31 / 116
CONF I DENT I A L │ PAGE 29
Joplin Schools RFQ – Group Benefit Broker/Consultants
CBIZ develops a compensation structure in alignment with the client’s business objectives and is flexible in
the structure. While there are various compensation models, usually the following are the most common.
Commissions:
Commission dollars are paid to CBIZ by the insurance carriers for all lines of coverage. Commissions are built into
the premium dollars. Many clients still compensate CBIZ in this manner.
Flat Fee Basis:
Compensation paid directly to CBIZ by you on a monthly, quarterly or annual basis. Insurance products for all lines of
coverage would be quoted “net of commissions” in this case.
Combinations:
CBIZ is open to a combination of commission and fees. However, our preferred approach is to determine the
appropriate overall compensation level, and then determine the most efficient method to obtain those dollars.
As needed, we will provide a report of revenues received from working and/or serving as the District’s benefits
brokerage and consulting partner. As part of our engagement we would expect to negotiate a service and fee
agreement which details the terms and conditions under which we are compensated. As part of our standard scope
of services we provide an annual stewardship report. The annual revenue summary in stewardship reports may
serve to fulfill any accounting or reporting requirements.
Voluntary Benefits:
Certain voluntary or 100% employee paid benefits such as accident, cancer, critical illness, identity theft, long-term
care, etc. have commissions built into the product structure. At CBIZ we believe in reinvesting these commission
dollars through “co-broker” partnerships thus resulting in enrollment, communication and administrative processes
at a subsidized cost. In the event there are commissions in excess of enrollment expenses, CBIZ will retain these
dollars.
2. The District understands that commissions or other fees are payable from the insurer to the broker for
the broker’s involvement. Specifically identify your proposed commission structure for the programs
outlined. The proposing broker is to disclose all anticipated fees, commissions, contingencies, overrides,
bonus, etc., to be paid with regard to or in connection with products sold to or through the District. If any
contingencies or overrides are suspended for 2018, identify if the suspension is anticipated to remain for
2018 and 2019. If not suspended for future years, be very clear how this will lower future commissions or
cost impact for the District and their employees.
At CBIZ, our compensation usually ranges based on the client’s number of eligible employees. Typically, annual
compensation for employers with over 1,000 employees can expect pricing to begin around $100k. CBIZ is flexible
on the compensation arrangement, and can further discuss once we better understand the needs of the District and