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HomeMy WebLinkAboutAdden 2©2020 Arthur J. Gallagher & Co. All rights reserved. | Client Coverage Acknowledgement and Compensation Disclosure 04232020 CLIENT COVERAGE ACKNOWLEDGMENT AND COMPENSATION DISCLOSURE STATEMENT FOR CITY OF RENTON This form documents that Gallagher Benefit Services, Inc. (Gallagher) will apply its professional judgment to access those insurance companies it believes are best suited to insure the Client’s risks. The final decision to choose any insurance company 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 is responsible for immediate payment of premiums for all insurance placed by Gallagher on Client’s behalf. If any premium amounts are not paid in full when due, the applicable insurance company for the Client’s risks may cancel any applicable policies in accordance with the terms of such policies. The following is the disclosure of fees and/or commissions to be paid to Gallagher as a result of its Broker of Record relationship to Client’s Group Health and Welfare Plan and any relationships, or agreements Gallagher has with any insurance companies selected by Client as noted above. Gallagher, as Broker of Record, 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 / Services Company Commission1 Supplemental Compensation2. Third Party Compensation Direct Fees3 Effective Date Self-Insured Medical, Dental, Vision Healthcare Management Administrators Net of Commission $0.00 to $40.00 PEPY N/A N/A 01/01/2022 Prescription Drug Administration Costco Health Solutions Net of Commission N/A N/A N/A 01/01/2022 Fully-Insured Medical, Prescription Drug, Vision Kaiser Permanente Net of Commission N/A N/A N/A 01/01/2022 Stop Loss Symetra Net of Commission 2.5% of Premium N/A N/A 01/01/2022 Employee Assistance Program (EAP) First Choice Health Net of Commission N/A N/A N/A 01/01/2022 Flexible Spending Account (FSA) Benefit Administration Company Net of Commission N/A N/A N/A 01/01/2022 1 Commissions include all commissions/fees paid to Gallagher that are attributable to a contract or policy between a plan and an insurance company, or insurance service. This includes indirect fees that are paid to Gallagher paid by a third party, and includes, among other things, the payment of “finders’ fees” or other fees to Gallagher for a transaction or service involving the plan. 2 Gallagher companies may receive supplemental compensation referred to in a variety of terms and definitions, such as contingent commissions, additional commissions and supplemental commission. 3 Direct Fees include compensation to Gallagher paid for directly by the plan sponsor/Client. CAG-19-368, Adden #2-21 ©2020 Arthur J. Gallagher & Co. All rights reserved. | Client Coverage Acknowledgement and Compensation Disclosure 04232020 Basic Life/AD&D, LTD, Voluntary Life/AD&D The Standard Net of Commission 0.0% to 3.5% of Premium N/A N/A 01/01/202 COBRA Administration Healthcare Management Administrators Net of Commission N/A N/A N/A 01/01/2022 Consulting Services Gallagher Benefit Services N/A N/A N/A $7,075 per month 01/01/2022 Benefit Advocate Center (BAC) Gallagher Benefit Services N/A N/A N/A BAC core services included in consulting services – no additional fee 01/01/2022 Actuarial Certification of Plan Renewals Gallagher Benefit Services – Healthcare Analytics (HCA) N/A N/A N/A $2,000 per plan (Five plans to be certified) 01/01/2022 Certified IBNRs (One for actives and one for retirees) Gallagher Benefit Services – Healthcare Analytics (HCA) N/A N/A N/A Two certified IBNRs included in consulting services – no additional fee 01/01/2022 It should also be noted that: Gallagher is not an affiliate of the insurer whose contract is recommended. This means the insurer whose contract is recommended does not directly or indirectly have the power to exercise a controlling influence over the management or policies of Gallagher. Gallagher’s ability to recommend other insurance contracts is not limited by an agreement with the insurance company. Gallagher is effecting the transaction for the Plan(s) in the ordinary course of Gallagher business. The transaction set forth is at least as favorable to the Plan(s) as an arm’s length transaction with 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 shall not exercise discretionary authority or control with respect to plan management, the disposition of plan assets or plan administration. Gallagher’s 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 in the aggregate. Without limiting the foregoing, Gallagher shall only be ©2020 Arthur J. Gallagher & Co. All rights reserved. | Client Coverage Acknowledgement and Compensation Disclosure 04232020 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 sure Client knows about Gallagher’s and Gallagher affiliates’ income before purchasing the insurance product and (2) for plans subject to ERISA, to comply with the disclosure, acknowledgment and approval requirement of Prohibited Transaction Class Exemption No. 84-244, which protects both Client and Gallagher5. Disclosure must be made to an independent plan fiduciary for the ERISA Plan(s), and Client acknowledges and confirms that this is a reasonable transaction in the best interest of participants in its ERISA Plan(s). For more information on Gallagher’s compensation arrangements, please visit 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 let us know if you have any questions regarding this information or would like more detail. Accepted by: CITY OF RENTON GALLAGHER BENEFIT SERVICES, INC. By: By: Name Name Title Title Date: Date: 4 Which allows an exemption from a prohibited transaction under Section 408(a) of the Employee Retirement Income Security Act of 1974 (ERISA). 5 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. Nancy Kokenge Area Vice President, Client Consultant 11/19/21 Armondo Pavone Mayor Attest:________________________ Jason Seth, City Clerk, MMC 12/30/2021