City of Milwaukee - File #: 130113

• File #: 130113
• Version: 1
• Type: Resolution
• Status: Passed
• File created: 5/21/2013
• In control: COMMON COUNCIL
• Final action: 6/11/2013
• Title: Substitute resolution authorizing the Department of Employee Relations to issue a request for proposal for a third-party administrator for an IRS Section 125 Flexible Spending Arrangement with an option for the addition of a Health Reimbursement Arrangement.
• Sponsors: THE CHAIR
• Indexes: EMPLOYEE BENEFITS, HEALTH CARE

Date	Ver.	Action By	Action	Result	Tally
6/18/2013	1	MAYOR	SIGNED
6/11/2013	1	COMMON COUNCIL	ADOPTED	Pass	15:0
6/5/2013	1	FINANCE & PERSONNEL COMMITTEE	RECOMMENDED FOR ADOPTION; Minutes note: Individual appearing: Mike Brady, Department of Employee Relations	Pass	5:0
5/31/2013	0	FINANCE & PERSONNEL COMMITTEE	HEARING NOTICES SENT
5/21/2013	0	COMMON COUNCIL	ASSIGNED TO

Number
130113
Version
SUBSTITUTE 1
Reference
100202
Sponsor
THE CHAIR
Title
Substitute resolution authorizing the Department of Employee Relations to issue a request for proposal for a third-party administrator for an IRS Section 125 Flexible Spending Arrangement with an option for the addition of a Health Reimbursement Arrangement.
Analysis
Currently the City provides a Flexible Spending Arrangement (FSA) for City employees to set aside monies for medical, dependent care and parking expenses. The contract with the current program administrator, eflexgroup, Inc., will expire December 31, 2013. This resolution authorizes the Department of Employee Relations to issue a request for proposal for an administrator for a similar FSA with an option for the additional creation of a Health Reimbursement Arrangement (HRA) excluded from taxable income under Section 105 of the Internal Revenue Code (IRC). An HRA is a medical reimbursement plan which allows an employer to reimburse an employee for medical and insurance expenses. The term of the new contract shall be January 1, 2014, to December 31, 2016, with the option of 2 one-year extensions upon mutual agreement of both parties, subject to Common Council approval.
Body

Whereas, Common Council File Number 100202, adopted July 7, 2010, approved a 2-year contract with an option for a one-year extension with eflexgroup, Inc. to serve as a third-party administrator for an IRS Section 125 Flexible Spending Arrangement; and

Whereas, The contract with eflexgroup, Inc. will expire on December 31, 2013; and

Whereas, The Department of Employee Relations recommends the continuation of a Flexible Spending Arrangement with medical, dependent care and parking expense components; and

Whereas, The Department of Employee Relations wishes to have the option to also create, upon Common Council approval, a Health Reimbursement Arrangement which would allow the City to reimburse employees for medical and insurance expenses w...