Number
161409
Version
SUBSTITUTE 1
Reference
151560
Sponsor
THE CHAIR
Title
Substitute resolution authorizing the Department of Employee Relations to issue a request for proposals for a for a third-party administrator for an IRS Section 125 Flexible Spending and Health Reimbursement Arrangement.
Analysis
This resolution authorizes the Department of Employee Benefits to issue a request for proposals for a third-party administrator for a Flexible Spending and Health Reimbursement Arrangement. Following the request-for-proposals process, the Department of Employee Relations shall provide the Finance and Personnel Committee with a recommendation on the best choice for an administrator.
Body
Whereas, The City of Milwaukee currently provides an IRS Section 125 Flexible Spending Arrangement program and a Health Reimbursement Arrangement for the Healthy Rewards portion of the Wellness Program; and
Whereas, A Flexible Spending Arrangement allows employees to be reimbursed for medical, and dependent- care and parking expenses from an account funded through employee salary deductions; and
Whereas, A Health Reimbursement Arrangement is an IRS-approved, employer-funded, tax-advantaged benefit plan that reimburses employees for out-of-pocket medical expenses; and
Whereas, Common Council File Number 151560 approved a one-year contract extension with TASC to serve as a third-party administrator for the City’s Flexible Spending and Health Reimbursement Arrangement; and
Whereas, The contract with the current program administrator, TASC, will expire December 31, 2017; and
Whereas, The Department of Employee Relations recommends the continuation of a Flexible Spending Arrangement with medical, dependent care and parking expense components and a Health Reimbursement Arrangement for the Wellness Healthy Rewards program; and
Whereas, It is in the City’s best interest to conduct a request-for-proposals process to obtain the best services and prices for a new program administrator commencing January 1, 2018; and
Whereas, The Department of Employee Relations will retain the services of Willis Towers Watson, the City’s benefits consultant, to lead the request-for-proposals process for such an administrator; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Department of Employee Relations is authorized to issue a request for proposals for a third-party administrator for a Flexible Spending and Health Reimbursement Arrangement; and, be it
Further Resolved, That following the request-for-proposals process, the Department of Employee Relations shall provide the Finance and Personnel Committee with a recommendation on the best choice for an administrator.
Requestor
Department of Employee Relations
Drafter
Renee Joos
Legislative Reference Bureau
Teodros W. Medhin
LRB167834-2
2/27/2017