Consultant change, administration outsourcing for WBP

WINNIPEG – The Board of Managers (BOM) of LCC’s Worker Benefit Plan (WBP) is very aware of the pressure employers are under to reduce costs. The BOM is thus doing its utmost to deliver programs efficiently and in the most cost-effective manner possible.

While the BOM has made great strides in reducing administrative costs, it came to a point where it had no ability to further lower expenses with its incumbent consulting firm. The BOM therefore embarked on a Request for Proposal (RFP) process to find a replacement consulting firm that could operate at a lower cost without sacrificing quality of service.

The BOM is pleased to report that a consulting firm from Winnipeg (Ellement & Ellement) was recently selected from the group of potential candidates that responded to our RFP. Ellement & Ellement began servicing LCC’s account effective March 1, 2014. The BOM anticipates annual savings in consulting fees of approximately $125,000 (a 40% reduction).

In its RFP, the BOM considered the possibility of outsourcing some internal administration, if it could be done just as effectively at a lower price. Ellement & Ellement presented a quote that demonstrated it would be more cost-effective and just as efficient to outsource internal administration (member enrollments, pension/termination calculations & employer billings) to them. The outsourcing of LCC’s WBP administration will become effective January 1, 2015. Employers and members will be kept informed of the transition  throughout the year.

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