Title
Resolution to Approve a Contract with Flores and Associates to Provide Flexible Benefit Plan and Health Reimbursement Account Administration to City Employees and their Dependents ($142,500)
Memorandum
The attached Resolution authorizes the City Administrator to execute the third party administration services contract with our third party administrator provider. Employees, through their labor agreements or in accordance with the City's employee benefit plans, have the availability of participating in flexible spending or health reimbursement accounts for their reimbursable health care or dependent care needs.
Budget/Fiscal Impact: The necessary funds were appropriated as part of the FY16 approved budget and required funding for the remainder of the contract term will be budgeted in the FY17 and FY18 budget. The estimated annual cost of this employee benefit renewal is $57,000.
Flexible spending accounts and/or health reimbursement accounts are required by our current labor agreements and our employee benefits program. The City currently pays a monthly administrative fee per contract to Flores to process claims and track annual plan limits. For the fiscal years FY14 and FY15, monthly Administrative Fees per employee contract for flexible benefit plan administration were $5.25, and for health reimbursement account administration were $3.25. The renewal rates remain unchanged for the FY16 and FY17, so monthly Administrative Fees per employee contract for flexible benefit plan administration will remain $5.25, and for health reimbursement account administration will remain $3.25. There is a two-year rate guarantee until January 1, 2018.
The costs for the program will fluctuate monthly depending both on the number of employees enrolled in the program during any given month.
The requested approval is for an 30-month contract with our service provider. The contract for this Plan is transitioning from a fiscal year term to a calendar year t...
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