Addendum#2
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Addendum#2 Document Transcript

  • 1. ADDENDUM NO. 2 CITY OF FREDERICK PURCHASING DEPARTMENT 111 Airport Drive East Frederick, MD 21701 (301) 600-1194 January 28, 2010 TO: All Potential Proposers SUBJECT: RFP - # 10-H ACTUARIAL SERVICES Please find attached addendum #2 and Submitted RFI’s and City Response This addendum is made part of the Bidding Documents to the same extent as though it was originally included therein. In the event of conflict with the original Contract Documents, the Addendum shall govern all other contract documents to the extent specified. Subsequent Addendum's shall govern over prior addenda only to the extent specified. The Bidder shall be required to acknowledge receipt of the Informational Addendum by signing the Addendum and including it with the Bid Proposal. Failure of a bidder to include a signed Informational Addendum in its Bid Proposal shall deem its Bid non-responsive provided, however, that the City may waive this requirement in its best interest. The City will not be responsible for any other explanation or interpretation made verbally or in writing by any other city representative. We look forward to receiving your bids. Sincerely, CITY OF FREDERICK Kandi Fullerton, CPPB, Purchasing Manager 1
  • 2. Addendum #2 The City of Frederick ACKNOWLEDGEMENT OF RECEIPT The undersigned acknowledges that Addendum No.2 for RFP - # 10-H ACTUARIAL SERVICES has been received by the undersigned and will be incorporated in all copies of said Bid in the possession of the undersigned. It is understood that all proposals submitted in response to this project will be presumed to be based upon full knowledge of the contents of Addenda No.2. ___________________________________________________________ (Company Name) ____________________________________________________________ (Signature-Authorized Official) _____________________________________________________________ (Title) ____________________________________________________________ (Date) IMPORTANT NOTE: Please sign and date this “Acknowledgement of Receipt” and return via facsimile to The City of Frederick, Purchasing Department at (301) 600-3871, Attention: Ms. Kandi Fullerton. 2
  • 3. Addendum #2 RFI’s Received and City Response in red Kenneth M. Pliszka Senior Consultant Harbridge Consulting Group, LLC (a BPAS Company) One Lincoln Center, 12th floor, Syracuse, NY 13202 Toll Free: 1.866.401.5272 x 8987 | Direct: 315.703.8987 | Mobile: 203.232.2363 kpliszka@bpas.com | www.bpas.com Wednesday, January 27, 2010 4:21 PM Harbridge Consulting Group is interested in providing a quotation for the City’s actuarial services and looks forward to submitting our proposal. At this point, we are in the midst of our review and pricing of each service and have the following questions which will help us finalize our proposal: 1· On the GASB 45 plan, you list three medical plan options (POS Low, POS High and Open Access Plus) and indicate they are partially self funded and partially fully funded. I assume that as an eligible retiree/surviving spouse I can elect any of these three plans. Can you please confirm this? Correct. In addition, can you explain in more detail how the plan is funded (i.e. self funded or fully insured). City Response: Split funded minimum premium plan - The City pays administrative fees and funds claims. 2· On the GASB 45, for both the medical and dental, can you please outline the contribution requirements in more detail? The RFP is a bit confusing in that it indicates the cost to the retiree may vary depending on their date of hire, but then moves on to say the City pays the entire cost of the plan. And then once they reach age 65, if they select the Medicare Advantage plan, they are required to pay $30/month. Can they remain in another plan and not contribute anything? How, if at all, do the contributions vary by date of hire? As this affects the complexity of the valuation, I’m trying to understand the overall contribution schedule. City Response: Currently, there is no requirement that employees/retirees who become Medicare eligible (usually age 65) leave the City's group health/dental plans. Eligible Employees hired prior to July 1, 2003 who have 10 vesting years of service are eligible for medical insurance. Current City policies state that "premiums for these employees and their dependents shall be paid in full by the City." Eligible Employees who are hired on or after July 1, 2003 AND who have 10 vesting years of service with the City are eligible for medical coverage. Current City policy states that..."premiums for these employees and their depends may involve a monthly cost share." NOTE: This group of retirees currently make 0% contributions to the premiums for medical and dental coverage. The City still pays 100% of premiums for this population at this time. 3
  • 4. Addendum #2 Eligible Employees who are hired on or after July 1, 2005 AND who have 15 vest years of service with the City are eligible for medical (and dental) coverage. Current City policy states that..."premiums for these employees and their dependents may involve a monthly cost share." NOTE: This group of retirees (and their dependents) currently make 0% contributions to the premiums for medical and dental coverage. The City still pays 100% of premiums for this population at this time. 3· On the GASB 45, it appears some of the retirees, if retired prior to 7-1-03, receive a $3,000 life plan. Is this the only retiree group that receives Life Insurance and is this the only other OPEB benefit (and are there any other employees eligible for this coverage? City’s Response: Only retirees hired prior to July 1, 2003 are eligible for the retiree life insurance benefit of $3,000 at no cost to the retiree. Term Life Insurance is not offered to any other group of retirees. 4· On the GASB 45, can you please outline the eligibility requirements for the retiree OPEB benefits and indicate how they may differ, by employee group? City’s Response: Other Post-Employment Benefits including retiree medical, dental, group term life are available to eligible retirees as specified above in bullet #2. Eligible retirees may choose to stay in the City's Group Health Plan where their premium costs are currently paid in full by the City for them and for eligible dependents. Alternately, retirees who become Medicare eligible (usually age 65) who have elected Medicare Parts A & B may choose to elect the Medicare Advantage Plan. The current monthly premium cost is $30 per enrollee. If the retiree reaches age 65 and s/he has a spouse and/or dependents not Medicare eligible, then the spouse and/or dependents may remain in one of the City's group health plans (currently at no cost to these individuals). 5· For the Medicare Part D plan, please indicate the number of Rx plans in place (or are the ones outlined under each medical plan it?). Are all of those plans with the same provider and funded on the same basis as the medical plans? City’s Response: If the retriee chooses to stay in the City's group health insurance coverage, each of the three plans (currently with Cigna) includes prescription coverage. For those retirees (Medicare eligible) who elect the Medicare Advantage Plan (currently Aetna), this plan also provides prescription coverage within the plan. 6· For the pension plans, I believe we understand them fine. We will provide 3 separate valuations for each plan. Please confirm this is the case. City’s Response: One valuation for each of three plans 4