What’s the problem?
KGHM international and DMC Mining Services Inc. were in the process of bringing both benefit plans under one umbrella with common plan designs and blended rates. Both plans were insured with Standard Life which was purchased by Manulife financial. We wanted to move the plan over as a new group to Manulife prior to the merger.
We had to not only do an analysis of the various plan designs, but also the claims experience and the rates of both groups. A cost analysis was also completed.
Both companies were not taking advantage of the economies of scale of bringing the 2 together.
What we were asked to do?
Complete a thorough benefit plan and pricing cost analysis of both groups and determine the best course of action for their benefit plans going forward.
What did we do?
KGHM appointed Penmore as their consultant in January 2015.
Acting as the incumbent broker, we were able to obtain all the necessary documentation to prepare our analysis.
- We prepared a plan comparison of the 12 existing plan designs.
- We conducted a thorough audit and analysis of the claims experience and rates for the 2 organizations and prepared a detailed report that outlined any plan recommendations. We noted any areas for improvement in plan designs.
- Prepared a timeline to implement our recommendations.
- Facilitated weekly calls with the client and the carrier to address communication pieces and the logistics of the plan rollout
- Spent 2 weeks travelling throughout Canada to educate the employees about the new benefits provider and benefits program
- Negotiated 2 and 3 year rate guarantees
- Saved the client 15% in benefits costs
How did it work?
Once it was determined that the 2 groups would come together, we set up an implementation timeline as to when the plan would be rolled out and how. We conducted a thorough audit of all systems and plans to ensure that there was no loss in coverage.
As part of the transition, we minimized administrative costs associated with re-enrolling employees. A large data dump was created to transition the employees from one carrier to the other.
We conducted post implementation meetings with the client and the carrier to review the transition and discussed the pros and cons
All in all it was a positive experience for the client and their employees. A more comprehensive plan was implemented with a significant cost savings.
Penmore Benefits Inc. is a consulting firm specializing in providing retirement and benefit plan management, focused on maximizing the return on your investment in benefits.
Penmore Benefits Inc. has earned a solid reputation over the years for providing effective solutions at affordable pricing, wrapped with the highest standards of personalized customer service. We take great pride in consistently delivering excellent service and advice, and our highly respected reputation is taken very seriously throughout our industry.