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THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting:
Date:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
File #
February 16, 1998 Res. #CO) PA -IIO--CJ'?t'
Report #: TR-10-98 File #:
Subject:
By-law #
Benefit Administration
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report TR-1 0-98 be received,
2. THAT the Municipality retain the services of Mr. Kevin Ashe, at the firm of Mosey
& Mosey, to assist in benefit administration for the health, insurance and dental
plans,
3. THAT the firm of Buffett Taylor & Associates Ltd. be notified that their services will
no longer be required effective March 1, 1998, and
4. THAT the Municipality of Clarington, through Mosey & Mosey, join the
Northumberland County wide plan for Health benefits, if sufficient savings are
determined to be available.
Background:
1. The Municipality has retained the services of Buffett Taylor & Associates Ltd. since
1989 as benefit administrators for all health and dental plan activity. Prior to 1989
the plans were administered by The Protectors Group consulting firm. At that
time the change was made because it was felt that the quality of service given by
the benefit administrators had declined over time.
2. While with the,firm of Buffett Taylor, the account was serviced primarily by Mr.
Kevin Ashe, and staff felt that there was excellence in the service provided. In mid
1997 Mr. Ashe left the firm of Buffett Taylor and, from staff's perspective, there
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TR-1 0-98
Page 2
was a noticeable change in the quality of service. The administration of long term
disability claims, investigation of limits of service, and negotiating of premiums
has required significantly more municipal staff involvement than in the past.
2.1 The increased staff involvement has resulted in an overall internal review of the
service level required in terms of benefit administration. Notwithstanding there is
no Human Resource Department within the Municipality, Treasury staff feel it may
be more efficient and better service to employees by administering more of the
plans internally. This will involve more time from the Payroll Clerks and the
Treasurer, however there should be very little adjustment required from other
employees. The only significant change will be that reimburseable claims will be
submitted to the Payroll Clerk and it will be submitted directly to the plan provider.
3.0 The Health, Dental and Life Insurance plan providers are not recommended for
change at this time, and Mr. Ashe at Mosey & Mosey will perform the market
analysis etc. that he provided previously under Buffett Taylor. He will also be
available for consultation and guidance as he was previously.
4.0 It is anticipated that the service fee under Mosey & Mosey will be slightly less than
that currently paid to Buffett Taylor. Currently the Municipality pays approximately
$47,000 monthly which includes approximately $1 ,400 for benefit administration.
It also includes the premium cost for Health, Dental, L TD and Life Insurance
plans. However preliminary discussions with Mosey & Mosey have led to a
suggestion that there may be an opportunity to join the Northumberland County
plan as an additional group. If this option reveals significant savings, it is
recommended that the opportunity be taken in order to maximize overall cost
containment for benefits. Preliminary estimates suggest there may be a combined
annual savings of in the range of $4,000 to $10,000, depending on negotiated
renewal premiums with the plan providers.
5.0 The purchasing By-law #94-129 excludes consulting and financial consultants
from the definition of goods and as such a tender is not required for the change
of benefit administrators.
Respectively Submitted,
Reviewed by,
ane A. Marano, H.BSc.,A.M.C.T.
Treasurer.
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W. H. Stockwell,
Chief Administrative Officer
MAM/pp
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