Third Party Administration Services

The Vendor is required to provide third-party administrative services for the following employee benefit programs:
• Flexible spending accounts (FSA) (medical reimbursement with carryover)
• Limited purpose flexible spending accounts (LPFSA)
• Dependent care assistance programs (DCAP)
• Cobra administration
- General administrative and technical requirements
• Workday system integration: establish and maintain robust, automated EDI and API data exchanges with workday (the city's system of record).
• Support regular demographic updates, enrollment changes, and payroll deduction files seamlessly, minimizing manual data entry for city staff.
• Account management: assign a dedicated implementation team to guarantee an orderly onboarding process, along with a designated ongoing account manager and clear executive escalation contacts.
• Communications and education: develop and distribute tailored communication, marketing, and educational materials for annual open enrollment and new hire onboarding (digital and print formats).
• Security and compliance: maintain strict compliance with HIPAA privacy and security rules, demonstrating robust cybersecurity frameworks (e.g., SOC 2 type ii certification), data encryption at rest and in transit, and comprehensive disaster recovery and business continuity capabilities.
- Cobra administration services
• Notice generation and distribution: timely production and mailing of initial cobra notifications and qualifying event election notices within strict statutory timelines.
• Election and premium management: comprehensive tracking of participant elections, grace periods, premium billing, premium collection, and timely remittance of collected premiums back to the city.
• Eligibility synchronization: automated notification to health, dental, and vision insurance carriers regarding participant reinstatements and terminations.
• Participant portal: provide qualified beneficiaries with access to an online portal supporting electronic elections and diverse payment methods (e.g., ach, credit card).
• Open enrollment: administer annual open enrollment communication and plan selection modifications for existing cobra participants.
- Flexible spending account (FSA) administration
• Active enrollment carryover: FSA funds are only carried over up to IRS statutory limit (currently $660 for 2026) if the participant enrolls for the new plan year.
• Non-enrolled run-out and one-year limit: if a participant does not enroll in the FSA for the new plan year and has remaining funds after the end of the runoff period, those funds will be limited to a strict one-year carryover period.
• Forfeiture rule: any remaining funds over the IRS indexed allowable carryover amount in the FSA at the end of the runoff period will be forfeited.