Board of Selectmen Regular Meeting Materials (linked)

Vendor
FOSTER AND FOSTER
ACTUARIAL VALUATION
2021 Actuarial Valuation $6000.00
2022 Actuarial Valuation $6000.00
2023 Actuarial Valuation $6000.00
2024 Actuarial Valuation $6000.00
2025 Actuarial Valuation $6000.00
TOTAL
$30,000.00
GASB 75 VALUATION
FY 2022 GASB 75 Valuation $11,330.00
FY 2023 GASB 75 Valuation $11,670.00
FY 2024 GASB 75 Valuation $12,020.00
FY 2025 GASB 75 Valuation $12,380.00
FY 2026 GASB 75 Valuation $12,750.00
TOTAL
$60,150.00
STAFF RATES (HOURLY)
Senior Consultant $375.00
Senior Staff $325.00
Junior Staff $290.00
Administrative $175.00
Vendor
MILLIMAN ACTUARIAL SERVICES
VALUATION 2021-2022 FEES
Prepare Pension Valuations by September 15, July 1, 
2021 $4,500.00
Prepare OPEB Valuation biennially by September 15, july 
1, 2021 $11,000.00
Bid Tabulation Sheet
Bid#21-101 Pension and Actuarial Services 
March 25, 2021 @10:00 am
NOTES
WE PROPOSE CHARGING THE TOWN AN ANNUAL RETAINER FOR THE SERVICES. FEES WILL BE 
EFFECTIVE FOR FIVE (5) YEARS BEGINNING JULY1, AND ARE SUBJECT TO NEGOTIATIONS. THE 
CONTRACT ALSO CALLS FOR THREE (3) ONE YEAR OPTIONAL RENEWALS
MEETINGS ARE BILLED BASED ON HOURLY RATES SET FORTH. WE WILL PROVIDE A FIRM FEE 
QUOTATION PRIOR TO COMMENCING ANY WORK AT THE TOWN'S REQUEST. ANY ADDITIONAL 
WORK PERFORMED FOR THE TOWN WILL BE INVOICED IN ACCORDANCE WITH OUR HOURLY 
RATES. NOT TO EXCEED QUOTES WILL BE PROVIDED AS REQUIRED BY RFP.
NOTES

Review Actuarial Accumptions; Included in Valuation Fee
Assist in analysis of proposed plan changes; Based on 
hourly rates
Assist in preparation of documents;Based on hourly 
rates
Assist in implementation of audit recommendations: 
Based on hourly rates
Determination of Benefits for individual employees; N/A- 
there are no active pension plan members
Prepare annual financial statement reports; GASB 67/68 
(pension) and GASB 74/75 (OPEB by September 15 
Pension Plan $35,00.00, OPEB Plan $3,500.00
Advise on compliance requirements: Based on hourly 
rates
Provide factors, formulas and other administration 
assistance; Based on hourly rates.
Prepare annual identification of emerging issues; 
Included in valuation fee.
Coordinate liability estimates with investment 
consultant; Included in valuation fee.
Prepare annual employee benefit statements N/A - there 
are no active pension plan members.
Counsel the Town on other issues; Based on hourly 
rates.
HOURLY RATES 2021-2022 PERIOD
Lead Actuary $355.00
Supporting Consultant $355.00
Peer Review Actuary $475.00
Healthcare Actuary $575.00
Senior Analysts $285.
Analysts $255.00
Vendor
THE SEGAL COMPANY
VALUATIONS
FY2022
FY2024
FY2025
FY2026
Defined Benefit Pension Plan Valuations
$7,500.00
$7,950.00
N/A*
$8,450.00
For the biennial pension and OPEB valuation cycles, the Actuarially Determined Contribution for the 
off fiscal years will be calculated as part of the full valuations and will be equal to the Actuarially 
Determined Contribution for the preceding fiscal year plus one year of interest.Alternatively, for an 
additional fee, we could reflect the actual investment performance during the year since the last full 
valuation in the circulation of the Actuatially Determined Contribution, and provide abbreviated 
valuation reports supporting the circulation thereof. Additional information regarding fees stated in 
actual bid submission.

Defined Benefit Pension Plan GASB 67/68 Disclosures
$2,650.00
$2,750.00
$2,800.00
$2,850.00
OPEB Plan Valuations
N/A
N/A
$13,000.00
N/A
OPEB Plan GASB 74/75 Disclosures
$2,650.00
$2,750.00
$2,800.00
$2,850.00
Benefit statements
Pricing varies based on quantity and type of information to be communicated.
Total**
$12,800
$13,450
$18,600
$14,150
•     Pensionis currently on a biennial schedule. If annual valuations are needed for FY2023 and FY2025 the amounts will be $7,700 and
$8,100, respectively.
•• Pricing doesn't includeBenefit statements, when applicable.
HOURLY RATES OF SERVICE
Consulting Actuary
$450.00 - $520.00 No additional fees for travel expenses
Consultant
$350.00 - $380.00
Analyst
$260.00 - $290.00
Vendor
KEY BENEFIT CONCEPTS
VALUATION
Begin
End
OPEB
Pension
Total
CostNear
2021
2022
$7,200.00
$6,600.00
$13,800.00
2022
2023
$7,200.00
$6,600.00
$13,800.00
2023
2024
$7,200.00
$6,600.00
$13,800.00
2024
2025
$7,400.00
$6,800.00
$14,200.00
2025
2026
$7,400.00
$6,800.00
$14,200.00
$36,400.00
$33,400.00
$69,800.00
2026
2027
$7,400.00
$6,800.00
$14,200.00
2027
2028
$7,400.00
$7,000.00
$14,400.00
2028
2029
$7,600.00
$7,000.00
$14,600.00
$22,400.00
$20,800.00
$43,200.00
8 - YR TOTAL
$58,800.00
$54,200.00
$113,000.00
Begin
End
OPEB
Pension
Total
CostNear
2021
2022
$7,416.00
$6,798.00
$14,214.00
2022
2023
$7,416.00
$6,798.00
$14,214.00
Discounted Fees for Payment by
Check or ACH
5-Yr Subtotal
Fiscal Year
 Fees if Paid by Debit/Credit Card
Add'I 3- Yr Subtotal
NOTES
Fiscal Year

2023
2024
$7,416.00
$6,798.00
$14,214.00
2024
2025
$7,622.00
$7,004.00
$14,626.00
2025
2026
$7,622.00
$7,004.00
$14,626.00
$37,492.00
$34,402.00
$71,894.00
2026
2027
$7,622.00
$7,004.00
$14,626.00
2027
2028
$7,622.00
$7,210.00
$14,832.00
2028
2029
$7,828.00
$7,210.00
$15,038.00
$23,072.00
$21,424.00
$44,496.00
8 - YR TOTAL
$60,564.00
$55,826.00
$116,390.00
Vendor
BOLTON PARTNERS INC.
VALUATION
Begin
End
PENSION 
OPEB
TOTAL
2021
2022
$6,100.00
4000.00 (ROLL FORWARD)
$10,100.00
2022
2023
$6,200.00
$9,900.00
$16,100.00
2023
2024
$6,350.00
$4,000.00
$10,350.00
2024
2025
$6,450.00
$10,300.00
$16,750.00
2025
2026
$6,575.00
$4,100.00
$10,675.00
$31,675.00
$32,300.00
$63,975.00
2026
2027(OPTIONAL)
$6,700.00
$10,700.00
$17,400.00
2027
2028(OPTIONAL)
$6,900.00
$4,300.00
$11,200.00
2028
2029(OPTIONAL)
$6,900.00
$11,200.00
$18,100.00
$20,500.00
$26,200.00
$46,700.00
8 - YR TOTAL
$52,175.00
$58,500.00
$110,675.00
HOURLY RATES OF SERVICE
Senior Actuary
$515.00
Consultant/Actuaries
$340.00
Senior Analyst
$235.00
Analysts/Technicians
$185.00
Travel Costs are included in above fees. No additional costs of expenses for in-scope services as defined in RFP
Vendor
HOOKER AND HOLCOMBE
VALUATION
Begin
End
PENSION 
OPEB Plan Valuation
GASB 67/65
GASB 75 Disclosure 
Report 1
2021
2022
$4,500.00
$2,900.00
$2,900.00
2022
2023
4500.00^
$13,700.00
$2,925.00
$2,925.00
Add'I 3- Yr Subtotal
5-Yr Subtotal
FISCAL YEAR
RATES
5-Yr Subtotal
Add'I 3- Yr Subtotal
NOTES
For services out of the scope of the regular valuation, a fee would be determined based 
on hourly rates.we typically would agree to a fixed fee before the starting of any project in 
order to provide cost certainty to the Town. Hourly rates are provided for July 1, 2021 -
June 30, 2022 with an annual increase of  2% each year afterwards.
NOTES
FISCAL YEAR
RATES

2023
2024
$4,500.00
$2,950.00
$2,950.00
2024
2025
4500.00^
$14,300.00
$2,975.00
$2,975.00
2025
2026
$4,500.00
$3,000.00
$3,000.00
$21,500.00
$32,000.00
$14,750.00
$14,750.00
Consultant/Actuaries
$300.00 - $490.00
Analysts/Technicians
$165.00 - $300.00
Administrative/Support
$100.00 - $165.00
HOURLY RATES OF SERVICE
2021 rates are subject to change annually. No other costs will be 
incurred for travel.
Other fees that may be incurred from time to time include analysis for plan 
and/ or assumption changes. I f a deletion date circulation is needed due to 
funding less than the full ADEC, these service fees would be agreed upon 
prior to work being completed.
5-Yr Subtotal

   
 
 
TOWN OF WATERFORD, CONNECTICUT 
RFP #21-101: Proposal for Pension and OPEB Actuarial Consulting Services  
Hooker & Holcombe  
1300 Hall Boulevard, Suite 1C 
Bloomfield, CT 06002 
860.521.8400 
 
hhconsultants.com 
 
 
March 25, 2021 
Submitted by:  
Stephen Chykirda, ASA, FCA, MAAA 
Consulting Actuary 
Actuarial Services 
 
 
Steve A. Lemanski, FSA, FCA, MAAA 
Vice President, Practice Leader 
Actuarial Services  




TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 2 
TABLE OF CONTENTS  
LETTER OF INTEREST ........................................................................................................................ 4 
FIRM DESCRIPTION  .......................................................................................................................... 6 
PERSONNEL AND GEOGRAPY ......................................................................................................... 10 
STAFFING AND CONTINUITY ........................................................................................................... 11 
EXPERIENCE ................................................................................................................................... 13 
FAILURE TO COMPLETE WORK, DEFAULT AND LITIGATION……………………………………………………………16 
OTHER INFORMATION.................................................................................................................... 17 
CONCLUDING STATEMENT ……………………………………………………………………………………………………………20 
 
 
 
 
EXHIBITS 
I. 
Required Forms 
II. 
Sample Valuation Report 
III. 
Team Bios 
IV. 
Marketing Materials 
  

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 3 
 
 
 
Since our inception in 1956, we have been providing actuarial and consulting expertise to the public 
and private sectors. 
As a current client, you already know our firm and its capabilities – and we already know your 
pension and OPEB plans and your organization.  Our goal is to continue to help the Town identify 
opportunities and challenges, achieve goals and exceed expectations. 
We value our existing relationship and look forward to continuing to deliver exceptional service and 
expert advice, proving that Hooker & Holcombe is the right choice for the Town of Waterford. 
 
 
 
 
THE ELEMENTS OF SUCCESS 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 4 
LETTER OF INTEREST 
March 25, 2021 
 
 
Purchasing Agent 
Town of Waterford 
15 Rope Ferry Road 
Waterford, CT 06385 
Attention: Purchasing Department 
 
RE: Proposal for Pension and OPEB Actuarial Consulting Services 
 
To Whom It May Concern: 
Hooker & Holcombe thanks you for the opportunity to present this proposal for pension and OPEB 
actuarial consulting services to the Town of Waterford.  As your current actuary, we believe that our 
firm offers the expertise and services the Town seeks for its pension and OPEB plans.  As you review 
our proposal, we would like to confirm the advantages that Hooker & Holcombe will bring to this 
engagement:  
Vast Resources  
 
As many know, public pension and OPEB plans can be very complex.  Our firm has over 65 years of 
experience working with municipalities in Connecticut and throughout the Northeast.  During this 
time, we have built a proven track record of helping cities and towns of all sizes identify, achieve 
and exceed their financial goals. Our staff of professionals will utilize their knowledge to provide 
reliable data, exceptional service and timely deliverables.  
The combination of our experience provides you with vast resources not often found in smaller, 
regional firms. Many of our clients have been with us for more than 20 years, a testament to the 
quality of our service and the professionalism of our consultants.   
Experience 
We are the actuary for more than 100 municipal pension and OPEB plans in the Northeast region of 
the country, and most of our public clients are in Connecticut.  Our extensive background working 
with public pension and OPEB plans means there is no issue or situation that we have not 
encountered.  We understand state laws and will provide work under the provisions of such laws. 
Our knowledge and consultative approach translates to on-point advice for the Town.  
 
 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 5 
Our consultants and staff go beyond just number crunching 
Our main objective is to help solve your problems and make your life easier.  We don’t deliver 
“cookie cutter” solutions. We work to understand our clients’ needs and offer sound solutions that 
work.  
Service 
Our goal is to exceed your expectations for accurate information and responsive service.  We utilize 
state-of-the-art systems and procedures to ensure that work is handled efficiently and effectively – 
with a minimum of effort on your part. 
Value 
As a regional consulting firm, we do not support an expensive infrastructure with layers of 
management and multiple offices. This not only keeps our pricing competitive, it enables us to work 
as a team to identify the best solutions for our clients.  
In closing, we value our relationship with the Town and wish to retain your business.  We look 
forward to discussing our proposal with you and appreciate your consideration for this important 
engagement.  Please do not hesitate to contact me with any questions. 
Yours truly, 
 
 
Stephen Chykirda, ASA, FCA, MAAA 
Consulting Actuary 
SChykirda@hhconsultants.com 
 
 
Enclosures 
 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 6 
FIRM DESCRIPTION 
o State your firm’s philosophy and approach in undertaking the services of the nature 
outlined in the RFQ/RFP, as well as a description of its primary business focus along with a 
detailed description of its municipal audit services group.   
We fully understand the scope of services outlined in this proposal and believe our firm can deliver 
the expertise and services the Town of Waterford is seeking for its pension and OPEB plans.   
We understand your needs.  The Town is seeking a professional actuary to perform pension plan 
and OPEB valuations and other related services as required under the current or future GASB 
standards for its three single-employer Defined Benefit Pension Plans which include the Employees’ 
Pension Plan, the Police/Fire Retirement Fund, and Public School Employees’ (Non-certified) 
Pension Plan.  The Town currently administers and maintains the previously described three single-
employer Defined Benefit Pension Plans to provide retirement benefits to town retirees.  Employee 
contributions to the Plans may vary by individual and collective bargaining contracts.    
Our solution.  Hooker & Holcombe (H&H) has the experience and know-how to provide superior 
actuarial services for the Town’s three pension plans.  We will conduct biennial actuarial valuations 
and GASB disclosures as a combined report for the 3 plans as needed.  The reports will include all 
the necessary requirements of the Governmental Accounting Standards Boards (GASB) Statements, 
any future GASB pronouncements, and any data needed to prepare reports required by the federal 
government.  We will prepare disclosures as required in compliance with GASB and distribute to the 
Town in a timely manner.  We have expert knowledge of Federal and State laws and will advise the 
Town in regards to current and future regulations.   
We know the municipal marketplace and will work with you to provide recommendations and 
solutions for future funding of the Town’s pension and OPEB liabilities and achieving its fiscal goals.    
Hooker & Holcombe (H&H) is one of the largest privately-held regional actuarial, investment 
advisory and retirement plan consulting firms in the Northeast.  The firm was founded in 1956 as a 
pension and actuarial firm. As our clients’ needs grew, the firm’s service offerings grew with them. 
Today, in addition to actuarial services we offer institutional investment advisory and retirement 
plan administration services through two subsidiaries: 
 Hooker & Holcombe Investment Advisors, Inc. which provides institutional investment 
advisory services for plan sponsors. 
 Hooker & Holcombe Retirement Services, Inc. which provides defined contribution 
consulting and administrative services to plan sponsors and their participants. 
The following depicts the firm’s broad capabilities. Our unique infrastructure allows us to provide 
our clients with a comprehensive array of retirement planning services under one roof, allowing for 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 7 
significant economies of scale.  Additionally, our structure fosters the sharing of intellectual capital 
between the different groups, ensuring that our clients receive the best solutions available to help 
them identify, achieve and exceed their retirement plan goals. 
 
We have built our reputation on being responsive to our clients’ needs. We do everything possible 
to assist our clients in ensuring that their plan operates according to each client’s specifications. Our 
service teams are structured with enough depth to ensure that clients are always able to reach any 
one of the professionals on their H&H team. We also use state-of-the-art systems and proven best 
practices to ensure that plans are handled correctly, efficiently and cost-effectively. We are 
constantly seeking better ways to help our clients identify, achieve and exceed their retirement plan 
goals.  
Our actuarial consulting team includes both pension and OPEB experts who are knowledgeable 
about all aspects of GASB 67 and 68, as well as GASB 74 and 75.  We actively assist our public sector 
clients and their auditors, large and small, with the GASB rules and funding.  
o Describe the resources the firm currently has for effective delivery of these actuarial 
services.  
For over 65 years, we have met client expectations by continuously examining and refining the 
way in which we do business.  We work hard to understand our clients’ needs for efficiency, 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 8 
profitability and quality, and we will do everything we can to lower our clients’ costs while 
ensuring their satisfaction.  
Our actuarial services include: 
 Plan valuations 
 Funding strategies 
 Plan design 
 Asset liability modeling 
 De-risking solutions 
 Experience studies 
 Union negotiation planning 
 Arbitration testimony 
 Benefit calculations  
 Post-retirement medical benefits (OPEB) 
 Plan termination expertise 
 Online pension administration  
We utilize state-of-the-art information systems to provide defined benefit services to assist our 
clients in the administration of their retirement plans. The following summarizes our primary 
software systems for our defined benefit and OPEB services: 
ProVal, by Winklevoss Consultants, Inc. is the software used for actuarial valuation computations.  
ProVal is a widely respected product utilized by many pension and OPEB providers.   
ProVal integrated valuation and projection software is continually monitored and upgraded by 
professionals, and allows us flexibility and efficiency in each client’s valuation process. 
ProVal allows us to provide the following services: 
 Pension & OPEB funding projections 
 Asset liability modeling 
 Early retirement window plans 
 Workforce projections 
 Retiree medical and life insurance benefits 
 A broad range of pension and OPEB formulas for all types of plans 
 Negotiated future benefit changes and grandfathered benefits 
 Unlimited assumptions 
 Calculations of multiple liabilities at differing interest rates 
 Unlimited contribution and expense scenarios 
 Analysis of “what if” scenarios based on differing assets returns, accounting discount rates, 
inflation, funding interest rates and cost of living increases. 
Microsoft Excel is used for a number of varied and complex actuarial calculations provided to our 
clients. 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 9 
The need to protect the exchange of confidential information via email is a priority. All email that 
contains confidential information will be exchanged using the H&H Secure Message Center. The 
Message Center should also be used by clients to send secure messages and files to H&H. 
o What quality control and scheduling procedures does the firm employ to assure that the 
services provided are of acceptable quality and timely?  
We take quality control very seriously.  Our firm is organized into three service units with firm-
wide quality control and unit scheduling procedures. We use an internal online Worktrack 
system to manage workflow, ensuring that all work is properly reviewed and all deadlines are 
met. 
All actuarial work is initially prepared by a highly-skilled actuarial analyst before being reviewed 
by a credentialed actuary. Both the analyst and reviewer have online checklists they must 
complete to certify that all of our processes and procedures have been followed correctly. Final 
valuation results are also subject to actuarial peer review.  A draft report is reviewed with the 
Town before publication to ensure that there were no misunderstandings with regard to plan 
provisions or assumptions.  A sample valuation report is provided in the Exhibits section of this 
proposal.   
Additionally, our firm has successfully completed the SOC 1, Type 2 examination, 
ensuring trust and confidence in our service delivery processes and controls. 
 
 
 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 10 
PERSONNEL AND GEOGRAPHY 
 
o What is the number of full-time employees in your firm?  
The firm employs nearly 70 dedicated and highly-experienced professionals.   
o What is the location of your nearest office to Waterford, Connecticut? 
All services are performed from our office located at 300 Hall Boulevard, Suite 1C, Bloomfield, CT 
06002. 
o Provide a breakdown by classification (executive, professional or clerical) for both your 
national and local operations.  
The classification breakdown is as follows: 11 executives, 51 professionals and 11 clerical. 
  
 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 11 
STAFFING AND CONTINUITY  
o Please submit biographical profiles, including actuarial credentials, on the individual(s) 
who will be assigned to our account and the person to whom they report. 
With more pension actuaries under one roof than any other regional firm of our size, we have the 
resources to provide expert consulting services for all types of defined benefit plans. We have built 
our reputation on being responsive to our clients’ needs.  We do everything possible to assist our 
clients in ensuring that their plan operates according to each client’s specifications.  
Our actuarial consulting team includes both pension and OPEB experts who are knowledgeable 
about all aspects of GASB 67 and 68, as well as GASB 74 and 75.  We are actively assisting public 
sector clients, large and small, with GASB rules and funding.  
As a current client, your actuarial team will continue to be led by Stephen Chykirda, ASA, FCA, 
MAAA, consulting actuary.  Stephen has been in the actuarial consulting industry for 25 years, with 
extensive experience in New England, specifically Connecticut, Rhode Island and Massachusetts.  
Stephen will be supported by peer-review actuary Steve A. Lemanski, FSA, FCA, MAAA, vice 
president, practice leader, Theodora French, actuarial specialist, and Alex Pokorski, actuarial 
associate.  All of your team members have experience working with Connecticut municipalities.  
Bios for Stephen and Steve can be found in the Exhibits section of this proposal.   
Most of the principals of the firm are credentialed actuaries, known as “consultants.” Our 
consultants are supported by analysts and technical specialists who are highly skilled and hold the 
following designations:   
 
Fellow of the Society of Actuaries 
 
  4 
 
Fellow of the Conference of Consulting Actuaries 
   5 
 
Associate of the Society of Actuaries 
   4 
 
Enrolled Actuary 
    9 
All of our consulting actuaries are Members of the American Academy of Actuaries and Enrolled 
Actuaries. Additionally, one or more of them are members of the following organizations: 
 
Society of Actuaries 
 
Conference of Consulting Actuaries 
 
American Society of Pension Professionals & Actuaries 
 
New England Employee Benefits Council 
 
American Benefits Council 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 12 
 
Government Finance Officers’ Association (GFOA) 
 
Connecticut Public Pension Forum (CPPF) 
 
Connecticut Conference of Municipalities (CCM) 
Our actuaries participate in continuing education meetings and webinars provided by the 
Conference of Consulting Actuaries, American Academy of Actuaries and the Society of Actuaries.  
To ensure that our professionals are up-to-date on current trends, information obtained at these 
sessions is shared with our highly-trained actuarial and technical staff through a monthly series of 
continuing education programs conducted in-house. The firm also adheres to the formal program of 
annual continuing education requirements that has been implemented by the American Academy of 
Actuaries and the Joint Board for Enrolled Actuaries. 
Since a significant portion of our business is governmental, a large part of our education efforts 
focus on public sector services.  Our staff regularly attends GFOA, CPPF, CCM, and ConnPELRA 
meetings in addition to sessions related to the public sector at actuarial conferences.  
o Where are these individuals located?  Who will attend review meetings?  Will the same 
person(s) always be representing your firm?  
All of our actuarial employees work from our Bloomfield, CT office.  Client continuity is important 
to building lasting relationships, which is why your H&H team is structured with enough depth so 
you are always able to reach your team members. Typically, review meetings are attended by your 
primary consultant.  In the event that individual is not available, the peer-review consultant will 
attend on their behalf.    
o How many clients have you lost within the last three (3) years?  How many clients have 
you gained in the last three (3) years? 
We gained 27 new clients and lost 11 clients in the past 3 years.    
o Please submit the matrix below to indicate your level of Connecticut Municipal Staffing:  
CT Municipal 
Pension Staff 
Total number of 
staff persons 
Number of additions 
within the last three 
years 
Number of 
departures within 
the last three years 
Executive Staff 
5 
2 
2 
Professional Staff 
36 
17 
15 
Clerical Staff  
5 
2 
2 
 
 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 13 
EXPERIENCE 
o Number of retirement plans for which actuarial consulting services are provided: 
• By the firm overall 
• By the office of the firm that will service this account 
• By the Project Manager/Leader who will service this account 
The number of retirement plans for which we provide actuarial consulting services are provided 
below:  
By the firm overall:  400+ 
By the office of the firm that will service this account:  400+ 
By the Project Manager/Leader who will service this account:  69 
o Number of qualified municipal retirement plans for which actuarial consulting services are 
provided: 
• By the firm overall 
• By the office of the firm that will service this account 
• By the Project Manager/Leader who will service this account 
The number of qualified municipal retirement plans for which we provide actuarial consulting 
services are provided below:  
By the firm overall:  150+ 
By the office of the firm that will service this account:  150+ 
By the Project Manager/Leader who will service this account:  32 
o List five (5) clients with plans similar to ours that we may contact for references.  Please 
provide information in a table with the following information: 
• Plan Name 
• Number of Employees 
• Number of Retirees 
• Number of Vested Members 
• Value of Assets 
• Client since when? 
• Contact Person name and telephone number  
 
 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 14 
Plan Name  and contact 
information  
# 
Employees 
# Retirees 
# Vested 
Value of 
Assets 
Client Since 
Town of Wilton  
Sarah Taffel 
Director of Human 
Resources, Labor 
Relations, and 
Administrative Services 
203.563.0118 
265 
 
223 
53 
$117 million 
1990 
Town of Stonington 
James Sullivan 
Director of Finance 
860.535.5070 
136 
150 
49 
$34 million 
1985 
City of New London 
David McBride Jr. 
Director of Finance 
860.447.5218 
68 
223 
29 
$30 million 
20+ years 
City of Groton 
Ron Yuhas 
Finance Director 
860.446.4110 
202 
155 
33 
$84 million 
20+ years 
Town of Essex 
Kelly Sterner 
Director of Finance 
860.767.4340 x122 
80 
61 
17 
$6 million 
2014 
 
o Number of municipal programs for which actuarial consulting services are provided for 
OPEB:  
• By the firm overall 
• By the office of the firm that will service this account 
• By the Project Manager/Leader who will service this account 
The number of municipal programs for which we provide actuarial consulting services for OPEB are 
provided below:  
By the firm overall:  150+ 
By the office of the firm that will service this account:  150+ 
By the Project Manager/Leader who will service this account: 18 
 
 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 15 
o Describe the research capacity of your firm and explain how it may benefit the Pension 
Committee.  
Rather than have a dedicated research department, our firm forms committees utilizing the 
expertise of various employees to discuss clients’ wants and needs, industry trends, and innovative 
solutions that ensure our services continue to evolve to meet client needs.   
For example, a team of actuarial professionals worked with selected clients to build  PensionEdge•, 
our online pension administration portal that enables plan sponsors and participants to access and 
work with their pension from any device with an internet connection.     
Below are some additional solutions that have benefited Connecticut municipalities as a result of 
our collaborative approach:  
Case study #1 - This city wanted to reduce pension-related liabilities and costs for current and 
future non-union employees. Our innovative consultants structured a plan design that enables 
employees to “opt-out” of their current DB plan to join a new DC plan, while giving retirees and 
terminating employees’ new options to consider;  
Case study #2 – Like many municipalities attempting to fund their pension plans, this town was 
facing a growing pension expense.  With participants living longer and expected future asset returns 
decreasing, the client needed a solution to curb rising pension costs.  Our consultants introduced a 
cash balance plan design which not only assisted with controlling costs, but created a convenient 
and valuable way for participants to understand their pension benefit.    
The full case studies are available in the Exhibits section of this proposal. 
Since a significant portion of our business is governmental, a large part of our education efforts 
focus on public sector services.  Our consultants regularly attend and present at GFOA, CPPF, CCM, 
and ConnPELRA meetings in addition to sessions related to the public sector at actuarial 
conferences. 
 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 16 
FAILURE TO COMPLETE WORK, DEFAULT AND 
LITIGATION 
o Have you ever failed to complete any work awarded to you?  If so, where and why?  
Hooker & Holcombe has never failed to complete work awarded and assigned.  
o Have you ever defaulted on a contract?  If so, where and why? 
Hooker & Holcombe has never defaulted on a contract.  
o Is there any pending litigation which could affect your organization’s ability to perform 
this agreement?  If so, please describe.  
Hooker & Holcombe is not now, nor has it ever been, investigated or litigated by any federal, state 
government or agency. We have not experienced any claims or settlements that we paid or were 
paid by our insurers. The same holds true for our consultants.  
o Has your firm ever had a contract terminated for cause within the past five years?  If yes, 
provide details.  
No, Hooker & Holcombe has not had a contract terminated for cause within the past five years.  
o Has your firm been named in a lawsuit related to errors and omissions within the past 
five years?  If yes, provide details.  
Hooker & Holcombe is not now, nor has it ever been, investigated or litigated by any federal, state 
government or agency. We have not experienced any claims or settlements that we paid or were 
paid by our insurers. The same holds true for our consultants.  
o During the past seven years, has your firm ever filed for protection under the Federal 
bankruptcy laws?  If yes, provide details.  
The firm has never filed for protection under Federal bankruptcy law.  
o Are there any other factors or information that could affect your firm’s ability to provide 
the services being sought about which the Town should be aware?  
No. We have fully read and understand this proposal and are confident we can provide the 
services requested.  
 
 
 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 17 
OTHER INFORMATION 
o How is your firm uniquely qualified to serve our account?  
As the Town’s current actuary, we already understand your goals and know you, your procedures, 
your data, and your retirement plans well. This means we are already up to speed with your 
program, and there will be no time lost going through a cumbersome and time-consuming 
transition.     
Additionally, our extensive background working with pension plans, coupled with over 65 years of 
experience, means there is no issue or situation that we have not encountered.  We understand 
state laws and will provide work under the provisions of such laws. Our knowledge translates to on-
point advice for the Town of Waterford.  
o Feel free to include any other information in your proposal which will help the Town 
develop an understanding of the capabilities of your firm.  
Please take the following into consideration when making your decision:   
INDEPENDENCE 
We are independent pension and OPEB benefit consultants and actuaries. Unlike some other service 
providers, our primary business is defined benefit plan consulting and valuation work. Our 
commitment and energies are focused on working with you as the plan sponsor, as well as any 
other vendors involved with your retirement plans. We have no other agenda, nor do we have any 
other vested interests. Our independence is assured since our only vested interest is providing 
superior consulting, actuarial and administrative services. 
COMPLIANCE 
We are especially proud of our work in the compliance area. Since various government limitations 
and restrictions may have a direct impact on your plans, it is our policy to constantly review and 
evaluate the potential influence of new legislation and associated regulations on retirement plans. 
We also update our clients regularly on these issues. 
COMPETITIVE FEE STRUCTURE 
H&H provides value-added services at a very competitive price. Unlike large, national organizations 
with layers of management and operational overhead, our size permits us to provide the same 
services at a more economical rate. 
 
 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 18 
INSURANCE 
If awarded this contract, we can provide a certificate of insurance indicating the following minimum 
coverage: 
 Worker’s Compensation – As required by law 
 General Liability with the Client as additionally insured, $1,000,000 CSL, aggregate of 
 
$2,000,000 
 Automobile Liability - Hired automobiles; combined single limit of $1,000,000 per occurrence 
 Professional Liability - Minimum limits of $5,000,000 per occurrence 
If the policy is on a claims-made basis, the policy shall be continually renewed for two years beyond 
the termination date of this contract and its renewals. 
CONSULTING GROUP SYNERGY 
We all know that many heads are better than one. That’s why our consultants meet monthly to 
discuss client cases and share beneficial strategies. This sharing of best practices brings fresh ideas 
and unique concepts to our clients on an ongoing basis.   
NO CONFLICT OF INTEREST 
We affirm that our selection and retention shall not result in any conflict of interest or create any 
appearance of impropriety with any person or organization which may be affected under this 
program. 
Should any potential or existing conflict become known by us, we will specify the person or 
organization with which the conflict exists or might arise, the nature of the conflict and whether we 
would or would not resign from the conflicting engagement.  
INFORMATION TECHNOLOGY 
Because information systems are so important to the delivery of quality services, we have made a 
significant commitment to our Information Technology (IT) area – both in personnel and leading-
edge computer systems and equipment.   
Securing data is increasingly important to the delivery of quality services, which is why we place 
strong emphasis on ensuring that our client’s data is secure:  
Physical Security 
We maintain physical security and accountability through the use of locked offices and rooms. All 
visitors must register at the main entrance and server room and must be escorted at all times. 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 19 
Network Authentication 
We require strong passwords to access our internal network.  Passwords must be changed on a 
regular basis. H&H policy requires that passwords not be shared with anyone. Access to sensitive 
data is limited to those who need such information to perform their roles.  
Data Recovery 
We utilize procedures to ensure the availability of our data which include nightly backups of all data 
and applications, and offsite storage of critical applications and data.  The reliability of backup 
procedures and media are verified on a frequent basis. 
Data Integrity 
We implement both personal desktop firewalls and a corporate firewall.  Virus protection from 
multiple vendors is used on servers and desktop computers.  Servers and desktops are patched on a 
regular and frequent basis to prevent security issues.  IT staff monitors audit logs and external 
sources to remain aware of emerging threats. 
Encryption 
All H&H laptops are encrypted using 256-bit AES encryption.  Sensitive Email is encrypted using 
ZixMail by Zix Corp.  
Destruction of Paper and Media 
We employ InfoShred for paper and media disposal.  InfoShred is National Association for 
Information Destruction (NAID) AAA certified and maintains stringent security practices. InfoShred 
complies with all requirements of the Health Insurance Portability and Accountability Act of 1996 
(HIPAA) the Gramm Leach Bailey Act (GLB) and the Fair and Accurate Credit Transaction Act 
(FACTA). Media including diskettes, CD’s, and computer hard drives are destroyed by shredding 
and melting.  H&H staff audits InfoShred procedures on a regular basis. 
 

TOWN OF WATERFORD, CONNECTICUT 
PROPOSAL FOR PENSION AND OPEB ACTUARIAL CONSULTING SERVICES 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM       
 
 
     
                     
              PAGE 20 
 CONCLUDING STATEMENT 
H&H is proud to have the Town of Waterford as a client.  As your current actuary, we know your 
plans well and our staff of professionals will continue to utilize their knowledge of your plans to 
provide reliable data, exceptional service and timely deliverables.  Our experience and consulting 
depth is what the Town requires to achieve – and exceed – its goals: 
 Our actuaries are experts in pension and OPEB plan. They are hands-on and focused on 
providing clients with the depth of experience supported by proven processes and best 
practices.  
 We know the municipal marketplace and realize that many municipalities have begun to 
move away from defined benefit plans. Our pro-active culture has enabled us to provide 
answers to municipalities that are confronting the challenges of funding their long-term 
pension and OPEB liabilities. 
 Superior service and a focus on building solid client relationships is the hallmark of our firm. 
Your service team is experienced, readily accessible and you will be a priority. 
 Our consultants have excellent communication skills which translate into the ability to turn 
complex issues and ideas into understandable language and actionable advice. 
 We do not have multiple offices with layers of management. Our corporate structure is 
relatively flat which enables us to keep our fees competitive. 
 We understand Connecticut state laws and all of our services are in accordance with such 
laws. 
Thank you for the opportunity to submit information about our pension and OPEB plan services. 
We value your business and look forward to continuing our relationship with the Town of 
Waterford.  
 

I. REQUIRED FORMS 


Ellen Kucenski

II. SAMPLE VALUATION REPORTS

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SAMPLE MUNICIPALITY OPEB PLAN 
 
 
ACTUARIAL VALUATION REPORT 
 
 
JULY 1, 2020 
 
 
 
 
 
 
 

 
 
ACTUARIAL VALUATION REPORT 
 SAMPLE MUNICIPALITY OPEB PLAN 
 
 
Table of Contents 
 
Executive Summary ............................................................................................................................................. 1 
Valuation Results and Highlights .......................................................................................................................... 2 
Purpose of the Valuation .................................................................................................................................. 2 
Information Available in the Valuation Report .................................................................................................. 2 
Changes Reflected in the Valuation .................................................................................................................. 2 
Cash Contribution for Fiscal Years Ending 2022 and 2023 ................................................................................. 2 
Liability Experience During Period Under Review .............................................................................................. 2 
Asset Experience During Period Under Review ................................................................................................. 2 
Certification ......................................................................................................................................................... 3 
Development of Unfunded Accrued Liability and Funded Ratio ............................................................................ 4 
Determination of Normal Cost and Actuarially Determined Employer Contribution ............................................. 6 
Development of Asset Values .............................................................................................................................. 8 
Target Allocation and Expected Rate of Return .................................................................................................. 10 
Amortization of Unfunded Liability .................................................................................................................... 11 
Expected Benefit Payments from Trust Fund ..................................................................................................... 13 
Description of Actuarial Methods ...................................................................................................................... 14 
Description of Actuarial Assumptions ................................................................................................................ 15 
Summary of Plan Provisions ............................................................................................................................... 20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Report Prepared By:  
 
 
 
 
Consultant Name 
Actuary Name 
Actuary Name 
Title 
Title 
Title 
Phone 
Phone 
Phone 
email 
email 
email 
 
 
 

 
 
ACTUARIAL VALUATION REPORT 
 SAMPLE MUNICIPALITY OPEB PLAN 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM 
PAGE 1 
 
Executive Summary 
 
Number of members
Active members
40
39
Retired members and dependents
8
8
Total
48
47
Covered employee payroll
3,092,292
          
3,399,727
          
Average plan salary
77,307
                
87,172
                
Actuarial present value of future benefits
4,177,439
          
3,261,439
          
Actuarial accrued liability
2,551,692
          
1,990,586
          
Plan assets
Market value of assets
1,119,033
695,238
Actuarial value of assets
1,119,033
695,238
Unfunded accrued liability
1,432,659
1,295,348
Funded ratio
43.9%
34.9%
Actuarially determined employer contribution (ADEC)
Fiscal year ending
2022
2020
ADEC
185,602 
134,964 
Fiscal year ending
2023
2021
ADEC
188,225 
135,439 
July 1, 2020
July 1, 2018
 
 
 

 
 
ACTUARIAL VALUATION REPORT 
 SAMPLE MUNICIPALITY OPEB PLAN 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM 
PAGE 2 
Ultimate cost = Benefits Paid + Expenses Incurred – Investment Return – Employee Contributions 
 
 
Valuation Results and Highlights 
 
Purpose of the Valuation 
The purpose of the valuation is to develop the Actuarially Determined Employer Contribution (ADEC). 
The ultimate cost of an OPEB plan is based primarily on the level of benefits promised by the plan.  The OPEB 
fund's investment earnings serve to reduce the cost of plan benefits and expenses.  Thus, 
 
 
 
 
 
The actuarial cost method distributes this ultimate cost over the working lifetime of current plan participants.  
By means of this budgeting process, costs are allocated to both past and future years, and a cost is assigned to 
the current year.  The current year's allocated cost, or normal cost, is the building block upon which the 
actuarially determined employer contribution is developed.  The July 1, 2020 valuation produces the 
contributions for the fiscal years ending 2022 and 2023. 
 
Information Available in the Valuation Report 
The Executive Summary is intended to emphasize the notable results of the valuation from the perspective of 
the Plan Sponsor.  Supporting technical detail is documented in Results of the Valuation, Supporting Exhibits and 
Description of Actuarial Methods and Assumptions.  A concise summary of the principal provisions of the Plan is 
outlined in Summary of Plan Provisions. 
 
Changes Reflected in the Valuation  
The mortality, inflation, rate of compensation increase and healthcare cost trend rate assumptions were 
updated.  The change in trend rates increased liabilities by 9.0% and the change in mortality increased liability 
by approximately 1.0% 
 
Cash Contribution for Fiscal Years Ending 2022 and 2023 
The Town cost is:
2022 Fiscal Year
2023 Fiscal Year
$185,602
$188,225  
 
Liability Experience During Period Under Review 
Liabilities were approximately $105,000 more than expected, or an increase of 4.5%, primarily due to increases 
in the Medical premiums that are now based on geographical location. 
 
Asset Experience During Period Under Review 
The plan's assets provided the following rates of return during the past two fiscal years:
2019 Fiscal Year 2020 Fiscal Year
Market Value Basis
6.6%
3.1%
 
The Market Value of assets is used to determine plan contributions. 
 
 

 
 
ACTUARIAL VALUATION REPORT 
 SAMPLE MUNICIPALITY OPEB PLAN 
HOOKER & HOLCOMBE | HHCONSULTANTS.COM 
PAGE 3 
 
Certification 
 
This report presents the results of the July 1, 2020 Actuarial Valuation for  SAMPLE MUNICIPALITY OPEB PLAN 
(the Plan) for the purpose of estimating the funded status of the Plan and determining the Actuarially 
Determined Employer Contribution (ADEC) for the fiscal years ending June 30, 2022 and June 30, 2023.  This 
report is intended to satisfy the requirements of Connecticut General Statute 7-450a.  This report may not be 
appropriate for any other purpose. 
 
The valuation has been performed in accordance with gen