Frequently Asked Questions - Hybrid Plans

State of Rhode Island Defined Contribution Plan Request for Proposals (RFP)

Rhode Island’s new defined contribution program is an integral part of each employee’s primary retirement plan and is intended to be operated and invested in a manner that will provide members with a secure source of retirement benefits.

Timeline

• Request for proposal posted: December 12, 2011
• Questions Due by: December 19, 2012
• Bidders’ Conference: January 5, 2012, 9 a.m. to 12 p.m. (EST)
• Submission deadline: No later than 5 p.m., EST on January 20, 2012
• Finalists’ Presentations: February 22, 2012
• Service Provider Selection by SIC: March 1, 2012
• Plan Effective Date: July 1, 2012

Customer service requirements

The selected service provider must staff a toll-free, 24-hour customer service line that will provide benefit
service representatives for the program, as well as a full-service secure website available to members.

The benefit service representatives and website must be able to answer participant questions about the defined
contribution plan, its features and operations. This would include providing information on the investments
offered and their performances, as well as helping participants plan for their retirement, make investment
election changes or transfers, obtain account balance information and initiate benefit payments.

Investment requirements

Recognizing that investments will be subject to participant choice, important considerations will include participant education and communication services, as well as an investment structure that addresses risk and investment expenses in a prudent manner. Investment structures that promote a disciplined, diversified, long-term strategic allocation are preferred.

Primary investment considerations include: Appropriate fund line-up, low costs, fund performance and open architecture. Target retirement date or “life cycle” funds should be provided, as well as a range of low-cost investment options.

The investment structure/design should encourage plan participants to apply a disciplined, long-term approach to strategic investment allocations consistent with the primary plan purpose of providing resources for retirement.

Additional Plan Features

The defined contribution plan is intended to operate as a core retirement plan, not as a supplemental savings plan. As such, in-service distributions, such as loans or hardship distributions should be permitted only in circumstances that justify a divergence from the core retirement purposes of the plan. The RFP asks applicants to outline their capabilities for providing such services and also to provide an opinion on whether these options should be provided as part of a core retirement program and, if so, how they should be structured.

The following advertisement ran in the Providence Journal, Wall Street Journal (national edition) and Pension and Investments.

State of Rhode Island Defined Contribution Plan Request for Proposals (RFP)

The Rhode Island Office of the General Treasurer and State Investment Commission are seeking comprehensive Defined Contribution Plan investment, communication, recordkeeping, administration, custodial and retirement planning services for a new State of Rhode Island Defined Contribution Plan to be an integral part of the state’s new retirement structure. The RFP is available 4pm EST on Monday, December 12, 2011 via the Treasury website at http://www.treasury.ri.gov/rfp. The point of contact is Andrew Marcaccio, Legal Counsel, Office of the General Treasurer, State House Room 102, 82 Smith Street, Providence, RI 02903.