From
Lisa Norris, Human Resources Director
Title
Award Navia Benefit Solutions a one-year agreement for Flexible Spending and Dependent Care Account Administration Services (at a contracted rate of $4.75 per participant per month; estimated at $17,100 per year, approximately $85,500 for five years) effective January 1, 2019 through December 31, 2019 with the option to renew annually unless terminated by either party, and authorize the City Manager to execute up to five annual renewal options for this agreement with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original contract value so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal terms (renewal options beyond the five specified can be authorized however will require additional City Council approval)
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Approve
Analysis
Conexis is the current provider of administrative services for our Flexible Spending Account (FSA) and Dependent Care Account (DCA) under a contract that expires December 31, 2018. These programs have federal regulations in administration and participation limits. The administrator issues each participant a debit card loaded with funds for which the employee chooses to contribute annually on a pre-tax basis to either (or both) the FSA and/or DCA. Card funds are 100% employee dollars. The FSA allows for reimbursement of eligible, out-of-pocket medical, dental, vision or prescription costs as allowed by federal guidelines. Employees are issued a debit card once enrolled and use that card at the time of transaction to pay their portion of costs. The vendor then requires submission of proof for certain expenses (dental or vision) to justify card use as appropriate and compliant with law. Dependent Care reimburses eligible day care or elder care expenses so long as they meet required federal statutes and such care is require...
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