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HomeMy WebLinkAboutTR-10-98 -.., .-. ,;.- 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 822 .;i --' ~. 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. ~ W. H. Stockwell, Chief Administrative Officer MAM/pp 823