UNIVERSITY OF MASSACHUSETTS

President’s Office

REQUEST FOR PROPOSAL UP16-DF-0101 Paycard & Prepaid Card Services

Answers to Bidder Questions

Question 1

Our Bank would like to provide you with information on our Focus card program which provides an efficient replacement for checks, provides many features for your employees such as cash-back rewards, an interest-bearing savings account, bill pay, and a mobile app and is the lowest-cost program in the marketplace for both employers and employees.
Unfortunately with the strict regulatory requirements that come with Federal Work Study funds on prepaid cards, we are unable to allow these types of funds onto our Focus cards. Would The University consider a product for payroll funds only?

UMass Answer to Question 1

The University seeks one card solution for payroll funds that also satisfies the requirements of Federal Work Study (FWS) wages.

Question 2

Because of the requirements associated with Federal Work Study payments, including annual audit requirements and ATMs on campus, we would like to know if payroll and work study funds are commingled and if both types of payments are part of both modules.

UMass Answer to Question 2

Payroll and FWS are comingled in Module 1. Module 2 would include funds that had originally been disbursed as Payroll/FWS but were returned under an ACH Return Code or were paychecks that were lost or unpaid.

Question 3

Please provide the volume split for module 1 and module 2.

UMass Answer to Question 3

In calendar year 2015, the University issued approximately 21,500 checks totaling $13.2 million. These checks would make up Module 1.

In calendar year 2015, the University had 699 returned payroll ACH items, 715 returned AP ACH items, reissued 169 lost payroll checks, and reissued 865 escheated items. These checks would be included in Module 2. This Module also has the potential to replace checks issued for non-student related refunds and other manual check issues.

Question 4

With respect to the summary of check and ACH volumes detailed in section 1.1 can you detail how expected volume is broken out for card use between payroll cards (Module 1) and other prepaid card services (Module 2)?

UMass Answer to Question 4

In calendar year 2015, the University issued approximately 21,500 checks totaling $13.2 million. These checks would make up Module 1.

In calendar year 2015, the University had 699 returned payroll ACH items, 715 returned AP ACH items, reissued 169 lost payroll checks, and reissued 865 escheated items. These items totaled approximately $2.2 million. These checks would be included in Module 2.

Question 5

Does the University currently have a Prepaid card service of any type active?

UMass Answer to Question 5

The University has two small pilot programs that fall under Athletics and Research programs at one or more of our campuses.

Question 6

Does the University foresee PrePaid cards being utilized in other areas of campus not specifically detailed in the Summary? For example funding research participants, athletic teams and clubs or petty cash?

UMass Answer to Question 6

The University is willing to look at payment options that would enhance efficiencies but would not place additional burdens or fees on the program participants.

Question 7

Pg 2, 1.1 Summary: Is the University shown as the employer on the employee’s W2?

UMass Answer to Question 7

Yes, the University maintains its’ own payroll and is shown as employer on the W2.

Question 8

Pg 2, 1.1 Summary: For both Module 1 and Module 2, are the employees only staff, or do they include students as well?

UMass Answer to Question 8

Both Modules include staff and student employees.

Question 9

Pg 2, 1.1 Summary: The summary states that the University "issued approximately 21,500 checks totaling $13.2 million". However, the bidder needs a little more detail to provide the best pricing. Can the University provide the following?

  1. How many total employees?
  2. How many checked employees?
  3. Average payload amount per pay cycle?

UMass Answer to Question 9

  1. How many total employees?

Approximately 17,500 employees and 14,500 student employees

  1. How many checked employees?

Approximately 1,400 (at the time of the RFP)

  1. Average payload amount per pay cycle?

In CY 2015 the average per payperiod was approximately 800 checks at an average amount of $600 each; a total average payload per pay cycle of approximately $490,000.

Question 10

Pg 2, 1.1 Summary: For Module 1, will the payroll distribution product be used only for disbursement of wages to employees?

UMass Answer to Question 10

Yes, however, Module 1 includes student employees who may be receiving Federal Work Study (FWS) wages in their paycheck.

Question 11

Pg 2, 1.1 Summary: For Module 2, what was the number of off-cycle checks provided last year?

UMass Answer to Question 11

The University does not issue off-cycle checks.

Question 12

Pg 2, 1.1 Summary: How do you distribute paystubs to employees? Is the University interested in electronic distribution of paystubs?

UMass Answer to Question 12

The University currently uses a combination of USPS mailing and electronic distribution of checks & advices.

Question 13

Pg 2, 1.1 Summary: Do you use employee self-service to collect direct deposit information?

UMass Answer to Question 13

Yes.

Question 14

Pg 2, 1.1 Summary: Can the University provide a short description of your goals and expectations from this program?

UMass Answer to Question 14

The goal of these programs is to reduce or eliminate the number of paper checks issued to employees. Our expectation is that the selected program will provide employees access to funds in a timely manner without burdensome fees or vendor processes. It is also our expectation that the selected vendor will provide Customer Service to our participating employees.

Question 15

Pg 2, 1.1 Summary: While incorporating the requested services, what is the University'sdocumentation plan as relates toPCI compliance (such as a plan to document card numbers)?

UMass Answer to Question 15

The University adheres to MGL CH 93H pertaining to the safeguarding of PII as well as Executive Order 504, (Order Regarding the Security and Confidentiality of Personal Information). The University also has a WISP that incorporates guidance for PCI Compliance.

Question 16

Pg 2, 1.1 Summary: While incorporating the requested services, what is the University's plan to handle state payroll pay card compliance changes in the future?

UMass Answer to Question 16

The University payroll system is separate and distinct from the Commonwealth’s HRMS and is funded through various mechanisms including state appropriation. As federal and state laws change, the University incorporates those changes into the University’s payroll processes and systems.

Question 17

Appendix A. Appendix A states, "Items 6-26 of this contract are mandated by the University and by the Commonwealth of Massachusetts and may not be altered by the successful bidder." The bidder has reviewed the University's terms and conditions within the RFP. Due to payroll laws and regulations, some of the terms and conditions may not apply or may need to be altered. The bidder has developed our own services agreement that is specifically tailored to the electronic payroll distribution services we would be providing and that establishes the specific responsibilities of the parties with regard to these financial services (as well as addressing the federal and state regulations that apply). We would prefer to use our services agreement as the basis for our relationship for electronic payroll distribution services. We are open to discussing with you the inclusion of provisions contained in the University's terms and conditions that are applicable to the electronic payroll distribution services and that are mutually acceptable. Is the University flexible to negotiating these terms and conditions?

UMass Answer to Question 17

The University may consider using the vendors’ contract, however, all terms will need to be reviewed by the University’s legal office and may need to be amended to comply with Massachusetts state laws. As part of the RFP response, the bidder should identify the Terms & Conditions it believes do not apply or may need to be altered.

Question 18

General Section C.2- Requirement: Each Payroll programs data. In each of your payroll programs how many employees receive a paper check?

UMass Answer to Question 18

At the time of the RFP, approximately 1,400 employees received a paper check.

Question 19

General Section C.2 – Requirement: Each Payroll programs data. What is the average load per paper check issued today?

UMass Answer to Question 19

Module 1: The average load per paper payroll checks issued in CY 2015 was approximately $600.

Module 2: The average load of paper checks issued was approximately $900.

Question 20

General Section C.2 - Do you currently offer a solution for Financial Aid Disbursement?

UMass Answer to Question 20

The University has an electronic process for Financial Aid Disbursement.

Question 21

Section 1.1, Module 2: Can you share the number of cards for the following instant issue programs:

- Employee termination pay

- Bonuses

- Employee incentives & rewards

UMass Answer to Question 21

We do not have these statistics, the University sees this as an opportunity to coordinate these payments into one program.

Question 22

Section 4.1, Contract Terms: Contract Agreement date is estimated at June 1, 2016. Can you share desired program launch date for Module 1 and Module 2?

UMass Answer to Question 22

It is our expectation that we could have a limited roll-out within 4-6 weeks of the contract agreement. The implementation schedule should be able to meet a full roll-out for the late August, early September on-boarding of new employees and student employees.

Question 23

Section 7.1, Program Services: With Visa/MC participating banks for free cash access, is it a requirement of the RFP to have branches in the State of MA?

UMass Answer to Question 23

It is not a requirement to have branches in Massachusetts however, the vendor will need to meet the requirements of free cash access.

Question 24

Does the bidder have to be a financial institution (FI), or can bidder be a non-FI that has a relationship with an FI that meets the RFP requirements applicable to FIs, such as the requirement below?

6.1 NACHA & FDIC

The Contractor must be able to work with the National Automated Clearinghouse Association (NACHA) and agree to conform to all ACH Rules and Regulations. In addition, Contractor must be able to act as both an Originating Depository Financial Institution (ODFI) and a Receiving Depository Financial Institution (RDFI) – able to both initiate and receive ACH entries. The contractor must also be capable of providing FDIC insured deposits to program participants.

UMass Answer to Question 24

It is not required that the bidder be a Financial Institution as long as the non-FI can meet the requirements of the RFP.

Question 25

Do you require the Payroll Debit Card Program include a paystub/pay advice feature? Will you consider providers who do not offer this feature? (Question 6 in section 7.1)

UMass Answer to Question 25

There is no requirement to have a paystub feature; the question is intended to find out if the employee is able to electronically access the deposit information, not the paystub information. At this time, there is no expectation that the University will pass any paystub information to the vendor other than the net payment to be applied to the paycard.

Question 26

Please provide anticipated annual card volume and average funding amount per card for cards used for employee bonuses, incentives, and awards. Please also provide the funding frequency and segregate the volume by fund type.

UMass Answer to Question 26

We do not have these statistics, the University sees this as an opportunity to coordinate these payments into one program.

Question 27

Will the University explore multiple providers to help service Module 1 and 2 or is it the University’s desire to award both Modules to the same provider?

UMass Answer to Question 27

When awarded, Modules 1 & 2 will be under separate contracts. Multiple providers may be awarded if the University review deems it to be in the best interest of the University and program participants.

Question 28

As it relates to the reimbursement of Student wages which may include Federal Work Study (FWS) funds as part of federal financial aid, is the University willing to explore an alternative electronic payment solution rather than a card solution?

UMass Answer to Question 28

The University seeks one card solution for payroll funds that also satisfies the requirements of Federal Work Study (FWS) wages.

Question 29

In addition, since the Department of Education has strict rules around the payment vehicle used for reimbursing Federal financial aid, will you explore segmenting that piece of the business from the remaining reimbursable funds?

UMass Answer to Question 29

The University seeks one card solution for payroll funds that also satisfies the requirements of Federal Work Study (FWS) wages. The University has an electronic process for Financial Aid Disbursement.