REQUEST for PROPOSAL UP17-DF-0701 Voluntary Benefits

UNIVERSITY OF MASSACHUSETTS

President’s Office

REQUEST FOR PROPOSAL UP17-DF-0701 Voluntary Benefits

Answers to Bidder Questions

Question 1

Who is the current broker/consultant providing these services?

UMass Answer to Question 1

Beneplace currently procures the discount platform offerings and negotiates the contracts with MetLife (auto/home/legal). The University does not have a consultant.

Question 2

What commission levels (%’s) are included in the current auto, home/renters insurance and legal plans?

UMass Answer to Question 2

Commission are included in the premiums and not charged to the University. The MetLife Auto & Home plan commission rate is presently at 4% annually for both new and renewing premium.The Hyatt Legal Plan has a ten percent (10%) commission rate built in for only NEW participants.As of January 1, 2015, commission is not collected for existing participants (those who are actively participating in the plan)

Question 3

What were the total annual commissions for these programs in 2015?

UMass Answer to Question 3

The commission for the Auto & Home program was approximately $400,000.00.

The commission for the Hyatt Legal Plan was approximately $1,190.00.

Question 4

What is the current enrollment by plan for the current voluntary benefits program?

UMass Answer to Question 4

Current enrollment in the Auto & Home Plan is 8,388 participants, of which 3,431 are active employees.

Current enrollment in the Hyatt Legal Plan is 122 participants.

Question 5

My understanding is that this RFP is seeking a consultant to assist with evaluating and negotiating certain employee benefits including Group Auto/Renter and Home Insurance. My company can offer a competitive proposal on a discount program for auto/home and renter insurance for UMass employees.

Will UMass consider a “stand alone” offer of a discount program for these lines of insurance?

To clarify, we would not participate in the consulting and other services requested in this RFP. So our potential proposal would be exclusive to the auto/home insurance discount for your employees.

UMass Answer to Question 5

At this time, the University is looking for all the services outlined in the RFP.

Question 6

How many employees will be eligible for the voluntary benefit programs?

UMass Answer to Question 6

At a minimum 14,828 full time employees would eligible to participate in the program. Based on discussions with the winning vendor, the University could look to expand these programs to part-time employees, in which case another 2,565 employees would be eligible.

Question 7

What are the current participation percentages of the current voluntary benefit programs?

UMass Answer to Question 7

The current participant rate is approximately 20%

Question 8

How have you communicated to employee’s current voluntary benefit offerings?

UMass Answer to Question 8

At time of hire and throughout the year, employees are notified about the voluntary/discount offerings.

Question 9

Do you have a specific Open Enrollment period for voluntary benefits?

UMass Answer to Question 9

There is no specific open enrollment period.

Question 10

Do you offer new hires during the year an opportunity to enroll in current voluntary benefit programs?

UMass Answer to Question 10

Yes, employees can enroll at any time.

Question 11

The RFP outlines interest in a new employee purchasing program. Since there are several variations available, can you please be more specific?

UMass Answer to Question 11

The University currently offers a discount program and is interested in learning about other programs.

Question 12

In addition to a purchasing program, which other new voluntary benefit programs are you interested in? Such as Critical Illness, Accident, Medical Gap, ID Theft etc.

UMass Answer to Question 12

The University will work with the selected consultant from this RFP to asses existing programs and to make determinations that best suit the University’s needs. The University will rely on the expertise of the consultant to make recommendations.

Question 13

Will you allow payroll deductions for new voluntary benefit programs?

UMass Answer to Question 13

The University currently allows pay roll deduction. However, we want to understand the available options and further assess the pros/cons of offering payroll deductions for these type of programs.

Question 14

Will you allow access to employees for the new voluntary benefit programs? Please be specific.

UMass Answer to Question 14

See answers to Q9 and Q10.

Question 15

Will you allow worksite access to employees?

UMass Answer to Question 15

Yes, the University will work with the applicable vendors to allow appropriate worksite access to our employees.

Question 16

How do you currently enroll employees for voluntary benefits?

UMass Answer to Question 16

Employees currently contact the carrier directly to enroll. Paper and online enrollment is available.

Question 17

How do you currently enroll employees for their core benefit programs?

UMass Answer to Question 17

Core benefits such as health insurance, long term disability, optional life insurance, dental, and flex spending accounts are managed by the Commonwealth of Massachusetts Group Insurance Commission and are not part of this procurement.

Question 18

Are there any carriers you specifically want us to provide proposals from?

UMass Answer to Question 18

The University is not seeking proposals from carriers at this time.

Question 19

Are there any carriers you specifically want us to exclude proposals from?

UMass Answer to Question 19

See answer to Q18.

Question 20

The RFP discusses a Corporate Discount Platform (which is different from a benefits administration platform); is there currently a benefits administration platform in place for the management of the current core and voluntary benefits? If so, can we learn the name of the system(s) in place by campus/Office?

UMass Answer to Question 20

See the answer to Q17. Voluntary benefits (auto/home/legal) are managed through Beneplace.

Question 21

May we learn the name of the carrier they currently utilize for auto, home/renters insurance and legal?

UMass Answer to Question 21

MetLife currently provides these services.

Question 22

Besides Auto & Home and Group Legal, what other voluntary benefits have been considered or are of interest?

UMass Answer to Question 22

See the answer to Q12.

Question 23

Are there any collective bargaining agreements that affect the design or administration (payroll deduction) of the voluntary benefits?

UMass Answer to Question 23

There are currently no collective bargaining agreements that affect the design or administration of voluntary benefits. However, the University would need to look at this closely on any future implementation.

Question 24

Is there any interest to offer voluntary benefits to part-timers and/or retirees if there were no administrative burden on the University?

UMass Answer to Question 24

Yes the University would be interested in exploring this option.

Question 25

For the last three fiscal years, please provide all paid premiums, participation rates (or number of policies), commission amounts and fees (broken out separately)paid to brokers/consultantsby line of coverage.

UMass Answer to Question 25

The University has not paid any fees to a broker/consultant as we do not have this type of arrangement in place.

Question 26

Please describe the process for the annual open enrollment for voluntary benefits, and identify who is currently responsible for the enrollments.

UMass Answer to Question 26

There is no open enrollment for Met auto/home/legal at this time.

Question 27

How many employees are at each location?

Location / Total Employees / Benefit Eligible / Non-Benefit Eligible / Full Time / Variable Hourly EE
Amherst Campus
Boston Campus
Dartmouth Campus
Lowell Campus
President’s Office
Worcester Campus

UMass Answer to Question 27

The University’s FTE as of fall 2015 was 17,393

Amherst – 5,814

Boston – 2,595

Dartmouth – 1391

Lowell – 2,192

Worcester – 4,998

President’s Office - 403

Question 28

Please provide the following information on the current Voluntary Benefits

Insurance / Carrier / Year first offered to Employees / # of Employee Enrolled / Total Premium
Auto Insurance
Home/Renters
Legal

UMass Answer to Question 28

Insurance / Carrier / Year first offered to Employees / # of Employee Enrolled / Total Premium
Auto Insurance / MetLife / 1997 / 5,722 / 7,881,800
Home/Renters / MetLife / 1997 / 2,666 / 2,286,700
Legal / Hyatt legal Plans / 2008 / 348 / 96,700

Question 29

When may employees enroll in these plans:

1. Open Enrollment (Dates?)
2. New Hire Enrollment? (Waiting period?)

UMass Answer to Question 29

See answer to Q26.

Question 30

How do employees enroll in these benefits (Paper, Carrier Website, Employer Benefit website)?

UMass Answer to Question 30

Employee’s access information employee’s benefits website which directs to carriers for enrollment. Participants can log into the website or call to enroll.

Question 31

How do the employees pay for these products? Payroll deduction, Direct to carrier?

UMass Answer to Question 31

Employees pay for auto/home/legal, either through payroll deduction or direct to carrier. This is currently an employee choice.

Question 32

What core benefits do you currently offer to your employees? (Please note benefit and carrier)

UMass Answer to Question 32

See answer to Q17.

Question 33

Are benefit deductions taken throughout the year or are deductions stopped during a summer term?

UMass Answer to Question 33

If an employee elects payroll deductions for Met auto/home/legal, the deduction is taken across 26 pay periods.

Question 34

Do employees enroll through a web based enrolment platform?

1. If so what platform do you use?

UMass Answer to Question 34

See answer to Q30

Question 35

Who is your current payroll administrator or do you administrate payroll internally.

UMass Answer to Question 35

The University administers payroll internally using the human resources management company PeopleSoft.

Question 36

What platform is your payroll administration platform?

UMass Answer to Question 36

See answer to Q35.

Question 37

What is your annual employee turnover percentage?

UMass Answer to Question 37

The University annual employee turnover percentage is approximately 11.5%

Question 38

What is the average tenure of your employees?

UMass Answer to Question 38

The University’s average tenure/years of service is approximately 10.46 years.

Question 39

Our firm is capable of providing enrollment and communication support of core benefits and other strategic programs (Wellness, Telemedicine, Migrating employees to specific medical plan designs, HSA, FSA education and communication, etc.). Is there a potential to utilize our benefits counselors and call center to assist with open enrollment and new hire onboarding?

UMass Answer to Question 39

Please see the answer to Q17

Question 40

What level of access to employees do you anticipate? (Scheduled group and individual meetings, scheduled phone calls) We can provide an online scheduling tool that employees can use to schedule meetings at their convenience.

UMass Answer to Question 40

The University would be interested in exploring all available options. We would work with the selected broker/vendor to develop the appropriate level of support.

Question 41

What feedback do you get on your current discount and voluntary insurance programs?

UMass Answer to Question 41

The University has not polled employees on the current programs.

Question 42

CORE BENEFITS: Is enrollment in your core benefits entirely self-service? Is there a call center and/or on-site
counseling support available? Are any hard copy materials distributed?

UMass Answer to Question 42

Please see the answer to Q17.

Question 43

CORE BENEFITS: Do you currently have a defined Financial Wellness initiative?

UMass Answer to Question 43

The University does not have a comprehensive financial wellness program.

Question 44

VOLUNTARY BENEFITS: What is the current number of policies and volume of annualized premium in the Auto/Home
Program?

UMass Answer to Question 44

Line of business premium / 2015
Auto / 7,881,800
Home / 2,286,700
Other / 96,700
total / 10,265,200
Line of business policies in force / 2015
Auto / 5722
Home / 2666
Other / 348
total / 8736

Question 45

VOLUNTARY BENEFITS: What is the current number of participants in the Hyatt Legal Plan?

UMass Answer to Question 45

348 current participants.

Question 46

VOLUNTARY BENEFITS: What is the current monthly rate for the Hyatt Legal Plan?

UMass Answer to Question 46

$18.50 is the current rate.

Question 47

VOLUNTARY BENEFITS: Is a Discount Merchandise Purchasing program currently available?

UMass Answer to Question 47

Yes, a discount merchandise program is currently available.

Question 48

VOLUNTARY BENEFITS: Are any of the above not paid through payroll deduction?

UMass Answer to Question 48

Discount merchandise is not paid through payroll deductions.

Question 49

VOLUNTARY BENEFITS: Is the Legal Plan integrated on your benefits portal for enrollment?

UMass Answer to Question 49

The Legal Plan is available through the MetLife enrollment page that is also used for Auto and Home.

Question 50

VOLUNTARY BENEFITS: Question 6.2 (2) refers to “specialty products”. Please provide some examples of what is meant by “specialty products”.

UMass Answer to Question 50

When working with the selected broker, the University will be interested in learning about what other types of voluntary employee paid insurance products are available and might be a benefit to our employees.

Question 51

SYSTEM: Please identify the vendor, administrator or software that operates your benefits portal.

UMass Answer to Question 51

Please see the answer to Q1 and Q17.

Question 52

SYSTEM: Please identify the vendor, administrator or software that operates your payroll system?

UMass Answer to Question 52

Please see the answer to Q35

Question 53

SYSTEM: Is there more than one payroll system (e.g. multiple interfaces)?

UMass Answer to Question 53

The University has only one payroll system.

Question 54

SYSTEM: What payroll frequencies are used (e.g. weekly; bi-weekly, etc.)?

UMass Answer to Question 54

Payroll is biweekly.

Question 55

What factors are driving the RFP? Is the University experiencing service or billing challenges with its existing carriers? If so, can you provide examples?

UMass Answer to Question 55

The University through its Procurement Office competitively bids its contracts on a regular basis. In addition, the University wants to take a closer look what’s available and appropriate for our employees in the voluntary benefits space.

Question 56

Can a census and benefit descriptions be provided in order to create a strategy for UMass?

UMass Answer to Question 56

This information will be provided to the vendor who is awarded the contract.

Question 57

Is MetLife offering Home coverage for employees in MA and FL?

UMass Answer to Question 57

Home coverage is offered throughout the United States, including Massachusetts and Florida.

Question 58

How is the University currently enrolling participants?

UMass Answer to Question 58

See the answer to Q30.

Question 59

Do all campuses use the same enrollment system or do they vary by campus?

UMass Answer to Question 59

See the answer to Q30.

Question 60

Is the University interested in leveraging an existing enrollment platform or a new enrollment platform for voluntary benefits?

UMass Answer to Question 60

See the answer to Q30.

Question 61

Does the University leverage payroll deduction or are products direct billed?

UMass Answer to Question 61

Employees can do either payroll deduction or direct bill for the auto/home/legal products.

Question 62

If the University uses payroll deductions, are they centralized or handled separately for each campus?

UMass Answer to Question 62

Deductions are centralized in respect to files are provided to the Central Office for upload into payroll.

Question 63

Does the University receive a consolidated bill from the carrier with each campus broken out by billing division or does each campus receive a separate bill?

UMass Answer to Question 63

The University does not receive bills under the current platform.