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HomeMy WebLinkAboutStatement of Work with Mercer for FY15 Benefits Brokerage Consulting ServicesMERCER November 10, 2014 Patti Parkins Director of Human Resources City of Meridian 33 E. Broadway Ave Meridian ID .83642 Statement of Work ("SOW") Sheill R, stayner Principal 800 West Main Street, Sulte 1250 Boise, ID 03702 +1-208-338-8477 SheIILR Stayner@mercer.com www.mercer.com The objective of this Statement of Work ("SOW") is to confirm the scope of our Work and the compensation; for this engagement. This SOW is subject to the terms and conditions contained in our existing engagement letter dated August 4, 2009. All capitalized terms not defined in this SOW shall have the meanings ascribed to them in our existing engagement letter. Service Details 1. Service name: 2015 Scope of Service 2: Description of Mercer, responsibilities: See attached Service. Schedule 3, Description of client responsibilities: Mercer's ability to provide services in this letter is dependent on Mercer being provided with and continue to receive accurate, up to date and timely documentation and information from you and any insurance carrier providing benefits: 4. Period of time over which work will be performed: January 1, 2015 through December 31, 2015 5. Cornpensationffees We will be compensated for the services described herein in consideration of your payment of our professional fees of $45,000 annual. We will bill you monthly With such invoices due within thirty (30) days of your receipt of an undisputed invoice, If any invoice remains unpaid after lon9er than ninety (90) days from the date ;of the invoice, we may either suspend the provision of the services until payment is received, or terminate this SOW with immediate effect. MARSH&McLENNAN TALENT - HEALTH - RETIREMENT - INVESTMENTS COMPANIES 1!�4 MERCER Page 2 November 10, 2014 Subcontractors We may need to utilize various subcontractors ("Subcontractors") in the course of our provision of the Services to assist us in such tasks as printing and mailing, development of interactive tools, graphic design, etc. You consent to our use of the Subcontractors and further acknowledge and agree that we may provide such Subcontractors with your Confidential information, including Work, on a confidential and a need to know basis for the purposes: contemplated by this SOW. Additional Terms 1. We do not act on behalf of any insurer or other service,provider, are not bound to utilize any particular insurer or service provider, and do not have the authority to make binding commitments on behalf of any Insurer or service provider. In addition, we do not guarantee or make any representation or warranty that coverage or service can be placed on terms acceptable to you. We are not responsible for the solvency or ability to pay claims of any insurance carrier or for the solvency or ability of any service provider to provide service, Insurance carriers or service providers with which your other risk or insurance coverage or other business is placed will be deemed acceptable to you, in the absence of contrary Instructions from.you. 2. Youunderstandthat the failure to provide, or cause to provide, complete, accurate, up4o-date; and timely documentation and information to us, an insurer, or other service provider, whether intentional or by error, could result in impairment or voiding of coverage or service. You agree to review all policies, endorsements and program agreements delivered to you by us and will advise us of anything which you believe is not in accordance with the negotiated coverage and terms within thirty (30) days following receipt. 3, Mercer and Its Affiliates serve a wide array of clients, including clients who compete with or whose interests may be adverse to one another. in addition, Mercer interacts with insurance carriers and other service providers through numerous business and contractual relationships, including serving as a broker for its clients and receiving commissions from carriers, providing consulting or administration services to carriers, and auditing carriers' claims data, Mercer is committed to serving each of Its clients In an objective manner and maintaining the confidentiality of each of its client's information. MARSH & McLENN.AN l", COMPNNO MERCER Page:3 November 10, 2014 4. You expressly acknowledge that, with respect to the provision of the Services, we are not, nor are any of our Affiliates or subcontractors, an "administrator" within the meaning under applicable law, including the Employee Retirement Income Security Act of 1974, as amended ("E RISK), nor, with respect to the provision of the Services, are we or any of our Affiliates or subcontractors a "fiduciary" within the meaning under applicable law or ERISA, unless provided otherwise herein or required by applicable law. , 5. Title V of.the Gramm -Leach -Bliley Act and related state laws and regulations establish limitations on the use and distribution of non-public information collected by financial institutions from their customers and consumers, Our insurance -related work qualifies us as a financial institution under this Act. Our Privacy Policy Notice and additional information regarding other compliance policies at Mercer, including our conflicts of interest policy, are available atwwarnercer.com/transparency. Atthis web address you will also find information regarding Marsh .& McLennan Companies, Inc, and Itssubsldlaries' equity interests in certain Insurers and contractual arrangementswith certain insurers and wholesale brokers. 6, Without limiting the generality of Section 2 of our engagement letter, you will Inform us at the commencement of our work under each SOW (and thereafter in the event of any change); as to whether or not you or any of your Affiliates are subject to any restrictions: or obligations directly relevant to the Services as a result of or in connection with having received any federal financial assistance in connection with any federal low or program, ;including, but not limited to, the American Recovery and Reinvestment Act of 2009 and the Emergency Economic Stabilization Act of 2008, including the Troubled Assets Relief Program. In. the event that you or your Affiliates are subject to such restrictions or obligations, you will also promptly describe such restrictions and obligations to us In writing in reasonable detail and make an expert (including internal or external counsel) available to us for additional clarification that we reasonably request regarding the analysis or interpretation of any such restrictions or obligations. You agree that we will be entitled to rely on, and have no liability for, the accuracy and completeness of the information, analysis or Interpretation that is provided to us. In connection with theforegoing. 7. Mercer is unable to provide insurance broking, risk consulting, claims or other services or provide any benefit to the extent that the provision of such services or benefit would violate applicable law or expose Mercer or its Affiliates to any sanction, prohibition or restriction under UN Security Council Resolutions' or under other trade or economic sanctions, laws: or regulations. MARSH&MUENNAN COMPANIES I MERCER Page 4 November 10, 2014 We appreciate your business and look forward to working with you on this engagement. Please acknowledgayeur agreement to the terms contained herein by signing below. Meer Hejth Benefits LLC By: Name: he 11 1 -- Title;[ Title: Date: 11 ib it Date; L-� - ` 1 11 MARSN & McI.ENNAN COMPANIES H&B SERVICE SCHEDULE Our Services consist of the following: ■ Conduct strategic planning sessions to review performance of Client's current employee benefits coverage and establish future objectives and strategies to manage Client's employee benefit coverages to which this agreement applies. ■ Meet with the Client's key designated representatives on a quarterly basis, to discuss strategy and open items. ■ Develop a mutually agreeable renewal action plan and timellne that meets the Client's stated objectives. ■ Keep the Client informed of significant changes and/or trends in the employee benefits marketplace. ■ Benchmark plan costs and employee contributions to Industry, size and regional standards on an annual basis. ■ Analyze factors driving Client's pian costs If experience data is available. in connection with such analysis, we will review utilization reports to determine possible causes of Identified cost increases. Assist Client In managing risks and costs of its employee benefits coverages. ■ Establish comprehensive claims reports for Identified coverages (medlcal,prescription,dental) detailing paid claims (and reimbursements if applicable), premium/funding and enrollment summaries. We will review these reports with Client on an as needed basis and will Identify and discuss trends and potential problems. ■ Provide cost projections and funding analysis (review of funding methodology with emphasis on employer costs and the tier structure of the contribution.) ■ When marketing your plans, prepare an analysis comparing current costs, plan designs, administration costs, network discounts and network accessibility. ■ With respect to the renewal process, we will conduct an annual review during the renewal process to Include negotiations, on Clients' behalf, with current vendors/carriers, as per Client's request. ■ Upon the request of Client, we will assist Client in the preparation of a RFP for purposes of obtaining competitive quotes from the marketplace. We will be the primary point of contact during the bidding process. It Upon request of Client, evaluate and assist in the management of voluntary benefit products offered to Client's employees. H&B Service Schedule 0202oln.doc ■ Assist Client In the implementation of the benefit program by dealing with vendor/carriers and performing contract and SPD review for purposes of determining conformity to agreed upon plan provisions and costs. ■ Advise Client with respect to available technology platforms to support delivery and administration of its employee benefit plans. ■ Assist Client In the development of paper and/or web -based communication strategies. ■ Coordinate the collection of Schedule A Information for Form 5500 filings. M Identify and negotiate on the Client's behalf with insurers and other benefit program providers and keep the Client Informed of significant developments. We shall be authorized for purposes of this Agreement to represent and assist the Client in all discussions and transactions with all Insurers/providers, provided that we shall not place any Insurance or vendor programs on behalf of the Client unless so authorized by the Client. w Assist with documentation and other steps to obtain commitments for and implement Insurance policies and other services selected by the Client regarding its employee benefits program upon the Client's instructions, It being understood that we will not Independently verify or authenticate Information not originating from us necessary to prepare proposals or underwriting submissions and other documents relied upon by Insurers/providers, and the Client shall be solely responsible for the accuracy and completeness of such information and other documents furnished to us and/or insurers/providers and shall sign any application for coverage. The Client understands that the failure to provide all necessary information to an insurer, employee benefit provider or third party vendor whether intentional or by error, could result In the impairment or voiding of coverage or service. • Provide Client access to the national insurance marketplace and related services marketplace and use our commercially reasonable efforts to place Insurance policies and other services selected by the Client regarding its employee benefit program on behalf of the Client, if so instructed by the Client. ■ Act as a liaison between the Client and Insurers/ providers for the lines of coverage and services that we have placed or obtained on behalf of Client or for which Mercer is named as the broker of record. ■ Provide the Client with detailed invoices, except in the case of direct billing by insurers or employee benefits providers. a Follow up with insurance carriers/providers for timely Issuance of policies and contracts. ■ Follow up with Insurance carriers/providers with respect to the payment or return premiums. Review policies and contracts for accuracy and conformity to specifications provided by Client and the related negotiated coverages. H&B Service Schedule 0202cin.doc Assist the Client in connection with issues relating to Interpretation of insurance policies/contracts placed by us. Provide Information/coverage summaries for all new coverages and updates on changes to existing coverages. HCH Service Schedule 0202chdoc