Employee Benefit Trust Minutes - 09/08/2016 City of Wichita Falls
Employee Benefits Trust Board Minutes
September 8th, 2016
The meeting was held in the City Council Conference Room, 1300 Seventh Street,
Wichita Falls, TX 76301.
Present: Glenn Barham, Mayor
Darron Leiker, City Manager
Jim Dockery, Deputy City Manager
Kinley Hegglund, City Attorney
Christi Klyn, Human Resources Director
Pat Halverson, Director of Finance
Angela Bosma, Employee Benefits Specialist II
Brittany Franklin, Employee Benefits Specialist I
Brent Weegar, IPS Advisors, Principal
Rebekah Ross, IPS Advisors, Sr. Account Executive
Bennett Champagne, IPS Advisors, Corporate Benefits Analyst
Penny Henderson, retiree spouse
Gerald Todd, retiree
Agenda Items:
Meeting was called to order at 10.00 a.m.
II. Minutes from previous meeting were approved.
III. Financial report was presented and discussed.
IV. IPS Mid-Year Briefing
a. IPS briefed the following: Historical Cost Analysis, RFP Vendor Response,
Medical RFP Results, Medical Plan and Contributions Options, Dental RFP
Results, Vision RFP Results, Life and Disability RFP Results, Employee
Assistance Program RFP Analysis, and Recommendations.
In an overview, IPS briefed:
Historical Cost Analysis:
January 2016 — July 2016 is not as bad as the same time frame in 2015. Per
capita Medical claims paid fell from $7,404 in 2015 to an annualized $5,906 for
2016.
RFP Vendor Response:
IPS briefed the overview of companies who presented RFPs for the City's
Consideration.
Medical RFP Analysis:
BCBS (incumbent) and Cigna were considered as finalists for medical
coverage.
Express Scripts (incumbent), BCBS and Cigna were considered as finalists for
Pharmacy Benefits management.
BOBS with Express Scripts RX, BCBS with Prime RX and Cigna with Cigna RX
Were recommended and IPS will go back for a best and final offer.
Medical Plan and Contribution Options:
IPS briefed a budget projection, the 2016 current plan design, a list of 2017
Plan Design Alternatives, a recap of 2016 Employee and retiree [medical plan]
contributions, and possible 2017 employee and retiree [medical plan]
contribution changes.
Dental RFP Analysis:
Humana (incumbent) and Cigna were declared finalists for the Dental RFP. IPS
will go back to them for a best and final offer.
Vision RFP Analysis:
Humana (incumbent), Avesis and Superior Visions were recommended. IPS
will go back to them for a best and final offer.
Life and Disability RFP Analysis:
Sun Life (incumbent) failed to RFP. Symetra submitted RFP for consideration.
Employee Assistance Program RFP Analysis:
Deer Oaks (incumbent), Interface EAP and AWP submitted for RFP
consideration.
2017 Recommendations:
Prescription Plan:
"RFP results have produced options for significant plan savings." IPS will
explore the best option for the City through the best and final proposal process.
Retiree Plans:
IPS recommendations include: apply the same plan changes to retiree plans as
active plans and "move to a cost neutral funding structure of the retiree only
rate where the employer funds a flat dollar amount to retiree healthcare
regardless of which plan is chosen."
Dental:
IPS will make a selection recommendation at the conclusion of the best and
final proposal process.
Vision:
IPS will make a selection recommendation at the conclusion of the best and
final proposal process.
Health and Wellness:
IPS recommended to "consider expanding the wellness incentive program to
provide additional "extra credit" for those employees who meet preferred health
outcomes. Those who did not meet health outcomes would have to be given
an opportunity to participate in wellness initiatives to receive the reward."
Telemedicine — Teladoc:
IPS recommended the City "consider implementing a telephonic medicine
program with BCBS."
Employee Assistance Program:
IPS will make a selection recommendation at the conclusion of the best and
final proposal process.
This concluded the IPS briefing.
V. Open Session: Employees have expressed an interest in being able to apply for
loans (not hardship) from their existing 457 accounts through Nationwide and
ICMA-RC. Members of the EBT discussed amending the City's current 457
contracts to include these loans. Jim made the motion to initiate the loan provision
through Nationwide and ICMA-RC under their recommended or most common
guidelines. The motion passed.
VI. Meeting was adjourned at 11.55 a.m.