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Lackawanna County pension board authorizes RFQ for new actuary after Korn Ferry exit
Summary
With Korn Ferry exiting actuarial services, the Lackawanna County Pension Board approved issuing a request for qualifications to select a replacement, aiming to complete selection by the October quarterly meeting.
The Lackawanna County Pension Board voted to authorize release of a request for qualifications (RFQ) to hire a new actuarial firm after longtime provider Korn Ferry signaled it will exit the practice.
Board members said Korn Ferry has recommended a firm called GRS and that several GRS employees are former Korn Ferry staff, which could ease transition. Board staff said Korn Ferry’s current contract runs through Dec. 31 and that the firm has not yet given a firm termination date. The board discussed whether to hire GRS directly or run a competitive RFQ process; a majority supported issuing an RFQ to solicit alternatives.
Commissioner Chermack moved to authorize release of an RFQ; the motion was seconded and approved by voice vote. Board staff said pension staff member Joe Wexer will work with staff to draft and circulate the RFQ, looking at formats other counties have used. The board discussed assembling a review committee to interview applicants and recommended having a new actuary in place by the pension board’s October meeting, if possible.
Board members also noted the actuarial assumptions and prior work are consequential. A board member said the most recent actuarial study had been used to structure contribution increases intended to reach contribution equilibrium in 2030 and referenced an annual contribution increase of about $1,500,000 used in that plan; the board said any new actuarial firm should understand that background and the assumptions behind the prospective actuarially determined contribution.
The board approved the RFQ authorization by voice vote and set the matter for follow-up at the next quarterly meeting.
