Addendum 1.pdf

Rev. 07/28/2016-COM Proposer Questions Answers (Round 1).doc

Finance Department David P. Schmiedicke, Finance Director

City-County Building, Room 406 Purchasing Services 210 Martin Luther King, Jr. Boulevard Madison, Wisconsin 53703 Phone: (608) 266-4521 Fax: (608) 266-5948 finance@cityofmadison.com www.cityofmadison.com/finance/purchasing

DATE: Friday, August 7th, 2026

RE: ADDENDUM 1

15001-0-2026-BG

Life and Disability Insurance

Notice to All Bidders:

Please note the following responses to the questions received:

Question 1: Is the 6.1 Proposal Checklist Chart required as part of the final proposal submission?

Answer 1: Yes, please submit the checklist as part of your submission so we can ensure the addenda were read by each proposer.

Question 2: Can you clarify what is meant by the "Technical Proposal" referenced in the Proposal Checklist?

We want to ensure all required RFP components are included in our response.

Answer 2:

The Technical Proposal should include all information necessary for the evaluation committee to assess the proposer's qualifications, experience, service capabilities, implementation approach, and overall ability to administer the City's Life and Disability programs.

At a minimum, the Technical Proposal should include:

• Company background, qualifications, and relevant experience

• Proposed account management, customer service, and claims administration team

• Examples of comparable public sector or similarly sized clients

• Responses to all questions contained in Form D – Insurance Questionnaire

• Description of implementation, service, reporting, and administrative capabilities

• Any additional information the proposer believes demonstrates its ability to meet the requirements outlined in the RFP

Technical proposals will be evaluated in accordance with Section 5.2.2 of the RFP, including Firm Qualifications and Experience, Assigned Personnel and Service Team, Relevant Experience/Example Projects, and completeness and responsiveness to Form D.

Question 3: Please confirm that proposal submission is required via email only and that no submission through an online bidding portal is necessary.

Answer 3: Correct, please submit proposals to bids@cityofmadison.com.

Question 4: Please confirm whether the Affirmative Action Plan is only required upon award.

Answer 4: Please see Section 13 of the POS contract. The vendor would need to submit an affirmative action plan after the contract has been executed.

mailto:finance@cityofmadison.com http://www.cityofmadison.com/finance/purchasing mailto:bids@cityofmadison.com

August 7, 2026

8/7/2026-COM Proposer Questions Answers (Round 1).doc

Question 5: Can you please provide separate AD&D rates and any age banded rates.

Answer 5: AD&D is included in the contract today but is not being offered to members. Current life insurance rates and age-banded rate information are provided in the materials included with the RFP, including Exhibit K. Confirmation of the current AD&D rates (that is not in force) is being confirmed with Hartford. Proposers should provide AD&D pricing based on their proposed rates and rating methodology as requested in Form A and the RFP pricing exhibits.

Question 6: Can you please confirm retiree rates.

Answer 6: Retiree rates are age banded using the same rate table provided for active employees.

Question 7: Please clarify if the “wage ins” column on the census if it applies to LTD or STD participation.

a. If it applies to both, please confirm employees must participate it both (or neither).

Answer 7: The Wage Insurance indicator reflects participation in the City's Wage Insurance program, which includes both Short Term Disability and Long Term Disability coverage. Employees participating in Wage Insurance participate in both STD and LTD coverage.

Question 8: Please provide a recent invoice.

Answer 8: Requested from Hartford

Question 9: Please provide a revised experience report that’s separated by calendar year. In addition, I’ll need an open/closed LTD claim report. Open claims must include: Gender / DOB / DOD / Gross or Net Benefit / Reserve

Answer 9: Requested from Hartford

Question 10: Please confirm the City would consider changing from the current Participating contract to a Non-Participating contract.

Answer 10: No, at this time we are focusing only on participating contracts structures for STD and life.

AD&D and LTD are non-participating.

Question 11: Booklets indicate the employee is required to pay towards the premium, would you be able to provide true ER contributions, if any?

Answer 11:

Wage Insurance:

The total monthly wage insurance premium is determined by a combination of an employee's regular bi-weekly wages and the employee's number of days of accrued sick leave available at the time of the employee's annual wage insurance review. The employer and employee contributions to wage insurance premium are determined by the net sick leave days accrued by the employee during the annual tracking period. Employees who maintain 100+ or 120+ accumulated sick days, depending upon compensation group, may not have to contribute to the wage insurance premium, regardless of the amount of sick leave used in the tracking year.

Sick Leave Used*, *** (Days) Net Sick Leave Accrued**, *** (Days) Employee Pays (% of Premium)***

0.00 – 3.00 10.00 - 13.00 0% (Employer pays 100%)

3.01 – 4.00 9.00 - 9.99 20% (Employer pays 80%)

4.01 – 5.00 8.00 - 8.99 40% (Employer pays 60%)

5.01 – 6.00 7.00 - 7.99 60% (Employer pays 40%)

6.01 – 7.00 6.00 - 6.99 80% (Employer pays 20%)

Sick Leave Used*, *** (Days) Net Sick Leave Accrued**, *** (Days) Employee Pays (% of Premium)***

7.01+ 0 - 5.99 100% (Employer pays 0%)

Basic Life:

Active employee Basic Life coverage is contributory and premiums are paid through employee payroll deductions for employees 69 or younger. Active employees over the age of 69 do not contribute to the life premiums. Early (pre-65) retirees are responsible for premium payment, retirees age 65 and older received no cost basic coverage from the city.

Question 12: If disability is truly voluntary/contributory, I’m unable to add EAP to disability.

Answer 12: The City understands that certain value-added services may only be available under specific funding arrangements. Proposers should identify any value-added services included in their proposal and note any limitations or requirements associated with those services. Please see the response to question 11 for more information on the funding arrangement.

Question 13: They have FMLA with paid parental leave, should this be part of the RFP?

Answer 13: No. Administration of FMLA and Paid Parental Leave is not part of the scope of this RFP.

Question 14: Current Rates: Within all the documents, there’s no plan distinction between Metro/All Others.

a. LTD:

i. Metro Employees: $0.775

ii. All Others: $0.131

b. STD:

i. Metro Employees: $2.10 / $10

ii. All Others: $0.29 / $10

Answer 14: Confirmed, plan design is aligned.

Question 15: Census is missing salaries for Hourly employees. Census provided seems to be for Life only.

I’ll need a census for disability that includes Class identifiers and election information.

Answer 15: Crossing guards are the only population listed as “hourly’ on the census. They fall into class 4 in the Hartford life policy documents:

This population has a minimum of $10,000 in coverage, and often work much less than 1.0 FTE (Column O). There are some that worked enough hours to have an election over the minimum (3 in 2022).

Wage insurance elections are captured in Column Z, and no crossing guards work enough hours to be eligible for wage insurance.

Question 16: Census - Please confirm the significance of the “Revised Inactive” tab of Exhibit P. Are these coverage amounts to be included? Many of the termination codes are retirement related, are these captured in the provided Retiree census?

Answer 16:

The Revised Inactive tab is provided to capture “Resigned Retired Disability” terminations as listed under column S. Other codes can be disregarded Retirees included in the active retiree program are reflected separately within the retiree census.

Question 17: Please confirm all retiree data is embedded in the basic life experience data. Is separate retiree experience data available?

Answer 17: The Life Claims Listing provided with the RFP includes claim experience for both active employees and retirees. Claims are reported by Loss Unit, including separate categories for"003-ALL AFT EES (LIFE)","005-RETIREES," and"006-DUTY DISABLED EMPLOYEES." As a result, retiree life claim experience is included within the experience data provided. Separate retiree experience reports are not currently available beyond the information provided.

Question 18: Please confirm if the March and April 2026 data within Exhibit A is incomplete and if completed premium figures are available.

Answer 18: The March and April 2026 data included in Exhibit A reflects the most current premium information available and includes billing and coverage periods through April 30, 2026. No additional premium figures are currently available.

Question 19: Exhibit C, H, and I reflect supplemental life annual premiums of ~$1.3-$1.5M but Exhibit A only reflects ~$400k in supplemental life annual premiums. What is included in Exhibit C, H, and I supplemental life premium totals?

Answer 19: The City of Madison implemented premium holidays during 2025 and 2026 in order to draw down accumulated life insurance fund balances. Supporting premium holiday request letters have been included with the addendum for reference. The premium holidays may impact comparisons between premium information reflected in various exhibits.

Question 20: Please provide an updated detailed listing of all death claims incurred. The current provided listing is only through a portion 2024.

Answer 20: Requested from Hartford

Question 21: The rate renewal information provided indicates no rate change, however, the supplemental life rates in Exhibit K are different. Please confirm the supplemental life rates reduced as of 7/1/2025 to those seen in Exhibit K.

Answer 21: Yes. The Supplemental Life rates shown in Exhibit K reflect the current rates effective July 1, 2025. The rates shown in Exhibit K are consistent with the current renewal information provided for the July 1, 2025 plan year. Please look at document “City of Madison 7.1.25” which is the 7/1/25 renewal document from The Hartford. The City is not aware of any discrepancy between the current 7/1/2025 renewal rates and Exhibit K.

Question 22: Please provide historical PSR balances.

Answer 22: PSR balances to be provided.

Question 23: What is the expected PSR balance to be transferred to a new carrier?

Answer 23: Potential PSR funds balance transfer is governed by the City of Madison’s Experience Rating Agreement (Exhibit O).

Question 24: Per the financial agreement, calculations are done by line of coverage and are aggregated for the overall PSR calculation. Is this correct or are there separate PSRs for employer vs employee paid or another split?

Answer 24: Yes. Pursuant to the Experience Rating Agreement, experience is calculated separately for each line of coverage and then aggregated to determine the overall Current Year Balance and Premium Stabilization Reserve (PSR) balance. The City is not aware of separate PSRs being maintained for employer-paid versus employee-paid coverages or other subgroups.

Please refer to Exhibit O for additional details.

Question 25: Have there been any significant plan design changes in the last several years (i.e. change in benefit schedules, acquisitions, mergers)?

Answer 25: There have not been any material acquisitions, mergers, or major plan redesigns during the experience period provided. The most significant change was an enhancement to the dependent life offerings to increase the amount for unit 1 from 10k/5K (Spouse/Dependent) to $10k/$10, and for Unit 2 from $20k/10k to $20k/$15k with no rate impact. This change was effective 3/1/2025. Language clarifying the benefit for crossing guards was also added in 2025.

Question 26: What level of commission should be included in our proposed rates? Assuming net, however, the provided experience data reflects 2.3% commissions.

Answer 26: Proposers should quote using their standard carrier commission structure. Any commissions included within proposed rates should be clearly disclosed.

Question 27: Please describe any established file transfers you have in place today.

Answer 27: The City currently utilizes Munis by Tyler Technologies for payroll and financial administration and may utilize NeoGov for certain benefits administration functions. The City does not currently transmit eligibility or enrollment files to Hartford. If a selected vendor requires file transfers, the City expects that Excel or CSV-based file exchanges could be accommodated.

Question 28: Are current beneficiary designations held electronically or on paper?

a. Who holds current beneficiary designations?

b. What is the process to share beneficiary information with the current carrier?

c. Are designation details (e.g. name, class, share) stored as system data, images or both?

Answer 28: Beneficiary designations currently maintained by the city of Madison in a mix of formats. The majority of elections are stored electronically, while some retirees are still on paper.

Question 29: The City of Madison RFP has commissions listed as “Carrier Standard”. Since our standard could differ from your current carrier (Hartford), could you confirm the exact commission per line of coverage?

Answer 29: Proposers should quote using standard carrier commissions and clearly disclose any commissions included within proposed rates. We understand that carriers can pay different amounts by line of coverage.

Question 30: We are not able to offer a participating contract for a group of this size and would only be able to offer a non-participating contract. Could you please confirm whether the City of Madison would be willing to accept a non-participating quote?

Answer 30: No, STD and Life need to be participating, while LTD and AD&D can be non-participating.

Question 31: The City of Madison currently has a Total Disability and Occupational Death Rider for the Fire

Department employees. We would need to review this benefit with Contracts, Legal, and Actuarial to determine whether we can offer comparable coverage and, if so, what the associated cost would be.

Can you please confirm whether the City of Madison would consider a quote if we are ultimately unable to match this benefit?

Answer 31: No, The City is not willing to consider proposals that do not exactly match the current Duty Disability rider. Any deviations from the current design should be clearly identified and explained within the proposal.

Question 32: In addition, the retiree census is incomplete, as gender information is missing. The premium information also does not appear to separate active and retiree premiums. Are you able to update the retiree census with genders and separate the active and retiree premium information?

Answer 32: Premiums for retirees are the same as actives the like age bracket. Due to paper records gender isn’t always available in the city’s records for some retirees. The information provided is the best available.

Question 33: Please confirm the commissions should be standard carrier commissions for all lines of coverage and quoted plans. In force STD and LTD plans state standard commissions but requested commissions are not listed for the alternate plans. Commissions are not listed in the Life plan section, so we want to be sure we are quoting correctly.

Answer 33: Yes. Proposers should quote using their standard carrier commission structure for all lines of coverage and clearly disclose commissions included within proposed rates.

Question 34: Please provide a current experience exhibit based on the reports in the Hartford renewal. The one from the Hartford renewal only goes through 12/31/2023 and the other experience report provided (Exhibit O) is not detailed enough. We need the same premium and claim information broken out by year for 2024, 2025 and YTD 2026.

Answer 34: Requested from Hartford for ’24 ’25 and 26 YTD premium and claim information.

Question 35: Please confirm if the retiree claims are included in the Basic Life experience exhibit.

Answer 35: Yes. The Life Claims Listing provided with the RFP includes claim experience for both active employees and retirees. Retiree claims are identified under Loss Unit "005 - RETIREES."

Updated life claim experience has been requested from Hartford

Question 36: Please confirm contributions on the Basic Life. Is it all employee paid or is the city paying the premium?

Answer 36: Active employee Basic Life coverage is contributory and premiums are paid through employee payroll deductions for employees 69 or younger. Active employees over the age of 69 do not contribute to the life premiums. Early (pre-65) retirees are responsible for premium payment, retirees age 65 and older received no cost basic coverage from the city. Please refer to the Life Insurance Information (Exhibit K) and plan documents provided with the RFP for additional details.

Question 37: Please provide a list of disabled employees with Life coverage continuation under the Disability Extension provision of the Life plan. Please include gender, date of birth and benefit amount.

Answer 37: Requested from Hartford.

Question 38: Who pays the premium (the City or the disabled employees) during an approved disability extension?

Answer 38: For employees approved for Duty Disability retirement and continuing life insurance coverage through the disability waiver program, the City pays the applicable life insurance premiums.

Question 39: Is the premium for the duty disability paid by the city or the employees?

Answer 39: Duty Disability benefits are provided by the City and are not employee-paid benefits.

Question 40: Please provide the Duty Disability rider for Police. On Exhibit N, the eligibility specially states "fire department employees"

Answer 40: A separate Occupational Death and Permanent or Total Disability Rider exists for Police Department employees and is included as an addendum attachment. For Police employees, the benefit equals the lesser of:

• Two (2) times annual earnings; or

• $300,000.

Question 41: Have there been any Duty Disability claims in the most recent 5 years. If so please provide details.

Answer 41: Requested

Question 42: How does the coordination of Duty Disability Benefits currently work. The Duty Disability rider does not mention anything about coordination or offsets.

Answer 42: Duty Disability is administered separately and coordinated with applicable Wisconsin statutory programs and carrier-provided occupational disability provisions. Proposers should describe how they would coordinate benefits, apply offsets where applicable, and avoid duplication of benefits.

Question 43: In section 5.1.1.3, what is the expectation of the coordination between STD, LTD, Duty Disability and Workers Compensation?

o Based on our review of the STD and LTD contracts both cover occupation and non-occupational disabilities and both would offset from benefits paid from workers’ compensation and/or duty disability. Is that accurate?

o How is the coordination of a lump sum Duty Disability benefit handle under STD. The LTD booklet states that a lump sum benefit would be prorated over a 60-month period. However, the STD booklet does not mention how a lump sum benefit is handled.

Answer 43: The City's expectation is that proposers clearly describe coordination among STD, LTD, Duty Disability, and Workers' Compensation benefits, including applicable offsets, integration provisions, avoidance of duplicate benefits, and treatment of lump-sum payments. Proposers should review the current contract provisions and clearly identify any differences in their proposed coordination methodology.

Question 44: STD - Please provide a current experience exhibit based on the reports in the Hartford renewal.

The one from the Hartford renewal only goes through 12/31/2023 and the other experience report provided (Exhibit O) is not detailed enough. We need the same premium and claim information broken out by year for 2024, 2025 and YTD 2026.

• For the current STD plan with the 100% earnings loss requirement, is the is the expectation that the claim will be closed if the claimant has a very small, de minimis amount of earnings?

Answer 44: Additional STD experience information for 2024, 2025, and YTD 2026 has been requested.

Employees may temporarily return to work while receiving STD benefits. STD benefits are reduced to reflect hours worked and earnings received during the temporary return-to-work period.

Question 45: LTD

• Please provide an updated Incurred experience exhibit based on the reports in the Hartford renewal.

The other experience report provided (Exhibit O) is not detailed enough. We need the same premium and claim information broken out by year 2022, 2023, 2024, 2025 and YTD 2026.

• For any open LTD claims please provide a claim listing with each claimant’s gender, date of birth, salary, net benefit, offset amounts and reserve.

Answer 45: Requested

Additional Attachments Added

• Premium holiday documentation supporting Question 19.

• Police Occupational Death and Permanent Total Disability Rider supporting Question 40.

The documents requested from Hartford that have not yet been addressed in this addendum will be posted with the second round of questions and answers on Friday, August 21st, 2026, or sooner.

Bidders must acknowledge receipt of this addendum accordingly on RFP Form B, Receipt Forms and Submittal Checklist.

Please direct any other questions to the Purchasing contact person below.

Brittany Garcia City of Madison Purchasing Services

PH: (608) 243-0529

bgarcia@cityofmadison.com

Human Resources Department Erin Hillson, Director

Madison Municipal Building, Suite 261 215 Martin Luther King, Jr. Blvd.

Madison, WI 53703 Phone: (608) 266- Fax: (608) 267-1115 hr@cityofmadison.com cityofmadison.com/human-resources

November 17, 2025

Attention to:

Steven Sherman The Hartford 200 W. Madison St., Suite 500 Chicago, IL 60606

Dear Steven, The City of Madison is formally requesting an adjustment to our premium holiday request. We would not like to include any of our retirees who are below age 65.

Thank you in advance for your consideration on this matter. If you have any questions, please do not hesitate to contact me.

Sincerely, Victoria Larson

City of Madison, Benefits Manager mailto:hr@cityofmadison.com https://www.cityofmadison.com/human-resources

Madison Municipal Building, Suite 261 215 Martin Luther King, Jr. Blvd.

Madison, WI 53703 Phone: (608) 266- Fax: (608) 267-1115

February 23, 2026

The Hartford

The City of Madison is formally requesting premium holiday for all active employees’ relation to our life insurance policy. We would like this to begin on March 1, 2026, and end on March 1, 2027.

Thank you in advance for your consideration on this matter. If you have any questions, please do not hesitate to contact me.

Madison Municipal Building, Suite 261 215 Martin Luther King, Jr. Blvd.

Madison, WI 53703 Phone: (608) 266- Fax: (608) 267-1115

October 29, 2025

The Hartford

The City of Madison is formally requesting an additional premium holiday for all active employees and retirees in relation to our life insurance policy. We would like this to begin on December 1, 2025, and end on December 1, 2026.

Thank you in advance for your consideration on this matter. If you have any questions, please do not hesitate to contact me.

Form PA-9394 (10/08) (WI) (033731) (Life) 15089 1 (033731) 6.03

Amendatory Rider

HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY

One Hartford Plaza

Hartford, Connecticut 06155 (A stock insurance company)

This rider forms a part of a Certificate given in connection with Policy Number 033731 issued to City of Madison, where 033731 is the Policy Number and City of Madison is the Policyholder.

This rider becomes effective January 7, 2022.

With respect to All Full-time Active Employees who are police department employees, the Occupational Death and Permanent or Total Disability Benefit shown in the Benefits section of Life Insurance portion of Your Certificate is amended to read as follows:

Occupational Death and Permanent or Total Disability Benefit: When is the Occupational Death and Permanent or Total Disability Benefit payable?

We will pay an Occupational Death or Permanent and Total Disability Benefit if You:

1) suffer a Loss of life as a direct result of bodily injury or occupational disease which arises out of and in the course of Your employment with the Employer; or

2) become Permanently and Totally Disabled as a direct result of bodily injury or occupational disease which arises out of and in the course of Your employment with the Employer.

Once satisfactory Proof of Loss of Your Occupational Death or Permanent and Total Disability is received, We will pay You or Your beneficiary an amount equal to the lesser of:

1) 2 times Your annual Earnings; or

2) $300,000.

Permanent and Total Disability means due to Your disability, You are eligible for and receiving occupational disability benefits under the applicable provisions of Wisconsin statutes.

No benefit will be payable for an Occupational Death or Permanent and Total Disability which results directly or indirectly form:

1) bodily injury or disease which does not arise out of and in the course of Your employment with the Employer;

2) any intentionally self-inflicted injury, suicide or attempted suicide, whether sane or insane;

3) war or act of war, whether war is declared or not;

4) participation in a riot;

5) commission of an assault or felony;

6) disease of the body or mental illness or as a result medical or surgical treatment or diagnosis of such disease of the body or mental illness;

7) any infection, except a pus-forming infection of an accidental cut or wound; or

8) taking of poison or asphyxiation from inhaling gas whether voluntary or involuntary.

As it pertains to the Occupational Death and Permanent or Total Disability Benefit;

Earnings means: Your gross annual rate of pay, not counting commissions, bonuses, tips and tokens, overtime pay or any other fringe benefits or extra compensation, in effect on the date immediately prior to the last day You were Actively at Work.

In all other respects the certificate remains the same.

Signed for Hartford Life and Accident Insurance Company