Administrative Services Fee Renewal - Flexible Spending PlanTHE CITY OF
DUB E
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
2007
SUBJECT: Administrative Services Fee Renewal for the Flexible Spending Plan
DATE: December 6, 2008
Personnel Manager Randy Peck recommends City Council approval of the
administrative services fee of Total Administrative Services Corporation (TASC), our
flexible spending plan administrator, in the amount of $3.77 per month per participating
employee, effective January 1, 2009 through December 31, 2009, and an annual
enrollment fee of $350.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Y -
Mich el C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
THE CITY QF ~ Dubuque
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Masterpiece an the Mississippi
2007
TO: Michael C. Van Milligen, City Manager
FROM: Randy Peck, Personnel Manager
SUBJECT: Administrative Services Fee Renewal for the Flexible Spending Plan
DATE: December 1, 2008
received the renewal rates from Total Administrative Services Corporation (TASC), our
administrator for the flexible spending plan. Effective January 1, 2009, their fee will
increase from $3.65 per month per participating employee to $3.77 per month per
participating employee, which is a 3.3% increase. Their current fee has been in effect
since January 1, 2006. In addition, they are initiating an annual enrollment fee. The fee
is $350. I believe their proposed rates are reasonable and recommend that we accept
the renewal rates proposed by Total Administrative Services Corporation.
The requested action is for the city Council to pass a motion approving the
administrative services fee and annual enrollment fee presented by Total Administrative
Services Corporation, our flexible spending plan administrator, effective January 1,
2009 through December 31, 2009.
If you have any questions, please feel free to call.
RP:sy
1'HE C11Y OF
DUB E MEMORANDUM
Masterpiece on the Mississippi
November 19, 2008
TO: Randy Peck .
Personnel Manager
~~ j
FROM: Brenda Fuglsang ,,t
Personnel Assistant ~-~
SUBJECT: TASC Administrative Fee Increase
I received a telephone call from Rita Helle checking to make sure we received the
information from TASC on their administrative fee increase. I shared with her that I
had not received the notice so she forwarded the information to me. I have enclosed
a copy for your review.
Effective January 1, 2009, TASC will be increasing their administrative fee per
participant by 3.3%. We currently pay $3.65 per participant and $1.60 per participant
for the debit card fee. With the increase we will be paying $3.77 per participant. The
fee for the debit card will remain the same at $1.60 per participant. In reviewing the
notice it looks as though TASC will possibly increase fees each year.
There will also be an Annual Enrollment Fee each year of $350, which replaces the
fees that TASC charged employers each time they added a participant mid-year. The
City has never incurred expenses for mid-year participation as when the City
originally set up the agreement with TASC it was negotiated that the City would not
incur the mid-year participant fee. According to Rita Helle, TASC will be setting an
Annual Enrollment Fee for every employer. Employers with 100 or more participants
will have a $350 enrollment fee.
Please- let me know if you need any additional information.
Thank you.
Enclosure
Dear FlexSystem Client;
To make certain your experience as a FlexSystem Client, as well as your Participants'
experience, is a very positive one, we continue to make significant investments in our
infrastructure and systems to bring you the newest cutting edge tools and resources. To keep
up with the increasing cost of technology and resources TASC has found it necessary to
implement a slight annual increase of your FlexSystem Administration Plan Fees.
Prior to implementing this change, we conducted a survey and more than 90% of surveyed
Clients responded that they would prefer a small fee increase each year as opposed to a large
fee increase every few years. Therefore, an annual fee increase will be calculated each year
based on an average of the past three years of the Consumer Price Index (CPI) which is
calculated by the U.S. Bureau of Labor Statistics. This average will be adjusted each year
based on the previous three years. This year's increase will be 3.3%. To ensure the
FlexSystem Plan remains competitively priced, TASC will review fee increases every three
years and make corrections to stay within market guidelines.
Your Per Participant Fee and/or Annual Flat Fee will increase each year by this percentage. To
determine what your new fees will be simply calculate your current fee by 3.3%. Keep in mind
that the administrative Per Participant Fee and/or Annual Flat Fee is separate and apart from
any additional feature fees, such as the Claim Card or HSA which will not be receiving an
increase.
Another change you will notice on your next Administration Plan Fee invoice is that it has been
simplified to include your Claim Card fees (if applicable). Now, instead of receiving two separate
invoices (one for Plan Administration Fees and one for Claim Card Fees) you will receive one
itemized FlexSystem invoice. This eliminates paper and saves time for both you and TASC.
Lastly, we have eliminated our Per Participant Enrollment Fee. Remember those small dollar
amount invoices you would receive each time you enrolled a new employee? Those are now
gone and have been replaced with one easy to manage Annual Enrollment Flat Fee. This
reasonable once-a-year fee eliminates the hassles of managing those pesky little invoices; now
you will pay only an annual fee at re-enrollment. You will see this fee as an itemized line item
on your Plan Renewal invoice. Depending on your participation history the new annual fee
structure may potentially save you money over the small individual invoices. It will certainly
save you time and energy.
TASC has made the changes outlined above in order to continue to serve you at the high level
to which you have become accustomed, and now we bring you more convenience by simplifying
our fees and eliminating invoices for you. For instance, if you pay annually you will only receive
one invoice from TASC all year! It just makes sense. And -even better - if you sign-up for our
electronic E-Pay system you won't even receive an invoice, we'll just let you know seven days in
advance of your Plan Start Date that we've debited your account for the total invoice amount. It
really is that easy!
As mentioned above, TASC is diligent about bringing you the best technological and electronic
methods of managing your employee benefits. Check out a list of some of the beneficial
features already available!
• ACH payment of payroll contributions
• Online employee enrollment
• Web chat
• Participant email notifications regarding their FlexSystem transactions (new!)
• Participant ability to elect Direct Deposit right online (new!)
And even more coming to your desktop very soon
• Participant cell phone text notifications regarding their FlexSystem transactions
• One simplified invoice
• Payroll report upload and download via spreadsheet
• Continued advancement on all fronts
In order to help you keep abreast of all the changes going on at TASC, we have created the
TASC Tracker website. This website contains continuous updates regarding news about our
products and services. Visit www.tasconline.com/groupclientnews to check it out! Click on the
`About' page to learn how to set up a Google Alert so you can be notified when something new
is added to this web page.
To learn more contact our Customer Service Department (at 1-800-422-4661 or via a-mail at
service(a~tasconline.com).
ay
We value your business and thank you for the continued opportunity to serve you as your
FSA/Cafeteria Plan partner.
Thank you!
FlexSystem