Client Overview & Objectives
A leading global law firm based in the U.S. engaged North Pier Search Consulting to conduct an actuarial search for its Pension Plan and Variable Annuity Plans (VAPs). The law firm had decided to wind down its pension plan and transfer liabilities to an insurance company. The pension was 75% funded with over 1,000 participants at the start of the project. The firm aimed to develop a strategy to fully fund the plan in preparation for its wind-down and explore alternative retirement options, such as a cash balance plan. Additionally, the firm sought an actuary for administrative support for its VAPs, defined contribution (DC) plans, and health & welfare (H&W) plans.
Process
Following thorough Education & Discovery Phase, where alignment and a comprehensive understanding were established, qualified actuarial firms were invited to submit a targeted Request for Proposal (RFP). Key criteria for the search included the candidate’s ability to:
- Assist in the Pension Plan’s wind-down, ensuring compliance and financial efficiency.
- Develop alternative retirement plan solutions for the future.
- Support administrative functions for the VAPs, DC, and H&W plans.
- Provide clear reporting, modeling, and compliance support.
In addition to these criteria, responses were evaluated based on business structure, qualifications, analytical capabilities, compliance services, relevant experience, and cost. North Pier conducted a thorough review and clarification process for all submissions, providing detailed analyses and summaries of the proposals. Four firms who scored highest against key criteria selected as finalists for further consideration.
Results
- After thorough due diligence and finalist presentations, the firm selected an actuarial partner that demonstrated strong expertise in pension transitions, effective reporting capabilities, and a cost-effective service structure.
- North Pier secured a favorable fee arrangement, which included additional services within the retainer, continued compliance, improved reporting, and a clear path for the Pension Plan’s wind-down, along with a robust retirement program moving forward.
- Most importantly, through the process, our client gained confidence in their actuarial partner, their retirement plan’s investment program, and their fulfillment of fiduciary responsibilities.