6-RFQ 26-1-14601 Vol 6 Scope of Work.pdf

Agency for Community Transit Cafeteria Plan Administration Services No. 26-1-14601

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VOLUME 6 SCOPE OF WORK

SOW 1 Overview Contractor shall be responsible for providing timely administration and management of the Owner’s two employee flexible benefits plans. The purpose of having two separate benefit plans is that the two classifications of employees have different participant eligibility terms for insurance enrollment and flexible benefit plan enrollment and they are funded from separate accounts. Both plans are intended to qualify as a “Cafeteria Plan” within the meaning of Section 125(d) of the Internal Revenue Code. Services of the Contractor shall be active and available for plan participants as of January 1, 2027.

SOW 2 Flexible Benefits Plan Administration Services A. Details about the Owner’s two plans as of June 2026 are as follows:

1. Base Employee FSA Plan

a. Approximately 134 eligible employees

b. 55 employees currently participate in the medical reimbursement account and/or the dependent care reimbursement account

c. Plan is on a calendar year

d. Bi-weekly payrolls, every other Friday, or Thursday if Friday is a holiday

e. 24 payrolls with pre-tax deductions each year

f. Grace period (plan extension) is 75 days

g. Run-out period is 90 days

h. Participant eligibility:

1) Part-time employees working at least 20 hours per week

2) No minimum age

3) Probationary period of 1 month

i. Available benefits:

1) Medical or Medical-Related Premium (Group Sponsored – Employee and Family)

2) Medical or Medical-Related Expense Reimbursement Account (Annual Maximum

Election amount as defined by IRS each plan year)

3) Dependent Care Reimbursement Account (Annual Maximum Election amount as defined by IRS each plan year)

j. Plan funding payments via ACH transaction initiated each applicable pay date

2. Driver Employee FSA Plan

a. Approximately 156 eligible employees

b. 37 employees currently participate in the medical reimbursement account and/or the dependent care reimbursement account

c. Plan is on a calendar year

d. Bi-weekly payrolls, every other Friday, or Thursday if Friday is a holiday

e. 24 payrolls with pre-tax deductions each year

f. Grace period (plan extension) is 75 days

g. Run-out period is 90 days

h. Participant eligibility:

1) Part-time employees working at least 20 hours per week

2) No minimum age

3) Probationary period of 3 months

i. Available benefits:

1) Medical or Medical-Related Premium (Group Sponsored – Employee and Family)

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2) Medical or Medical-Related Expense Reimbursement Account (Annual Maximum Election amount as defined by IRS each plan year)

3) Dependent Care Reimbursement Account (Annual Maximum Election amount as defined by IRS each plan year)

j. Plan funding payments via ACH transaction initiated each applicable pay date

B. The Owner will continue to be the Plan Sponsor for both Plans.

C. The Contractor, as Third Party Administrator of the Plans, will have the following duties:

1. To see that the Plans are carried out in accordance with their terms, and for the exclusive benefit of Owner’s Employees entitled to participate in the Plans.

2. The Contractor shall have full power to administer the Plans in all of their details, subject, however, to the pertinent provisions of the current Internal Revenue Code.

3. The Contractor’s powers shall include, but shall not be limited to the following authority, in addition to all other powers provided by this Plan:

i. To make and enforce such rules and regulations as the Contractor deems necessary or proper for the efficient administration of the Plans;

ii. To interpret the Plans, the Contractor’s interpretations thereof in good faith to be final and conclusive on all persons claiming benefits by operation of the Plans;

iii. To decide all questions concerning the Plans and the eligibility of any person to participate in the Plans and to receive benefits provide by operation of the Plans;

iv. To reject elections or to limit contributions or Benefits for certain highly compensated participants if it deems such to be desirable in order to avoid discrimination under the Plans in violation of application provision of the current Internal Revenue Code;

v. To provide Participants with a reasonable notification of their benefits available by operation of the Plans:

vi. To approve reimbursement requests and to authorize the payment of benefits; and

vii. To appoint such agents, counsel, accountants, consultants and actuaries as may be required to assist in administering the Plans.

4. Any procedure, discretionary act, interpretation or construction taken by the Contractor shall be done in a nondiscriminatory manner based upon uniform principles consistently applied and shall be consistent with the intent that the Plans shall continue to comply with the terms of Internal Revenue Code Section 125 and the Treasury regulations thereunder.

5. The Contractor shall make available to each Participant, Eligible Employee and any other Employee of the Owner such records as to pertain to their interest under the Plans for examination at reasonable times during normal business hours.

6. The Contractor shall have the participants’ annual election for medical reimbursement expenses fully loaded on the debit card at the beginning of the calendar year, and for the participants to be able to draw down those funds even if expenses exceed the amount of funding that has been submitted, as long as that draw down doesn’t exceed the annual election.

D. Any reasonable administrative expenses shall be paid by the Owner unless the Owner determines that administrative costs shall be borne by the Participants under the Plans or by any Trust Fund which may be established hereunder. The Contractor may impose reasonable conditions for payments, provided that such conditions shall not discriminate in favor of highly compensated employees.

E. In the event of a conflict between the terms of these Plans and the terms of an Insurance Contract of an independent third party Insurer whose product is then being used in conjunction with these Plans, the terms of the Insurance Contract shall control as to those Participants receiving coverage under such Insurance Contract. For this purpose, the Insurance Contract shall control in defining the persons eligible for insurance, the dates of their eligibility, the conditions which must be satisfied to become insured, if any, the benefits Participants are entitled to and the circumstances under which insurance terminates.

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SOW 3 Deliverables The following are deliverables of this Contract:

A. Completion of all start-up activities necessary for a January 1, 2027 effective date for plan participants.

B. Reports to be provided to the Owner, or any party designated by the Owner:

1. After the end of each Plan Year report pertinent information regarding the administration of the Plans.

2. As soon as practicable, but no less than 10 business days, report any significant Problems as to the administration of Plan.

3. Within 5 business days at the end of each month, provide a report of Plan payments, distributions and balances by Participant’s name and type of benefit.

C. Provide secure online access to the Owner with details to each Participant’s account balances and transactions. Medical reimbursement accounts and Dependent Care accounts must be clearly separated and identified. Transaction details must include payment amount, payment date, and payment method.

D. Provide secure online access to each of the Owner’s Participants so they may access all balances and transactions in their individual accounts. Medical reimbursement accounts and Dependent Care accounts must be clearly separated and identified. Details of each transaction, such as the date, amount, and name of Provider, shall be available to the Participants.

E. Provide the option for Participants to have a Debit Card or other similar option that is linked to their individual accounts.

1. This Debit Card or other similar option must have controls in place to ensure that the transactions are allowable costs under the Plans prior to the transaction being approved.

2. This Debit Card or other similar option must have controls in place to ensure that the transactions do not exceed the Participant’s individual account balance or annual elections, whichever is appropriate for the transaction type.

3. Multiple separate Debit Cards or other similar options are acceptable to be issued to the same Participant if he/she has elected both medical reimbursement and dependent care options under the Plans.

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