* Fee includes all time charged related to the production and mailing of statements but does not
include fixed costs related to postage, envelopes, and other printing costs. Estimated cost for
mailing annua! statements is $500.
* Fee quote based on 9 full benefit calculations (includes calculation, election forms and complete
distribution processing) per year. Calculations in excess of 9 will be billed at a rate of S500 per full
calculation (calculations sent but not processed (estimates, etc.) will be billed at $250 per
calculation).
** Fee quote is based on a maximum of 30 hours of Service Center time per year. Hours in excess of
30 hours will be billed at the rate of $175 per hour.
*** Base fee of $6,000 per year. Per payment cycle transaction fee of (a) $3 for each paper check, and
(b) $1 for each EFT [for 100 retirees, it will be $100-300 per payment cycle, based on actual mix of
checks/EFTs]. Annual Schwab Custodial fee of $500, plus 8 basis points on the assets held in the
cash management account to pay retiree benefits.
Note: Fee quote assumes that there will be no change to the current asset custodian and that H&H will
work with the client to ensure monthly funding for retiree payments via Schwab.
The engagement agreement is effective for the period July 1, 2019 through June 30, 2024. The above
fee schedule applies for the period July 1, 2019 through June 30, 2022. Fees for the subsequent two
~ years (July 1, 2022 through June 30, 2023 and July 1, 2023 through June 30, 2024) will increase by 3
percent each year.
We are waiving our set-up and conversion fee based upon the agreement of a 5 year contract.
Otherwise, a one-time set-up and conversion fee for coding our systems would be $7,500. Early
termination of contract (prior to end of 5 year contract) by the City will result in pro-rated charge of set-
up and conversion fee.
We are always available to assist our clients with special requests or ad hoc projects. Such projects are
based on hourly rates. Before beginning special or ad hoc projects, we would provide you with an
estimate of anticipated project costs based on the project scope. Work would begin as soon as the
estimate is approved. Our 2018 hourly rates are provided below and are subject to change annually:
Consultants/Actuaries $260-S450
Analysts/Technicians 5150-5260
Support/Administrative $100-5160
HOOKER & HOLCOMBE | HHCONSULTANTS.COM PAGE 6
