Context: A global manufacturer switched benefit administrators to improve employee service and compliance at a lower cost. During the implementation phase of the new administrator, benefit department turnover negatively impacted the sharing of organizational knowledge for complex programs. After implementation concluded, the Company elected to revisit implementation, specifically focusing on the setup of the retiree medical plans.
Strategy: The Company engaged Kerrigan Reid to analyze retiree contributions for more than 4,000 retirees against the plan design (over 30 unique structures including subsidy cap formulas).
Outcome: Kerrigan Reid documented each of the contribution strategies, updated the benefit administrator’s requirements, and discovered that 5% of the retirees were either over or underpaying contributions. We worked with the Company to refund retirees and to ensure that rates for the upcoming 2016 enrollment were corrected.