Number
191641
Version
SUBSTITUTE 1
Reference
170341
Sponsor
THE CHAIR
Title
Substitute resolution authorizing the Department of Employee Relations to issue a request for proposal for the City’s Flexible Spending and Health Reimbursement Arrangement programs.
Analysis
This resolution authorizes the Department of Employee Relations 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, 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, 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, The contract with the current program administrator, Benefit Advantage, will expire December 31, 2020; and
Whereas, It is in the City’s best interest to conduct a request for proposals process to obtain the best services and competitive pricing for a new program administrator commencing January 1, 2021; and
Whereas, The Department of Employee Relations will retain the services of Gallagher Benefits Services, Inc. the City’s benefits consultant, to lead the request for proposals ...
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