6.A.
Employee Benefit Trust Board Meeting
- Meeting Date:
- 04/10/2019
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
ITEM:
Discussion and possible action on any and all matters regarding renewal of a broker agreement with Susan Posada Agency, Inc. and possible recommendations to City Council. (Kay Marion Macuil, City Attorney)
SUMMARY:
The current broker agreement expires on June 30, 2019. Susan Posada has advised the Trustees and the City of San Luis since 2013. Attached to this Agenda Item, Ms. Posada provided commission history, the initial April 1, 2013, contract with its exhibits and the 2016 amendment.
Services
The services include (but are not limited to) the following consultant and brokerage services on the following benefits for both the U.S. and Mexico Plans:
-Medical,
-Prescription Drugs,
-Dental,
-Short-term Disability/Salary Continuation,
-Long-term Disability,
-Group Life Insurance,
-Voluntary Life and Accidental Death and Disability, and
-Other related services.
In addition, the agreement provides that Ms. Posada will :
-give information on legislative developments affecting employee benefit plans,
-meet quarterly, semi-annually and annually for strategic planning for the Trust, and
-assist with the administration of the programs, including resolution of vendor service issues and addressing employee and management questions.
Cost
The Third Party Administrator, EBSO, determines the "fully insured equivalent" (the estimated premiums for the upcoming fiscal year) for the medical and dental plans both U.S. and Mexico.times the enrolled employees and dependents. and takes 5% of that total. From that percentage, EBSO determines the rate Per Employee Per Month (PEPM) . The City pays that PEPM for each employee and dependent enrolled each month. EBSO pays the Broker and invoices the City.. The PEPM rate is expected to be less than in prior years. In 2013, the rate was $34.07. This year it is expected to be $31.00. Ms. Posada will have the final figure from EBSO before or at the time of the meeting.
Services
The services include (but are not limited to) the following consultant and brokerage services on the following benefits for both the U.S. and Mexico Plans:
-Medical,
-Prescription Drugs,
-Dental,
-Short-term Disability/Salary Continuation,
-Long-term Disability,
-Group Life Insurance,
-Voluntary Life and Accidental Death and Disability, and
-Other related services.
In addition, the agreement provides that Ms. Posada will :
-give information on legislative developments affecting employee benefit plans,
-meet quarterly, semi-annually and annually for strategic planning for the Trust, and
-assist with the administration of the programs, including resolution of vendor service issues and addressing employee and management questions.
Cost
The Third Party Administrator, EBSO, determines the "fully insured equivalent" (the estimated premiums for the upcoming fiscal year) for the medical and dental plans both U.S. and Mexico.times the enrolled employees and dependents. and takes 5% of that total. From that percentage, EBSO determines the rate Per Employee Per Month (PEPM) . The City pays that PEPM for each employee and dependent enrolled each month. EBSO pays the Broker and invoices the City.. The PEPM rate is expected to be less than in prior years. In 2013, the rate was $34.07. This year it is expected to be $31.00. Ms. Posada will have the final figure from EBSO before or at the time of the meeting.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO______________________________
Fiscal Impact
Fiscal Impact:
The yearly fiscal impact is to be determined and will be provided by the time of the meeting.