RFP/2012/501: Questions & Answers

Transcription

1 RFP/2012/501: Questions & Answers ANNUAL ACTUARIAL VALUATION FOR UNHCR S LIABILITIES RELATED TO AFTER-SERVICE HEALTH INSURANCE AND REPATRIATION BENEFITS Questions 1. Are dependents covered as well by the medical plan? 2. Is there a cap on the medical costs paid? Can you give more details on the plan so we can better understand how complex it is to model (e.g. plan rules)? 3. Is the repatriation benefit calculated based on a globally standardized amount (e.g. in CHF) or dependent on the host or home country? 4. Apart from Switzerland (where 70% of the covered staff is located), in which other countries do you pay benefits can you give us a proportion where the remaining 30% are located? 5. In which currency are the benefits defined? 6. What data on medical costs are available? Do you have analyses on the medical inflation? Is it possible to give us medical payments by age of the insured, gender, dependent status (employee, spouse, child, ), year of occurrence and country? 7. Do you have a claims history, and if yes, how long does it go back? 8. Do you have data on how many dependents are covered (if applicable)? 9. Does the above claims history include dependents? 10. In general, is data available centrally or on a local level? E. g. data on the insured employees, data on the medical expenses etc.? 11. Is there a fixed budget to perform this work that you could communicate to us? 12. We understand there was a similar RfP sent out in the last year or so. Why is there a retender so soon? Has an IPSAS 25 valuation been performed as per ? Do you expect us to reconcile our calculations with the prior year calculations? 13. If a calculation was performed in prior year, could you share with us the report, data analyses that were Answers Yes, Participating staff members may obtain coverage for a spouse and dependent children recognised as dependents. Repatriation benefit is calculated based on a globally standardized amount in USD. Correction - 70% of UNMIS related payments are in CHF (not staff numbers - Geneva staff are 27% of total UNHCR UNSMIS participants), 21% in US$ and 9% Euro related. MIP and Repatriation payments are reported in USD. MIP and Repatriation benefits utilise USD, UNSMIS reports through CHF and uses UN Exchange rate. Yes, data for the year in question shall be provided to the Yes, data for the year in question shall be provided to the Data provided from centralised sources. No, selection will be made on combination of technical and financial offer. UNHCR is implementing IPSAS for 2012 financial statements valuation was IPSAS compliant for opening balances. The differences between the actuarial valuation results for 2011 and those for 2012 will have to be analysed and reconciled. This information should be provided to the If the selected actuary uses IPSAS 25 for the 2012 valuation, there should be Page 1 of 7

2 performed, what data was requested from you, etc.? We could use this information to tailor our approach and ensure that the information we request is coordinated with what has been used before, to reduce the burden on your staff. 14. We are already registered with UNHCR. We suggest adding our registration number into the proposal instead of filling it out again. Would you agree with suggestion? 15. If you will require IPSAS 25 liabilities to be calculated annually over the period of the Framework Agreement. 16. If for each calculation of the IPSAS 25 liabilities a full valuation will be required (as opposed to a more approximate estimate of the IPSAS 25 liabilities by rolling forward the results of the most recent full valuation and updating the results for current assumptions). 17. If full valuations are required, will the Actuary be expected to perform checks on the data quality and resolve any issues or will the Actuary be able to rely on the accuracy of the underlying data. 18. If the Actuary be granted access to: no need to "tailor" the approach. Agree. Companies which are already registered with UNHCR do not need to submit the Vendor Registration Form again. Please refer to point in the RFP document. UNHCR will consider option for a roll-over for the following year, especially if there no major organizational restructuring is foreseen. UNHCR will consider option for a roll-over for the following year, especially if there no major organizational restructuring is foreseen. UNHCR will check accuracy of data provided but actuary is also advised to perform checks on the data quality. a) previous IPSAS complaint disclosure notes received for recent reporting periods; b) actuarial valuation report of the last full actuarial valuation: c) detailed results of the last full valuation including member by member liabilities (for reconciliation purposes); and d) Previous reviews/investigations into long-term healthcare trends witnessed within the benefit scheme. 19. Your expectations on the process and level of detail required in setting the assumptions, for example, if you expect the Actuary to produce a report that comments in detail on each of the proposed key assumptions and is it expected that assumptions will be proposed for each country or region or be a) N/A as 2012 is the first year under which UNHCR reports under IPSAS (2011 note to be checked anyway) b) Yes, this information shall be provided to the c) Yes, this information shall be provided to the d) Yes, this information shall be provided to the selected bidder to the extent reported upon. Key assumptions will be on an aggregated basis (not regional) and the comments thereon would not be expected on a detailed basis. Page 2 of 7

3 considered in aggregate. 20. The nature of the underlying data UNHCR will provide to the Actuary for use in proposing health care trend rate assumptions, for example, will this be data containing recent experience? 21. In order to more fully understand the levels of complexity involve in the calculations we would be grateful if you could provide further details of the benefits staff are entitled to, for example, by providing a copy of the staff booklet that outlines what benefits they are entitled to. 22. Data delivery: Will the participant data be provided by only one entity / one contact point? 23. Claims experience: With respect to the claims data and information, do we need two different set of data request? Will the contact person be the same for all plans: UNSMISS, MIP and insured plans? 24. Terms of reference, section 2) (ii) on page 2: a) Could you please provide more details on the estimate required for portion of the reserves under the Medical Insurance Plan.? b) How many type of reserves do you hold today (catastrophic, IBNR, currency, )? c) Are they calculated or valued separately by plans and category of members (active vs. retired)? 25. Do the answers from last year's Q&A remain largely valid? If not are there any major updates in the understanding? 26. Based on your description, ASHI has three building blocks: UNSMIS, other optional UN health insurance schemes and MIP. UNSIMS as well as the second option are third party insurance companies (mutuals) carrying the actual insurance risk and are no subsidiaries and are not consolidated into the scope of UNHCRs balance sheet? 27. Is MIP an internally operated, internally funded and settled plan, where UNHCR is carrying the full insurance risk itself and refunding incurred claims? Is there any further (re-)insurance in place? Yes, one Focal Point within UNHCR will provide the data from the different sources. a) Unlike UNSMIS, the Medical Insurance Plan is run solely by UNHCR to cover its locally recruited staff outside of Geneva. We require an estimate of the after-service health insurance liability between the active staff and the retirees. This will inform UNHCR as to whether MIP reserves also sufficiently cover the ASHI element of the liabilities. b) The current MIP reserve for active participants includes elements for late claims, catastrophic risk, ageing participants profile and administrative expenses c) Yes, per separate data provided Yes, except that 2012 reporting will be under IPSAS accounting standards. The balance sheet will only show totals for UNHCR. The funds will not be shown separately. Page 3 of 7

4 28. We understand the MIP was included in last year's proposal for the first time. Was it valued for the first time, internally valued before that time or part of a separate bidding process? 29. For each employee, is it clear which after-service health insurance option he has chosen at reporting date, or are we required to model the option to choose the scheme in the future? 30. From last year's Q&A we understand that insurance premiums (for UNSMIS and other schemes) are calculated as a percentage of salary. Is this still correct and how many of the after-service health insurance schemes in scope generate liabilities and how many of those are exclusively defined via premiums or are self-administered and self-funded options in scope for UNHCR's employees? 31. UNHCR employees can choose to have continued membership in one of the other organization's schemes of the UN family (second option above). How many additional schemes offered by such other organizations are in scope. Are the liabilities arising from these schemes exclusively defined via premiums? If not, do we receive claims experience data for each scheme separately or in some kind of aggregated form? 32. Are the liabilities arising from the UNSMIS after-service health insurance scheme exclusively defined via insurance premiums? 33. We understand that insurance plan cover the costs of medical care in the event of sickness, accident and childbirth. Would you share the level of granularity of claims experience for each of those three insurance coverages? Does "medical care" include sickness allowance, ambulant and/or stationary care, medication or anything similar (please advise e.g. travel) for each of the events covered in each plan? 34. Beside the retirees also their eligible dependents can benefit from the medical care granted by the health insurance schemes. Could you please specify if these eligible dependents are known and the respective data (e.g. age, gender etc.) will be provided by UNHCR, or are we required to model them based on statistical data (i.e. collectively)? MIP has been included in past actuarial valuations, even before Yes, it remains the same as when under Active status. Yes, still applicable. All generate liabilities. All are defined by premiums. Only MIP is selfadministered. Self-funding has been initiated for all as of Only MIP and UNSMIS are in scope as the remainder is not material. The data provided in the past does not break down to this level of detail but if necessary, UNHCR should be able to get this information for MIP (internally administered) and possibly for UNSMIS where costs are also categorized. The data for dependents will also be provided. 35. Will actuarial assumptions (e.g. Most actuarial assumptions are based on the latest Page 4 of 7

5 mortality and turnover rates etc.) be provided by UNHCR? Will there be only one set of actuarial assumptions for all after-service health insurance schemes and independently on the place where insured are located? 36. You expect the service provider to "provide an estimate on the portion of the reserves under the Medical Insurance Plan (which is fully funded) that covers the liability related to after-service participants and the liability related to active participants." Could you further explain in what sense "fully funded" is meant? 37. Is there further analysis required for the valuation actuary to support the decision due by the General Assembly of the United Nations to increase the retirement age later this year? I.e. is this in scope for this proposal? 38. "UNSIMS has in the region of 2'400 active staff and 700 retirees/widowers" - why is staff of UNSIMS relevant to the valuation or does that mean "staff from UNHCR chosen to be insured with UNSMIS"? See question on choosing the insurance option above. 39. MIP's scope is defined by designated duty stations and only locally recruited staff members (and dependents) have access to it. The designated duty station is Budapest only (information from last year's proposal)? How many duty stations are in scope this year? Does "locally" mean "national"? 40. You are providing health care trend rate assumptions for actuarial projection and you are writing "knowledge of Swiss medical base" is an asset, due to UNSMIS medical refunds? Are the medical refunds from UNSMIS guaranteed and settled by UNHCR or why is this relevant for the valuation of liabilities of UNHCR (compare question on entity structure and risk sharing above)? 41. Repatriation benefits consist of four building blocks: repatriation grant (dependent on length of service away & salary level), repatriation travel, shipment and insurance. Are the first three components paid in one time lump sums? Are the second and third component defined benefits (compensation of incurred costs)? Is the UN Joint Staff Pension Fund valuation report provided by UNHCR. Health care cost trend rate assumption would be expected to be based on the data provided by UNHCR. Unlike UNSMIS, the Medical Insurance Plan is run solely by UNHCR to cover its locally recruited staff outside of Geneva. We require an estimate of the after-service health insurance liability between the active staff and the retirees. This will inform UNHCR as to whether MIP reserves also sufficiently cover the ASHI element of the liabilities. In 2011, the MIP reserves fully funded the Active participant liabilities. No. For the purpose of the 2012 evaluation, this is not required. Kindly interpret as staff from UNHCR insured with UNSMIS. All relevant UNHCR Duty Stations (not just Budapest). Locally recruited staff is not always synonymous with national as foreigners legally resident can be recruited in this context. As 70% of UNSMIS refunds are denominated in CHF, knowledge of that medical market cost would be an asset. UNMIS medical refunds are not guaranteed or settled by UNHCR. Repatriation travel, shipment and insurance are normally paid before the repatriation grant. Repatriation grant is paid when the former staff member shows documentary evidence of subsequent established residence in a country other than that of the last duty station. Page 5 of 7

6 insurance taken with a third party? 42. Is historical claims and enrollment experience by plan for UNHCR retirees only available from the plan administrators? 43. How have retiree contributions been accounted for in past valuations (have actual retiree contribution amounts been used or has an overall cost-sharing arrangement by plan been used)? 44. When would UNHCR expect to deliver the 30 November 2012 census data and other valuation-related information? 45. Will reconciliation between the previous valuation results and the 31 December 2012 valuation results be required? 46. Is +/- 1% sensitivity analysis related to the change in the discount rate only? 47. With regard to Annex E, General Conditions of Contract, will UNHCR consider revisions to Section 7 (Indemnification) to provide for a faultbased indemnity? 48. With regard to Annex E, General Conditions of Contract, will UNHCR consider the revisions to Section 8 (Insurance and Liability) contained in the attached document? 49. With regard to Annex E, General Conditions of Contract, will UNHCR consider a reasonable limit on liability and/or an exclusion of indirect damages? 50. When we submitted our proposal last year we filled out the registration form at that time. Do we need to fill it out again or are we now registered with the UNHCR? 51. As part of our curriculum vitae, we are asked to give "proof of relevant professional qualifications". Would please explain what proof you are expecting to receive? 52. In Section 2.7 it says that the "UNHCR may, at its discretion, increase or decrease the proposed content when awarding the contract and would not expect a significant variation of the rate submitted". Would UNHCR be able to describe what kind of increase or decrease in deliverables it might propose? Actual retiree contribution amounts used with UNHCR cost sharing element. mid-december 2012 latest. Not as such, just confirmation from UNHCR that staffing structure has not materially changed and that the results based on 30th November data remain valid. No. In addition, the healthcare trend rates are also considered i.e. two key assumptions. UNHCR cannot revise its standard conditions. UNHCR cannot revise its standard conditions. UNHCR cannot revise its standard conditions. You are kindly requested to submit an updated Vendor Registration Form if you have not been issued with the contract last year. Please just list relevant professional qualifications of staff who would be assigned to the UNHCR Actuarial Valuation. Regret not at this stage. Page 6 of 7

7 53. The RFP is very clear that it expects the actuary to use data as of 30 November. To give the UNHCR more time to provide this data and for us to process and edit the data, would UNHCR consider providing data as of 30 September? We have collected data as of that date for other organizations and the auditors have found it to be acceptable as long at there are not significant demographic changes after 30 September and before year end. 30th November data has already been agreed with external auditors so consideration of 30 September data is not possible at this stage. Page 7 of 7