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ADDENDUM #1
DATE:
May, 26, 2015
TO:
All Prospective Bidders
FROM:
Janel Wright, Associate Director Procurement Services
RE:
RFP# JW051115 Long-Term Disability Insurance
All respondents are hereby advised of the following amendment to the Request for Proposal documents
which are hereby made an integral part of the bid documents for the subject contract, prepared by the
University of Connecticut, Purchasing Department.
Proposals submitted shall be deemed to include contract document information as shown in Addendum
No. 1. Respondents shall be required to acknowledge receipt of this addendum in their proposal
response. Failure to acknowledge receipt of this addendum by the respondent may result in the
rejection of their proposal response.
BIDDER NOTE: This addendum must be completed, signed and submitted with your proposal response
to be considered for award. If you have already submitted a proposal, please complete the addendum
and submit same in a sealed envelope, clearly marked with the bid number, response date, and return
address. This will be accepted as part of your proposal response, PROVIDING IT IS RECEIVED BY THE
PURCHASING DEPARTMENT BY THE POSTED BID DUE DATE 6/11/15 @2:00 PM.
Questions and Answers:
1. Need copy of complete plan booklet
A copy of the plan booklet is available online at the following website:
http://www.hr.uconn.edu/docs/prudentialcert.pdf
2. Who is the current carrier, and for how long (5 year history)
The current carrier is The Prudential Insurance Company of America. Prudential has been
providing the coverage since July 1, 2009.
3. What is the current funding arrangement for the program?
The program is fully insured.
4. What is the current producer compensation for the program?
Ofﬁce of the Associate Vice President
of Finance and Budget
Procurement Services
3 NORTH HILLSIDE ROAD, UNIT 6076
STORRS, CT 06268-6076
PHONE 860.486.2616
FAX 860.486.5051
www.purchasing.uconn.edu
An Equal Opportunity Employer
There is no producer compensation payable for the program.
5. Is there a cap to the number of payments for the COLA benefit?
There is no cap on the number of payments for the COLA benefit.
6. Is there a separate maximum for the pension supplement benefit?
The maximum on the pension supplement benefit is in accordance with IRS regulations
(pensionable earnings limitations), which is separate from the LTD benefit.
7. On the claims experience data you will be providing, we request the following be included:
a. Incurred claims exhibit
b. Open claim list with DOD, DOB, gross and net benefit, offsets, reserve and pension
benefit amount
c. Closed claim data including DOB, DOD, benefit amount, total benefit paid
Experience information will be distributed at the mandatory pre-proposal conference on
Thursday, May 28, 2015 and will include all of the above items.
8. Please provide current book/summary/policy plan documents.
A copy of the plan booklet is available online at the following website:
http://www.hr.uconn.edu/docs/prudentialcert.pdf
9. Please provide census of employees eligible for the LTD
A copy of the census will be distributed at the mandatory pre-proposal conference on Thursday,
May 28, 2015.
10. Do employees who participate in the ARS also participate in the SERS? If so could you please
identify these employees on the census?
Employees who participate in the Alternate Retirement Program (ARP) do not also participate in
the CT State Employees Retirement System (SERS). Only ARP participants are covered under the
plan and will be included on the census data.
11. Please provide experience information – 3 to 5 years (preferred).
Experience information will be distributed at the mandatory pre-proposal conference on
Thursday, May 28, 2015.
12. Confirm how many CDs you will require.
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One (1) CD is required, but we would prefer a USB drive.
13. Are commissions included in current rates? What is the requested commission level?
Commissions are not included in the current rate and commissions are not payable under the
current contract.
14. Please provide the “Signature Authorization Documentation” form as the link found at the
bottom of paragraph 7.8 is malfunctioning.
As of 5/26/15 the “Signature Authorization Documentation” is no longer a required document.
15. 3.3.2 With regard to LTD payments:
a. If the claimant is only eligibility for a partial month of disability based on the benefit
start date, does the claimant receive a full month of benefits or no benefits.
Disability benefits are pro-rated for partial months.
b. If either full month or no payment, how does this impact the max duration?
N/A
c. Is the check issued on the first of the month or should it be received to be payable on
the first of the month?
The check is issued at the end of the month for that month.
d. Are benefits paid in arrears? Or current month?
The check is issued for current month at the end of the month.
e. Is EFT available? Desired?
EFT is available to LTD claimants, but not mandated.
f.
What would the expectations be if 1st of the month is a weekend or banking holiday?
N/A
16. Will you be providing historical premium, paid claims, monthly gross and net benefit amounts,
individual reserves for both ltd and pension claims from July 1, 2009 to April 31, 2015?
Additionally, if an actual paid and incurred exhibit?
Experience information will be distributed at the mandatory pre-proposal conference on
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Thursday, May 28, 2015 and will include all of the above items.
17. Will you be providing a complete census (DOB, Occupations, Gender, and Salary) file in excel
format for all employees in an eligible class as noted in the RFP.
A census file will be provided at the mandatory pre-proposal conference on Thursday, May 28,
2015 that includes a complete census with DOB, job title, gender and salary.
18. Is there an eligibility waiting period for the retirement program?
There is no waiting period for the retirement program. Employees have 60 days to make their
election and ARP elections are not retroactive.
19. Is there an actual carrier booklet/policy available for existing ltd program?
A copy of the plan booklet is available online at the following website:
http://www.hr.uconn.edu/docs/prudentialcert.pdf
20. Please confirm claims detail for the retirement benefit will be provided separately from nonretirement claims?
Claims detail will be separate for the retirement benefit from the LTD claims.
21. Please confirm if the university participates in social security or teacher’s retirement system? If
employees participate in the teacher’s retirement system (STRS), will you provide a copy of the
contract outlining details of the program?
The employees that receive this coverage are enrolled only in the Alternate Retirement Program
(ARP) – not the CT State Employees Retirement System (SERS) or Teachers Retirement. A small
number of participants in ARP do not participate in Social Security. This information will be
included in the census data that will be distributed at the mandatory pre-proposal conference on
Thursday, May 28, 2015.
22. Will you provide actual lives historically by period since 2009?
Information about the covered lives historically by period will be made available at the
mandatory pre-proposal conference on Thursday, May 28, 2015.
23. Will you advise of any historical plan changes since 2009?
There have been no plan changes since 2009.
24. Please advise if the actual renewal for the upcoming year is available?
The latest renewal was for an effective date of 7/1/2014 and rates were guaranteed for 3 years.
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There is no renewal scheduled for the current year.
25. Page 3 Section 2 of the RFP mentions that participants are automatically enrolled in coverage. Is
there a negative enrollment (with employees choosing to opt out) or is coverage noncontributory and paid for entirely by the University?
The coverage is provided to employees at no cost to them and enrollment is automatic.
26. Page 6 Section 3.6.5 mentions a rebate incentive when loss ratios are below an established
minimum. Is the current policy a participating arrangement? If so, what is the current formula
for a rebate/dividend to be distributed?
There is no such arrangement in the current contract.
27. Please provide a full copy of the current certificate as well as any amendments issued since the
inception of the policy.
A copy of the plan booklet is available online at the following website:
http://www.hr.uconn.edu/docs/prudentialcert.pdf. There have been no plan changes and no
amendments issued since the inception of the policy on July 1, 2009.
28. A big consideration within this proposal is service which is clearly important to UConn and is to
MetLife as well. Please elaborate on what a good service model looks like to UConn and/or have
you had past pain points that we can focus on in our delivery to you?
The cost effective delivery of services will be a critical factor in the evaluation of bidders. There
are no current pain points on which to focus.
29. This opportunity fits well into MetLife’s target size groups and industry. Are there any
credentials or consideration that we can highlight for you, to show our financial strength,
disability product and program strength, history of paying claims, claims process, etc.?
Factors that will be considered in the evaluation of the bids are outlined in the proposal.
30. A copy of their current census - DOB, Gender, Occupation & Salary
Census information will be distributed at the mandatory pre-proposal conference on Thursday,
May 28, 2015, which includes all of the above.
31. A copy of their disability rates - LTD rate per $100 per benefit
A copy of the disability rate history will be distributed at the mandatory pre-proposal conference
on Thursday, May 28, 2015.
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32. Claim experience for 2014
Experience information, which includes 2014, will be distributed at the mandatory pre-proposal
conference on Thursday, May 28, 2015.
33. Current plan design
A copy of the plan booklet is available online at the following website:
http://www.hr.uconn.edu/docs/prudentialcert.pdf
_____________________________________
Name of Bidder
___________________
Date
______________________________________
Address
Signature and Title
Email
Printed Name
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