Request for Proposals For Unemployment Compensation Claims Administration The CCAP Unemployment Compensation Trust A Program of the County Commissioners Association of Pennsylvania 2789 Old Post Road Harrisburg, PA 17110 or PO Box 60769 Harrisburg, PA 17106-0769 August 2017
Introduction The Board of Trustees of the CCAP Unemployment Compensation Trust (the Trust ) requests proposals from qualified firms for third party claims administration. The requirements for firms wishing to respond are completely outlined in this document. The Trust will accept written responses up to the deadline listed below, and reserves the right to meet with, seek clarifications and modifications, and conduct negotiations with any or all respondents. Deadline for Responses The responses to the RFP should be emailed to Desiree J. Nguyen, Deputy Director, Insurance Pool Operations at dnguyen@pacounties.org. If the responses include large files, they should also be mailed to Desiree J. Nguyen at 2789 Old Post Road, Harrisburg, PA 17110. Responses must be received by September 29, 2017 at noon EST. There will be no exceptions to this deadline. Selection Process A subcommittee of the Board of Trustees will review all responses to the RFP and may select a firm based solely on the written responses. It is likely that the subcommittee will conduct interviews with one or more respondents, and then select a firm. The final decision will be made by the entire Board of Trustees by no later than December 31, 2017, contingent upon the negotiation of a contract between the selected firm and the Board of Trustees. The date of final assumption of responsibilities will be determined as part of contract negotiations. While this is not a sealed bid process, the Trust agrees to keep confidential all documents and pricing submitted, and will not divulge details of any proposal to another respondent, other than to provide general comparative indices. The Trust reserves the right: to select the firm whose proposal is judged to offer the most advantages to the Trust, with the Trust being the sole judge thereof; to request clarification of information submitted and to request additional information on one or more firms responding to this RFP; to reject any or all proposals, in whole or in part, and to resolicit requests for proposals if such is determined by the Trust to be in the best interests of the Trust; and to waive any minor technicalities or informalities, in accordance with the Trust s determination of its own bests interests. By submitting a response to this RFP, the respondent acknowledges and accepts the forgoing. Your proposal should be your best offer to provide these services. Failure to supply information required by the RFP could result in your elimination from consideration. 2
Timeline and Contact Information Contact Name: Address: Email Address: Desiree J. Nguyen 2789 Old Post Road Harrisburg, PA 17110 dnguyen@pacounties.org RFP Process Due Date RFP Posted on CCAP website Tuesday, August 1, 2017 UC Trust to issue response to written questions Upon receipt as time permits and provided to all respondents of the RFP via email Deadline for questions Noon EST on Wednesday, September 13, 2017 Courtesy conference call with Thursday, September 14, 2017 from 1 respondents to address final questions p.m. to 2:30 p.m. EST. Respondents should call (800) 944-8766 and when prompted, enter Participant Code 7034846 Responses due to UC Trust Contact Noon EST on Friday, September 29, 2017 Finalist Interviews Thursday, October 12, 2017 as scheduled Selection and notification Week of October 16, 2017 Contract negotiations begin Contract begins (if possible) After notification to respondents January 1, 2018 or as determined via the established contract Response Format Your complete response to this RFP must include the following: 1. Responses to the RFP questions, in order, preferably with the question restated in writing at the start of your response. 2. Representative samples of your management reports, preferably those provided to other pool clients. Confidential data may be redacted. 3
3. Five references of existing clients for which you provide services currently. References must include contact name, address, phone number, email address and a description of services provided. Particular emphasis will be placed on the number, type and quality of pool references provided. 4. A sample contract which would be applicable to the relationship between your firm and the Trust, if selected. 5. A sample of your onboarding materials that are used to educate new clients regarding the features of your services. For example, procedure guides, quick reference tools, etc. 6. A sample of your quarterly UC 660s reconciliation reflecting the payments that need to be made by your client to the Pennsylvania Department of Labor and Industry ( L&I ), or reflecting the credits to which the client is entitled. Confidential information may be redacted. Background Information The CCAP Unemployment Compensation Trust began operations January 1, 1981. The Trust is a group self-insurance program that provides unemployment compensation coverage and benefits for the employees and, where selected, elected officials, of those Pennsylvania counties and county related entities that are members of the Trust. Pursuant to 912.2-913 of the Pennsylvania Unemployment Compensation Law, 43 P.S. 751-915 (the Law ), the Trust has elected to reimburse the Commonwealth for benefits paid, pursuant to these provisions of the Law. The Trust currently has 47 members, including CCAP. Currently, Equifax is providing this service. It should be noted that the issuance of this RFP is not a negative statement about the services provided by Equifax. The Board of Trustees has issued this RFP to investigate the services available from all firms, including Equifax. In fact, the Board encourages respondents to include information about any other employment compensation services not specifically mentioned in this RFP which are available to the Trust. Enclosed with this RFP is a copy of the Trust s basic marketing brochure, as well as a listing of the current members. A copy of the Trust s 2016 audit and actuarial report will be provided upon request. Through this RFP, it is the Trust s intention to enter into a three year agreement for the services set forth below. Basic Data Currently the Trust provides coverage to 23,945 employees in 47 different accounts. From 2013 through 2016, the Trust has averaged 1,532 new claims filed each year and annual reimbursement payments to the state of $2.7 million. 4
Required Claims TPA Services The services set forth below MUST be provided by the claims TPA. By responding to this RFP your firm pledges and represents that these services can be provided and that it is qualified to provide these services. Any exceptions to any portion of this listing must be indicated in writing in your response. This listing of services will be made an amendment or supplement to the claims administration contract between the Trust and the successful respondent. 1. Member Onboarding The TPA must provide thorough educational and transition sessions to the membership, either through in-person meetings, webinars or any other fashion deemed suitable by the Board of Trustees. The goal of the sessions is to ensure that each member is familiar with the TPA s procedures and processes from start to finish. 2. Charge Statements The claims TPA serves as the addressee of record and the power of attorney for the Trust and its members with the Commonwealth of Pennsylvania, and receives all claims and charge data on behalf of the Trust and the Trust members. The TPA is responsible for obtaining the signed power of attorney for each Trust member and submitting the same to the Commonwealth of Pennsylvania. The TPA shall coordinate with each Trust member to establish the TPA as the Trust member s attorney-in-fact and administrator, including contacting L&I for each Trust member s quarterly charge statements (UC-660s). UC 660 s are forwarded to the Trust by the TPA. The TPA is responsible to retrieve any UC-660s from L&I that were not sent to them directly and/or to confirm non-receipt of any member s charge statement. The UC-660s are then reviewed by the TPA and, if accurate, the TPA approves for payment and advises the Client the amount to be paid in the form of a spreadsheet. The TPA is also responsible for working with L&I directly to resolve any issues that may come up on the members accounts. This includes, but is not limited to, credits, interest charges and liens. 3. Hearings Representation The TPA is responsible for providing representation at all UC hearings of members of the Trust. Over the past five years this has averaged 160 hearings a year. That representation includes the investigation of the claim, consultation with the member, preparation for the hearing and attendance at the hearing. When requested, members have the option of having an attorney present at hearings, as opposed to hearing representatives. This is rare with only one or two members requesting this each year. 4. Verification of Separation Trust members utilize a Notice of Employee Separation Form (copy enclosed), or the WebManager Portal to report all separations. Since compliance varies greatly from member to member, when the TPA receives a notice of charges from the state for which no Notice of Employee Separation Form has been received from the Trust member, it is the responsibility of the TPA to follow-up with the member to determine if there are no charges to the member for each quarter. 5
5. Reports To Trust Members The TPA provides a quarterly written report to each member and to the Trust, including detailed listing of claimants, social security number, claim date, separation/base period designation, charge amount for claim and report period, reason for separation and claim description. An informational guide is included with each report. The Trust desires that these reports be sent via secure email to each member no later than 45 days after the receipt of charge statements by the TPA. 6. Reports To The Board of Trustees The TPA provides its reports to the Board of Trustees at its board meetings held in May and October. It includes a review of all services, a summary of past year claims, charges, hearings, win/loss ratios, special activities and updates on any pertinent information and/or updates regarding L&I. 7. Board of Trustees Meetings At least one management representative of the TPA attends all meetings of the Board of Trustees, held in May and October, and presents a written and verbal claims report, answers questions and provides input to the Trustees. 8. Field Visits The project manager for the TPA is required to visit each individual location on an as needed basis, usually at the request of the member or the Trust. In addition, as a condition of this RFP, the successful respondent will commit to visit each location, within the first 18 months of the effective date of the contract. The purpose of this visit will be to review UC claims procedures and forms with the member. These visits will be scheduled in advance by the TPA after a letter is sent to all members advising of the visits. No separate fees are to be charged to the Trust or the member for these visits, and the Trust will provide adequate copies of all Trust forms and documents necessary for the visits, and may accompany the TPA to some of the meetings. 9. Educational Services Annually, the TPA mails or emails a reminder packet to all Trust members outlining separation, claim and hearing procedures. In the first year of the contract, the TPA will participate in three regional workshops to train representatives of members. The representative of the TPA will participate in these workshops by giving presentations and answering audience questions. The workshops will be arranged by the Trust. Additionally, the TPA will work with the Trust to set-up other training workshops as needed. 10. TPA Contact The TPA will designate a primary contact with the Trust. The contact is available to the Trust s staff for consultation, meetings, seminars and special projects. 6
11. Audit Provisions The TPA must be available to the Trust s auditors and actuary (financial and performance) for annual review and testing of procedures, claims and charge data, as needed. 12. Non-Competition The TPA agrees not to provide unemployment compensation related services of any kind to individual counties in Pennsylvania without the express written permission of the Trust. Current clients would be an exception. A list of those current clients must be included in the response to this RFP. 13. Miscellaneous The TPA is paid quarterly, based on the number of employees insured by the Trust on July 1 of the prior year. Invoices are generated and sent to the Trust and are payable within 30 days of date of receipt. The TPA is required to maintain Associate Member status with the County Commissioners Association of Pennsylvania (annual fee is currently $500). Representatives of the TPA will staff an exhibit booth at the CCAP Annual Conference, held annually in varying locations throughout Pennsylvania in August. The cost of the booth will be covered by the Trust. Hotel, travel and meal costs will be the responsibility of the TPA. 7
RFP Questions 1. Provide the name, corporate address, telephone number, email address and fax number of your company. List principal owners, officers and/or holding company. List site of main computer operations. List all offices in Pennsylvania. Include a copy of your most recent Annual Report. 2. What is the number of full time employees in your company? Please indicate how many are located in each U.S. and Pennsylvania office, if applicable. 3. Please provide a brief history of the unemployment compensation practice in your company. 4. Please provide an organizational chart identifying the reporting basis for your key unemployment compensation personnel. 5. How is your company uniquely qualified to service our account? 6. What are the differences in the way you provide services, or the services you provide, to a pool as opposed to an individual self-insurer? 7. What other association or group compensation and/or benefit services does your company provide? 8. Describe your IT capabilities and computer system design. Please include any recent or anticipated system updates. Describe your software programs for unemployment compensation services and any other services that will be provided to the Trust and its members. Describe your data collection requirements. Describe the recommended and available media and transmittal procedures for data collection. 9. Describe those processes and programs that you have in place to secure Trust and member data, to back-up data, to monitor for malicious activity and to prevent any unauthorized access to data. Does your firm perform penetration testing? If so, how often? Do you have a disaster recovery plan? If so, please describe. 10. Describe your services in these major areas: a. Account Management b. Claims Management c. Hearing Management/Coordination d. Benefit Charge Auditing 8
11. Who will be your contact with the Trust if you are the successful respondent? Provide current résumé of this person. As part of the interview process this contact person must be present to meet with the subcommittee. The company must also agree not to change the designed contact person without the knowledge of the UC Trust. 12. Discuss the reports you will provide to the members and to the Trust (include samples). Are ad hoc reports available? 13. Describe your process for obtaining needed and/or missing wage and separation information. 14. Explain how you will handle appeal hearings and subsequent decisions on a statewide basis. Are hearing representative employees of your firm or independent contractors? If independent contractors, explain selection criteria. Explain training you provide for hearings representatives. What is the typical number of hearings a representative will attend each year? Please provide a list of independent contractors who provide hearing representation for your company. 15. Provide an outline regarding the transition of services, which must include, but is not limited to how your firm will educate each member on your procedures and processes. 16. How do you plan to work with L&I to resolve any issues or problems that may come up on the members accounts? This includes, but is not limited to, getting liens removed for the members or disputing interest charges that appear on the UC-660s. 17. Provide a fee schedule for services to be provided (not including any services that are part of number 18 below). We prefer this fee be on a per employee covered per year basis with no additional fee for travel, expenses, etc., but are willing to consider other fee bases. We require those fees to be guaranteed for the duration of the three year contract, with annual negotiations with each year thereafter. 18. Are there any other unemployment compensation services, not specifically mentioned in this RFP, which your firm can provide to the Trust? Explain and provide a separate fee structure for each service. 19. The Trust requires that each member have a specific contact at your company to contact when assistance is needed. Indicate how you will provide this service. Questions about this RFP All questions should be directed to Desiree J. Nguyen, Deputy Director, Insurance Pool Operations, CCAP UC Trust, 2789 Old Post Road, Harrisburg, PA 17110. She can be reached by phone via email at dnguyen@pacounties.org. 9