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HomeMy WebLinkAboutAddendum - 4©2023 Arthur J. Gallagher & Co. All rights reserved. | Client Coverage Acknowledgement and Compensation Disclosure 03032023 CLIENT COVERAGE ACKNOWLEDGMENT AND COMPENSATION DISCLOSURE STATEMENT FOR CITY OF RENTON This form documents that Gallagher Benefit Services, Inc. (Gallagher) will apply its professional The final decision to choose any insurance company or vendor has been made by the Client in its sole and absolute discretion. The Client understands and agrees that Gallagher does not take risk, and that Gallagher does not guarantee the financial solvency or security of any insurance company. The Client, or other policy owner, is responsible for immediate payment of premiums for all insurance placed by accordance with the terms of such policies. The following is the disclosure of commissions and/or fees to be paid to Gallagherfor brokerage and/or consulting services to agreements Gallagherhas with any insurance companies or vendors selected by Client as noted above. Gallagher will receive the following initial and renewal sale commissions expressed as percentage of gross premium payments, or fees, as agreed upon by Client: City of Renton Line of Coverage / Services1 Company Commission2&3 Third Party Compensation Direct Fees4 Effective Date Medical Healthcare Management Administrators Net of Commission N/A N/A 01/01/25 Dental Healthcare Management Administrators Net of Commission N/A N/A 01/01/25 Vision Healthcare Management Administrators Net of Commission N/A N/A 01/01/25 Medical Kaiser Permanente Net of Commission N/A N/A 01/01/25 Vision Kaiser Permanente Net of Commission N/A N/A 01/01/25 Prescription Drug Kaiser Permanente Net of Commission N/A N/A 01/01/25 1 Services provided relative to the above lines of coverage include Benefits strategy consulting and design, to include funding evaluation options, financial reporting, as appropriate, based on funding arrangement, and vendor support; Plan management services, to include plan marketing and evaluation services; Renewal support, coordination, and oversight; Annual enrollment support, including drafting assistance for employee communications; Legislative compliance support in the form of updates, materials, and guidance; and Administrative support as mutually agreed to by the parties. Refer to your consulting agreement for further details on services, if applicable. 2 Commissions include all commissions/fees paid to Gallagher that are attributable to a contract or policy between a plan and an insurance company, insurance service, or vendor. This includes indirect fees that are paid to Gallagher paid by a third party, and includes, among other t or other fees to Gallagher for a transaction or service involving the plan.3 Gallagher may receive supplemental compensation from insurance carriers and vendors, normally calculated at the end of each calendar year, that are contingent on a number of factors including the overall number of employer plans represented, plan retention rates, and overall premium growth. Historically, supplemental compensation has ranged, on average, between 0-3% based on specific carrier programs. These plans have no effect on premiums. Further, Gallagher may receive non-cash compensation from plan vendors or service providers that are not in connection with any particular client. If you have any questions regarding direct or indirect compensation received by Gallagher, please contact your dedicated Gallagher advisor or refer to the Gallagher Global Standards of Business Conduct.4 Direct Fees include compensation to Gallagher paid for directly by the plan sponsor/Client. CAG-19-368, Adden #4-24 ©2023 Arthur J. Gallagher & Co. All rights reserved. | Client Coverage Acknowledgement and Compensation Disclosure 03032023 Prescription Drug Administration Costco Health Solutions Net of Commission N/A N/A 01/01/25 Stop Loss Symetra Net of Commission N/A N/A 01/01/25 Life and AD&D Standard Net of Commission N/A N/A 01/01/25 Supplemental Life AD&D Standard Net of Commission N/A N/A 01/01/25 Employer Paid Long Term Disability Standard Net of Commission N/A N/A 01/01/25 Employee Assistance Program First Choice Health Net of Commission N/A N/A 01/01/25 Flexible Spending Account (FSA) Benefit Administration Company Net of Commission N/A N/A 01/01/25 COBRA Administration Healthcare Management Administrators Net of Commission N/A N/A 01/01/25 Benefit Advocate Center Gallagher Benefit Services N/A N/A BAC core Services included in consulting services no additional fee 01/01/25 Consulting Agreement Gallagher Benefit Services N/A N/A $ 7,075 per month 01/01/25 Actuarial Certification of Plan Renewals Gallagher Benefit Services Healthcare Analytics (HCA) N/A N/A $6,000 total ($4000 for Active Plan and $2000 for Retiree Plan) 01/01/25 Certified IBNRs (One for actives and one for retirees) Gallagher Benefit Services Healthcare Analytics (HCA) N/A N/A Two certified IBNRs included in consulting services no additional fee 01/01/25 It should also be noted that: Gallagher is not an affiliate of the insurer/vendor whose contract is recommended. This means the insurer/vendor whose contract is recommended does not directly or indirectly have the power to exercise a controlling influence over the management or policies of Gallagher. ability to recommend other insurance contracts/vendors is not limited by an agreementwith the insurance company/vendor. Gallagher is effecting the transaction for the Plan(s) in the ordinary course of Gallagher business. an unrelated party. Gallagher is not a trustee of the Plan(s) and is neither the Plan Administrator of the Plan(s), a named fiduciary of the Plan(s), nor an employer which has employees in the Plan(s). Gallagher ©2023 Arthur J. Gallagher & Co. All rights reserved. | Client Coverage Acknowledgement and Compensation Disclosure 03032023 shall not exercise discretionary authority or control with respect to plan management, the disposition of plan assets or plan administration. liability to Client, or any party claiming by or through Client, on account of or relating to the provision of services to Client during the period of the relationship between Gallagher and Client shall not exceed $1 million 5, in the aggregate. Without limiting the foregoing, Gallagher shall only be liable for actual damages incurred by Client, and shall not be liable for any indirect, consequential or punitive damages. For Employers and Plan Sponsors Subject to ERISA: This Disclosure Statement is being given to the Client (1) to make income before purchasing the insurance product and/or vendor services and (2) for plans subject to ERISA, to comply with the disclosure, acknowledgment and approval requirement of Prohibited Transaction Class Exemption No. 84-246, which protects both Client and Gallagher 7, and the disclosure requirements under ERISA §408(b)(2), as amended by Div. BB, Title II, §202 of the Consolidated Appropriations Act, 2021 . Disclosure must be made to responsible plan fiduciary for the ERISA Plan(s), and Client acknowledg es and confirms that this is a reasonable transaction in the best interest of participants in its ERISA Plan(s). For more www.ajg.com/compensation. In the event a Client wishes to register a formal complaint regarding compensation Gallagher receives, please send an email to Compensation_Complaints@ajg.com. Thank you for your business and continued confidence in the services Gallagher provides to you and your employees. We sincerely appreciate the opportunity to serve City of Renton. Please contact your Gallagher advisor if you have questions regarding this information or would like more detail. Accepted by: City of Renton GALLAGHER BENEFIT SERVICES, INC. By By Name Name Kevin Cipoletti Title Title Area President Date Date 09-19-2024 5 If Client has executed a consulting, or other services, agreement currently in effect with Gallagher that contains a limitation of liability, the limitation specified herein shall be disregarded and the limitation in the executed agreement shall control for all purposes. 6 Which allows an exemption from a prohibited transaction under Section 408(a) of the Employee Retirement Income Security Act of 1974 (ERISA). 7 In making these disclosures, no position is taken, nor is one to be inferred, regarding the use of assets of a plan subject to ERISA to purchase such insurance. Armondo Pavone Mayor 11/5/2024 Attest:___________________________ Jason A. Seth, City Clerk