PBGC Smaller Asset Managers Program (SAMP) - Solicitation

1/24/2023 Update Please see the attached Amendment 0001 to Solicitation No. 16PBGC-23-R-0001 as well as PBGC's responses to industry questions, which has been incorporated into the solicitation as Attachment 4. Requirement Background Information, Purpose, and Objective: The Employee Retirement Income Security Act of 1974 (ERISA) established Pension Benefit Guaranty Corporation (PBGC) as a federal corporation to encourage the growth of defined benefit pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at a minimum. Defined benefit pension plans promise to pay a specified monthly benefit at retirement, commonly based on salary and years on the job. PBGC, a wholly owned United States Government corporation, administers the insurance program and termination process for most private-sector defined benefit pension plans that are tax-qualified under the Internal Revenue Code. PBGC is headed by a Director who reports to a board of directors consisting of the Secretaries of Labor, Commerce, and Treasury, with the Secretary of Labor as Chairman. The PBGC collects insurance premiums from employers that sponsor insured pension plans, earns money from investments, and receives the assets of the pension plans it terminates. The strategic objectives of the PBGC are to preserve plans and protect pensions, pay timely and accurate benefits, and maintain high standards of stewardship and accountability across the program. The Smaller Asset Managers Pilot Program (SAMPP) was established in May 2015 and performance measurement under the pilot program began in August 2016. The PBGC Board has noted that the SAMPP has been successful in the pilot phase and that the PBGC Smaller Asset Managers Pilot Program will be an ongoing program known as the PBGC Smaller Asset Managers Program (SAMP). PBGC maintains two separate investment funds: the Revolving Fund and the Trust Fund. The Revolving Fund (valued at approximately $49 billion as of June 30, 2022) receives all premium payments and is invested solely in - book-entry U.S. Government securities held at the U.S. Treasury. The Trust Fund (valued at approximately $72 billion) receives assets from terminated plans and is where the SAMP will be invested. The SAMP aims to reduce competition barriers faced by smaller asset managers while maintaining rigorous investment risk and control standards. The PBGC Investment Program is structured as a manager-of-managers program. No assets are managed internally. The PBGC exclusively uses institutional investment management firms to invest its assets, subject to PBGC's oversight and consistent with the PBGC's Investment Policy Statement. PBGC selects investment managers subsequent to a rigorous procurement process and delegates investment discretion to the selected investment managers to manage the Corporation's investment assets consistent with guidelines specified by contract. The PBGC continuously reviews and evaluates manager performance and conducts extensive due diligence to ensure satisfaction of performance standards and compliance with investment guidelines. The purpose of this Request for Proposal (RFP) is to solicit proposals so that PBGC may select multiple contractors to provide active investment management service for a U.S. core fixed income portfolio that will, over a full market cycle, provide a total rate of return which exceeds the benchmark of the respective portfolio, consistent with appropriate levels of risk. The anticipated period of performance is one (1) twelve-month base period and nine (9) twelve-month option periods. Request for Proposal (RFP) Information: Please view the attached RFP No. 16PBGC-23-R-0001 for more detailed information. All responsible sources may submit a proposal in response to the RFP. Interested parties are responsible for monitoring www.sam.gov for the most up-to-date information concerning the forthcoming solicitation (e.g., its amendments). Paper copies of the solicitation and its amendments will not be distributed. PBGC Address: Please note the PBGC Contracting Office address is currently being updated in SAM. Therefore, please disregard the 1200 K Street address listed in the section below. The current PBGC Contracting Office address is as follows: 445 12th St. SW Washington, D.C. 20024-2101