Benefits Consulting

The City of Richmond (the “City”) requests proposals to establish a contract through competitive negotiation for benefits consulting services for or through its Department of Human Resources (“DHR”). The City employs approximately 4,000 individuals. Approximately, 3,400 employees, their 2,000 dependents, and 75 retirees are enrolled in the City’s medical plan. Nearly 5,500 individuals are covered under the City’s benefit plans (“Plan Members”).

The City seeks a qualified firm capable of taking a creative, innovative approach to plan design and healthcare costs, while maintaining fiscal responsibility (the “Work”). Complete details of the City’s requirements are more particularly described in this Statement of Needs.

The City engages with the benefits consultant contractor to ensure the City is offering the best benefits plan design and best rates for Plan Members. The Contractor must not be affiliated with any insurance company, third-party administrative agency, or provider network. The City exp ects all Offerors submitting proposals in response to this Req uest for Proposals to have experience in providing insurance consulting services to public sector employers that have at least 4,000 employees.

Current Summary Plan Description

A comprehensive guide to City Benefits can be found in Attachment J (City of Richmond 2025 Benefits Guide).

Current programs available to eligible active employees include: the Virginia Retirement System (“VRS”), Richmond Retirement System, three (3) group medical plans inclusive of vision coverage, two (2) group dental plan, basic life insurance (VRS/ Securian), Optional Life Insurance (Securian / VRS), Marathon Health Clinics, Short-term / Long-term Disability Insurance with Absence Management, a Homebuyer’s Assistance Program, an additional Retirement 457 Deferred Compensation Plan, and Roth IRAs.

The City offers paid Parental Leave, Personal/Sick Leave, Health and Dependent Care Flexible Spending Accounts, and a comprehensive wellness program. While the City currently offers voluntary benefits, it does not offer discount programs.

The Employee Assistance Program (“EAP”) is available to all City employees through Cigna. The EAP can be accessed 24 hours a day, 7 days a week, 365 days a year. This includes up to six (6) face-to-face visits for each issue as well as unlimited telephonic consultations.

Eligibility and Enrollment

The following employees are eligible for enrolling in the City’s medical/Rx benefits: permanent full-time, permanent part-time working at least twenty (20) hours per week, and provisional employees working at least twenty (20) hours per week.

Plan Members have a choice of day-1 medical benefits or first day of the month following their date of hire. Employees can choose from five tiers of coverage for family members: employee only, employee plus a child, employee plus children, employee plus spouse, and employee plus family. All employees on the medical plan have access to Marathon Health clinics.

Benefits Year

The City’s benefit plan year runs from January 1st to December 31st. Third-party administrators are used for some of the above-mentioned programs. All programs are run and managed through DHR [MSMCA1] , except the Richmond Retirement System 457 Deferred Compensation Plan.

The City does not currently operate a benefits portal or service center for their benefits. All services are currently provided by the City’s Oracle system and DHR’s Benefits employees. Open Enrollment runs from late October through mid-November each year. The City has a health incentive biometric screening campaign. It runs each summer and directly impacts premium costs.

Healthcare Plan

The City is self-insured, with claims being administered by its contracted vendor (currently Cigna Healthcare as of the date of issuance of this Request for Proposals) for medical, dental, vision, and prescription, in partnership with EyeMed. The plans offered for active employees are Plan 1, High Deductible with HAS, Plan 2, and Plan 3.

The City pays 80%-90% towards the cost of health insurances for active employees and 43- 58% for retirees. Stop Loss Insurance is currently offered through Cigna, with a $400,000 specific deductible per contract period per covered person.

Retirees

The City does not offer any plans for those over the age of 65. Certain pre-65 retirees are eligible to purchase and retain health insurance coverage with the City upon their retirement. Pre-65 retirees only have access to Plan 1 and Plan 2. If retirees decline coverage at the time of retirement or elect coverage but later terminate, they are not eligible to return to the City’s coverage.

Those who elect the early retirement coverage may continue the coverage until age 65. Employees who are eligible for this benefit upon retirement include those in the City’s defined benefit retirement plan. They are primarily sworn employees and executives hired before January 1, 2024 and general employees who were hired prior to July 2006. Most pre-65 retirees do not stay enrolled in the City medical plan. Although retirees may cover dependents, very few elect this coverage.