (defined by the plan administrator) must be

furnished to the Plan that the trust is the only beneficiary qualified to receive payment

If the Plan administrator does not receive notice that a fiduciary has been appointed and qualified

within 90 days after death, payment may be made to those persons entitled to receive property

under intestacy laws of the jurisdiction of the residence at the time of the Participant's death.

The Plan will not recognize a change in the Trust as a beneficiary unless the change is documented on

forms provided by the Plan administrator

Deferrals

CHANGES

DEFERRAL AMOUNT

Participant deferral amount changes take at least 30 days to become effective in order to correct the

amounts for employer billing.

Participants are allowed to change deferral amounts by calling the Service Center

Participants are allowed to change deferral amounts by mailing a paper form to the Service Center

Participants are allowed to change deferral amounts through the automated telephone system

Participants are allowed to change deferral amounts through the web site

Participants are allowed to use SMarT to designate an amount for automatic increases to their

deferrals on an annual basis

Participants may change the deferral amount at any time

FUND ALLOCATIONS

Participant fund allocation changes are effective immediately upon entry into the record keeping

system.

Participants are allowed to change fund allocations by calling the Service Center

Participants are allowed to change fund allocations by mailing a paper form to the Service Center

Participants are allowed to change fund allocations through ATS

Participants are allowed to change fund allocations through the web site

Participants may change future fund allocations at any time

CONTRIBUTION AMOUNTS

ANNUAL LIMITS - MAXIMUM

CATEGORIES - AGE 50+ DEFERRAL

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Minimum deferral is $30 per pay period

CATEGORIES - CATCH-UP DEFERRAL

IRC sets Maximum deferral limits annually

CATEGORIES - REGULAR DEFERRAL (UNDER AGE 50)

Minimum deferral is $15 per pay period

LIMITATIONS

IRC sets Maximum deferral limits annually

EMPLOYER TERMINATION OR SEVERANCE

Terminated or severed employees are not required to withdraw retirement assets from the Plan but

cannot defer additional funds.

ENROLLMENT

Participants must designate a deferral amount upon enrollment

Participants must designate fund allocations upon enrollment

RETIREMENT

Retirees are not required to transfer retirement assets from the Plan but cannot defer additional

funds.

Divorce - QDRO

ACCOUNT CREATION

QDRO accounts are placed in a hold status until ODC receives instructions from the court to release

the money.

Separate accounts are created for a Participants spouse when ODC receives a valid QDRO

ACCOUNT RELEASE

The QDRO account is released to the account holder only after ODC has received instructions to

release the account.

TIMING

The Plan permits distributions at any time to an alternate payee under a QDRO.

VALID QDRO

A QDRO must be received from the court and meet Internal Revenue Code qualifications to be

considered valid

Exchanges

A confirmation letter is printed and mailed to the Participant address of record for every exchange

Beneficiaries may make exchanges between investment options if the Participant has died

Exchanges can be entered directly by the Participant from the web site

Exchanges can be entered on behalf of the Participant by Customer Service

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Exchanges shall be effective at the price next computed following receipt of the exchange request on

a day the Stock Market and Plan Administrator are open for business

Exchanges received prior to the close of the stock market are effective on that day. Exchanges

received after the close of the stock market are effective the next business day.

Participants may make exchanges between investment options

The oldest shares owned by a Participant are exchanged out first to minimize potential redemption

fees

Investment Returns

ADMINISTRATIVE FEES

The Plan Administrator may assess reasonable service charges against all or any portion of the

deferred amounts or Accounts to defray costs associated with the implementation and

administration of the Plan

All investment returns are shown net of all fees

EXCHANGE FEES

Exchanges shall be subject to such fees as established by the Plan Administrator or any fees that may

be required by mutual fund providers, government regulators, or industry practices

NOTIFICATION

Participants are informed of current fees on the quarterly newsletter sent out with every quarterly

statement and are also available on the website.

REDEMPTION FEES

Redemption fees can vary by fund and are payable if the Participant has engaged in excessive trading

as determined by the Investment Fund

VIEWING

Fees are always included in the quarterly Focus newsletter that arrives with the Participant account

quarterly statement.

New Accounts

CONFIRMATION LETTER

A confirmation letter is printed and mailed to the Participant address of record for every new

enrollment one day after enrollment has been completed

CREATION

Each participant shall have one or more accounts established for them for crediting and charging

monies.

New accounts can be created by customer service representative.

New accounts can be created from the web site by the Participant

New accounts can be created using a paper form

PARTICIPATION AGREEMENT

Eligible employees shall elect to become an active Participant by executing a participation agreement

with their employer and filing that agreement with the Plan Administrator

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The participation agreement shall specify the amount of the active Participants compensation which

will be deferred subject to IRS limitations

The participation agreement shall specify the date when deferrals should begin

The participation agreement shall specify the investment option(s) specified by the Participant

ELIGIBILITY

All public employees who are eligible to participate in one of the State's statutory retirement systems

are eligible to contribute, on a pre-tax basis, a portion of their annual includable income.

START DATE

Deferral of compensation shall begin as soon as administratively possible but no earlier than the first

day of the first calendar month following the execution of the participation agreement

Newsletters

Participants can elect to receive mailed newsletters at their address of record

Participants can elect to view newsletters online and receive an email when the latest newsletter is

available.

Participants cannot opt-out of receiving a newsletter via US Mail.

Participants who elect to receive quarterly statements online will receive am email informing them

of the availability of the statement and a link to the latest newsletter.

Online Viewing

Participants will have the ability to view their account on the website.

Paperwork Archival

All relevant paperwork for Participants enrolled after 2002 must be archived electronically for future

reference. Paperwork for participants prior to 2002 is kept as hard copy in the ODC records room.

Paperwork Review

Archived images must be available for review directly from the participant inquiry screen.


ACTIVE PARTICIPANT TERMINATION

Participants who elect to terminate from being an active Participant shall be effective as early as

administratively possible

Re-enrollment

ELIGIBILITY

A Participant cannot re-enroll in Ohio DC for at least one year after taking a small balance

distribution and upon re-enrollment will be issued a new account.

Rollovers

CONFIRMATION LETTER

A confirmation letter is printed and mailed to the Participant address of record for every roll into or

out of Ohio DC

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ROLL IN

A separate account is created for each roll into Ohio DC

Participants can roll balances from former employers' plans into the plan as long as the former

employer's plan was a pre-tax 457, 403(b), 401(k), 401(a) or a traditional IRA.

Rollovers must meet validation guidelines before being processed

Terminated participants can continue to invest with Ohio DC via a roll in

ROLL OUT

Participants need to have a filled roll in/roll out for in order to have a rollover processed.

Participants leaving their current employer can roll out account balances from Ohio DC into a new

employer's plan so long as the new employer accepts rollovers from pre-tax 457, 403(b), 401(k),

401(a) plans

Participants leaving their current employer can roll out account balances into a Roth IRA

Participants leaving their current employer can roll out account balances into a traditional IRA

Participants must fill the proper forms in order to roll over into another plan.

There are no minimum or maximum amounts for a rollover.

There are no rollover fees.

Service Credits

Participants may use all or a portion of their account balances as a direct trustee-to-trustee transfer

to a governmental defined benefit system, which permits the purchase of permissive service credit or

the repayment of service credits.

Participants using the service credit purchase option must use forms provided by the Plan

Administrator and the defined benefit system to document the exact amount of transfer required

Transfers

If an employer offers multiple IRC 457 deferred compensation plans, which meet certain conditions,

the Plan will allow participants who have not had a Severance from Employment to move their

account balances between plans as an in-service transfer prior to severance from employment.

Participants can transfer money into or out of Ohio DC to/from another qualified pre-tax plan.

Participants can transfer the cash value of an inactive account to an active account within Ohio DC

Transfer requests must be received on a paper form available from the ODC website or from

customer service.

Transfer requests will be manually verified before processing by ODC financial staff.

Vesting

All Contributions or rollovers from previous employers are always immediately 100% vested

Withdrawals

BANK ACCOUNT VERIFICATION

EXCEPTION REPORT

Review and correction of incorrect routing numbers is a manual process.

An exception report will be generated monthly which lists all participant routing numbers which did

not match the records found in the acuity file.

Bank routing numbers will be validated against the Accuity file which is received on a monthly basis.

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CHANGING WITHDRAWAL AMOUNTS

Participants can start, stop, or change the amount of a withdrawal on a monthly basis without

limitation.

ELIGIBILITY

DEATH

Funds may be withdrawn from accounts and passed to beneficiary accounts upon Participant death

UNFORSEEABLE EMERGENCY WITHDRAWAL

A participant may continue to defer monies while taking an emergency withdrawal.

A Participant may request an in-service withdrawal in the event of an unforeseen emergency.

An emergency withdrawal is paid in one lump sum via check or direct deposit.

An emergency withdrawal request must be submitted in writing on the approved form

If an emergency withdrawal request is denied, a request for review of the staff determination may be

made in writing.

If an emergency withdrawal request staff determination review fails to confirm an emergency, an

appeal may be made in writing to the Board.

If at any time an emergency withdrawal request is approved, the Plan administrator may distribute

so much of the Participant's account as is necessary to provide the amount approved to meet the

unforeseeable emergency.

The criteria for approval of an emergency withdrawal is set by the plan administrator and is a

manual process outside of the recordkeeping system.

The decision of the Ohio Public Employees Deferred Compensation Board is final

There is no defined limit to the number of emergency withdrawals a participant can take but each

must go through the approval process separately.

There is no fee levied for an emergency withdrawal.

EMPLOYMENT TERMINATION

Any Participant that has terminated from service is eligible for a withdrawal after Ohio DC receives

the Participant's employer's verification of severance.

RETIREMENT

A Participant may withdraw funds upon retirement

SMALL BALANCE DISTRIBUTION

A Participant may receive a small balance distribution per account of $5000 or less if they have

stopped deferrals for at least two years, agree not to restart deferrals to the Plan for one year, are

still a public employee, and have never taken a small balance distribution previously.

PAYMENT OPTIONS

CHANGES

A Participant may change the amount or frequency of payments at any time by submitting a new

Withdrawal Election form.

DEPOSITS

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A participant may elect up to 10 bank accounts for a withdrawal paid by direct deposit.

All monthly, quarterly, and semiannual payments are made by direct deposit.

DISTRIBUTION

Participants with funds in more than one investment option may elect to have payments withdrawn

proportionately from each or may designate payments be withdrawn from one investment option.

These are the only available options to the participant.

EMPLOYER TERMINATION OR SEVERANCE

After employer termination or severance, a Participant may elect a date to begin receiving benefit

payments from the Plan

After employer termination or severance, benefit payments may begin only after verification of

severance, receipt of final deferral, and completion of the Withdrawal Election Form

If upon a participant’s separation from service and the Board’s receipt of the last deferral, the

participant’s account value is less than $1,000, the Plan administrator may accelerate the payment of

benefits otherwise due in the future and pay to such Participant (or beneficiary if the Participant

died) the full account value in a lump sum less the required tax withholding.

After employer termination or severance, Participants can take a full lump sum withdrawal of the

current account value of the account

After employer termination or severance, Participants can take a partial lump sum withdrawal of the

current account value of the account

After employer termination or severance, periodic withdrawal amounts can be based on a fixed

dollar amount or a fixed whole percentage amount of the current account value

After employer termination or severance, periodic withdrawals can be made on a fixed time period,

monthly, quarterly, semi-annually, or annually.

After employer termination or severance, periodic withdrawals can be started or stopped at any

time.

After employer termination or severance, there will be no charges or penalties assessed on

withdrawals from the Participant 457 account.

Withdrawal options allow for only a whole number of years for payments made based on a specified

time period

Withdrawal options allow for only a whole percentage value for payments made based on a specified

account percentage

LUMP SUM

Lump sum and partial lump sum withdrawals are paid by check.

MINIMUM AMOUNT

The minimum monthly amount for any payment frequency is $100

NO PAYMENT DATE CHOSEN

If a spousal beneficiary of a Participant who dies before the required minimum distribution date does

not choose a benefit payment date, benefit payments shall begin by December 31 of the year the

participant reaches age 70½. Benefits shall be paid for a fixed time period over the maximum

number of years allowed by the required IRC minimum distribution tables.

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If a participant does not choose a benefit payment date, benefit payments shall begin by December 31

of the year the participant reaches age 70½. Benefits shall be paid for a fixed time period over the

maximum number of years allowed by the required IRC minimum distribution tables.

NON-RETIREMENT

If a Participant has not had a severance from employment as of the date they reach 70 and one half

years of age then payments must begin no later than December 31 of the year in which the

Participant has a severance from employment (This overrides the IRS 70.5 rule).

RETIREMENT

After retirement, Participants can take a full lump sum withdrawal of the current account value

After retirement, Participants can take a partial lump sum withdrawal of the current account value

After retirement, periodic withdrawal amounts can be based on a fixed dollar amount or a fixed

whole percentage amount of the current account value

After retirement, periodic withdrawals can be made on a fixed time period, monthly, quarterly, semi-

annually, or annually.

After retirement, periodic withdrawals can be started or stopped at any time.

Participants may leave the entire value of their account in Ohio DC until reaching age 70 and a half. At

that point, the IRS requires the Participant to withdraw a minimum distribution amount each year.

Withdrawal options allow for only a whole number of years for payments made based on a specified

time period

Withdrawal options allow for only a whole percentage value for payments made based on a specified

account percentage

Withdrawals must begin no later than December 31 of the year the Participant reaches age 70 and a

half

RETIREMENT ACCOUNTS

Distributions before age 59 and a half, from a rollover account such as a 401(k), may be subject to

early withdrawal penalties

SMALL BALANCE DISTRIBUTION

A Participant may receive a single payment small balance distribution of $5000 or less if they have

stopped deferrals for at least two years, are still a public employee, and have never taken a small

balance distribution before

PAYMENT SCHEDULE

Scheduled withdrawals are paid monthly on the 20th day of the month

Withdrawal election forms received by the fifteenth day of the month will allow payments to start on

the twentieth day of the following month

PENALTIES

There is no penalty (other than IRS taxes) for withdrawing 457 Plan funds prior to age 59 and a half

RECEIPT DATE

Initial benefit payment elections must be received by the 15th of the month prior to the month of the

first benefit payment.

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TAXES

Benefit payments are subject to applicable tax withholding rules in the year of distribution

Benefit payments are taxable income to Participants and beneficiaries in the year of distribution

Payment options lasting less than 10 years have 20% Federal tax withholding unless it is a Required

Minimum Distribution.

Payment options that last 10 years or more have ordinary income tax withholding

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Attachment C – Code of Responsibility

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Attachment D – Client Reference Form

OHIO DEFERRED COMPENSATION APPLICATION MODERNIZATION PROJECT – OFFEROR CLIENT REFERENCE

Reference #: Offeror Name: Project Name:

Client: Client Address:

Type of Organization: Client Phone: Contact Name:

Contact Address:

Contact Title: Contact Phone:

Contact Email Address:

Start Date:

End Date: Initial Project Cost: Final Project Cost:

Hardware Configuration:

Description of Application:

Project Summary (business problem, scope, approach, resources applied):

Major Subcontractors Supporting the Referenced Project – Subcontractors: Roles:

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OHIO DEFERRED COMPENSATION APPLICATION MODERNIZATION PROJECT – OFFEROR CLIENT REFERENCE

Similarity to Ohio DC Project:

List all offeror staff members proposed to Ohio DC who also supported the referenced project: Staff Member Name: Proposed Role for Ohio DC: Role on Referenced Project:

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Attachment E – Resource Resumes Format

OHIO DEFERRED COMPENSATION APPLICATION MODERNIZATION PROJECT – RESUME SUMMARY

Staff Member Name: Proposed Role on Ohio DC Project: Number of years of professional experience – Total: Retirement system: In role proposed for Ohio DC project: Education (indicate institutions attended and degrees obtained):

Professional Reference #1

Client Name and Address:

Project Title:

Staff Member’s Role on Project:

Contact Name:

Description of Services Provided:

Contact Title: Contact Phone: Contact E-mail: Start Date:

End Date:

Professional Reference #2 Client Name and Address:

Project Title:


Contact Name:


Contact Title: Contact Phone: Contact E-mail: Start Date:

End Date:

Professional Reference #3 Client Name and Address:

Project Title:


Contact Name:


Contact Title:

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OHIO DEFERRED COMPENSATION APPLICATION MODERNIZATION PROJECT – RESUME SUMMARY

Contact Phone: Contact E-mail: Start Date:

End Date:

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