RFP 15001 with forms.pdf

CITY OF MADISON

REQUEST FOR PROPOSALS

RFP #: 15001-0-2026-BG

Title: Life and Disability Insurance

City Agency: Human Resources Division

Due Date: Monday, August 31st, 2026 2:00 PM Central Time

Our Madison – Inclusive, Innovative, & Thriving

REQUEST FOR PROPOSALS RFP 15001-0-2026-BG

CITY OF MADISON RFP Draft #3.6.docx Page i

1 OPPORTUNITY AND WELCOME

Thank you for your interest in bidding on a City of Madison contract opportunity. The City’s mission is to provide the highest quality service for the common good of our residents and visitors.

The City of Madison Human Resources Division is seeking proposals from qualified vendors for Basic Life and AD&D, Voluntary Life and AD&D, along with Wage Insurance (Short Term Disability, and Long Term Disability insurance).

Objectives

City of Madison seeks a vendor to provide Basic Life and AD&D, Voluntary Life and AD&D, Short Term Disability, and Long Term Disability insurance for their employees and retirees. The proposer will match or propose an enhancement for all benefits and provide alternatives where requested.

The City has not conducted a request for proposals for the referenced lines of coverage for some time.

The City is seeking to assess the marketplace to evaluate long term carrier partnerships along with potential enhancements to coverage, service, and overall value for employees at a competitive and cost-effective price.

Background and Current Program Overview

The City of Madison has offered life insurance benefits since 1976 and wage (disability) insurance benefits since 1970, reflecting a long-standing commitment to financial protection for employees and their families. These programs have collectively resulted in millions of dollars in benefits paid to employees and retirees over time and remain a critical component of the City’s total rewards strategy.

Under the current program:

• Employees are offered basic life insurance, multiple levels of supplemental life coverage, and dependent life coverage on a voluntary basis for most members

• Wage insurance provides income replacement of up to 65% of regular salary for non-work-related illness or injury, covering both short- and long-term disability events funded by a mix of employee and employer funds

• Certain program features, including premium structures and eligibility rules, reflect legacy design decisions that predate current industry standards

The City’s incumbent carrier for these benefits is The Hartford.

Equity, Workforce Impacts, and Strategic Review

In preparation for this RFP, the City undertook a Wage & Life Equity Analysis in 2024, following requests from multiple employee affinity and advisory groups to review existing plan structures through an equity lens. The analysis included participation from a diverse cross-section of employees, labor representatives, and City departments, and examined plan participation, premium structures, sick leave interaction, and claims experience.

Key themes identified through this review included:

• Disproportionate impacts of legacy premium calculation methodologies across gender, race, and compensation groups

• Administrative complexity and communication challenges associated with current premium and eligibility structures

• Opportunities to modernize plan administration, reporting, and employee communication

• The importance of vendor responsiveness, clarity, and minimal administrative barriers— particularly for mental health-related claims https://www.cityofmadison.com/vision-awards

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While this RFP does not necessarily predetermine specific benefit design changes, the City seeks proposers who can demonstrate:

• Experience supporting large, diverse public-sector workforces

• Flexibility and transparency in plan design and administration

• Commitment to equitable service delivery and clear employee communication

• Proven claims administration practices that prioritize accuracy, timeliness, and accessibility

Additional Program Context and Needs Assessment

In addition to the historical and equity-focused review summarized above, the City of Madison undertook a comprehensive Life & Wage Insurance Needs Analysis to further evaluate the effectiveness, sustainability, and administrative performance of its current insured programs and to identify priorities for future carrier relationships.

This review was conducted to complement the 2024 Wage & Life Equity Analysis and focused on operational performance, claims administration, vendor service models, benefit accessibility, and long-term program viability across a large, diverse public-sector workforce.

Life Insurance Program – Additional Context The City’s life insurance program is a core component of its total rewards strategy and includes:

• Employee life insurance based on multiples of salary

• Voluntary dependent life coverage

• Retiree life insurance with age-based reductions and post-65 continuation features

• Embedded value-added services supporting beneficiaries, estate planning, and survivor assistance

The Needs Analysis reinforced the importance of financially stable carriers, timely and accurate claims adjudication, and high-touch service models that support employees and beneficiaries during sensitive life events.

Key considerations highlighted through this review include:

• The need for rapid life claim payment with proactive communication to beneficiaries

• Strong service guarantees, dedicated account management, and multiple customer service access channels

• Clear, easily understood enrollment materials and decision-support tools

• High guarantee-issue thresholds to minimize underwriting barriers for employees and dependents

• Portability and conversion options that are clearly communicated and competitively priced

The review also identified opportunities to:

• Simplify dependent eligibility definitions to align with common administrative standards

• Reduce administrative friction associated with retiree coverage and premium collection

• Enhance employee understanding of coverage options and outcomes through improved communication and education materials

These findings reinforce the City’s interest in proposers who can combine benefit expertise with strong operational execution and participant-centric service delivery.

Wage (Disability) Insurance Program – Additional Context The City’s wage insurance program provides short- and long-term income replacement protection and is closely integrated with the City’s sick leave policies and workforce management practices.

The Needs Analysis emphasized the importance of:

• Claims administration consistency and transparency, particularly in complex or long-duration claims

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• Clear disability definitions, predictable adjudication timelines, and well-defined appeal processes

• Robust support for mental health-related disabilities, including parity in claim handling and access to appropriate resources

• Integration with absence management functions, including coordination with FMLA and return-to-work planning

Operational priorities identified include:

• Proactive case management and early engagement with claimants

• Clear communication of claim decisions and rationale

• Data analytics and reporting to support program oversight, trend analysis, and continuous improvement

• Benchmarked performance metrics to assess approvals, denials, and duration trends

The analysis also identified structural complexities in the current wage insurance design, including interactions with sick leave utilization and legacy cost-sharing methodologies, that may warrant future evaluation. While this RFP does not mandate specific design changes, the City values carriers who can provide thoughtful analysis, clear modeling, and practical guidance regarding potential enhancements or alternatives.

Alignment with Equity and Workforce Objectives Findings from the Needs Analysis were viewed in conjunction with the 2024 Wage & Life Equity Analysis to better understand how plan design, administration, and communication impact employees across demographic, income, and job-class distinctions.

Collectively, these efforts underscored the importance of:

• Minimizing administrative and procedural barriers to benefit access

• Ensuring consistency and clarity in claims administration

• Providing transparent reporting and responsive service

• Supporting equitable outcomes through design flexibility and communication clarity

The City seeks a carrier partner that can demonstrate not only technical competence, but also a commitment to equity-aligned service delivery, continuous improvement, and long-term partnership.

Procurement Objectives

The objectives of this RFP include:

• Evaluating the insurance marketplace for potential enhancements to coverage, administration, and service

• Ensuring continuity of critical benefits for employees and retirees

• Identifying carriers capable of meeting the City’s unique administrative and retiree continuation requirements

• Obtaining competitive, sustainable pricing while maintaining high service standards

• Supporting the City’s broader goals related to equity, transparency, and operational excellence

The City encourages thoughtful, well-supported proposals that address both current program requirements and opportunities for improvement, consistent with the scope and constraints outlined in this

RFP.

Thank you for considering this opportunity to work with the City and further our mission!

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2 IMPORTANT INFORMATION

DEADLINE FOR PROPOSALS: Monday, August 31st, 2026 at 2:00 PM Central Time.

The City will not accept late proposals. Any changes to the deadlines will be posted as an addendum on the bid distribution websites listed below. See Section 3.1 for instructions for using these websites.

RFP NAME: Life and Disability Insurance

DEADLINE FOR

ROUND 1 OF

QUESTIONS:

The deadline for questions is Friday, July 31st, 2026 at 2:00 PM Central Time. Questions and/or inquiries must be submitted by email.

CITY’S ROUND 1

OF ANSWERS

POSTED BY:

The City’s answers to your questions will be posted as an addendum by Friday, August 7th, 2026. You must check the bid distribution websites for any addendums.

DEADLINE FOR

ROUND 2 OF

QUESTIONS:

The deadline for questions is Friday, August 14th, 2026 at 2:00 PM Central Time. Questions and/or inquiries must be submitted by email.

CITY’S ROUND 2

OF ANSWERS

POSTED BY:

The City’s answers to your questions will be posted as an addendum by Friday, August 21st, 2026. You must check the bid distribution websites for any addendums.

DUE DATE FOR

PROPOSALS:

Monday, August 31st, 2026 2:00 PM Central Time

BID DISTRIBUTION

WEBSITES:

https://vendornet.wi.gov/Bids.aspx https://www.demandstar.com/

CONTACT

INFORMATION:

Brittany Garcia Purchasing Services 210 Martin Luther King, Jr. Blvd. Room 407 City-County Building Madison, WI 53703-3346

Phone: (608) 608-243-0529 Email: bids@cityofmadison.com https://vendornet.wi.gov/Bids.aspx https://www.demandstar.com/app/agencies/wisconsin/city-of-madison-purchasing-services/procurement-opportunities/573ff565-ce2b-4c75-86ec-401cd5abf736/ mailto:bids@cityofmadison.com

Table of Contents

1 OPPORTUNITY AND WELCOME .................................................................................................... i 2 IMPORTANT INFORMATION .......................................................................................................... iii

3 HOW TO FIND RFP DOCUMENTS AND CONTACT THE CITY OF MADISON

Official Bid Distribution Websites – IMPORTANT Contact Information

4 OUR PURCHASING VALUES

Local Preference Purchasing Policy Equity in Contracting Equitable Hiring & Affirmative Action Plan Limitations on Nuclear Weapons Producers Sweatfree Purchasing

5 SCOPE OF WORK AND REQUIRED INFORMATION

General Requirements

5.1.1 Benefits

5.1.2 Licensure

5.1.3 Central Point of Contact

5.1.4 Transition Meetings

5.1.5 Booklets and Phone Number

5.1.6 Filing Claims

5.1.7 Status Quo Plan Design & Alternate Plan Designs

Basis for Selection and Evaluation Criteria

5.2.1 Overall Evaluation Framework

5.2.2 Technical Proposal Evaluation (65 Points)

5.2.3 Cost Proposal Evaluation (30 Points)

5.2.4 Local Vendor Preference (5 Points)

5.2.5 Interviews (If Conducted)

5.2.6 Final Scoring and Award

6 HOW TO SUBMIT YOUR PROPOSAL

Proposal Checklist Submit your Proposal by the Deadline Format Questions Addendum (Changes or Clarifications to this RFP) Multiple Proposals Changing or Withdrawing your Proposal Correcting Errors in your Proposal after the Due Date No Exceptions from Bidders

You are Responsible for all of your Costs in Making a Proposal Public Records and Trade Secrets

7 RULES FOR THE SELECTION PROCESS

8 LEGAL CONTRACT REQUIREMENTS

Sample Contract Affirmative Action Requirements for Contractors Insurance

Sample Contract

Form A – Price Proposal Form (excel spreadsheet) and Signature Affidavit

Form B – References

Form C – Vendor Profile

Form D – Insurance Questionnaire

Exhibit A - City of Madison Premium Rate Report (Jan 2021 – April 2026)

Exhibit B - City of Madison Life Claims listing through 6/30/2024 (Jan 2019 – Jun 2024)

Exhibit C - City of Madison Experience Report (Jan 2021 – April 2026)

Exhibit D - 2025 BVLF Rider (child benefit increase) Hartford

Exhibit E - 2025 BVLF Rider (dependent children) Hartford

Exhibit F - City of Madison – Life Booklet

Exhibit G - City of Madison – LTD & STD Booklet

Exhibit H - City of Madison Renewal Letter Updated 4.16.24

Exhibit I - 2022 COM Renewal

Exhibit J - COM Employee Handbook

Exhibit K - COM Life Insurance Information (Updated as of 7/1/2025)

Exhibit L - 2024 Wage Life Equity Analysis Report

Exhibit M - City of Madison Needs Analysis

Exhibit N - Duty Disability Riders – Police & Fire

Exhibit O - City of Madison - Experience Rating Agreement

Exhibit P - Active Census with Sick Leave

Exhibit Q - Retiree Life census

3 HOW TO FIND RFP DOCUMENTS AND CONTACT THE CITY OF MADISON

Official Bid Distribution Websites – IMPORTANT

The City of Madison posts all requests for proposals (RFPs), addendums, updates, awards, and announcements on two websites: VendorNet and DemandStar. Both sites are free to register for City of Madison bids.

These two websites are the only places to get the official RFP and updates to the RFP.

Updates and addendums will only be posted on these websites. It is your responsibility to check the websites for updates and “addendums.” An addendum is a document that answers questions from bidders. It could make important changes to the RFP. If the addendum requires a response, and you fail to respond to it, you could be disqualified.

State of Wisconsin VendorNet System

State of Wisconsin and local government bid network. Registration is free. Search for City of Madison in the Agency search field.

VendorNet link https://vendornet.wi.gov/Bids.aspx

DemandStar by Onvia National bid network. Free subscription is available. Sign up for the free “Basic Plan” and select Wisconsin Association for Public Procurement (WAPP) as the agency to access City of Madison RFPs.

DemandStar link https://www.demandstar.com/app/agencies/wisconsin/city-of-madison-purchasing-services/procurement-opportunities/573ff565-ce2b-4c75- 86ec-401cd5abf736/

Register on DemandStar www.demandstar.com/app/registration

Contact Information

City of Madison Purchasing Contact (Buyer)

Brittany Garcia Purchasing Services 210 Martin Luther King, Jr. Blvd. Room 407 City-County Building Madison, WI 53703-3346

PH: (608) 608-243-0529

bids@cityofmadison.com

Questions about Affirmative Action Plans

Contract Compliance, Department of Civil Rights 210 Martin Luther King, Jr. Blvd. Room 523 City-County Building Madison, WI 53703

PH: (608) 266-4910

dcr@cityofmadison.com

Email note Some email to the City gets lost in “spam.”

If you send the City an email and you do not hear back within 3 days, please call the Buyer at (608) 608-243-0529.

https://vendornet.wi.gov/Bids.aspx https://www.demandstar.com/app/agencies/wisconsin/city-of-madison-purchasing-services/procurement-opportunities/573ff565-ce2b-4c75-86ec-401cd5abf736/ https://www.demandstar.com/app/agencies/wisconsin/city-of-madison-purchasing-services/procurement-opportunities/573ff565-ce2b-4c75-86ec-401cd5abf736/ https://www.demandstar.com/app/agencies/wisconsin/city-of-madison-purchasing-services/procurement-opportunities/573ff565-ce2b-4c75-86ec-401cd5abf736/ https://www.demandstar.com/app/registration mailto:dcr@cityofmadison.com

4 OUR PURCHASING VALUES

Local Preference Purchasing Policy

The City of Madison gives preference to local vendors and suppliers. You must be registered with the City as a local vendor by the RFP due date to get preference points. Learn more and register at the City of Madison website: www.cityofmadison.com/finance/purchasing/local-businesses/register-business/

If you are a local vendor, be sure to complete the Local Vendor section on Form C.

Equity in Contracting

The mission of the City of Madison is to provide the highest quality service for the common good of our residents and visitors. The City’s values include

• Equity - fairness, justice and equal outcomes for all, and

• Shared prosperity - where all are able to achieve economic success and social mobility.

It is our goal to spend money equitably, including among businesses owned by women, people of color, and small businesses. Our contractors should reflect shared dedication to equity in their work and employment practices, and we invite you to become part of this mission!

Equitable Hiring & Affirmative Action Plan

Affirmative Action Plan The City of Madison values diversity in hiring and contracting. We expect our contractors to do the same. Contractors with 15 or more employees and more than $50,000 in annual contracts with the City (each calendar year) must submit an Affirmative Action Plan.

Information about the Affirmative Action Plan and how to comply is found here:

https://www.cityofmadison.com/civil-rights/contract-compliance/affirmative-action-plan/vendors-suppliers

Or call the Affirmative Action Division at (608) 266-4910.

See Section 13. B. of the Sample Contract for Affirmative Action Plan requirements.

Job Openings in Dane County You must notify the City of openings for jobs in Dane County, Wisconsin if you have 15 or more employees. You must agree to interview candidates that we refer to you through our Referrals and Interviews for Sustainable Employment (RaISE) program. Information is here:

http://www.cityofmadison.com/civil-rights/programs/referrals-and-interviews-for-sustainable-employment-raise-program

The job posting requirement is found in Section 13 A. of the Sample Contract.

Limitations on Nuclear Weapons Producers

It is the City’s policy not to make purchases from companies that produce nuclear weapons, or their subsidiaries. See Common Council Resolution 79719 for more information.

Sweatfree Purchasing

It is the City’s policy not to purchase apparel (clothes made from textiles, shoes, footwear) from vendors who source their materials from sweatshops, where labor practices are inconsistent with international standards of human rights. See Madison General Ordinances Section 4.25 (https://library.municode.com/wi/madison/codes/code_of_ordinances?nodeId=COORMAWIVOICH1-- 10_CH4FI_4.25PRITAP) for more information.

https://www.cityofmadison.com/finance/purchasing/local-businesses/register-business/ https://www.cityofmadison.com/vision-awards https://www.cityofmadison.com/civil-rights/contract-compliance/affirmative-action-plan/vendors-suppliers http://www.cityofmadison.com/civil-rights/programs/referrals-and-interviews-for-sustainable-employment-raise-program http://www.cityofmadison.com/civil-rights/programs/referrals-and-interviews-for-sustainable-employment-raise-program https://madison.legistar.com/ViewReport.ashx?M=R&N=Text&GID=205&ID=5490426&GUID=A7280DE2-DFCB-40F2-8200-E9C3EA95902B&Title=Legislation+Text https://library.municode.com/wi/madison/codes/code_of_ordinances?nodeId=COORMAWIVOICH1--10_CH4FI_4.25PRITAP https://library.municode.com/wi/madison/codes/code_of_ordinances?nodeId=COORMAWIVOICH1--10_CH4FI_4.25PRITAP

5 SCOPE OF WORK AND REQUIRED INFORMATION

General Requirements

Project Overview

The City intends to use the results of this Request for Proposals (RFP) to award a contract for group Basic Life and AD&D, Voluntary Life and AD&D, Short Term Disability, and Long Term Disability for City of Madison employees and retirees as applicable.

The City wishes to contract with insurance carrier(s) commencing July 1, 2027.

Proposals must include rate guarantee terms for all coverages that meet the following requirements:

• A firm rate guarantee of no less than three (3) years is required for all coverages

• Proposals offering rate guarantees longer than three (3) years are strongly preferred

In addition:

• If proposals include rate guarantee periods longer than three (3) years, proposers are requested to provide “not-to-exceed” rate increase provisions for Years 4 and 5, where available

The contract resulting from this RFP will be administered by City of Madison, Human Resources Department

The contract administrator will be Victoria Larson. The City agent is M3 Insurance Solutions Inc. This RFP is issued on behalf of City of Madison by the Purchasing Division, which is the sole point of contact for the City during the procurement process.

Covered Group Active employees- The City currently has approximately 3,103 Active employees, 230 Early Retirees and 1,232 Post 65 retirees

Current Operations The City of Madison currently offers a life insurance program based on multiples of salary for employees and flat dollar amounts for dependents. Dependents are defined as children up to age 26 along with spouses until age 65. This coverage is primarily funded by employees with coverage being provided at no cost for active employees aged 70 or older. Life insurance is also available for retirees subject to age reductions. Accidental Death and Dismemberment benefits are included in the existing contract but are not currently being offered to employees or dependents. Evidence of insurability is not needed for elections made within 31 days of eligibility and is required for all increases outside of that period.

Premiums are based on age groupings.

The City of Madison provides wage insurance in the form of short and long-term disability coverage, also known as income continuation insurance. This program is funded by a mix of employer and employee money dependent on use of sick leave in the prior 12-month calculation period and accumulated sick leave balance. Sick leave must be exhausted prior to benefits being payable under the wage insurance offerings. Taxation of benefits is impacted by the source of the premium. The short-term plan offers a weekly benefit of 65% of pre-disability earnings or $1,875. Short term disability benefits are payable after sick leave has been exhausted on the 1st day for injury and the 8th day for sickness and are payable for up to 156 weeks. The long-term disability plan pays out a 65% benefit to a monthly maximum of $8,175.

Benefits are payable after a 156-week elimination period and are paid until Social Security Normal Retirement Age.

Tax Treatment of Benefits

Premiums for Life Insurance and Wage Insurance (Short Term Disability and Long Term Disability) are generally paid on a post-tax basis. However, wage insurance premiums may be partially or fully paid by the City depending on employee sick leave utilization and plan provisions.

As a result, disability benefits may be taxable to the employee at the time of receipt based on applicable IRS rules, including potential application of a rolling average methodology. Proposers should assume standard tax treatment consistent with these practices.

The selected carrier will be responsible for issuing applicable tax reporting (e.g., W-2 forms) for any taxable disability benefits paid to employees.

Scope of Services Process and pay all Basic Life, Voluntary Life, AD&D, STD, and LTD eligible claims including, but not limited to, investigation, reserving and payment. The City offers:

Group Basic Life and AD&D (Employee Only) Group supplemental life and AD&D to employees and dependents Group Short-Term Disability Group Long-Term Disability

The proposer will handle all claims from ‘cradle to grave’ including but not limited to investigation, adjusting, reserving, denying and payment in conformity with the plan document as adopted, except those receiving benefits from the current provider. The provider must be able to offer all the plans as it is the City’s intent to issue one contract to one provider.

Needs The insurer must allow for OPEN ENROLLMENT for all active employees, whether or not they are currently enrolled in a City plan, without undergoing any health underwriting when the contract is first written for 7/1/2027. New employees are eligible to apply for the insurance within 30 days of hire without

EOI.

5.1.1 Benefits

We are seeking multiple proposed options for coverage to be outlined in subsequent sections of this RFP.

At a minimum prospective vendors should quote at least one of the desired plans. Quotes not perfectly matching the desired options can be considered, but deviations from the requested offerings should be clearly outlined.

5.1.1.1 Premium Accounting Reserve (PAR) / Experience Rating Agreement

The City of Madison currently maintains an Experience Rating Agreement, also referred to as a Premium Stabilization Reserve (PSR) or PAR Agreement, with the incumbent life and short-term disability carrier. This agreement applies to the City’s Group Life (Basic and Supplemental) and Short-Term Disability policies.

Under the terms of this agreement:

• Policy experience is reviewed annually by the carrier through an experience rating process

• Premiums paid, claims incurred, carrier retention, reserves, and interest credits are reconciled each experience period

• Experience results in either a surplus or deficit, which is tracked through a Premium Stabilization Reserve (PSR) Fund

• The target stabilization reserve equals 25% of the annual total premium for the covered lines of coverage

If experience results in a surplus in excess of the required reserve:

• Excess surplus may be returned to the City at its discretion

• Any returned funds must be used primarily for the benefit of covered employees and in accordance with applicable law

• The City retains discretion regarding allocation of returned funds, subject to fiduciary and legal requirements

If experience results in a deficit:

• The deficit is carried forward in the PSR balance and may be subject to interest charges consistent with the agreement terms. The agreement automatically renews annually unless terminated and may be terminated by either party with 30 days’ written notice, or upon termination of the underlying insurance policy.

5.1.1.2 Proposer Expectations Related to PAR / Experience Rating

Proposers should note the following:

• The City places value on transparent experience reporting, reserve methodology, and annual accounting

• Proposers are encouraged to describe their ability to support experience-rated arrangements, including premium stabilization or reserve mechanisms, for life and/or disability coverages

• Proposers may offer alternative experience-rating or risk-sharing arrangements, but must clearly describe:

o Reserve targets and calculations o Surplus and deficit treatment o Interest crediting or charging methodology o Reporting timelines and fiduciary considerations

Any proposed alternative arrangement must be clearly identified and will be evaluated based on transparency, financial prudence, and administrative feasibility.

For further information, please reference the EXPERIENCE RATING AGREEMENT (“AGREEMENT”) and the current ACCOUNTING EXHIBITS.

5.1.1.3 Duty Disability Coordination

The City of Madison provides Duty Disability benefits for eligible populations (e.g., Police and Fire), which are administered separately and coordinated with applicable Wisconsin statutory programs and carrier-provided occupational disability riders.

Proposers must demonstrate the ability to:

• Coordinate Short Term Disability and Long Term Disability benefits with Duty Disability and occupational disability benefits where applicable

• Apply appropriate offsets and avoid duplication of benefits

• Clearly describe claims handling processes involving Duty Disability and occupational benefit interactions

Additional information is provided in the attached Duty Disability Riders.

5.1.1.4 Benefits Administration Systems

The City of Madison currently utilizes Munis by Tyler Technologies for financial and payroll-related administration. Additional benefits administration functionality may be supported through NeoGov.

Proposers must demonstrate the ability to:

• Integrate with both systems as applicable

• Support data exchange, eligibility, billing, and reporting processes

• Accommodate the City’s current administrative structure without requiring system changes

5.1.2 Licensure

Proposer must be licensed to do business in the State of Wisconsin.

5.1.3 Central Point of Contact

Vendor must assign a central point of contact for the city and its subscribers.

5.1.4 Transition Meetings

Proposer must be prepared to support employee education meetings through a variety of channels.

5.1.5 Booklets and Phone Number

Vendor must provide employee booklets/plan documents duplicating the present plan in simple language as well as a toll-free number. Vendor must provide necessary forms and instructions for use.

5.1.6 Filing Claims

The method in which claims are filed must be described. Acceptable methods include online only, telephone or mail in form. If mail in forms are required, such forms are to include appropriate information necessary to file a claim with the mailing address of the primary recipient pre-printed thereon.

5.1.7 Status Quo Plan Design & Alternate Plan Designs

In addition to the requested Status Quo and Alternative plan designs, proposers are encouraged to submit carrier-recommended plan options. These may include modifications to benefit structure, funding approach, or administrative design intended to improve outcomes, reduce costs, or enhance employee experience. Any such recommendations must be clearly labeled and separately identified from requested plan designs.

Proposers must provide rate guarantee terms for all coverages included in their proposal.

At a minimum, proposals must include:

• A guaranteed rate period of no less than three (3) years for all coverages

• Proposals offering rate guarantees longer than three (3) years are strongly preferred

In addition:

• If bids are for longer than 3 years, "not-to-exceed" increases are requested for Years 4 and 5.

Implementation Credit

The City encourages proposers to include any available implementation credits, transition credits, enrollment support credits, communication allowances, or other one-time financial concessions associated with implementation of coverage.

Proposers should clearly identify:

• The amount of any implementation or transition credit offered

• Whether the credit is contingent upon contract execution, enrollment outcomes, or other conditions

• The timing and method by which the credit would be provided

• Any restrictions or limitations associated with the credit

Any implementation credit should be presented separately from premium rates and other pricing components within the proposal. The City reserves the right to consider such credits as part of its overall evaluation of value and cost.

FULL TIME EMPLOYEES AND PRE-65 YEARS OLD RETIREES

(Status Quo) Please Quote:

NOTE For purposes of this RFP, the Status Quo proposal for Retiree Basic Life Insurance should reflect coverage calculated as 1× Salary up to annual Earnings, subject to a maximum of $200,000, rounded to the next higher $1,000 if not already a multiple of $1,000. While the City’s current in‑force policy rounds retiree coverage to the next lower $1,000, proposers should assume rounding to the next higher $1,000 when quoting the Status Quo plan.

Basic Life:

All Active Employees who are:

• Permanent or limited term employees who work at least 50% of a regular established full-time work week;

• The Mayor, Municipal Court Judge, and Alders; and

• Eligible Retirees

• Crossing guards

Eligibility:

• None – if employee is working for the City on the Policy Effective Date; or

• The first day of the month coinciding with or next following the month in which employee was hired – if employee starts working for the City after the Policy Effective

Date.

Employee Only:

• 1 x Salary up to annual Earnings, subject to a maximum of $200,000 rounded to the next higher $1,000 if not already a multiple of $1,000. However, in no event will the

Employee Basic Amount of Life Insurance be less than $10,000, if Employee is active.

Retiree Only:

• 1 x Salary up to annual Earnings, subject to a maximum of $200,000 rounded to the next lower $1,000 if not already a multiple of $1,000.

With respect to Retiree Basic Life Insurance: Reduction in Coverage Due to Age

City of Madison will reduce the Life Insurance Benefit for You by the percentage indicated in the table below. This reduction will be effective on the first of the month following the date You attain the ages shown below. The reduction will apply to the Amount of Life Insurance in force immediately prior to the first reduction made.

Percentage by which original amount of coverage will be reduced

Your Age Your % Reduction

65 25%

66 50%

67 75%

Reductions also apply if:

1. Employee becomes covered under The Policy; or

2. Employee coverage increases; on or after the date Employee attains age 65.

An appropriate adjustment in premium will be made.

Premium Responsibility and Payment Methodology

• Active Employees:

Life insurance premiums for active employees are paid through payroll deduction and are deducted on an after-tax basis.

• Pre-65 Retirees:

Retirees who separate from service prior to age 65 may elect to continue their life insurance coverage by paying the full applicable premium. Premiums for retirees under age 65 are paid by the members. Administration of life insurance for pre-65 retirees and their dependents is currently outsourced via Hartford to Selman & Co.

• Transition to Age 65:

Retirees who continue coverage through age 65 by remitting required premiums will automatically transition into the post-65 retiree structure described in the “Ages 65+ Retirees” section of this RFP document. No re-enrollment, evidence of insurability, or affirmative election is required at age 65, provided coverage has been continuously maintained.

Supplemental Amount of Life Insurance Employee Only and Retiree

Option 1:

Employee Base & Retiree Life Max: 0.5 times annual Earnings, subject to a maximum of

$100,000 rounded to the next higher $1,000 if not already a multiple of $1,000

Option 2:

Employee Base & Retiree Life Max: 1 times annual Earnings, subject to a maximum of $200,000 rounded to the next higher $1,000 if not already a multiple of $1,000

Option 3:

Employee Base & Retiree Life Max: 2 times annual Earnings, subject to a maximum of $400,000

Dependent Life Insurance Benefit Employee and Retiree

Unit 1:

Spouse - $10,000

Dependent children: from live birth to age 26 year(s) - $10,000

Unit 2:

Spouse - $20,000

Dependent children: from live birth to age 26 year(s) - $15,000

With respect to Retiree Supplemental Life Insurance: Reduction in Coverage Due to Age

We will reduce the Life Insurance Benefit for You by 100% on the first of the month following the date

You attain age 65.

Reductions also apply if:

1. You become covered under The Policy; or

2. Your coverage increases; on or after Employee attains age 65

Accidental Death and Dismemberment Benefit Employee Only:

Maximum Amount: 1 times Employee annual Earnings, subject to a maximum of $200,000

However, in no event will the Employee Basic Principal Sum be less than $10,000

Option 1:

Employee Base & Retiree Life Max: 0.5 times annual Earnings, subject to a maximum of

$100,000 rounded to the next higher $1,000 if not already a multiple of $1,000

Option 2:

Employee Base & Retiree Life Max: 1 times annual Earnings, subject to a maximum of $200,000

Option 3:

Employee Base & Retiree Life Max: 2 times annual Earnings, subject to a maximum of $400,000

Additional Accidental Death and Dismemberment Benefits (Employee Only)

Seat Belt Benefit Amount

Percentage of Basic & Supplemental Accidental Death and Dismemberment Principal Sum: 10%

Maximum Amount: $10,000

Minimum Amount: $1,000

Air Bag Benefit Amount

Percentage of Basic & Supplemental Accidental Death and Dismemberment Principal Sum: 5%

Maximum Amount: $5,000

Repatriation Benefit

Percentage of Basic & Supplemental Accidental Death and Dismemberment Principal Sum: 5%

Maximum Amount: $5,000

Accelerated Benefit Option

The City’s current life insurance program includes an Accelerated Benefit Option for eligible participants.

Proposers should include an accelerated death benefit provision consistent with current plan design. Any deviation from this feature should be clearly identified and explained.

At a minimum, proposers should describe:

• Eligibility requirements for accessing accelerated benefits (e.g., terminal illness diagnosis)

• Definition of terminal illness, including life expectancy criteria

• Maximum percentage of life insurance benefit available for acceleration

• Any limitations on frequency of use (e.g., one-time election)

• Impact of accelerated payments on remaining death benefit payable to beneficiaries

• Tax considerations and administrative requirements

The City’s current program allows eligible participants to receive a portion of their life insurance benefit in advance of death, subject to applicable terms and conditions. Proposers should clearly indicate whether similar provisions are included and describe any differences from the current structure.

Short Term Disability

Employee Class: All Active Employees who are permanent or limited term employees who work at least 50% of a regularly established full-time work week, who are citizens or legal residents of the United States, its territories and protectorates; excluding temporary, leased or seasonal employees.

Elimination Period: 1. Injury: Later of the 1st consecutive day of

Total Disability or the day following the sick leave date;

2. Sickness: Later of the 8th consecutive day of Total Disability or the day following the sick leave end date.

3. 1st day hospitalization (after sick leave is exhausted)

Definition of Disability: Own Occupation: Employee is prevented from performing the Essential Duties of their

Occupation and are earning 0% or less of

Pre‑disability Earnings

Benefit Duration: 1. 156 week(s) if caused by Injury; or

2. 156 week(s) if caused by Sickness

Benefit Percentage: Lesser of:

1. 65% of Employee Pre-disability Earnings;

or

2. $1,875; reduced by Other Income

Benefits.

Weekly Covered Salary Employee regular pay, excluding commissions, bonuses, overtime, and other extra or fringe compensation

Weekly Maximum: $1,875

M3 Commissions: Carrier Standard

Long Term Disability

Employee Class: All Active Employees who are permanent or limited term employees who work at least 50% of a regularly established full-time work week, who are citizens or legal residents of the United States, its territories and protectorates; excluding temporary, leased or seasonal employees.

Elimination Period: 156 weeks (i.e., expiration of STD benefits)

Definition of Disability: Any Occupation means any occupation for which

Employee is qualified by education, training or experience, and that has an earnings potential greater than the lesser of:

1) the product of Employee’s Indexed Pre-disability Earnings and the Benefit Percentage; or

2) the Maximum Monthly Benefit.

Benefit Duration: Age-based Maximum Duration of Benefits

Prior to Age 62: To age 65 or 42 months, if greater

Age 62: 42 months

Age 63: 36 months

Age 64: 30 months

Age 65: 24 months

Age 66: 21 months

Age 67: 18 months

Age 68: 15 months

Age 69+: 12 months Benefit Percentage: 65% of Employee Pre‑disability Earnings

Monthly Maximum: $8,175 per month

M3 Commissions: Carrier Standard

Partial / Residual Disability

The City is open to proposals that include partial or residual disability provisions designed to support return-to-work and workplace accommodation efforts.

Proposers should clearly describe any such provisions, including eligibility criteria, benefit calculations, and coordination with existing wage insurance structure.

(Alternative 1) Please Quote:

Same benefit design for Status Quo coverage but with the following exceptions:

Employee Only:

• Flat $75,000 for all employees, regardless of annual Earnings

Retiree Only:

• Flat $75,000 for all retirees subject to age reductions

Employee Base & Retiree Life Max: Available to purchase in increments of $10,000, subject to a maximum of $500,000 or 3x salary without requiring evidence of insurability (EOI)

Current elections over $500,000 would be grandfathered.

The city of Madison is not interested in having timely life insurance elections be subject to EOI.

Spouse:

$10,000 increments up to 50% of employee election or $50,000 Maximum, based on employee age

The City of Madison is seeking the highest possible guarantee issue amount for spouses and does not want to offer coverage amounts that may require EOI. Amounts in excess of the $50,000 above would be received positively.

Child:

$5,000 increments on all children up to $20,000.

If $20,000 is above the maximum allowed, please quote the highest guarantee issue amount permitted.

Short Term Disability:

Elimination Period: 1. Injury: Later of the 8th consecutive day of

Total Disability or the day following the sick leave date;

2. Sickness: Later of the 8th consecutive day of Total Disability or the day following the sick leave end date.

Definition of Disability: Own Occupation: Employee is prevented from performing the Essential Duties of their

Occupation and are earning 0% or less of

Pre‑disability Earnings

Benefit Duration: 3. 26 week(s) if caused by Injury; or

4. 26 week(s) if caused by Sickness

5. 1st day hospitalization (after sick leave is exhausted)

Benefit Percentage: Lesser of:

3. 66.66% of Employee Pre-disability

Earnings; or

4. $2,000; reduced by Other Income

Benefits.

Weekly Maximum: $2,000

Elimination Period: 26 weeks (i.e., expiration of STD benefits)

Definition of Disability: Any Occupation means any occupation for which

Employee is qualified by education, training or experience, and that has an earnings potential greater than the lesser of:

1) the product of Employee’s Indexed Pre-disability Earnings and the Benefit Percentage; or

2) the Maximum Monthly Benefit.

Benefit Duration: Age-based Maximum Duration of Benefits

Prior to Age 62: To age 65 or 42 months, if greater

Age 62: 42 months

Age 63: 36 months

Age 64: 30 months

Age 65: 24 months

Age 66: 21 months

Age 67: 18 months

Age 68: 15 months

Age 69+: 12 months Benefit Percentage: 66.66% of Employee Pre‑disability Earnings

Monthly Maximum: $8,750 per month

(Alternative 2) Please Quote:

• Flat $75,000 for all retirees maximum of $500,000 or 3x salary.

want to offer coverage amounts that may require EOI. Amounts in excess of the $50,000 above would be

Elimination Period: 3. Injury: Later of the 1st consecutive day of sick leave date;

4. Sickness: Later of the 8th consecutive day of Total Disability or the day following the sick leave end date.

Definition of Disability: Own Occupation: Employee is prevented from performing the Essential Duties of their

Occupation and are earning 0% or less of

Pre‑disability Earnings

Benefit Duration: 6. 104 week(s) if caused by Injury; or

7. 104 week(s) if caused by Sickness

8. 1st day hospitalization (after sick leave is exhausted)

Benefit Percentage: Lesser of:

5. 65% of Employee Pre-disability Earnings;

or

6. $1,875; reduced by Other Income

Benefits.

Weekly Maximum: $1,875

Elimination Period: 104 weeks (i.e., expiration of STD benefits)

Employee is qualified by education, training or experience, and that has an earnings potential greater than the lesser of:

1) the product of Employee’s Indexed Pre-disability Earnings and the Benefit Percentage; or

2) the Maximum Monthly Benefit.

Benefit Duration: Age-based Maximum Duration of Benefits

Prior to Age 62: To age 65 or 42 months, if greater

Age 62: 42 months

Age 63: 36 months

Age 64: 30 months

Age 65: 24 months

Age 66: 21 months

Age 67: 18 months

Age 68: 15 months

Age 69+: 12 months Benefit Percentage: 65% of Employee Pre‑disability Earnings

Monthly Maximum: $8,175 per month

(Alternative 3) Please Quote:

• Flat $75,000 for all retirees maximum of $500,000 or 3x salary.

want to offer coverage amounts that may require EOI. Amounts in excess of the $50,000 above would be

Elimination Period: 5. Injury: Later of the 1st consecutive day of sick leave date;

6. Sickness: Later of the 8th consecutive day of Total Disability or the day following the sick leave end date.

Definition of Disability: Own Occupation: Employee is prevented from performing the Essential Duties of their

Occupation and are earning 0% or less of

Pre‑disability Earnings

Benefit Duration: 9. 104 week(s) if caused by Injury; or

10. 104 week(s) if caused by Sickness

11. 1st day hospitalization (after sick leave is exhausted)

Benefit Percentage: Lesser of:

7. 66.66% of Employee Pre-disability

Earnings; or

8. $2,000; reduced by Other Income

Benefits.

Weekly Maximum: $2,000

Elimination Period: 104 weeks (i.e., expiration of STD benefits)

Employee is qualified by education, training or experience, and that has an earnings potential greater than the lesser of:

1) the product of Employee’s Indexed Pre-disability Earnings and the Benefit Percentage; or

2) the Maximum Monthly Benefit.

Benefit Duration: Age-based Maximum Duration of Benefits

Prior to Age 62: To age 65 or 42 months, if greater

Age 62: 42 months

Age 63: 36 months

Age 64: 30 months

Age 65: 24 months

Age 66: 21 months

Age 67: 18 months

Age 68: 15 months

Age 69+: 12 months Benefit Percentage: 66.66% of Employee Pre‑disability Earnings

Monthly Maximum: $8,750 per month

Ages 65+ Retirees

For retirees who attain age 65, the City of Madison has a unique life insurance continuation structure that proposers must accommodate without exception. This information is available in the “Life Insurance Info” document attached to this RFP.

Coverage After Age 65 (No-Premium Retiree Coverage)

• Premium and Claim Treatment:

Retirees age 65 and older do not remit premiums for Basic Retiree Life Insurance. Claims for this retiree population are paid from the City’s surplus associated with the life insurance program, and coverage is reflected in the program’s experience and surplus calculations based on the known covered retiree population. Proposers must administer coverage in a manner consistent with this structure and must not require premium billing, collection, or remittance from retirees after age 65.

• Coverage Type and Reductions:

o Only Basic Life Insurance continues beyond age 65.

o Supplemental Life Insurance does not continue beyond age 65 and terminates automatically at that time.

o Basic Life Insurance coverage is subject to age-based reductions, applied as follows:

▪ Age 65: Coverage reduces to 75% of the retiree’s Basic Life amount immediately prior to age 65

▪ Age 66: Coverage reduces to 50%

▪ Age 67 and older: Coverage reduces to 25%, which remains in force for the remainder of the retiree’s lifetime

Administrative Expectations Proposers must demonstrate the ability to:

• Administer seamless transitions from active employment → pre-65 retirement (bill-pay) → post-65 retirement (no-pay)

• Automatically apply age-based reductions without requiring retiree action

• Coordinate billing cessation and coverage reduction logic accurately at age 65

Any deviation from this structure must be clearly identified and will be considered non-responsive unless explicitly requested by the City.

Basis for Selection and Evaluation Criteria

Proposals will be evaluated by a City of Madison evaluation committee using the criteria and weighting described below. The City intends to select the proposer whose proposal is determined to be most advantageous to the City, based on a combination of technical merit, cost, interview performance, and local vendor preference.

The City reserves the right to award a contract without interviews or to adjust evaluation steps as deemed in the City’s best interest.

5.2.1 Overall Evaluation Framework

Proposals may receive a maximum total score of 100 points, allocated as follows:

• Technical Proposal (including interviews, if conducted): 65 points

• Cost Proposal: 30 points

• Local Vendor Preference: 5 points

5.2.2 Technical Proposal Evaluation (65 Points)

Technical proposals will be independently evaluated and scored by the evaluation committee based on the following criteria. Individual evaluator scores will be averaged to produce a proposer’s final technical score.

Technical Evaluation Criteria Maximum Points

Firm Qualifications and Experience 25

Assigned Personnel and Service Team 20

Relevant Experience / Example Projects 20

Total Technical Score 65

Evaluation will consider, at a minimum:

• Demonstrated experience administering group life and disability plans of similar size and complexity

• Qualifications, stability, and depth of the proposed service and account management team

• Quality and relevance of comparable client examples and results achieved

• Completeness and responsiveness to the Insurance Questionnaire (Form D)

References may be contacted as part of final verification prior to award and will not be formally scored.

5.2.3 Cost Proposal Evaluation (30 Points)

Cost proposals will be evaluated using an objective, formula-based scoring methodology. Total evaluated costs will be calculated using the pricing submitted along with the Form A – Price Proposal Form and Signature Affidavit.

The proposer with the lowest total evaluated cost will receive the full 30 cost points

• All other proposers will receive proportionally fewer points based on the following formula:

(Lowest Total Cost ÷ Proposer’s Total Cost) × 30 = Cost Score

The City reserves the right to verify cost calculations and to request clarification of pricing submissions.

Errors in extended pricing may be corrected using unit pricing, consistent with Form A instructions.

Proposers must complete the Price Proposal Form (Form A), which provides a standardized format for…