Human Resources Action Item

DATE:	Tuesday, June 11, 2013
TO:	School Board Members
FROM:	MaryEllen Elia, Superintendent
SUBJECT / RECOMMENDATIONS
Approve Voluntary Benefits Renewal for 2014
EXECUTIVE SUMMARY
At the October 10, 2006, School Board meeting, the Board accepted the proposal submitted by Aon Consulting, Inc. (Aon) in response to Request for Proposal (RFP) #4798-TS and awarded Aon the contract as the Employee Benefits Broker/Consultant for the District’s Voluntary Benefits Program.  The contract required Aon to perform the full range of services associated with the negotiation, purchase, design, administration, and communication of a comprehensive and competitive employee voluntary benefits program, effective January 1, 2007 through December 31, 2011, renewable annually, thereafter, for up to two years.  Since the contract will end this year, district staff has entered into direct negotiations with Aon to produce a proposed agreement for services (attached), effective January 1, 2014 through December 31, 2018, renewable annually, thereafter, for up to an additional two years.  Aon’s proposal includes all the terms and conditions of RFP #4798-TS, as amended, as well as compliance with requirements of the Federal Health Care Law, and a reduced rate for the medical plan processing.
STRATEGIC OBJECTIVES
• Demonstrate best financial practices
FINANCIAL IMPACT (Budgeted:  Yes)
There is no cost to the District.  Fees due to the consultant will be supported by the cost of the benefits paid by the employees.  However, due to the economies of scale when providing administrative services for both medical and voluntary benefits, Aon will reduce their processing fee in the medical program for as long as they remain the broker/consultant/administrator for both the medical and voluntary benefits programs.  This will generate a savings to the District estimated to be $700,000 for the first year of the contract and more than $900,000 for each subsequent year.
EVALUATION
Voluntary Benefits Program is reviewed annually.
SUBMITTED BY:

Deborah M. Henry		Daniel J. Valdez
General Manager - Employee Benefits & Insurance (813) 272-4665		Deputy Superintendent (813) 272-4166
		A 4.05
Hillsborough County Public Schools (Florida) * Mtg.#20130611_565 (Board Meeting) * Section A Item# 4.05