|
|
|
|
|
|
COUNTY OF SAN MATEO
Inter-Departmental Correspondence
|
Human Resources Department
|
|
|
DATE:
|
May 8, 2007
|
BOARD MEETING DATE:
|
June 5, 2007
|
SPECIAL NOTICE/HEARING:
|
None
|
VOTE REQUIRED:
|
Majority
|
|
|
TO:
|
Honorable Board of Supervisors
|
FROM:
|
Donna Vaillancourt, HR Director
Paul Hackleman, Benefits Manager
|
SUBJECT:
|
Amendment to Benefit One Agreement Extending Period and adding Dependent Care Assistance Plan Administration
|
|
|
RECOMMENDATION:
|
Approve a resolution waiving the Request for Proposal process, extending the agreement with Benefit One and adding Dependent Care Assistance Plan administration for the period from January 1, 2008 through December 31, 2013.
|
|
|
VISION ALIGNMENT:
|
Commitment: Responsive, effective and collaborative government.
|
Goals 20 and 21: Government decisions are based on careful consideration of future impact rather than temporary relief of immediate gain; and County employees understand, support and integrate the County vision and goals into their delivery of services.
|
|
|
Performance Measure(s):
|
Measure
|
FY 2004-05
Actual
|
FY 2005-06
Projected
|
Percentage of employees enrolled in either the Health Flexible Spending Account or the Dependent Care Assistance Plan by January 1, of each year.
|
NA
|
100%
|
Number of employees participating in both the Health Flexible Spending Account or the Dependent Care Assistance Plan each year.
|
NA
|
600
|
|
|
BACKGROUND:
|
In the 2002 negotiations, the County agreed to implement a Flexible Health Spending account effective January 1, 2004. In 2003 the County formed a Labor-Management Committee to develop a RFP, select and interview finalists and implement the benefit. Benefit One was selected and recommended to the County for a five-year term from January 1, 2004 through December 31, 2008.
|
|
|
DISCUSSION:
|
In 2007, the County met with Labor representatives to discuss the placement of the County’s Dependent Care Assistance Plan (Care$hares) which is currently administered internally, with Benefit One. The reasons for this recommendation were to:
• Consolidate these two programs,
• Simplify internal County administration to reduce work for both the Benefits Division and Controller’s Office, and
• Extend the usage to Care$hares of the debit card currently available to participants in the Flexible Health Spending Account.
Benefit One has agreed to extend the contract to December 31, 2013 and to add the Care$hares program effective January 1, 2008 at no additional cost per employee per month. The current cost of $3.50 per participant will be guaranteed throughout the term of the agreement for both the Flexible Health Spending Account and the Dependent Care Assistance Plan.
|
|
|
FISCAL IMPACT:
|
Because the County saves FICA money on both the Flexible Health Spending Account and the Dependent Care Assistance Plan, these FICA savings offset the administrative expenses of the plan. As a result, there is no net County increase in cost.
|