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File #: 191641    Version:
Type: Resolution Status: Passed
File created: 2/11/2020 In control: COMMON COUNCIL
On agenda: Final action: 3/3/2020
Effective date:    
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.
Sponsors: THE CHAIR
Indexes: DEPARTMENT OF EMPLOYEE RELATIONS, EMPLOYEE BENEFITS, HEALTH INSURANCE
Attachments: 1. Cover Letter, 2. Hearing Notice List
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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