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HomeMy Public PortalAboutC-20-157 - Basic Benefits, LLC, Cobra Administration Service AgreementGQRRA_AQMINISTRATIQN SERVICE A,PREEMENT This Administra 'on Service Agreement (Agreement) is made and entered into by and between C i N of �a r6Dh ("Employer") and BASIC Benefits, LLC ("BASIC Benefits"), a Delaware company. WHEREAS, the EMPLOYER has established one or more employee welfare benefit plans (hereafter referred to collectively as the "Plan") for the benefit of its eligible employees, spouses and dependents; and, WHEREAS, the EMPLOYER is the Plan Sponsor and Plan Fiduciary for the Plan and, as such, -has determined that it is required to comply with the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA"); and, WHEREAS, the EMPLOYER may appoint a third -party contract administrator to assist with COBRA for the Plan, and shall remairmesponsible for the maintenance and operation of the Plan; and, WHEREAS, BASIC Benefits is in the business of providing third -party COBRA administration services to Plan Sponsors of such Plans; and, WHEREAS, the EMPLOYER desires to enter into an agreement under which BASIC Benefits will perform specified administration services to EMPLOYER with respect to the Plan in accordance with this Agreement; and WHEREAS, the Employer, separate and apart from this Agreement, also intends to enter into the following separate agreements with Basic Benefits on or around the effective dale of this Agreement: (1) Administrative Services Agreement (ASA) -- Flex Administration and POP Administration ("Flex ASA"); (2) FMLA Ease Administration Agreement ("FMLA EAA"); and (3) Business Associate Agreement ("BAA"). :...... .. - =n3morouon or .-c�;: _ a good and valuable consideration, the EMPLOYER and BASIC Benefits hereby agree as follows: TERM The term for services provided herein shall be effective as of0 and shall automatically renew for additional successive terms of one year ( ch 'renews term"), unless either partner provides written notice to the other party at least 60 days prior to the end of the then - current term or renewal term, or terminates this Agreement in accordance with the below. During each term or renewal term, this Agreement may be terminated for any of the following reasons (in addition to the right of annual non -renewal as set forth above): • As of the first day of any calendar month after sixty (60) days written notice is provided by either party. • As of any date upon which EMPLOYER and BASIC Benefits mutually agree in writing; 41 As of the end of a period of thirty (30) days after formal notice of termination for cause has been given by either party to the other, provided that such cause has not been cured within such thirty (30) day period; • Upon teimination in accuidcnc:- with the Force Majeure paragiapie Lc.'uw;ui, • Upon the voluntary or Involuntary dissolution of either party. • Upon the termination of this Agreement, BASIC Benefits will, upon request by EMPLOYER, complete the processing of this Agreement under the terms and conditions that would be applicable if this Agreement were still otherwise in full force and effect through the date of termination. Upon receipt of a directive from EMPLOYER, BASIC Benefits will provide EMPLOYER or an entity designated by EMPLOYER all information requested and maintained by BASIC Benefits to ensure the smooth and timely transfer of services to a new administrator. The data will be provided in the electronic format requested by EMPLOYER. All information, claims, requests, and elections submitted by QBs to BASIC -Benefits after the date of termination will be redirected to EMPLOYER or an entity designated by EMPLOYER. • BASIC Benefits will promptly matte employee benefit plan records and documents in its possession available to EMPLOYER upon request. • Should copies of employee benefit plan records or documents be requested by any QB, court or governmental agency, BASIC Benefits will promptly notify EMPLOYER and will provide the requested material in a timely manner. BASIC Benefits will perform all Services diligently and professionally, and at all times, in accordance with the standards and practices of care, skill, and diligence customarily observed by similar firms under similar circumstances. BASIC Benefits warrants that 1) it has the full right, power, legal capacity and authority to enter into, deliver and fully perform under this Agreement, 2) that its performance hereunder will comply with all applicable laws, rules and regulations governing such services; and, 3) that it will comply with all applicable privacy laws as defined in the Business Associate Agreement executed by the parties. • Assist EMPLOYER in fulfilling those duties and responsibilities required by the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), as amended, the regulations promulgated there under by the Department of Labor (DOL regulations) and the Department of the Treasury. the A efican Recovery ana hleinvestment Act of 2UU9,ana all other administrative law, guida46e aha applicable decisional law under and/or impacting COBRA (collectively, "Applicable Law") with regard to the employee benefit plans communicated to BASIC Benefits. • BASIC Benefits will furnish all required notifications, including, but not limited to, the General Notice of COBRA Continuation Coverage Rights ("General Notice"), the COBRA Continuation Coverage Election Notice ("Qualifying Event Notice") and a notice of early termination that are consistent with the DOL model notices. It will furnish such notices in the time and manner prescribed by Applicable Law and the benefit plan documents. • BASIC Benefits will make every reasonable effort to mail the DOL Initial (General) Notice and Qualifying Event Notice within three business days following receipt. • BASIC Benefits guarantees all notices will be mailed within the timelines required by Applicable Law. • BASIC Benefits will mail all COBRA notices required by Applicable Law USPS First Class to the address provided by EMPLOYER. A "hard" copy of the postage -prepaid envelope will be maintained for a period of not less than six (6) months. Thereafter, BASIC Benefits will maintain a copy of the envelope in .pdf format for a period of not less than seven (7) years. All other records will be maintained in electronic format for a period of not less than seven (7) years. • BASIC Benefits will provide all State required COBRA notices. • BASIC Benefits will notify carriers (or the EMPLOYER if requested) of all COBRA enrollments, terminations and changes of coverage in the manner instructed within three business days of receipt. For COBRA enrollments, "receipt" means all required paperwork is properly completed and the initial premium is received_ BASIC Benefits will notify QBs as soon as administratively possible if their required paperwork is incomplete. This service does not guarantee that the carrier(s) will reinstate, terminate or change the coverage as directed by BASIC Benefits. E • BASIC Benefits will provide each Qualified Beneficiary ('QB') who elects COBRA with payment coupons. New coupons will be provided whenever there is a change of coverage or premiums. EMPLOYER understands and agrees that payment coupons are a value-added service and are not required to be provided. As will be stated in the Qualifying Event Notice, QBs will remain fully responsible to pay their COBRA premiums on a timely basis even if they have not received payment coupons. • BASK Benefits will provide QBs with the following options to pay COBRA premiums after initial enrollment: (1) check; (2) ongoing ACH bank draft; (3) electronic/virtual check (additional charges apply); or, (4) credit card (additional charges apply), The EMPLOYER may pay COBRA premiums on behalf of a QB under a severance agreement. • If a QB underpays their COBRA premium by an "insignificant amount", BASIC Benefits will issue a notice giving them 30 days to make up the underpayment. EMPLOYER understands and agrees to BASIC Benefits' definition of "insignificant amount", which is the lesser of $50 or 10% of the premium due. • BASIC Benefits will maintain all banking requirements necessary to receive and distribute COBRA premiums in a timely manner. • BASIC Benefits will provide 2417/365 EMPLOYER access to a full-service web portal. The portal will provide detailed, real-time plan and QB information, including last payment made and next payment due detail. EMPLOYER may run real-time management reports for all information needed, including: (a) election notifications mailed; (b) DOL "General" notices mailed; (c) all active and terminated QBs; (d) all QBs within their original election period; and, (e) all other notices mailed to QBs. • BASIC Benefits will provide 24/7/365 QB access to a full-service web portal. The portal will provide detailed, real-time plan and payment information, including last payment made and next payment due .deter ..Thd QP will be able to ray 1'mmi--sm-Q.-Hre if desired • BASIC Benefits will provide 24/7/385 broker access to a full-service web portal. The portal will provide detailed, real-time plan and QB information, including last payment made and next payment due detail. Broker may run real-time management reports for all information needed. • On or about the 10th of each month, BASIC Benefits will remit premiums for the previous month to EMPLOYER. • BASIC Benefits will provide unlimited toll-free customer service for employers and QBs. • If requested by EMPLOYER (and approved by BASIC Benefits), BASIC Benefits will pay COBRA premiums directly to the appropriate carrier. This service is only available if the following conditions apply: (1) The carriers must provide a separate bill 8 account number for COBRA participants; (2) The carriers must permit bills to be adjusted; (3) the carrier must accept payment and eligibility data up to 60 days in arrears; and (4) the carriers must accept BASIC Benefits' reporting forms. If desired by the EMPLOYER (and approved by BASIC Benefits), the additional fee will be charged each month for each carrier bill. In addition, a one-time hourly fee of $75 will be charged if the EMPLOYER requests BASIC Benefits' assistance with carrier bills that are not in existence at the time this service commences. • BASIC Benefits will mail, assist QBs and process "open -enrollment" elections for QBs provided EMPLOYER provides 13ASIC Benefits with a "mail -ready" enrollment packet in a timely manner. Additional charges apply for packets that exceed 30 pages (60 sides), • BASIC Benefits will assist EMPLOYER with an audit, whether initiated by a governmental agency or internally by EMPLOYER. There is no charge to provide standard management reports that can be generated directly from the administration system. BASIC Benefits will not charge EMPLOYER for the first 30 minutes of staff time required to provide EMPLOYER with additional information requested, including but not limited to: researching EMPLOYER records maintained outside the administration 3 system, providing copies of checks, attending meetings an behalf of EMPLOYER and/or creating custom reports. Time in excess of 30 minutes will be billed at the rate of $75 per hour. BASIC Benefits will honor the terms of this section for as -long as records are maintained. BASIC Benefits shall permit authorized representatives of EMPLOYER, at reasonable times, to have access to, examine, and make coples of, such records and documents, at EMPLOYER's expense. BASIC Benefits agrees that it shall amend and update any material that has been superseded by changes in the regulations or applicable laws governing the services provided under this AgreemenL • EMPLOYER agrees to provide al carrier information necessary for BASIC Benefits to perform its duties under this Agreement, including but not limited to the plan name, plan number, renewal date, and eligibility contact information (including faxnumber). • EMPLOYER agrees to report plan and eligibility information/changes in a timely manner. • EMPLOYER agrees to provide accurate and complete information. Electronic information must be provided in the format required by BASIC Benefits. The charge to modify/correct/complete/customize/redo electronic enrollment and eligibility data because it is not provided in the required format will be $150 per hour. However, BASIC Benefits will notify EMPLOYER that the electronic enrollment and eligibility data was not provided in the required format and allow EMPLOYER to make any modifications or corrections beforehand. • EMPLOYER agrees to reconcile carrier and BASIC Benefits records monthly to ensure carrier eligibility records are maintained accurately at all times, This means the EMPLOYER must compare carrier and BASIC Benefits records monthly to ensure they: (a) are not paying premiums 10 the ^?. fir fnr rn.varane ft it has hnan tormlpat-d.' (b) are paying :-aT. ers fnr coveragg that has been elected and paid for by a QB; and, (c) are paying the correct premium. EMPLOYER is responsible for any premiums due as a result of EMPLOYER'S failure to maintain accurate and timely records EMPLOYER understands and agrees that even if BASIC Benefits fails to notify carriers properly, any liability, premiums, penalties, and other charges incurred as a result of EMPLOYER'S failure to review and report discrepancies in a timely manner is and shall remain the sole responsibility of EMPLOYER. This EMPLOYER liability only applies if EMPLOYER pays COBRA premiums to the carrier. If BASIC Benefits pays the carriers, then BASIC Benefits accepts full financial responsibility to maintain eligibility with the carriers. • EMPLOYER agrees to generate and review management reports monthly and report all inaccuracies and discrepancies immediately. EMPLOYER'S monthly responsibilities include: (1) ensure that all required DOL General Notices were mailed; and, (2) ensure that all Qualifying Event Notices were mailed. It HIPAA requires that covered individuals (employee, spouse and dependent) receive a Certification of Creditable Coverage when there is a loss of coverage, regardless of the reason, the EMPLOYER may opt for BASIC Benefits' optional HIPAA Certification service. EMPLOYER agrees the service is limited to Certificates mailed when coverage is lost as a result of a COBRA qualifying event and upon termination of COBRA coverage for any reason. BASIC Benefits shall not be responsible to issue HIPAA Certifications under any othercircumstances. • EMPLOYER agrees to notify BASIC Benefits immediately upon an employee or spouse first becoming covered under one or more COBRA qualified health plans_ EMPLOYER agrees that whenever possible, BASIC Benefits must be notified prior to coverage taking effect but never more than 14 days after coverage takes effect. • EMPLOYER agrees to notify BASIC Benefits upon the occurrence of a COBRA "qualifying event" (as 4 defined under Applicable Law) that results in a loss of coverage for an employee, spouse or dependent. EMPLOYER understands and agrees that it is legally responsible to notify BASIC Benefits of all COBRA Oualifying Events no later than 30 days after the eventdate. • EMPLOYER agrees that all material generated by BASIC Benefits will be provided exclusively in English. • EMPLOYER agrees to pay the charge for all special delivery requests. If requested, EMPLOYER must provide special delivery billing/payment information. BASIC Benefits will not ship special delivery without the EMPLOYER'S paym ent information. • EMPLOYER agrees to maintain an approved email address on file with BASIC Benefits at all times. • EMPLOYER agrees to notify BASIC Benefits at least 30 days in advance of adding, dropping or changing any health plan subject to COBRA, or, if less, immediately upon EMPLOYER receiving the information from the carrier(s). A "change" includes, but is not limited to, a change of premium. If the EMPLOYER fails to notify BASIC Benefits timely, EMPLOYER understands that they may be required to absorb the cost/additional cost of the premium for any period during which the COBRA participant did not receive timelyadvance notification. • In performing its services under this Agreement, BASIC Benefits must rely upon EMPLOYER to provide timely, accurate and complete information. BASIC Benefits shall not be responsible for any losses, damages, claims or liability of any kind, caused by the failure of EMPLOYER to provide timely, accurate and complete information. • Except as specifically set forth in this Agreement, BASIC Benefits shall have no responsibility or liability to any person to fund any Plan benefits or pay any Plan premiums. • BASIC Benefits may seek instructions From EMPLOYER on any matter related to the interpretation pertinent to the Plan or services provided and may await formal instructions from EMPLOYER without incurring any liability under this Agreement whatsoever. If -at any time EMPLOYER should fail to provide timely direction when requested, BASIC Benefits may act or refrain from acting, and shall be protected in acting or refraining from acting without such directions, as BASIC Benefits reasonably deems in good faith to be appropriate and advisable under the circumstances. • EMPLOYER understands and agrees that should new and/or additional requirements that impact this service be imposed upon EMPLOYER by any Applicable Law or by the Plan, BASIC Benefits may modify this Agreement accordingly and may charge additional fees, if warranted. BASIC Benefits will provide EMPLOYER with written notice at least sixty (60) days prior should additional fees be required. Unless required by law, EMPLOYER will have the option to decline BASIC Benefits' offer to comply with such newladditional requirements, which may necessarily result in termination of services on a date mutually agreed upon by EMPLOYER and BASIC Benefits. ADDITIONAL TERMS • Confidential Information- All records, files, documents (including certain information that is known by BASIC Benefits to be confidential and proprietary to EMPLOYER's general organization, operations and structure) and the like relating to EMPLOYER's Plan, including, without limitation, personal information of employees of the EMPLOYER or participants in the employee benettt_plans, with which BASIC Benefits shall come into contact shall remain the sole property of EMPLOYER and shall not be disclosed to third parties except as authorized in this Agreement, as authorized by the BAA between the Employer and BASIC Benefits, as otherwise authorized by EMPLOYER in writing, or pursuant to the direction or order of a governmental agency or a court of competent jurisdiction. To the extent permitted, BASIC Benefits will give EMPLOYER adequate time to contest such direction or order. However, any additional time spent by BASIC Benefits pertaining to an l✓ EMPLOYER that chooses to contest a governmental direction or order shall be billed to the EMPLOYER at the rate of $150 per hour. Notwithstanding any of the foregoing, any examination or copying of participant records shalt be carried out in a manner designed to protect the confidentiality of such information. All written materials constituting or incorporating any such information described herein shall be returned to EMPLOYER upon request. No Leaal or Tax Services: EMPLOYER recognizes that BASIC benefits is not authorized to engage in the practices of law or accounting and will not provide legal or tax services to EMPLOYER or any other person. EMPLOYER agrees that they are responsible to obtain legal and tax guidance from their counsel when appropriate. Whenever a legal or tax Issue arises in the course of the work to be performed under this Agreement, EMPLOYER shall be responsible to obtain such legal or tax guidance as may be necessary to resolve the issue. EMPLOYER shall notify BASIC Benefits of their decision and BASIC Benefits shall be entified to rely upon direction from EMPLOYER in the performance of its services. Advice and Recommendations: EMPLOYER understands and agrees that, although BASIC Benefits may from time to time call to EMPLOYER's attention and make recommendations concerning potential or actual problems that may come to BASIC Benefits' attention with respect to the operation and administration of EMPLOYER'S employee benefit plan(s), such advice and recommendations are a matter of accommodation only and BASIC Benefits shall have no duty to give such advice, make such recommendations, or otherwise to question any actions or decisions of EMPLOYER, any employee benefit plan fiduciary, or any of their respective agents or employees. Not a Fiduciary: EMPLOYER and BASIC Benefits understand and agree to the following: A. EMPLOYER understands and agrees that BASIC Benefits is not the 'Plan Administrator" of the Plan and that BASIC Benefits is not a fiduciary with respect to such Plan. BASIC Q„naa-lr; nc!E in �! miristeriel capacity only B. EMPLOYER and each Plan fiduciary shall retain their full authority, discretion and responsibility for the operation of the Plan with respect to which BASIC Benefits is providing its services under this Agreement. BASIC Benefits shall be entitled to rely on the EMPLOYER's or other Plan fiduciary's decision with respect to any claim for benefits under the Plan, and BASIC Benefits shall perform its services under this Agreement in accordance with such decisions. C. Unless expressly stated in this Agreement, or in a separate agreement, BASIC Benefits accepts no responsibility for the distribution of summary plan descriptions (SPDs) to QBs other than those provided as part of the annual operrenrollment packet Independent Contractor Status: Neither BASIC Benefits. nor any party contracting with BASIC Benefits shall be deemed to be an employee of EMPLOYER. BASIC Benefits is and shall be an independent contractor with respect to EMPLOYER. The legal relationship of any person performing services for BASIC Benefits shall be one solely between BASIC Benefits and such person. Neither party has the right or ability to bind the other party to any agreement with a third party or to incur any obligation or liability on behalf of the other party without the other party's written consent, Indemnity by EMPLOYER: EMPLOYER agrees to indemnity, defend and hold BASIC Benefits, its partners, directors, officers, employees,=off tqs and successors harmless from any claim, damage, loss, demand, benefit, payment, tax, costs, charges, penalties and reasonable legal expenses (collectively, "Losses") resulting directly or indirectly from EMPLOYER's breach of its obligations under this Agreement or violation of applicable law by EMPLOYER or as a result of EMPLOYER's negligence or willful misconduct in performing its duties and responsibilities under this Agreement except to the extent such Losses result directly of indirectly from BASIC Benefits' breach of its obligations under this Agreement or from BASIC Benefits' negligence or willful misconduct in A performing its duties and responsibilities under this Agreement Indemnity by BASIC Benefits: BASIC Benefits agrees to indemnify, defend and hold EMPLOYER, its partners, directors, officers, employees, affiliates and successors harmless from any claim, damage, loss, demand, benefit, payment, tax, costs, charges, penalties and reasonable legal expenses (collectively, "Losses') resulting directly or indirectly from BASIC Benefits' breach of its Obligations under this Agreement or violation of applicable law by BASIC or as a result of BASIC Benefits' negligence or willful misconduct in performing its duties and responsibilities under this Agreement except to the extent such Losses result directly or indirectly from EMPLOYER's breach of its obligations under this Agreement or from EMPLOYER's negligence or willful misconduct in performing its duties and responsibilities under this Agreement, • Insurance: BASIC Benefits shall at all times maintain business & liability insurance coverage as well as all coverage required by law for its services, obligations, employment, and physical assets as described below. All coverage shall meet or exceed minimum required coverage levels and insurers shall have AM Best rating A -VII or better. (1) Comprehensive General Liability insurance with minimum limits of $1,000,000 each occurrencel$2,000,000 aggregate; (2) Professional Liability with minimum limits of $2,000,000 aggregate; (3) Worker's Compensation and Employers liability insurance with minimum limits of $1,000,000 each accident; (4) Cyber Liability insurance with minimum limits of $1,000,000; and (5) Umbrella Liability insurance with minimum limits of $10,000,000 each occurrencel$10,000,000 aggregate. r' `��;�-_'C y.-'d•9S '.! i' +.'�--'(WeV3ge I!L'r� ani ill this, Agit'.+_air- l: sha;l bt- �,rimar, and and BASIC will name EMPLOYER as an "Additional" insured on BASIC Benefits' General/Business liability policy at no charge. • Amendment: Except as otherwise provided in this Agreement, no waiver or modification of any part of this Agreement shall be valid unless in writing and duly executed by both parties. This Agreement may be amended at any time, in whole or in part, in writing signed by EMPLOYER and BASIC Benefits that recites specifically that it is an amendment to the terms of this Agreement— Governing Law: The laws of the State of Califomia, without regard to California's conflict of laws provisions, shall govern the construction and interpretation of this Agreement In any action or suit to enforce any right or remedy in this Agreement or to interpret, any provision of this Agreement, the prevailing Party in a final determination shall be entitled to recover its costs, including reasonable attorneys' fees. • Audit Rights. The parties agree to cooperate in all reasonable audits. Audit fees shall be payable by the party initiating the audit. Audits shall be conducted using procedures mutually agreed upon by the parties. Results of the audit may be -shared with the party being audited at the sole discretion of the party initiating the audit • Non -Assumption of Liabilities. Unless specifically provided in this Agreement and Addendum(s), the parties do not assume the existing or future obligations, liabilities or debts of -the -other party. • Partial lnvarrdgy: The invalidity or unenforceability of any provision of this Agreement shall in no way affect the validity or enforceability of any other provision of thisAgreement ■ Waiver. Failure to insist upon strict compliance with any provision of this Agreement shall not be 7 deemed to be a waiver of such provision or any other provision. Waiver of breach of any provision of this Agreement shall not be deemed to be a waiver of any other provision or of any subsequent breach -of such provision. • Assignment: This Agreement is binding on the Parties hereto and their respective successors and assigns. Neither Party may, or has the power to, assign this Agreement without the prior written consent of the other, except that BASIC Benefits may assign its rights and oblgations under this Agreement without the approval of Client (a) to an entity which acquires all or substantially all of the assets of BASIC Benefits, or (b) to any subsidiary or Affiliate or successor in a merger, acquisition, restructuring or reorganization of BASIC Benefits. • Notice; Any notice required or permitted to be given under this Agreement shall be provided in wflfing and delivered by the most expeditious means available including. but not limited to email, facsimile, overnight courier or certified or registered mail -to the addresses set forth below, Notice to EMPLOYER shall be sent to: Notice to BASIC Benefits shall be sent to: Employer Name: City of Carson , Attn: Faye Moseley BASIC Benefits _7Q 1 'ag {'arson'street_ C'arwm_ ('A 90745 3001 Lava Ridge Ct Ste 160 Roseville, CA 95661 S • Enforcement; In the event a dispute should arise regarding the interpretation or enforcement of any of the terms of this Agreement, the parties shall attempt in good faith to resolve informally and promptly any such dispute. Force Maieure: In the event that either party is unable to perform any of its obligations under this pnf ha ca { n nrrdirronro F+aunrd Iho "nfml 7nr1'&$1ff+n�df the fpJdf nrmiLmne-of—lbe party affected and which by exercise or reasonable diligence such party is unable to prevent or provide against. (e.g,, natural disaster, actions or decrees of governmental bodies, etc,) (Force Majeure Event), the affected party shall immediately give notice to the other party and shall resume performance within a reasonable time after the cause of such failure has been removed. Upon receipt of such notice, all of the other party's obligations under this Agreement, the performance of which is dependent upon the performance of the obligation that has been delayed by the Force Majeure Event, shall be suspended. If the period of nonperformance by the affectedparty exceeds thirty (30) days from the receipt of notice of the Force Majeure Event by the other party, the other party may terminate this Agreement immediately upon written notice to the affected party. • Additianal Fees and Charges: Fees and charges specific to an employee benefit plan or service provided by BASIC Benefits are stated in Exhibit 2 made part of this Agreement. General fees and charges are as follows: A. Broker may pay the base monthly fee for COBRA services on the EMPLOYER'S behalf- The agreement to pay the fees is between the EMPLOYER and Broker. Should Broker, at any time and for any reason, not pay the fees when due, the EMPLOYER understands and agrees to pay such fees, in accordance with the terms of this Agreement, upon receipt of an invoice from BASIC Benefits. B. All undisputed fees are due and payable within thirty (30) days of EMPLOYER's receipt of the invoice. In addi 'on BASIC Benefits retains the right to suspend or terminate services if _ the delinquent payment is not received within ninety (90) days of the invoice date, provided the designated individual at EMPLOYER is given at least thirty (30) days' written notice of delinquency. An additional reinstatement fee will apply to reinstate services after suspension or lermination due to EMPLOYER's failure to pay undisputed fees by the deadline stated herein_ C. Fee rates will not be increased for at least the first 36 months of the term of this Agreement. The annual total of payments from EMPLOYER to BASIC pursuant to this Agreement, the Flex ASA, and the FMLA EAA, collectively, shall not exceed $25,000.00 without prior written consent from EMPLOYER. D. Upon termination of services, BASIC Benefits reserves the right to suspend all services until all undisputed fees due are received from EMPLOYER. E. BASIC Benefits reserves the right to modify charges for administrative services and assistance effective on the contractrenewal date provided EMPLOYER receives 120 days advance written notice. F. Upon request by EMPLOYER, BASIC Benefits will assist EMPLOYER with issues that existed prior to the commencement of services with BASIC Benefits. The additional charge for this service is $75 per hour. G. Work that must be duplicated or corrected resulting from late or inaccurate information from EMPLOYER (e -g- resend COBRA notices, etc,) may be charged at the rale of $75 per hour or the blanket per piece mailing fee, whichever is greater_ H. BASIC Benefits will charge EMPLOYER $20 for each wire transfer received from EMPLOYER. There is no charge if the EMPLOYER sends an ACH payment to BASIC Benefits, • Entire Agreement: This Agreement as amended from time to time, constitute the entire agreement between BASIC Benefits and EMPLOYER as it relates to the provision of COBRA administrative services. This Agreement supersedes all prior and contemporaneous agreements, understandings and representations between the parties, whether written ororal_ _ •_Signatures This Aqreement may be executed_ in separate counterparts. and by facsimile or electronically, each of which when so executed and delivered shall be a legally -binding original and all such counterparts shall together constitute one and the same instrument, binding on all parties, notwithstanding that each of the parties may have signed different counterparts. The parties -agree that delivery of an executed counterpart signature hereof by facsimile transmission, by electronic mail in 'portable document format" ('.pdf") form, or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing the original signature. Each of the undersigned individuals represents and warrants that he or she is expressly and duly authorized by his or her respective entity or agency to execute this Agreement and to legally bind each such entity or agency as set forth in this Agreement. IN WITNESS WHEREOF, the duly -authorized officers of the Parties hereto have executed this Agreement below. 0 BASIC Benefits Signature- WMA _ IK - Print Name:l'O �lytit- Fix Employer: c4w a -r Signature: -Z yj�� Print Name: — _ l�90'loi�C'J� _ -- Title:'D1yt(,* r Li�i QS l�( DIS Title: Date: A-uo_ .kli___YV Date: M 2.1 1 7020 Rncir4 9- „�.., . 1V1rC �I.r� 1w 9246 Portage Industrial Dr. Portage, Ml 49024 10 Approved as to form Sunny Soltani, City Attorney ..-;J0 ATTEST Donesia Cause-Aldana, MMC f ',�- roc, City of Carson FEE SCHEDULE $ waived First Year Setup Fee $waived Renewal Fee $0.70 Per Insured Per Month ( 40.00 Monthly Minimum) $ 2.00 each DOL General Notice (Initial Notices) to Benefitted Employees 0 Yes 0 No Additional Fees- S 8.00 per event'Mass Layoff' Fee -- additional charge if employer lays off or terminates 15% or more employee during a 30 -day period 2% Administration Fee (Charged on full premium, incl. severance): Retained by BASIC Benefits Possible Fee Variances: BASIC Benefits has the right to apply additional fees for any service outside the scope of its contracted services. BASIC Benefits will notify the employer in advance of any additional fees being assessed. Rates will be adjusted annually based on pricing below: Monthly Fees: # of Employees PEPM/Monthly Minimum rt 1 .100 $0.701$40 00 101-250 $0.70/$40.00 251-500 $0.701$40.00 501-1000 $0.701$40.00 1,001— 5,000 $0.701$40.00 5,000+ $0.701$40.00 THE EMPLOYER TO INITIAL WITH ACCEPTANCE OF FEES HERE COBRA Open -Enrollment Assistance Service BASIC Benefits offers three service levels to assist employers with their open -enrollment responsibility for COBRA participants. The three service options are referred to as; 'STANDARD — Open -Enrollment Service"; "BUDGET - Open -Enrollment Outsource Service% and, "PREMIUM - Open -Enrollment Outsource Service". STANDARD — Open -Enrollment Service: Our default open -enrollment service level_ Prior to the annual benefits open -enrollment period, the employer obtains a COBRA participant contact report from their secure BASIC Benefits web portal. Employer provides open -enrollment material to COBRA QB's, assists QB's with elections and processes elections. After open -enrollment closes, employer notifies BASIC Benefits of the new QB elections for the coming year_ BASIC Benefits then sends a renewal confirmation with new payment coupons to each COBRA participant. BUDGET - Open -Enrollment Outsource Service: The Budget Open -Enrollment Outsource Service is the perfect solution for employers that want full-service assistance, but also want to keep their cost to a minimum. The employer provides BASIC Benefits with the open -enrollment material (printed or electronic) prior to their scheduled benefits open -enrollment period_ BASIC Benefits will then print (if necessary) and send the packets to each COBRA participant (after adding a cover letter), assist participants with completing their elections, receive the completed election paperwork and distribute the completed material as necessary. As an alternative to mailing packets, BASIC Benefits may email packets upon request or post some of the less critical material online and provide participants with a unique link to view/retrieve as desired. BASIC Benefits will also notify carriers of the new elections and send a confirmation with new payment coupons to each COBRA participant. There is no additional charge for this service. However, the employer must meet ALL of the following conditions to avoid additional charges for open -enrollment nutsrn irri rin• • The employer must elect the Open -Enrollment Outsource Service each year when they complete their implementation or renewal confirmation web form. • The open -enrollment material must be received by BASIC Benefits "mail -ready" (meaning collated, complete and in the proper order). If the material is received elecironicalty, packets must come as a single PDF file (no multiple files). • The open -enrollment material must arrive in its final, ready to distribute form (the employer should never send preliminary, piece -meal or incomplete materia!). • The open -enrollment material must include a clear explanation of all benefit plan changes for the new year and provide contact information for COBRA participants who have questions about their health plan coverage. • The open -enrollment material should only include benefits that are being offered under COBRA. For example, this material should not include information about a 401(k), group life or LTD coverage. • The material cannot exceed 80 sides (40 pieces of paper). ■ It the open -enrollment material is provided to BASIC Benefits electronically, it will be printed in grayscale (black & white). • The complete packet must be RECEIVED by BASIC Benefits at least 7 business days prior to the start of open -enrollment for active employees. The Regulations require that COBRA participants be afforded the same election period as active employees. Employers that fail to provide COBRA participants with an equal period of time to make their decisions are exposed to an increased risk of liability under COBRA. • Open-enrotiment packets are sent to each participant via email (if requested) or USPS First Class mail_ Employers may request courier shipping (e.g. Fed Ex or JPS) at no extra cost if the employer provides the appropriate billing information (meaning the cost will be charged directly to the employer). PREMIUM - Open -Enrollment Outsource Service: The Premium Open -Enrollment Outsource Service applies any time an employer does not meet the conditions for the "Budget" service. When this occurs, BASIC Benefits will assist the employer as needed (e.g. help gather missing information, build the material into a single file, print more than 80 sides, etc.). The Employer will be charged $15 per packet if the Premium service is required to complete the Open -Enrollment Outsource service. Even with the additional charge, certain conditions apply: The employer must deliver all materials to BASIC Benefits at least 7 business days prior to the start of the open -enrollment period. Failure to do so may result in COBRA participants receiving their materials late. The MAXIMUM open -enrollment packet size provided to BASIC Benefits by the employer/broker for this pricing is 70 physical pages (meaning up to 140 printed sides using two sided copies). An additional $12 charge per additional 70 pieces of paper will be added to the base fee for larger packets. For example, the charge for an 80 page (160 sides) packet wilt be $30, while the charge for a 150 page (300 sides) will be $42 per packet. Material sent to BASIC Benefits in separate correspondence may not be ordered properly and may result in additional delays, ACS or CERTIFICATE OF LIABILITY INSURANCE DATE (M 02p � YI THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURERS), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACNAME:­ M3 1 M3 Insurance Solutions, Inc. PHONE — Fax 828 John Nolen Drive LoAJ I40, k, 800-272-2443 _-.JA1C,Not:608-273.1725_ Madison WI 53713 �wRess, info@m3ins.com _ INSURED TOTAADM-01 BASIC Benefits, LLC / BASIC Payroll, LLC COVERAGES CERTIFICATE NUMBER: 435921D63 INSURERS) AFFORDING COVERAGE i NAIC9 INSURER A: Charter Oak Fire Insurance Com 25615 INSURER 8: The Travelers Indemnity Compan _ 25658 INSURER c: Travelers Prope" Casuals of 25674 INSURER o: The Travelers Indemnity Co of ! 25682 INSURER E: RFVISInIJ IJI luAr-0• THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD / ' V INDICATED NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS !LTR TYPEOFINSURANCE �Ci$O O POLICYNUMBER MOWUDCDlYYYY MSFF D WY LIMITS A Y H5305A888588COF19 101112020 10!112021 EACH OCCURRENCE 51000,000 PREMISES JEa occurrence S 500 000 TMERCIALGENERALLIABILITY CLAIMS -MADE IJ OCCUR MED EXP (Any one person) S 10 000 _ PERSONAL S ADV INJURY $1.000.000 _ GENERAL AGGREGATE $2.000.000 GEN'L AGGREGATE LIMIT APPLIES PER X POLICY ❑ JECOT- F-� LOC PROOLCTS - COMPIOP AGG $2000.000 S OTHER, B AUTOMOBILE LIABILITY BAGN165851 1011/2020 10/1/2021 COMBINED INGLEL,MIT ;1.000.000 Ea accitlent BODILY INJURY (Per person) $ X ANY AUTO I OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY (Per accident) S X HIRED X NON -OWNED AUTOS ONLY AUTOS ONLY PROPERTY DAMAGE S Per emdent S C X UMBRELLA UAB X OCCUR f CUP6J097403 10/1/2020 101112021 EACH OCCURRENCE $10000000 AGGREGATE $10000000 EXCESS UAB CLAIMS -MADE I DEO I X RETENTION15 $ ❑ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y 1 N UB6J691951 1011/2020 1011/2021 X S ATUTEERH E.L. EACH ACCIDENT S 1,000,000 ANYPROPRIETORIPARTNERIEXECUTIVE OFFICERIMEMBEREXCLUDED? NIA E L. DISEASE • EA EMPLOYEE 51 000,000 in NH) (MIt f�andstory OESs. descnbe under C PTIION OF OPERATIONS below E.L. DISEASE • POLICY LIMIT 31000,000 A ' Pmtessronal Uabelgy I C Cyber Liability PE0901502-01 10H12020 101112021 JAggregate2,000,000 ZPL31N32133 1011/2020 10/1/2021 Aggregate I 1,000000 !!I DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, rMy be attached It mora space Is requiredl Verification of Insurance only. -,,,,r ,.) The City of Carson is an additional insured with respect to general liability when required by written contract. All insurance is written on a primary, non-contributory basis when required by written contract A 30 Day Notice of Cancellation applies. �, C 3-2-/2-/2-02-0 It[a;Le11■1=1.1 Faye Moseley Director of Human Resources 8 Risk Management City of Carson 701 E Carson Street Carson CA 90745 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. REPRESENTATIVE 1te''ov O 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 26 (2016103) The ACORD name and logo are registered marks of ACORD