HomeMy WebLinkAboutItem 06.dJanuary 15, 2015 Item No.
Authorize Services Agreement with National Financial Partners Corp.
Pro osed Action
Staff recommends adoption of the following motion: Move to authorize a services agreement
with National Financial Partners Corp (NFP).
Passage of this motion will result in a renewed annual agreement with NFP to serve as broker
of record for the health, dental, life, disability and other associated employee benefit plans for
the 2015 calendar year.
QveMew
NFP has provided carrier management services for the benefit plan renewal processes to the
City for a number of years. These services include assisting with the strategic planning,
compliance, employee communications, and support to the management team to assist with
meeting established goals.
Fees for these services are built into the amounts negotiated through product premiums with
the various vendors. The attached agreement is for the 2015 calendar year and accurately
reflects the negotiated rates.
Primary Issues to Consider
What specific services are provided by NFP?
Supporting Information
o Services Agreement
Human Resou�es Manager
Financial impact: Budgeted: Y/N _Y Source: Various Funds
Related Documents (CIP, ERP, etc.): i
Notes:
Primary Issues to Consider:
What specific services are provided by NFP?
• Strategic Planning
o Evaluation of effective plan design and funding alternatives
• Compliance
o Training seminars, newsletters and correspondence
o Access to online library for analysis of laws, trends and benefit developments
0 10 hours of legal services
o Provides COBRA administration services at no additional cost
o Assistance in resolving issues relating to specific claims and/or benefit providers
• Employee Communication:
o Provides Apprize Technology, the online enrollment process for employee benefits
at no additional cost
a Assistance in providing employee education
• Support
o Claims data related to plan designs and disease management
o Census data necessary for renewal purposes
N FPInsumme
MWMWffarft
January 6, 2015
Ms. Cindi Joosten
City of Lakeville
20195 Holyoke Ave.
Lakeville, MN 55044
Dear Cindi:
The following outlines the type of services NFP provides to City of Lakeville relative to your
employee benefit plans (health, dental, life, disability, FSA, HSA, HRA, Apprize & COBRA) for the
period of January 1, 2015 to December 31, 2015.
Strategic Plan
NFP provides financial consulting and support to assist City of Lakeville with development of a strategic
benefits plan, including:
• Perform separate analysis of each employee benefit plan to determine efficiency and integration.
• Review insurance plan designs and claims experience, as needed, for each benefit.
• Analyze competitiveness of plan positioning, taking into account plan design, employee choice, and
both employer and employee costs.
• Recommend plan design and financial funding alternatives based on analysis and strategic
objectives.
• Assist in preparation of budget projections.
• Work with City of Lakeville to establish a renewal strategy encompassing all the components of a
cost effective, high quality benefit plan for the upcoming, and future, benefit renewals.
Compliance
NFP provides compliance services that are critical to managing your benefit plans, including:
• Assist Human Resources staff with compliance related issues through training seminars,
newsletters and correspondence.
• Review industry, legislative and regulatory developments and consultative recommendations
relating to employee benefits.
• Provide consultation on employee relations issues, as needed.
• Grant access to NFP's online human resources library of explanations and analysis of laws, trends
and developments in benefits and related areas.
• Offer ten hours of legal services annually with an attorney named by NFP
• NFP will pay for the cost of Cobra administration provided by TASC.
• Assist in resolving issues associated with the Flexible Spending Account, Health Reimbursement
Arrangement, and Health Savings Account provided by TASC.
Renewal and Plan Service
NFP provides full carrier management services critical to the renewal process and maintenance of your
benefit plans. It is our understanding that the objective is to provide a high level of benefits to City of
Lakeville and to keep these benefits within current and future budgets. NFP employs our proprietary
benefits management process to help City of Lakeville anticipate cost increases and proactively
implement cost containment measures, including:
• Negotiate with each carrier on renewals.
• Manage the proposal process to ensure competitive programs and pricing.
• Recommend plan design alternatives to best manage costs and offer a competitive benefits
package for employees.
• Secure attractive financial alternatives.
• Negotiate rate guarantees and caps with the carriers, if available.
• Resolve escalated and non-standard carrier issues, including assistance with irreconcilable claims,
enrollment and billing concerns.
lb Improve access to claims reporting through our Decision Master Report powered by Zywave once a
year, if needed.
Employee Communication/Technology
NFP provides assistance to City of Lakeville in designing and delivering an employee communications
strategy that aligns with your strategic benefit initiatives. Deliverables may include:
• Conduct/review employee surveys to provide objective and subjective feedback to management, if
applicable.
• Develop and continuously review effective communication methods to educate City of Lakeville
employees on their benefits package and the strategic benefit objectives.
• Conduct employee education meetings related to the City of Lakeville health & welfare benefits.
• Apprize Technology — NFP will pay the administrative fees for the City of Lakeville.
City of Lakeville Support
NFP may require the assistance of City of Lakeville personnel, including:
• Management's input on City of Lakeville strategic benefit objectives — short-, mid- and long-term.
• Direction on management objectives related to the adoption of the various plans.
• Communications strategy input and support.
• Support in obtaining benefit plan claims data.
• Confidential census information for renewal purposes.
Service Agreement
Our compensation for all of these services is based on the amount received from the product vendors
throughout the contract period as part of the compensation that is built into the products. City of
Lakeville agrees that NFP will remain the broker of record with all vendors for the entire contract
periods between City of Lakeville and said vendors. If for some reason, other than Cause, NFP is not
the broker of record with the vendors, we agree to pay NFP for the balance of the compensation not
yet received through the vendors for the contract period.
Either party may terminate this agreement with 30 days advance written notice delivered to the party
with "Cause." Cause shall be defined as (i) the failure to perform any material term of this Agreement,
or (ii) material dishonesty in the performance of services under this Agreement.
The parties hereby acknowledge that the services described above, which are provided by NFP under
the letter agreement, "do not relate to an employee benefit plan" in the context of Section 514 of
ERISA.
As a subsidiary of National Financial Partners Corp. ("NFP"), we are a member of a financial services
network containing approximately 200 owned firms and approximately 300 affiliated firms. Firms within
the NFP network engage in one or more of its primary lines of business, which include corporate and
executive benefits and property and casualty insurance brokerage. Firms are compensated through
fee and commissions for services provided to clients in each of these lines of business. In addition to
the standard commissions received for the services provided to you, we or our affiliates may earn
additional compensation for our role in providing certain products and services to you under separate
contracts with insurance companies and group benefits providers. Insurance companies and group
benefits providers may pay us or our affiliate's contingent compensation upon satisfaction of factors
such as volume, persistency or profitability of the business placed with such insurance company or
group benefits provider. In addition, such product and service providers may pay us or our affiliates
fixed amounts related to the support of NFP company conferences, conventions and other marketing
efforts.
If the foregoing is in accordance with your understanding, please sign and return to us the duplicate
copy of this letter.
Sincerely yours,
Accepted By:
�.� Date:
'James R. Sarych
s� Principal
Renewal Rate Verification Agreement
MR; rl'lMrjjm a
$30-100%
Current
PP
Rates
ME/MES
Renewal
r•xrrnware+t
Cm11VYVCM
$30-100%
Rates
Employee
$707.82
$637.04
Employee
$679.09
Employee + Spouse
$1,511.69
$1,360.52
Em to ee + Spouse
$1,462.76
Employee + Child ren
$1,428.09
$1,285.28
Employee + Child ren
$1,356.89
Family
$1,865.53
$1,678.98
Family
$1,786.69
MIC PP/ME/MES
HRA $2,500-80%
EMPOWER
HRA $2,500-80%
Employee
$515.89
$464.30
Employee
$514.03
Em to ee + Spouse
$1,101.78
$991.60
Employee + Spouse
$1,107.21
Em la ee + Child ren
$1,040.85
$936.77
Employee + Child ren
$1,024.08
Family
$1,359.67
$1,223.70
Family
$1,352.41
MIC PP/ME/MES
HSA $2,500-80%
NATIONAL ONE
HSA $2,600-80%
Employee
$455.83
$410.25
Employee
$458.07
Employee + Spouse
$973.52
$876.17
Em to ee + Spouse
$986.68
Employee + Child ren
$919.69
$827.72
Employee + Child ren
$915.27
Family
$1,201.40
$1,081.26
Family
$1,205.18
HealthPartners included a not to exceed rate cap of 9% for 2016.
City of Lakeville agrees that NFP will remain the Broker of Record and receive all compensation for this contract
between City of Lakeville & HealthPartners for the contract period of January 1, 2015 through December 31, 2015.
P r
�¢ 0/-s
Date^�
City of Lakeville
Date
Renewal Rate Verification Agreement
City of Lakeville agrees that NFP will remain the Broker of Record and receive all compensation for
this contract between City of Lakeville & HealthPartners for the contract period of January 1, 2015
through December 31, 2015.
N
Date
City of Lakeville
Date
City of "keVilleer(s):
19696
71nsurance pe:
Dental
rrier:
HealthPartners
Renewal Date:
January 1, 2015
City of Lakeville agrees that NFP will remain the Broker of Record and receive all compensation for
this contract between City of Lakeville & HealthPartners for the contract period of January 1, 2015
through December 31, 2015.
N
Date
City of Lakeville
Date
Renewal Rate Verification Agreement
Group Number(s): Long Term Disabiiii : 5465663
Basic Life/AD&D & Basic Dependent Life: 5465563
Voluntary Life/AD&D: 5465563
Dependent Child ren Life: 5465563
Long Term Disability, Basic Life/AD&D & Basic Dependent Life, Voluntary Life/AD&D, Dependent
Insurance Type: Child(ren) Life
Insurance Carrier: Assurant
Renewal Date: January 1, 2015
e • p
Long Term Disability
Rate per $100 CME
$0.23
$0.23
Basic LifelAD&D
Rate per $1,000
$0.190
$0.190
Basic Dependent Life
$0.22
$0.22
Voluntary LifelAD&D
Employee
Spouse
Emeloyee
Spouse
X20:
$0.09
$0.075
$0.09
$0.075
20-24:
$0.09
$0.075
$0.09
$0.075
25-29:
$0.09
$0.075
$0.09
$0.075
30-34:
$0.12
$0.081
$0.12
$0.081
35-39:
$0.12
$0.102
$0.12
$0,102
40-44:
$0.13 1
$0.138
$0.13
$0.138
45-49:
$0.20
$0.219
$0.20
$0.219
50-54:
$0.27
$0.322
$0.27
$0.322
55-59:
$0.46
$0.508
$0.46
$0.508
60-64:
$0.77
$0.787
$0.77
$0.787
65-69:
$1.39
$1.544
$1.39
$1.544
70+:
$2.09 1
$2.648
$2.09
$2.648
AD&D:
$0.03 1
$0.030
$0.03
$0.030
Dependent Child(ren)
$0.33 for $5,0001$0.66 for $10,000
$0.33 for $5,0001$0.66 for $10,000
City of Lakeville agrees that NFP will remain the Broker of Record and receive all compensation for this contract between City of
Lakeville & Assurant for the contract period of January 1, 2015 through December 31, 2015.
F
0/Sr
Date
City of Lakeville
Date