HomeMy WebLinkAboutC-8461-1 - 2014 Multiemployer Plan Analysis AgreementQ0
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February 28, 2014
Ms. Lauren Farley
HR/RM Administrator
City of Newport Beach
100 Civic Center Drive
Newport Beach, California 92660
Dear Lauren,
Subject: 2014 Multiemployer Plan Analysis Agreement
Duke Gowen I duke.gowen@aonhewittc m
We would like to thank you for the confidence the City of Newport Beach has placed in Aon Hewitt
and the opportunity to work with you in 2014. Your Aon Hewitt team sincerely appreciates your
business and looks forward to working with you this year. We will make every effort to demonstrate
that your trust and confidence in Aon Hewitt is well placed.
This letter will serve as documentation of our charges for evaluation of participation in the Laborers'
International Union of North America National (Industrial) Pension Fund ("LIUNA'). We will charge
$17,000 for the analysis as described in the attached exhibit (Exhibit A). Fees will be billed monthly.
Payment is due within 30 days of the invoice date.
In addition to fees, the City of Newport Beach will be responsible for travel -related and out-of-pocket
expenses, at cost, which Aon Hewitt has incurred on your behalf.
Please acknowledge by return email or written communication your consent to these arrangements
for this engagement.
Feel free to contact me with any questions or comments. We look forward to working with you and
your team.
Sincerely,
Aon Consulting, Inc., Operating as Aon Hewitt
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Duke Gowen
ASA, EA, MAAA
Associate Partner
AONHe-v-dU
cc: Fred Heidorn, Aon Hewitt
February 28, 2014
Ms. Lauren Farley
Page 2
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Exhibit A— Services to be Provided
You (City of Newport Beach) have asked us (Aon Consulting) to provide description and
analysis for City of Newport Beach regarding the operation and implications of ongoing
participation in the Laborers' International Union of North America National (Industrial) Pension
Fund ("LIUNA") in the following areas:
Plan Summary
• Background
• Plan history
• Participating employer characteristics
• Provisions
• Eligibility provisions
• Benefit formula
Plan costs
• Plan's financial condition
• Contribution basis
• Employer flexibility
• Funding risk
• Benefit/cost comparison versus the current plan
Withdrawal Liability
• Historic experience
• Allocation method
• Current exposure
• Triggers
This analysis will be provided through written documents to be delivered by April 1, 2014. In
addition, one meeting, either via telephone or in person as determined by the client, to discuss
the findings is anticipated.
Consulting I Retirement
2014 MULTIEMPLOYER PLAN ANALYSIS — CITY OF NEWPORT BEACH (02.28.2014)DOCX 02/28/2014