Flex Spending Plan Adm. Fee
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MEMORANDUM
November 15, 2005
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Administrative Services Fee Renewal for the Flexible Spending Plan
Personnel Manager Randy Peck recommends City Council approval of the
Administrative Services Fee for the Flexible Spending Plan by Total Administrative
Services Corporation (TASC) in the amount of $3.90 per participating employee per
month effective January 1, 2006, through December 31, 2007.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic~ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
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Memorandum
November 7,2005
FROM:
Michael C. Van Milligen
City Manager
Randy Peck (J P
Personnel Manager \"
TO:
SUBJECT: Administrative Services Fee Renewal for the Flexible Spending Plan
Total Administrative Services Corporation (TASC) has submitted a renewal request for
the Administrative Services Fee. TASC is requesting that their Administrative Services
Fee be increased from $3.25 per month per participating employee to $3.90 per month
per participating employee. In addition, we will be required to transfer data and
payments electronically. Currently payments are sent through the mail toTASC.This
is their first increase since January 1, 2002, which is when T ASC became our third party
administrator for the Flexible Spending Plan. The renewal rate is guaranteed through
December 31, 2007. $3.43 per month per participant is budgeted for Fiscal Year 2006.
Sufficient funds are available to finance the increase through the remainder of Fiscal
Year 2006.
I recommend that we approve the Administrative Services Fee presented by Total
Administrative Services Corporation. The requested action is for the City Council to
pass a motion approving the Administrative Services Fee presented by Total
Administrative Services Corporation in the amount of $3.90 per participating employee
per month effective January 1,2006 through December 31,2007.
If you have any questions, please feel free to call.
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To: Rita Helle
Regarding: Fee increase FlexSystem administration
Client: City of Dubuque, Client # 3515
The City of Dubuque is currently paying an administrative fee of:
$3.25 per participating employee/per month
The proposed fee increase would take the fee to:
$4.42 per participating employee/per month
There are options available to the client to take advantage ofthat would lower the amount
of the increase.
_ Take Advantage of Electronic PVR Submission
_ Take Advantage ofE-Pay for Administration Fees
Should the client elect to utilize these Efficiency Opportunities the fee increase would be
set at:
$3.90 per participating employee/per month
This equals a 20% fee increase. This rate would be guaranteed for a minimum of2 years.