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Jim Donchess
Mayor e City of Nashua

To: Board of Aldermen

From: Mayor Jim Donchess

Date: January 26, 2022

Re: Multi-Year Contract Award — Software Licensing: Benefits Administration

Pursuant to NRO: § 5-74/8: A contract that extends from the current fiscal year into succeeding
fiscal year(s) in which no funds have been appropriated nor otherwise designated for this purpose
shall be approved by the full Board of Aldermen before the contract shall become binding on the

City.

The Finance Committee has approved and placed on file the notification of the award of the
referenced contract at the February 2, 2022 meeting and as such | am requesting the full Board of
Alderman approve the following contract:

Item: 3-year Licensing for online benefits administration software
Value: $160,000/year for 3 years to total $480,000
Vendor: Alight Solutions
Purchasing Memo#: 22-228 dated January 26, 2022
Contract Term: 3 years
Thank you.

229 Main Street > PO Box 2019 * Nashua, New Hampshire 03061-2019
603.589.3260 + fax 603.594.3450 * NashuaMayor@NashuaNH.gov
www.NashuaNH.gov

3. The Contractor recognizes that the City highly discourages any revenue enhancing effort that
relies in whole or in part on establishment of or an increase in existing user fees for access
courses and programs.

E. Development and Implementation of an Operations Development Plan

Contractor shall: develop a multi-year phased plan as necessary to support and expand operations
(including supplementing or expanding any dedicated or shared equipment provided by the City).
The plan should include sufficient detail to assist the City and Contractor in estimating the
approximate funds necessary annually to support and expand ongoing operations, and to meet
objectives including:

a. increasing frequency, depth, and quality of broadcasts;

b. increasing constituent satisfaction with content and delivery;

¢. increasing public participation and involvement in public access television activities; and

d. increasing the technical quality of productions and cablecasts.

SECTION 4. REPORTING REQUIREMENTS.
A. Budget Preparation and Submission

Contractor shall be accountable to the Contract Manager and shall at all times maintain full, accurate
and current records documenting the level of Contractor’s services provided under this contract. The
Contract Manager may change the reporting schedule with 14 working days notification to the
Contractor.

At least twenty (20) days prior to the beginning of its fiscal year, Contractor shall provide Contract
Manager with a copy of its proposed budget for services under the contract, showing Contractor’s
plans for expenditure of all funds. Contract Manager shall provide comments (if needed) to
Contractor within twenty-one (21) business days of receipt of the proposed budget, or notification of
the necessity of an extension for review and comment by other City staff or agents.

Within 90 days following the beginning of the Contractor’s fiscal year, the approved budget adopted
by the Contractor board must be submitted to the Contract Manager. As stated in Section 4 — Reporting
Requirements, City shall receive as part of the reports submitted by Contractor, a reconciled report of
actual expenditures from the previous fiscal year.

Contractor's Bylaws, other governing documents or policies shall address written policies and
procedures that specify the processes by which the budget is developed, approved, implemented,
monitored and revised, and maintain supporting documentation for budgeted amounts.

B. Budget monitoring and procedures

Contractor shall compare actual expenditures to budgeted amounts for Operating Funds on at least
a quarterly basis. This comparison should identify budget

9|Page

fies THE CITY OF NASHUA "The Gate City”

Administrative Services Division

Tor Mayor Donchess

Finance Committee

From: Kim Kleiner, Director of Administrative Services
Date: January 24, 2021
Re: Alight — Benefit Administration Technology

Currently, the Benefits department consisting of three full-time employees, are
responsible for the enrollment of all employees and administration of all insurance
plans for the City of Nashua. In the past, enrollment has consisted of an inefficient
process with paper enrollment forms and manual data input of selections into the City’s

Lawson system and the carrier's online system.

In early December, 2021 the City authorized Workplace Benefits Solutions (WBS), the
City’s Benefits consultant, to solicit proposals for the purchase on a Benefit
Administration Technology system. Three vendors responded: Alight, Benefit Express,
and Workpartners. All three proposals were reviewed based on their references,
reliability, customer support, dependability, interoperability with Lawson, and ease of

use for employees.

Additionally, all three vendors presented an overview and demonstration of their
platform. The Alight platform was a leader in Communication, Enrollment and
Administration. Alight provides a virtual assistant feature who is programmed to
emulate human connection but can quickly shift users to other resources including a
web chat representative. We believe this function will greatly assist our employees with

transitioning to online enrollments.

Additionally Alight offers advanced decision-support tools that are driven by real-time
employee specific data. These tools will provide cost-savings to the both the employee
and the City by modeling claims scenarios and premiums while also educating
employees.

After negotiation with Alight, they agreed to waive their original implementation fees
and lower the per-employee-per-month cost from $5.23 to $4.68. Although Alight is
not the low cost bidder, we believe their product's features and solutions provide the
best value for the City and our employees.

We respectfully request the committee’s approval on the implementation of the Alight
Benefits Administration Solution.

Funding would be from the Benefits Self Insurance at a not to exceed cost of $160,000.

“Note - headcount does
hot include pre-6S retirees
50 we will want to pull
together actual benefit
eligible and pre 65 reitree
headcount to get closer to
actual numbers.

Vendor PEPM Headcount Monthly | Yearly implementation || 1st Year Total ie duiditional Fees to Consider.
$.50 PEPM for non-eligible employees for ACA
Alight $ 5.23 2,776 $ 14,518.48 | $ 174,221.76 14,518.48 | $ 188,740.24 [Delivery of notices & 1095-C $2.00 per mailing and postage
Benefitexpress $ 5.00 2776 $ 13,880.00 | $ 166,560.00 25,000.00 | $ 191,560.00 [ACA Forms Print/Futfillment $3.00 per statement
Workpartners § 3.45 2,776 $ 9,577.20 | $ 114,926.40 15,000.00 | $ 129,926.40 |1095-C form fulfillment fee is $4.50 PEPM and 1094-C form transmittal fee is $5,000.00 ¥
$,.50 PEPM for non-eligible employees for ACA
Alight REVISED $4.68 2,776 $12,991.68 $155,900.16 $0.00 $155,900.16 [Delivery of notices & 1095-C $2.00 per mailing and postage

Proposal for

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Contents
Benefit Administration Technology

Integrated Mobile Experience

ACA Compliance Management System

Year-Round Customer Support

Premium Support Package

Smart-Choice Accounts

Alight Digital Navigation

Summary and Pricing - Benefits Administration Solution

Assumptions

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10
11
13

alight

Benefit Administration Technology

Communication - within a few clicks of your mouse...
From your platform, HR users can customize a comprehensive HR communication
portal. Common postings include:

¢ Employee Manuals, SPDs, Claims Forms and Provider Links

« News Bulletins, Newsletters, Event Calendars and Announcements . t
LT
« HR Manuals, Department Directories, HR Contacts, Carrier Contacts and Job
Postings

e Employee Surveys - specific to Job Class, Division or Location

Enrollment —- made easy for employees during active or passive enrollments
Our enrollment module supports all annual and ongoing enrollment events, including open enrollment, new
hire enrollment and qualified life events. Features include:

¢ Self-service enrollment e Benefit plan descriptions

« Employee-specific login « Animated storyboards

e Summary of current elections « Animated tutorial help sections

e Visual enrallment indicator status e Plan shopping/comparison tool
button per benefit e Paycheck illustration and modeling (based on

* SmartEnroll feature for passive employee-specific tax withholdings)
enrollments ¢ Confirmation statements for online viewing

e =Printable or electronic EOI applications or print

Administration - simplified for corporate Human Resources and Benefit teams
The benefits administration platform does the heavy lifting by customizing the site with your plans, rates and
eligibitity rules, allowing the HR and Benefits teams to focus on strategy and planning and employee
interaction. Administrative features and services include:

« Electronic data upload of employee data HR SmartCharts for one-click access to

into the platform - no manual key entry! frequently used reports (e.g., Pending

« Custom data exports to carriers and Items, Enrallment Status, etc.)
vendors e Customized and scheduled reports

» Complete data collection and tracking for {census, plan enrollment, monthly self-
employee, spouse, dependent and billing, etc.)
beneficiary e Adhoc reports and HR report writer

» Comprehensive enrollment history ® Email notifications on all pending events
tracking - by employee, dependent, ptan,
year, etc.

alight

Lisa, Your Personalized Intelligent Virtual Assistant

In addition to the portal channel, Alight developed and brought to market an
intelligent virtual assistant, Lisa. Additional information related to our IVA

approach and capabilities follow.

a Lisa is augmented intelligence, programmed to emulate human connection and
traits. Liso keeps users in their online channel of choice, and whether by design
or via its award-winning escalation flow, it can seamlessly shift users to other
channels, such as a web chat live representative—with a full transcript of the
conversation history—to always ensure the most satisfying experience for each
and every customer.

The unique architecture allows Lisa to respond with different responses, for the
same intent, depending on the users’ eligibilities within the organization. This allows for a personalized
experience that ensures users get their immediate questions answerd.

Advanced Decision-Support and Communication Tools

Using technology, psychology and the industry's best decision-support tools to create benefit-smart
employees is... well, a smart thing to do! We all know benefit choices have become more complicated and
also more expensive for both employees ond employers. These tools are designed to improve employee
buying behavior while educating employees about the overall value of their benefit program.

e Work/Life Decision Modeling tools that are driven by
real-time employee-specific data.

« Healthcare Cost Calculators that are based on claims
scenarios, premium contributions, HSA/HRA/FSA fegee)
contributions and tax savings. bead

« Retirement plan modeling tools, including savings ~
calculators and deferral recommendations.

e Online hidden paycheck and total compensation
statements and explanation.

o Printable benefit statements with multiple
layout options for single or batch printing.

Integrated Mobile Experience

Personatized mobile app and benefits dashboard with custom alerts allows employees to access up-to-date
information about their employer-provided benefits through a mobile application and centralized benefits
dashboard. Powered by the benefits administration system, the mobile experience also provides employers
with an easy way to send important messages and reminders to employees without getting lost in the daily
email clutter.

Connecting Employees with their Benefits
Our mobile app allows employees to access their employer-provided benefit information when and where
they need it, reducing the friction and complexity of the day-to-day benefit experience.

oO}*
fs

Emptoyees need one place to
find important benefit
information

Centralized location for
balances and status updates
for current elections,
deductibles, out-of-pocket
maximums, 401k), PTO, and
more.

GLH
code

One login for all employer-
provided benefit portals

SSO integrations create one-
touch launch to telemedicine,
wellness, and many other
widely-used benefit
providers.

Sensitlve personal
Information stored
securely

Protecting personal data is
more important than ever
before. Employees can
take comfort knowing their
data is stored securely in
our cloud-based platform.

Employer reminders and
alerts when and where
you need them

Reminders and alerts in the
palm of their hands.

©

Quick access to ID cards
Reduce day-to-day HR
inquiries with quick
access to ID cards and
plan information.

i

Available on computers
and mobile devices
Access to benefit
information when your
employees need it, both
at their desk and on-the-

go.