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Total Administrative Services Corporation (TASC) Renewal RatesMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Administrative Services Fee Renewal for Flexible Spending Plan DATE: November 9, 2012 Dubuque kital All- America City II 111! 2012 Personnel Manager Randy Peck recommends City Council approval of the administrative services fee of Total Administrative Services Corporation (TASC), the City's flexible spending plan administrator, in the amount of $3.86 per month per participating employee, effective January 1, 2013, through December 31, 2015. Our current fee of $3.77 per month per participating employee has been in effect since January 1, 2009. This is a 2.4% increase. I concur with the recommendation and respectfully request Mayor and City Council approval. ibtiL kr,„ 7)4, Michael C. Van Milligen MCVM:sv Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Randy Peck, Personnel Manager Masterpiece on the Mississippi TO: FROM: SUBJECT: DATE: Michael C. Van Milligen, City Manager Randy Peck, Personnel Manager Administrative Services Fee Renewal for the Flexible Spending Plan November 8, 2012 Dubuque kratti All- America Cdy 'III'a' 2007 I received the renewal rates from Total Administrative Services Corporation (TASC), our administrator for the flexible spending plan. Effective January 1, 2013, their fee will increase from $3.77 per month per participating employee to $3.86 per month per participating employee, which is a 2.4% increase. This fee is guaranteed through December 31, 2015. Their current fee has been in effect since January 1, 2009. The Health Care Committee voted to accept the renewal rate proposed by Total Administrative Services Corporation. I recommend that the administrative services fee of $3.86 per month per participating employee effective January 1, 2013, through December 31, 2015, be approved. The requested action is for the City Council to pass a motion approving the administrative services fee proposed by Total Administrative Services Corporation in the amount of $3.86 per month per participating employee effective January 1, 2013 through December 31, 2015. RP:Imh $2,500 FSA Cap Page 1 of 3 Randy Peck - Fwd: FlexSystem Renewal Information From: Gina Noel To: Batt, Barb; He11e, Rita; Peck, Randy Date: 10/23/2012 10:02 AM Subject: Fwd: FlexSystem Renewal Information FYI on the TASC fee increase. Gina Noel Personnel Assistant City of Dubuque 50 W 13th St Dubuque IA 52001 Phone: 563 -589 -4115 Fax: 563-690-6025 Email: gnoel @cityofdubuque.orq >>> On 10/19/2012 at 10:59 AM, in message < 300. 0A D. E82. 1CDAE12D11323FE. 29A84A@ me- ss2- 16synq.mailenginel.com >, "TASC Customer Care" <do_not_repty @tasconline.com> wrote: a FlexSystem- TASC ID: 4400- 0479 -9060 Contact Email Address: gnoel @cityofdubuque.org Dear Regina Noel, Renewal Fee CPI Increase: 2.4% Now Is the time to renew your FlexSystem Plan for the year ahead. The easy steps below will guide you though the renewal process. 1. Review Contact and Account Information o Review your contact and account information at the top of this message. o To change your contact information. log in to MyTASC at www.lasconline.com and select the Profile menu option. 2. Access Employer and Employee Material o Go to the FlexSystem Renewal Resource to access renewal materials and instructions. o Employer Renewal Kit: Download important employer materials including the detailed Employer Enrollment Guide with step -by -step instructions for renewing your Plan. o Employee Renewal Kit with Exclusive MyCash: Select this link to download the materials On PDF format) for employers who exclusively offer MyCash (no card use for benefits). This kit includes enrollment and educational materials for your eligible employees. o Employee Renewal Kit with MyBenefits and MyCash: Select this link to download the materials On PDF format) for employers offering MyBenefits and MyCash (card is used for benefits and MyCash). This kit includes enrollment and educational materials for your eligible employees. file: / / /C:/ Users /lhunn/ AppData /LocallTemp/XPglpwise /50866B41 DBQ_DODB Q_PO100... 11/9/2012 $2,500 FSA Cap Page 2 of 3 o HSA Renewal Materials: In addition to the Employee and Employer Renewal Materials, employers offering a Health Savings Account (HSA) will need the additional HSA - specific renewal materials available at the FlexSystem Renewal Resource. You must choose from two HSA Renewal Kits; be sure to select the kit that's appropriate for your Plan. • HSA Renewal Kit A: For HSAs using BMO Harris Bank or if your employees select their own HSA Bank. • HSA Renewal Kit B: If your HSA Bank is Healthcare Bank, select HSA Renewal Kit B. .(Complete and return the HSA Plan Renewal Data Request Form in this Kit as soon as possible.) This information is required to set up your new HSA Plan Year before enrollment can begin. o Renewal Training Webinar TASC also provides online training Webinars to assist with your upcoming renewal and to educate you on what's new with your Plan. This live demonstration provides an opportunity to learn the renewal process using MyTASC and ask specific questions! To sign up for a Webinar, please click here. 3. Education and Enrollment o Educate your Employees: Distribute the applicable education materials from the FlexSystem Renewal Resource link to your eligible employees prior to enrollment, either by email or printed materials. This will educate your employees about the benefits of a Flexible Spending Account and guide them through the FlexSystem enrollment process. o Online Option: The easiest way to renew is to direct your employees to www.tasconline.com to make their enrollment selection online. o No Online Option: If you have employees who cannot enroll online, print their customized Enrollment Forms available at your account online. Once the employee returns the completed Form to you, simply go online and enroll your employees. Refer to the detailed instructions in the Employer Enrollment Guide (included in the renewal download). $2,500 Medical FSA Cap: Beginning in January 2013, employee salary reductions to a medical Flexible Spending Account (FSA) will be capped at $2,500 per Plan Year, per employee, as set forth by the Patient Protection & Affordable Care Act (PPACA). This limit is in effect with the first Plan Year on or after January 1, 2013 and is indexed annually for inflation. New 2013 Fees: TASC customers have told us that they prefer an annual fee increase instead of a relatively larger fee increase every few years. To comply, TASC's small annual fee increase is re- calculated each year based on a Ihree -year average of the Consumer Price Index (CPI), a figure calculated by the U.S. Bureau of Labor Statistics. Effective on the invoice for your 2013 Plan Renewal, this year's FlexSystem Plan administration fees (Per Participant Fee and /or Annual Flat Fee - whichever applies to you) will increase by 2.4 %. Plan Current Per Participant Fee Current Flat Fee New Per Participant Fee New Flat Fee City Of Dubuque $3.77 $633.00 $3.86 $648.00 This annual fee increase enables us to invest in the enhancements to FlexSystem that improve ease, efficiency, and customer satisfaction - including the new TASC Card with MyCash, MyCash Transfer Schedules, MyTASC Mobile App, and much more! MyTASC Mobile App: FlexSystem Participants can securely access their account(s) from anywhere at any time using their mobile device! With the MyTASC Mobile App Participants can use their mobile phone or tablet to view account balances and transactions, review Plan information and contributions, request reimbursements, and even upload receipts. Download the app for free at Apple® App Store or Android MarketTM. Thank you for your business! We are committed to continue providing you with the top -notch service you have come to expect from TASC. To stay informed about the changes and enhancements going on at TASC and with your FlexSystem Plan, visit our Group Client News website - the TASC Tracker - and subscribe to receive convenient email updates! If you have any questions or concerns, please do not reply to this message. (We do not monitor incoming file: / / /C:/ Users /lhunn/AppData/Local/ Temp /XPgrpwise /50866B41 DBQ_DODBQ_PO 100... 11/9/2012 $2,500 FSA Cap Page 3 of 3 emalls sent to this notification -only address.) Instead, please submit a MyService Request (from MyTASC, click Contact Us). Most MyService Requests are addressed within 24 hours. If your question is extremely time- sensitive, call Customer Care at 1- 800 - 422 -4661 for assistance. Best regards, TASC Customer Care Total Administrative Services Corporation (TASC) 2302 International Lane Madison, WI 537043140 www_lasconline con aTASC Edt Profile r Unsubsmbe file: / / /C:/ Users /lhunn/ AppData /Local/Temp/XPgrpwise /50866B41 DBQ_DODBQ_PO100... 11/9/2012