City of Richmond
May 30, 2025
Proposal for Closed Pension Plans and
Other Post-Employment Benefits Actuarial Services
June 30, 2025 – June 30, 2026
Nicolay Consulting Group
May 30, 2025 OPEB CONSULTANTS AND ACTUARIES
231 SANSOME STREET, SUITE 300
SAN FRANCISCO, CALIFORNIA 94104
TEL: 415-512-5300
FAX: 415-512-5314
City of Richmond
Attn: Finance Department
450 Civic Center Plaza
Richmond, CA 94804
Dear Selection Committee:
Re: Actuarial Services Proposal for Closed Pension Plans and Other Post-Employment Benefits
Nicolay Consulting Group is pleased to provide the following proposal for actuarial services related to the City of Richmond’s OPEB Plan valuation.
Based in San Francisco, California, Nicolay Consulting Group (NCG) is a family-owned small business that delivers a full range of actuarial valuation and consulting services to not-for-profit and public sector agencies throughout California. Unlike other firms, NCG is truly “California-centric” and CalPERS focused. For the past 25 years, NCG has served as the actuary for hundreds of public sector OPEB and retirement (pooled and non- pooled) plans that are contracted with CalPERS including those sponsored by public agencies, transportation agencies, counties, and cities like yours.
Our highly credentialed right-sized firm employs three credentialed actuaries, two analysts within one year of ASA designation, three CEBS designated consultants and seven pension administrators. Our firm is completely governed by our Vice Presidents who do not answer to or fill the pockets of a national firm.
This diverse team of actuaries and consultants bring their own unique skillsets and perspectives to deliver customized solutions to our clients. We approach each engagement with the understanding that every client is unique and deserves high-touch, proactive consulting at a reasonable price.
We confirm that all elements of the RFP for Closed Pension Plans and Other Post- Employment Benefits Actuarial Services published on PlanetBids May 9, 2025, have been reviewed and understood.
It is our intent to perform the services outlined in the RFP. In addition, NCG has the capacity and expertise to provide additional studies or valuations the City may need in the future that is not specifically covered in this RFP. NCG is not only willing but eager to enter into an agreement under the terms as prescribed by the RFP. Furthermore,
Nicolay Consulting Group
May 30, 2025 OPEB CONSULTANTS AND ACTUARIES
231 SANSOME STREET, SUITE 300
SAN FRANCISCO, CALIFORNIA 94104
TEL: 415-512-5300
FAX: 415-512-5314
Nicolay Consulting will adhere to the insurance requirement and Service Agreement as presented in Attachments A and B respectively on the RFP.
NCG has one office located in downtown San Francisco, just over a 16-mile drive from Richmond’s City Hall. As mentioned above, we are an independent family-owned firm with a strong hold in California. Our OPEB practice serves exclusively California agencies, the majority of which are contracted under CalPERS, much like the City’s.
The price presented in this proposal is valid for six months after the submission of this proposal. Furthermore, should the City choose to extend services beyond the scope of this RFP, our prices for mentioned deliverables will not increase. We guarantee these prices through fiscal year ending June 30, 2029.
Through this proposal, the City will come to find NCG is the clear choice. With our proximity, experience, thoroughness and agility, NCG goes beyond being a service provider, we strive to be a true partner—one who understands the City’s needs, anticipates challenges, and provides solutions tailored to Richmond’s long-term OPEB financial health.
I, Sue Simon, will be the City’s contact for this proposal as well as the person responsible for the Service Agreement and providing insurance information.
Thank you for inviting NCG to propose on the City’s actuarial consulting services. We understand that these decisions are made with careful consideration, and we sincerely appreciate your trust in us. It would be an honor to partner with the City and to have the privilege of serving as your chosen provider.
Sue Simon, ASA, EA, MAAA
Vice President and Senior Consulting Actuary
[email protected]
(415) 705-6131
Table of Contents
Executive Summary & References ............................................................................... 1 Overview of NCG ...................................................................................................... 1 Qualification of Firm/Team ........................................................................................ 1 Our Difference .......................................................................................................... 1 Background and Project Summary ............................................................................... 2 Project Understanding .............................................................................................. 2 Methodology Section .................................................................................................... 5 Our Suggested Approach .......................................................................................... 5 Staffing & Qualifications ............................................................................................... 7 Experience of Key Personnel .................................................................................... 7 References .................................................................................................................. 9 Relevant Experience ................................................................................................. 9 References ............................................................................................................. 12 Cost Proposal ............................................................................................................ 13 Value Added Services .................................................................................................. 16 Contractor Assignment for Sub-Contract ...................................................................... 16 Previous Contract with the City of Richmond ................................................................ 16 Exceptions to this Request for Proposals ...................................................................... 16 Statement of Impartiality and Disclosure ...................................................................... 16
City of Richmond
Proposal for Actuarial Services
Executive Summary & References
Overview of NCG
Established in 1992, Nicolay Consulting Group (NCG) is a premier provider of actuarial consulting and pension administration services, serving clients across California’s public sector. NCG operates through three integrated, yet specialized, teams: OPEB Actuarial, Pension Actuarial, and Pension Administration. These teams frequently collaborate on cross-functional engagements to deliver comprehensive solutions.
Our OPEB Actuarial team currently serves more than 50 California public sector clients.
Since launching our OPEB practice in 2000, NCG has completed more than 2,500 valuations, making us one of the most experienced actuarial consulting firms in our peer group.
Qualification of Firm/Team
Proven Public Sector Experience: NCG has 25 years of experience with California public sector entities, starting with OPEB valuations and guiding clients through implementing and reporting under GASB standards.
Deep Knowledge of Funding Mechanisms: We have extensive experience with OPEB funding vehicles, with over 50% of our clients engaged in prefunding strategies. Expertise in CalPERS Plans: With a client base exclusively in California, the majority of whom utilize CalPERS PEMHCA medical plans, we bring an in-depth understanding of CalPERS retirement systems. Our familiarity with CalPERS plan structures, pooled and non-pooled valuations, and evolving policies ensures we deliver accurate, relevant guidance.
Customized Plan Design and Funding Strategies: We work closely with clients to understand their financial goals and provide tailored recommendations on plan design and funding strategies that align with both short- and long-term objectives.
Our Difference
NCG is dedicated to delivering accurate actuarial reports with a commitment to personalized service. As a family-owned firm, we are client-focused and responsive, ensuring tailored solutions – because our structure allows us to build long-term relationships, make decisions quickly, and stay personally invested in each client’s success.
City of Richmond
Proposal for Actuarial Services
Why NCG Stands Out:
California-Based Firm - Our deep knowledge of local practices ensures relevant insights for clients.
Cost-Effective Value - Our independence allows for competitive rates without compromising service quality.
Personalized Service and Timely Communication - Clients receive dedicated attention with clear communication and quick turnaround times. Access to Experts - We provide direct access to consultants, fostering strong client relationships.
Superior Quality and Detail-Oriented Work Product - All valuations are tailored and undergo rigorous peer review, exceeding minimum disclosure requirements. All Work Performed “In-House” - All work is performed by our in-house team, enhancing communication and quality control.
Straightforward Pricing and Unlimited Support - With our all-inclusive pricing, you’ll never pay extra to get the support and answers you need..
Background and Project Summary
Project Understanding
The City of Richmond is requesting proposals for actuarial valuations for Fiscal Years ending June 30, 2025 through June 30, 2026.
Currently, both OPEB plans are scheduled for an interim (roll-forward) GASB75 disclosure for Fiscal Year ending June 30, 2025. To produce a roll-forward valuation, NGC will need to match the prior actuary’s full valuation to sign off on the roll-forward. It may be beneficial for the City to consider a full valuation for Fiscal Year ending June 30, 2025 with a roll-forward valuation June 30, 2026. We will discuss the fine tuning of this at our Kick-Off meeting.
City OPEB Plan Overview
The City offers an Other Post-Employment Benefits (OPEB) plan that provides retirees with access to medical coverage through CalPERS. All retirees who meet the CalPERS retirement eligibility are entitled to a benefit equal to the PEMHCA Minimum contribution.
Additional benefits are based on employee group, subgroup and age/service at retirement.
The City OPEB Plan’s assets are entrusted with PARS in their Capital Management Investment Fund. Contributions to the trust are a combination of employer and employee
City of Richmond
Proposal for Actuarial Services
contributions and expected to equal at least the Normal Cost. The City does not seek reimbursement from the trust for explicit and implicit payments.
Richmond Police Officers Association (RPOA) OPEB Plan Overview The RPOA OPEB Plan was established in 2017 and covers all RPOA members who retire on or after January 17, 2017. The Plan provides retirees who meet the CalPERS retirement eligibility are entitled to a benefit equal to the PEMHCA Minimum contribution.
Additional benefits are based on employee group, subgroup and age/service at retirement.
RPOA is invested in CalPERS CERBT Strategy 2. Contributions to the trust are a combination of employer and employee contributions and expected to equal at least the Normal Cost. The RPOA also does not seek reimbursement from the trust for explicit and implicit payments.
Closed General Pension Plan & Closed Police and Fire Pension Plan
These plans are closed to new participants and cover former City employees not covered by PERS, all of whom have retired. The General Pension Plan currently covers 2 retirees while the Police and Firemen’s Pension plan covers 6.
Funds are set aside for these plans, though they are not funded with an irrevocable trust.
Therefore reporting is required under GASB73 rather than GASB 68.
Requested Deliverables
Disclosure Reports:
Fiscal Year Ending June 30, 2025:
The City OPEB Plan – Roll Forward GASB 75 Actuarial Valuation Report RPOA OPEB Plan – Roll Forward GASB 75 Actuarial Valuation Report General Pension Plan - Full GASB 73 Actuarial Valuation Report Police and Fire Pension Plan - Full GASB 73 Actuarial Valuation Report
Fiscal Year Ending June 30, 2026
The City OPEB Plan - Full GASB 75 Actuarial Valuation Report RPOA OPEB Plan - Full GASB 75 Actuarial Valuation Report General Pension Plan – Roll Forward GASB 73 Actuarial Valuation Report Police and Fire Pension Plan – Roll Forward GASB 73 Actuarial Valuation Report
City of Richmond
Proposal for Actuarial Services
All GASB reports will include:
Projected and accrued liabilities separated by status Actuarial value of assets
Unfunded actuarial accrued liability and normal costs Net OPEB Obligations for GASB 74/75, Net Pension Obligations for GASB 73 Disclosure requirements for ACFR
Sensitivity Analysis illustrating discount rate +/- 1% for GASB73 and GASB 74/75 and Sensitivity Analysis illustrating trend rates +/- 1% for GASB74/75. Cash Flow analysis (GASB 74/75 Explicit & Implicit subsidy payments, GASB 73 Projected benefit payments)
Analysis of gains and losses with attribution to underlying sources Detailed demographic summaries
Comprehensive documentation of actuarial assumptions, methods, and funding strategies
Full funding valuations for contributions:
The City OPEB Plan 2-year contribution projections for Fiscal Years: 2026-27 and 2027-28 based on actuarial valuation as of June 30, 2025.
RPOA OPEB Plan 2-year contribution projections for Fiscal Years: 2026-27 and 2027- 28 based on actuarial valuation as of June 30, 2025.
General Pension Plan 2-year contribution projections for Fiscal Years: 2026-27 and 2027-28 based on actuarial valuation as of June 30, 2025.
Police and Fire Pension Plan 2-year contribution projections for Fiscal Years: 2026-27 and 2027-28 based on actuarial valuation as of June 30, 2025.
All Contribution reports will include:
Projected and accrued liabilities separated by status Actuarial value of assets
Unfunded actuarial accrued liability and normal costs Calculation of Projected Contribution
Cash Flow analysis (GASB 74/75 Explicit & Implicit subsidy payments, GASB 73 Projected benefit payments)
Analysis of gains and losses with attribution to underlying sources Detailed plan provisions
City of Richmond
Proposal for Actuarial Services
Detailed demographic summaries
Comprehensive documentation of actuarial assumptions, methods, and funding strategies
Methodology Section
Our Suggested Approach
We understand that transitioning to a new actuarial partner can feel overwhelming. NCG is committed to making the process seamless, transparent, and efficient. Upon receiving the City’s approval, we will schedule a project kickoff meeting to establish expectations, clarify deliverables, and develop a detailed project roadmap with the following timing as a starting point:
4–6 weeks for a full OPEB Actuarial Valuation, including Actuarially Determined Contribution (ADC) calculations and GASB 75 disclosure report.
2–3 weeks for a roll-forward (interim) GASB 75 disclosure report.
Project Initiation
NCG begins each engagement with a focus on final outcomes. Once we’ve discussed the City’s timing and goals, we will issue a comprehensive data request, providing ample time for staff to gather the necessary information.
Prior to the kickoff meeting, NCG will provide the City with:
1. A request for data that the prior actuary used in the last full actuarial valuation (data to be provided by prior actuary or from the City directly, if preferred).
2. A detailed data request for preparing the upcoming full valuation for the fiscal year ending June 30, 2025.
3. A summary of our understanding of the OPEB plan provisions and eligibility criteria as interpreted from the prior actuary’s report.
Kickoff Meeting
The goal of the kickoff meeting is to discuss the City’s timing and objectives to ensure that we meet the City’s needs for this project. During the meeting, we will:
Review and clarify any questions related to data collection.
City of Richmond
Proposal for Actuarial Services
Confirm the plan provisions, benefit structures, and eligibility requirements to ensure a mutual understanding.
Establish clear deadlines and key milestones for report delivery, allowing sufficient time for City review and auditor feedback.
Our data requests include detailed guidance, and we remain fully available to assist with any questions that arise during data collection. We understand the importance of meeting audit timelines and proactively follow up to monitor progress.
Valuation Preparation and Review
While awaiting data, NCG will begin onboarding tasks, including:
Programming our valuation system (ProVal by Winklevoss Technologies) to align with the prior actuary’s methodology.
Reviewing plan provisions for any discrepancies or misinterpretations that may have impacted previous valuations. If we identify any material differences, we will promptly communicate these to the City.
Upon receiving the data, our team will conduct an initial review to confirm completeness, followed by a detailed reconciliation and validation process. We will consolidate and communicate any follow-up questions efficiently to minimize disruption to City staff.
Discount Rate Selection and Prefunding Considerations
For partially funded plans like the City’s, determining the appropriate blended discount rate is essential. We will calculate the projected depletion date (the date assets are no longer sufficient to cover expected benefit payments) of the Trust using the assumed long- term rate of return provided by investment strategy for each Plan and the municipal bond rate. From this, we will determine the blended discount rate in compliance with GASB 75 and share this well in advance to support the City’s audit timeline.
Rigorous Quality Review
Every report we produce undergoes a two-tiered review process:
Technical Review: All calculations and data inputs are reviewed by a credentialed actuary.
Peer Review: The full draft report is reviewed independently by another credentialed actuary to ensure accuracy and clarity.
City of Richmond
Proposal for Actuarial Services
Client Review and Ongoing Support
Before finalizing the report, we offer the City an opportunity to review and ask questions prior to auditor distribution. We recognize the importance of transparency and collaboration, and our team remains available throughout the process and beyond to provide support.
At NCG, we are not just delivering a valuation — we are building a partnership based on trust, responsiveness, and technical excellence.
Staffing & Qualifications
Experience of Key Personnel
We are pleased to introduce the credentialed actuaries and benefit specialists who will be assigned to the City of Richmond. Our team has worked on GASB valuations since the inception of GASB 43/45 in 2004. With nearly 60 years of combined experience, our team boasts extensive actuarial knowledge and actively participates in professional organizations. We believe that while continued education is essential, contributing to and engaging with the field’s governing bodies enhances the quality of service we provide to our clients.
Sue Simon EA, MAAA, ASA FCA (Vice President and Senior Consulting Actuary) is a Vice President and Senior Consulting Actuary at NCG, where she leads the firm’s OPEB team. With over 30 years of experience, Sue has served as a trusted advisor to a wide range of corporate, not-for-profit, and public sector clients, providing expert guidance on both pension and Other Post-Employment Benefit (OPEB) plans. Her deep technical expertise, combined with a strong commitment to client service, ensures that each engagement is handled with precision and strategic insight.
Sue holds a bachelor’s degree in Actuarial Science from the University of Illinois Urbana-Champaign. She is an Enrolled Actuary (EA), a Member of the American Academy of Actuaries (MAAA), an Associate of the Society of Actuaries (ASA), and a Fellow of the Conference of Consulting Actuaries (FCA).
As the primary consultant for the City, Sue will lead the NCG team with a focus on quality, compliance, and long-term sustainability of the City’s OPEB program.
City of Richmond
Proposal for Actuarial Services
J. Malcolm Merrill FSA, EA, FCA (Vice President & Senior Consulting Actuary) is Vice President and Senior Consulting Actuary of NCG’s Pension Actuarial Services Group. Since 2007, he has consulted with ERISA, governmental, non-profit, and religious organizations on defined benefit pension plan design, funding, valuation, administration, and termination. Malcolm is a frequent industry speaker and currently serves as co-chair of the Conference of Consulting Actuaries’ Professionalism Committee. He holds a bachelor’s degree in Actuarial Science and Economics from Brigham Young University. Malcolm is a Fellow of the Society of Actuaries (FSA), an Enrolled Actuary (EA), and a Fellow of the Conference of Consulting Actuaries (FCA).
Tina Haugbro EA, MAAA (Consulting Actuary) will serve as the lead actuary for the City of Richmond’s actuarial valuations. With over 25 years of experience—primarily in the public sector—Tina brings deep expertise in Other Post-Employment Benefit (OPEB) plans. Her extensive experience with CalPERS agencies has provided her with a nuanced understanding of public retirement systems and funding strategies.
Tina has been actively involved in OPEB consulting since before the implementation of GASB 43/45 and continues to provide forward-thinking actuarial guidance. She holds a bachelor’s degree in Mathematics from Western Washington University and a master’s degree in Mathematics from Oregon State University. Tina is an Enrolled Actuary (EA) and a member of the American Academy of Actuaries (MAAA) and the Conference of Consulting Actuaries.
James Ferreri (Actuarial Analyst) supports pension and OPEB valuation projects and is expected to complete the requirements for his Associate of the Society of Actuaries (ASA) designation in June 2025. With over four years of experience, James has contributed to valuation and administration work for corporate, public sector, and church plans. His responsibilities have included gain/loss and projection analyses, assumption reviews, experience studies, and preparation of accounting and funding reports. James earned his bachelor’s degree in Mathematics from Colorado State University and actively contributes to his community through volunteer work and involvement with the university’s actuarial science program.
Valerie Merrill (Healthcare Project Manager) is a Certified Employee Benefit Specialist (CEBS) and serves as a Healthcare Project Manager with NCG’s OPEB team. With six years of experience managing Group Health Benefit Plans, Valerie brings a focused and organized approach to client engagement and project execution.
She earned an associate degree in Human Resources from Grant MacEwan Community College and plays a key role in managing timelines, communications, and deliverables for OPEB projects.
These experienced professionals may also contribute to the City’s engagement as part of NCG’s collaborative approach across service lines.
City of Richmond
Proposal for Actuarial Services
Andrew Howe (Actuarial Analyst) has seven years of actuarial and administration experience across corporate, public, and religious sector clients. He is on track to complete his ASA designation in 2025. Andrew’s work includes gain/loss analyses, projection modeling, assumption reviews, and the preparation of both funding and accounting reports. He earned a bachelor’s degree in Economics from the University of California, San Diego. Outside of work, Andrew volunteers with the San Diego Humane Society and local nonprofits focused on supporting underserved youth.
Anthony Nicolay CEBS, QKA (Pension Services Manager) is NCG’s Pension Services Manager and brings over a decade of experience in pension and employee benefit plan administration. He holds certifications as a Certified Employee Benefit Specialist (CEBS) and a Qualified 401(k) Administrator (QKA). Anthony earned his bachelor’s degree in Philosophy from the University of California, Los Angeles, and plays a key role in overseeing plan administration, compliance, and client support.
References
Relevant Experience
The table below highlights a representative sample of OPEB client engagements — each either recently completed or currently underway. The majority of these clients have partnered with NCG for over a decade, with all eligible clients renewing for the upcoming two-year valuation cycle.
This longstanding trust reflects our deep expertise in delivering comprehensive actuarial services, including:
GASB 74/75, 67/68 and 73 disclosure valuations
Actuarially Determined Contribution (ADC) calculations and CERBT filings Plan design consulting
Projection and scenario analyses
Customized liability breakouts by Status, Tier, CalPERS Classification, Department, and other metrics
We believe this track record demonstrates not only our technical capabilities but also our commitment to building strong, enduring client relationships grounded in accuracy, service, and responsiveness.
City of Richmond
Proposal for Actuarial Services
The table on page 11 outlines comparable work completed by NCG over the past year, along with each team member’s role in these engagements:
Val Merrill – As Project Manager, Val sent data requests and conducted an initial review of the received information. She maintained communication with the client and the NCG team, ensuring everyone was informed of received data, outstanding items, and deadlines. Val played a key role in keeping the engagement on track.
James Ferreri – James was responsible for preparing the data for valuation. His tasks included reconciling the data, performing consistency checks against the prior year’s information, and drafting clarification questions regarding participant data, medical premiums, or trust details. James also prepared the inputs for the valuation system. Once the data and preliminary calculations were approved by a credentialed actuary, James performed the plan valuation, incorporating any experience or assumption changes. He then prepared the exhibits and drafted the report.
Tina Haugbro – Tina, a credentialed actuary, conducted a technical review of the data and calculations completed by James, ensuring accuracy and compliance with GASB75 and GASB73.
Malcolm Merrill - After the technical review on the Pension plans was completed and the report drafted, Malcolm conducted a comprehensive peer review of the entire report to ensure quality and consistency
Sue Simon – After the technical review on the OPEB plans was completed and the report drafted, Sue conducted a comprehensive peer review of the entire report to ensure quality and consistency.
For each of the following projects, the team assigned to the City of Richmond also provided the same services.
City of Richmond
Proposal for Actuarial Services
Client Engagement Description Client Contact Information Contract Terms ACWA Joint
Powers
Insurance
Authority
FYE2024 Interim GASB74/75 Disclosure
Dan Steele - Finance Manager
(916) 786-5742
[email protected]
$2,700
July 2024
Housing
Authority of the
City of Alameda
FYE2024 Interim GASB74/75 Disclosure
Louis So – Finance Director
(510) 747-4300
[email protected]
$4,000
July 2024
Kensington
Police Protection
and CSD
FYE2024 Full GASB74/75 Disclosure
Actuarially Determined Contribution (ADC)
CERBT Filing
David Aranda – Interim General Mgr.
(510) 526-4141
[email protected]
$6,000
October 2024
Ventura Unified
School District
FYE2024 GASB74/75 Disclosure
FYE2024 GASB73 Disclosure
Eric Reynolds – Director of Risk Mgmt
(805) 641-5000
[email protected]
$12,600
August 2024
Regional Center
of the East Bay
Initial FYE2024 Full GASB75 Disclosure
Prospective Actuarially Determined Contribution (ADC) for use in reviewing trust options
Lynn Nguyen - CFO
(510) 618-6100
[email protected]
$8,000
July 2024
Carmel Area
Wastewater
District
Pension Plan Funding Report
GASB 67/68 Disclosures
Participant Benefit Statements
Barbara Buikema – General Manager
(831) 624-1248
[email protected]
$9,600
November 2024
Town of
Woodside
FYE2024 Full GASB74/75 Disclosure
Actuarially Determined Contribution (ADC)
Cindy Safe – Admin Services Director
(650) 851-6790 (main)
[email protected]
$10,200
July 2024
City of Richmond
Proposal for Actuarial Services
References
Louis So – Finance Director
Housing Authority of the City of Alameda
email: [email protected]
phone: (510) 747-4300
Dan Steele – Finance Manager
ACWA
email:[email protected]
phone: (916) 774-7050 ext. 3112
David Aranda – Interim General Mgr.
Kensington Police Protection
email: [email protected]
phone: (510) 526-4141
Lynn Nguyen - CFO
Regional Center of the East Bay
email: [email protected]
phone: (510) 618-7709
Cindy Safe – Admin Services Director
Town of Woodside
Email: [email protected]
Phone: (650) 851-6790
Here’s what some of our clients are saying:
In my five years as Finance Manager with ACWA JPIA, Nicolay Consulting has provided affordable, timely OPEB actuarial reporting, along with easy-to-read blueprints of GASB 75 required disclosures specific to my agency. I look forward to working with them for a very long time! – Dan Steele January 21, 2025.
The Kensington Police Protection District and Community Services District has used Nicolay Consulting for over fifteen years and have found them to be accurate in their work, responsive to questions and diligent in seeing that the proper documentation is provided to various governmental entities. – David Aranda January 20, 2025 The Town of Woodside really appreciates Nicolay Consultants’ professionalism, timely preparation of the Town’s GASB 75, and your thorough knowledge of the subject. Any time we or our auditors have questions you answer them completely and thoughtfully in a timely manner. – Cindy Safe, April 16, 2025
City of Richmond
Proposal for Actuarial Services
Cost Proposal
The pricing matrix reflects our all-inclusive approach to actuarial services and includes the following key components:
Data Collection and Validation:
Comprehensive review of provided census and premium data for accuracy and completeness. This process includes follow-up questions and support for any necessary corrections.
Full OPEB and Pension Actuarial Valuation:
Includes calculation of the Actuarially Determined Contribution (ADC) and a detailed gain/loss analysis to help understand changes in liability from prior valuations.
GASB 75 and GASB73 Reporting:
Preparation of all required GASB 75 disclosures and expense calculations for inclusion in the City's audited financial statements.
Client Meetings:
Coordination of planning meetings ahead of each valuation, as well as post- valuation discussions to review findings and address any questions. Ongoing Actuarial Support:
Unlimited access to credentialed actuaries throughout the engagement period for ad hoc questions, clarification of results, or scenario testing.
City of Richmond
Proposal for Actuarial Services
Deliverables:
The below table displays the hours anticipated for each team member by deliverable. Should extra time be needed, the City will not be charged more than the “Fixed Fee” column. Furthermore, should the City extend its contract for up to three additional years (FYE 2027 – FYE 2029), NCG will not increase the below fees.
Project Manager / Data AnalystActuarial AnalystActuaryPeer Review Total HoursGASB 74/75 Full Valuation Report – City Plan 3.5 10.0 2.5 1.0 17.0 $4,400GASB 74/75 Roll-Forward Valuation Report – City Plan 2.5 7.0 2.0 0.5 12.0 $3,100GASB 74/75 Full Valuation Report – RPOA Plan 3.0 9.5 2.5 1.0 16.0 $4,000GASB 74/75 Roll-Forward Valuation Report – RPOA Plan 2.0 6.0 1.5 0.5 10.0 $2,600Funding Valuations For 2 years of Contributions – City Plan 2.5 7.0 2.0 0.5 12.0 $3,000Funding Valuations For 2 years of Contributions – RPOA Plan 2.5 7.0 2.0 0.5 12.0 $3,000GASB 73 Full Valuation Report – General Pension Plan 2.0 6.0 1.5 0.5 10.0 $2,600GASB 73 Roll-Forward Valuation Report – General Pension Plan 2.0 5.5 1.0 0.5 9.0 $2,300GASB 73 Full Valuation Report – Police and Fire Pension Plan 2.0 6.0 1.5 0.5 10.0 $2,600GASB 73 Roll-Forward Valuation Report – Police and Fire Pension Plan2.0 5.5 1.0 0.5 9.0 $2,300Funding Valuation For 2 years of Contributions – General Pension Plan2.5 8.0 2.0 0.5 13.0 $3,400Funding Valuation For 2 years of Contributions – Police and Fire Pension Plan3.5 10.0 2.5 1.0 17.0 $4,300 Approximate HoursFixed Fee
City of Richmond
Proposal for Actuarial Services
Out-of-Scope Work and Billing Rates
Any project work not explicitly outlined in this proposal will be considered out-of-scope.
Should the City request services beyond the scope of this engagement, NCG will first discuss the request in detail and formalize the arrangement through a separate Engagement Letter to ensure transparency and mutual agreement.
Please note that if the data provided requires a significant level of additional preparation or is found to be incomplete at the time of report delivery, such efforts may be deemed out-of-scope and billed accordingly.
The table below outlines NCG’s 2025 hourly billing rates for the City’s dedicated actuarial team. These rates are subject to annual increases to be determined at the start of each calendar year. All projects that fall out of scope will be billed based on actual time and expenses at the current rates in effect during the project. Additionally, a 7% technology fee will apply.
All services will be performed exclusively by NCG’s in-house staff. We do not utilize outside contractors, ensuring direct accountability and consistent quality across all aspects of the engagement.
Team Member 2025 Billing Rate
Sue Simon, Peer Review Vice President $369
Malcolm Merrill, Peer Review Vice President $340
Tina Haugbro, Actuary $286
James Ferreri, Lead Analyst $268
Val Merrill, Project Manager / Data Analyst $175
City of Richmond
Proposal for Actuarial Services
Value Added Services
NCG’s proximity to the City adds tremendous value as in person meetings are easier as well as being part of the “Bay Culture”. We know California! NCG has capacity actuarial expertise including but not limited to plan design studies, asset and liability projections and contribution projections with a wide range of variables (discount rate, rate of return on assets, amortization methods, contribution fluctuation to name a few).
Often employees undervalue the benefits the City provides, NCG can help with total compensation statements as well as, communications and administrative support to City employees.
Finally, NCG can assist the City in making its administrative practices more efficient.
Contractor Assignment for Sub-Contract
NCG will perform all valuations in house with the team set forth in this Proposal.
Previous Contract with the City of Richmond
NCG does not have any previous contracts with the City and is looking forward to establishing a working relationship.
Exceptions to this Request for Proposals
NCG does not have any exceptions to this proposal.
Statement of Impartiality and Disclosure
NCG does not currently, and will not throughout the duration of the contract with the City, engage in work involving a third-party with interests currently in conflict or likely to be in conflict with the City of Richmond’s interest. Additionally, NCG does not have any pending or active investigations or litigation that may aƯect our reputation or ability for us to carry out the assignments set forth in this RFP .