RRB-OIG Actuarial Audit Services

2. The RRB Office of Inspector General (OIG) conducts independent audits, management reviews and investigations of the programs and operations of the Railroad Retirement Board. The OIG provides recommendations for improvement to agency management to promote efficiency and economy, and identifies fraud and abuse in agency programs and operations. The RRB OIG is collocated with the RRB Headquarters Facility in Chicago IL.

B. Objectives: The OIG of the RRB seeks to procure services to assist the OIG with its annual actuarial audit of the RRB's financial statements, as specified in Sections II and III below.

C. Questions pertaining to this solicitation must be submitted in writing and received by this office in sufficient time to allow the timely transmission of written answers by solicitation amendment. To ensure this, the RRB will only answer questions received in this office no later than 1:00 PM, Central Time (CT), March 23, 2026. Questions shall be sent to [email protected] and the email subject line must reference the RFP number of this solicitation. Offers are due no later than 1:00 PM (CT), April 3rd, 2026, and shall be submitted to [email protected].

D. Offerors must state in the e-mail subject line, for submission of proposals, "Proposal submission for RFP 60RRBH26R0002, Actuarial Audit Services”.

Section III - Statement of Work

SOW for Actuarial Audit Services

This Statement of Work (SOW) provides the tasks the Contractor shall perform in accordance with this SOW. When mutually executed for implementation, this SOW becomes contractually binding on the Contractor and the RRB under the terms and conditions of the Contract from the Contract award date until the RRB receives the final deliverable.

A. Introduction and Background Standards and Standards for Financial Statements

1. The RRB publishes financial statements in its annual Performance and Accountability Report, the form and content of which is mandated by the Office of Management and Budget (OMB). The agency prepares its financial statements from the books and records of the RRB in accordance with U.S. generally accepted accounting principles (GAAP). The American Institute of Certified Public Accountants (AICPA) recognized the Statements of Federal Financial Accounting Standards (SFFAS) promulgated by the Federal Accounting Standards Advisory Board (FASAB) as GAAP for Federal government entities. The OIG issues its opinion on these financial statements.

2. During fiscal year 2025, the Railroad Retirement program paid over $14.6 billion in benefits and reported approximately $37.6 billion in assets at fiscal year-end. The RRB's financial statements for the fiscal year ending September 30, 2025 reported total financing sources in excess of $15.0 billion which it received primarily from payroll taxes and the financial interchange with the Social Security Administration. The bulk of the RRB's financing sources are expended on benefits for railroad workers and beneficiaries.

3. The agency’s fiscal year 2025 financial statements reported intragovernmental assets of approximately $8.6 billion that were comprised primarily of investments with the Treasury and receivables from the Social Security Administration for the financial interchange. The balance of the Railroad Retirement program’s assets, approximately $28.9 billion, were held on behalf of the RRB and invested by the National Railroad Retirement Investment Trust (NRRIT). The NRRIT prepares and publishes financial reports separate from the RRB.

4. Statement of Social Insurance -

The statement of social insurance is a comparative financial statement comprised of estimates of income and expenditures for a 75- year period for the railroad retirement program. The required notes to the statement of social insurance include significant underlying assumptions, fund balances as of the valuation date for each of the years presented, and identifies the elements of the closed group estimate.

5. Requirement for a Statement of Social Insurance -

a. SFFAS #17, as amended, requires Federal agencies that are responsible for social insurance programs to present a statement of social insurance as one of its audited financial statements. SFFAS #17 specifically identifies the Railroad Retirement program as a social insurance program subject to this reporting requirement.

b. The information required by paragraphs 27(3) and 32(3) of SFFAS #17 and paragraphs 28 and 29 of SFFAS #37 are presented in a basic financial statement. The underlying significant assumptions are included in the notes that are presented as an integral part of the basic financial statement. Other information required by SFFAS #17, including the sensitivity analysis required in SFFAS #17, paragraphs 27(4) and 32(4), is presented as required supplementary information (RSI). The Railroad Retirement programs should provide sensitivity analysis to the open group measure presented in the Statement of Social Insurance summary. Appropriate considerations include future trends, the utility of the information to the users and policy-makers, and the relative burden on the component entity resources. Providing analysis or disclosure for one or more periods will not imply that such analysis or disclosure is appropriate in the future, although the reasons for discontinuing a particular sensitivity analysis should be addressed in the annual report. The entity should state that the amounts of the closed and open group measure depend on the assumptions used and that actual experience is likely to differ from the estimate.

6. Statement of Changes in Social Insurance Amounts (SCSIA)

The SCSIA presents the Net Present Value of future revenue less future expenditures for current and future participants (the “open group”) over the next 75 years for the beginning and the end of the prior two reporting period years. The SCSIA is required to show the changes in social insurance amounts for a two-year period.

7. Requirement for a Statement of Changes in Social Insurance Amounts -

SFFAS #37 requires Federal agencies that are responsible for social insurance programs to prepare a statement of changes in social insurance amounts to present the reasons for changes during the reporting period in the open group measure reported on the statement of social insurance.

8. Preparation of the Statement of Social Insurance -

The RRB’s Bureau of the Actuary and Research prepares the agency’s statement of social insurance. The statement of social insurance is based on the periodic actuarial valuation of the assets and liabilities, also prepared by the agency’s Bureau of the Actuary and Research. The Bureau of the Actuary and Research publishes a new actuarial valuation every three years. This triennial valuation, which is updated during each of the two interim years, supports agency reporting responsibilities under the following statutes:

a. Section 15 of the Railroad Retirement Act of 1974 requiring the Railroad Retirement Board, at intervals of not more than three years, to prepare actuarial valuations of the railroad retirement system;

b. Section 22 of the Railroad Retirement Act of 1974 requiring the Railroad Retirement Board to prepare an annual report containing a five-year projection of revenues to and payments from the Railroad Retirement Account, and to submit the report to the President and the Congress by July 1; and c. Section 502 of the Railroad Retirement Solvency Act of 1983 requires the Railroad Retirement Board to prepare an annual report on the actuarial status of the Railroad Retirement program.

9. Actuarial Advisory Committee -

Section 15(f) of the Railroad Retirement Act requires that the triennial valuation process include review of assumptions and methods by the agency’s Actuarial Advisory Committee. The committee’s statement is published with the valuation and describes the scope of their work.

B. Basis of Estimates

The statement of social insurance is a comparative statement that presents data for the current and four prior years. The estimates and projections in the statement of social insurance are based on the triennial valuation of assets and liabilities of the Railroad Retirement program prepared by the RRB’s Bureau of the Actuary and Research.

See Solicitiation for the table

C. Scope of Work

1. The contractor shall provide all services, personnel, facilities, equipment, and materials necessary to perform the work described by this statement of work.

2. The contractor shall agree to let the OIG conduct an annual onsite quality review conducted in May/June of each year. The contractor shall also prepare and provide to OIG auditors an annual workplan and an annual required activity checklist. The contractor shall also provide documents based upon an agreed upon deliverable schedule as required by OIG auditors. The contractor shall provide both the initial and, upon exercise by RRB OIG, the optional services described in this RFP.

3. FY 2026 Actuarial Audit (Base Period Service) The contractor shall perform the limited scope actuarial audit of the reporting period for year 2025 statement of social insurance and the statement of changes in social insurance amounts for the two-year period ending with the date of the statement of social insurance, as described in Section III.D. The scope of the contractor’s work shall include the estimates and disclosures for reporting period year 2025 only.

4. FY 2027 Actuarial Audit (Optional Services - Optional Period 1) The contractor shall perform the limited scope actuarial audit of the reporting period for year 2026 statement of social insurance and the statement of changes in social insurance amounts for the twoyear period ending with the date of the statement of social insurance, as described in Section III.D. The scope of the contractor’s work shall include the estimates and disclosures for reporting period year 2026 only.

5. FY 2028 Actuarial Audit (Optional Services - Optional Period 2) The contractor shall perform the limited scope actuarial audit of the reporting period for year 2027 statement of social insurance and the statement of changes in social insurance amounts for the two-year period ending with the date of the statement of social insurance, as described in Section III.D. The scope of the contractor’s work shall include the estimates and disclosures for reporting period year 2027 only.

6. FY 2029 Actuarial Audit (Optional Services - Optional Period 3) The contractor shall perform the limited scope actuarial audit of the reporting period for year 2028 statement of social insurance and the statement of changes in social insurance amounts for the two-year period ending with the date of the statement of social insurance, as described in Section III.D. The scope of the contractor’s work shall include the estimates and disclosures for reporting period year 2028 only.

7. FY 2030 Actuarial Audit (Optional Services - Optional Period 4) The contractor shall perform the limited scope actuarial audit of the reporting period for year 2029 statement of social insurance and the statement of changes in social insurance amounts for the two-year period ending with the date of the statement of social insurance, as described in Section III.D. The scope of the contractor’s work shall include the estimates and disclosures for reporting period year 2029 only.

D. Scope of the Actuarial Audit

The contractor shall perform such work as is required to make the following determinations for each year’s actuarial audit as awarded. This includes an actuarial analysis that is done in a spreadsheet using cell data. In addition, every third year the contractor must reconcile cell data back to source data in the spreadsheet. This also includes analysis of status and current impact of the existing financial reporting material weakness that addresses social insurance concerns.

1. The methods and assumptions used in the valuation of the Railroad Retirement program, and by extension the statement of social insurance, are consistent with relevant Actuarial Standards of Practice adopted by the Actuarial Standards Board.

2. The actuarial valuation considers all pertinent provisions of laws and regulations governing program operations, including any changes to laws or regulations affecting the actuarial calculations since the date of the latest statement of social insurance.

3. Data used in preparing the statement of social insurance is complete and reliable.

4. The estimates presented in the statement of social insurance are reasonable and prepared in compliance with the requirements of SFFAS #17, as amended.

5. The fund balance, as of the valuation date, has been accurately computed in compliance with SFFAS #17, as amended.

6. The disclosure of significant assumptions is complete and meets the requirements of SFFAS #17, as amended.

7. Other footnotes meet the disclosure requirements of SFFAS #17, as amended.

8. The reconciling items on the statement of changes in social insurance amounts are reasonable and prepared in compliance with SFFAS #37, including any applicable laws and amendments.

9. The reporting of the statement of social insurance, statement of changes in social insurance amounts and other related communication are consistent with relevant Actuarial Standards of Practice adopted by the Actuarial Standards Board.

4. The estimates presented in the statement of social insurance are reasonable and prepared in compliance with the requirements of SFFAS #17, as amended. 5. The fund balance, as of the valuation date, has been accurately computed in compliance with SFFAS #17, as amended. 6. The disclosure of significant assumptions is complete and meets the requirements of SFFAS #17, as amended. 7. Other footnotes meet the disclosure requirements of SFFAS #17, as amended. 8. The reconciling items on the statement of changes in social insurance amounts are reasonable and prepared in compliance with SFFAS #37, including any applicable laws and amendments. 9. The reporting of the statement of social insurance, statement of changes in social insurance amounts and other related communication are consistent with relevant Actuarial Standards of Practice adopted by the Actuarial

E. Reporting Requirements

1. The contractor shall summarize their findings and determinations in a formal, written report that details the scope of their work and their overall conclusions, and shall be presented in two parts:

a. The Contractor shall provide a draft written report for discussion with OIG personnel that addresses the requirements of Section III E1 no later than mid-September, communicating the opinion of the firm and any other matters that are reportable pursuant to applicable reporting requirements.

b. The Contractor shall provide a final written report pursuant to the requirements of Section III no later than the first week of October, communicating the opinion of the firm and any other matters that are reportable pursuant to applicable reporting requirements.

c. The Contractor shall provide the above draft and final reports as electronic copy, and deliver to the RRB. The Contractor shall also provide an electronic (Adobe PDF version) of the draft and final reports and deliver to the COR and Contract Administrator.

2.Data Rights: No data provided to, or developed by, the contractor shall be used for any purpose other than the contract. All items, including any and all supplemental information developed by the contractor during performance of this task become the sole property of the federal government. The contractor shall return all items furnished by the federal government in the performance of this solicitation at the end of the contract or upon the federal government's request. The contractor shall not mark any deliverable documents pages, attachments, or addenda with their company name or proprietary markings, with the exception of a cover page.

3. The contractor's report must respond individually to each determination required in Section III.D. of this RFP.

4. The contractor’s report must describe the scope and methodology used in making the determinations.

5. The contractor’s report must describe any limitations on the scope of their work caused by lack of documentation.

6. The contractor’s report must be prepared in compliance with applicable Actuarial Standards of Practice adopted by the Actuarial Standards Board.

7. Progress Reports: The contractor shall also provide monthly written progress reports to the COR, by the fifth working day of each month, beginning with the first full month. The reports shall include (at a minimum) the following:

a. progress to-date compared with the audit plan and time schedule;

b. any issues that could impact the progress or outcome of the Contractor’s work; and

c. matters that have come to the Contractor’s attention that could impact the results of the determinations required in Section III D.

F. Applicable Guidance Document Number

The Contractor will be required to evaluate compliance with any revised or additional guidance, legislation, pronouncement, or standard issued subsequent to this contract that impact the estimates presented in the statement of social insurance or the practice of the actuarial profession.

G. Agency Involvement

The Contracting Officers Representative (COR), RRB OIG, as well as the RRB Chief Actuary, his staff and the responsible staff of the various RRB operation units, directly subject to the scope of the actuarial audit, will be available during the audit to assist the Contractor by providing information and explanations. While RRB and OIG staff will work with the Contractor to pull documents, reproduce files and respond to Contractor inquiries on an intermittent basis, the Contractor cannot expect them to prepare schedules or otherwise provide full-time assistance.

H. Government Furnished Data

1. The RRB will provide access to documentation (electronic copy) of information required to make the determinations required by Section III D. of this solicitation.

2. Supporting documentation (electronic copy) for the various estimates in the statement of social insurance pertaining to fiscal year 2024 will be made available to the Contractor after contract award upon consultation with the Contracting Officer’s Representative (COR).

3. Supporting documentation (electronic copy) for the various estimates in the statement of social insurance pertaining to reporting period year 2024 and later years will be available to the Contractor as they become available to the OIG.

a. RRB completes the triennial valuations by June 30th of the year in which they are performed.

b. RRB completes the interim year updates to the triennial valuation June 30th of the year in which they are performed.

c. RRB completes the statement of social insurance by July 31st of each year.

I. Entrance/Exit Conferences

1. The entrance and exit conferences and other significant meetings are to be held with the COR and responsible OIG and agency officials. The entrance conference provides an opportunity for the Contractor to discuss the audit approach and introduce key staff to OIG and agency officials. The entrance conference will not be an opportunity to change the terms, conditions, or price of the contract.

2. At the completion of their work, the Contractor shall hold an exit conference with the COR and responsible OIG and RRB officials. At this conference the Contractor communicates the findings and recommendations developed during the audit, and elicits initial views from OIG and agency officials.

3. During the course of their work, the Contractor shall be prepared to discuss with the COR and management in the RRB’s Bureau of the Actuary and Research matters that come to the Contractor’s attention that could have an impact on the determinations within the scope of the actuarial audit. Furthermore, the Contractor shall notify the COR of any such meetings that do not include the COR.

J. Confidentiality

The actuarial valuation model and the factors, assumptions and software applications that support it are the property of the Government of the United States. The Contractor agrees to hold strictly confidential any information relating to the model and related factors, assumptions, and software applications to which it may have access to, or awareness of, during the audit.