City of Los Angeles Joint Labor Management Benefits Committee

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1 City of Los Angeles Joint Labor Management Benefits Committee Morneau Shepell Introduction January 4, 2018

2 A leading North American human resources consulting, administration and technology company with global reach 6 M+ plan members 4,000+ employees 21 offices $590 M+ annual revenue 50+ years experience 2

3 Client Solutions 3

4 Key Business Segments Line of Business Revenue 37% Administration Solutions 19% Retirement, Health and Benefit Consulting 33% Employee Assistance Programs 11% Absence Management Solutions Leading provider of administration solutions in North America, with 20% US growth Leading global provider of EAP services, with 15% US growth 4

5 Our Public Sector Experience Morneau Shepell public sector solutions address the complex requirements of government benefits delivery organizations: Benefits administration Leave management System modernization Disaster recovery and business continuity Benefits transition management Enterprise integration of legacy or new systems and data Self-service platforms for agencies, departments, and beneficiaries Consolidation of multi-agency benefits Support increasing needs with limited staff and lower budgets Workforce health and productivity improvement Top 5 US Public Sector Benefits Administration Clients Top 5 US Public Sector Pension Administration Clients 5

6 Mission Alignment with the City of Los Angeles Personnel Department "Hire the best. Empower for success. We're Changing LA! We're on Our Way to Becoming the #1 Employer in the Nation! Purpose Providing the freedom and security for our clients and our employees to perform at their best Improving business Improving lives Vision To be recognized as essential to the financial security, health and productivity of our clients and their people Values We value long-term relationships We treat others the way we want to be treated We are innovative and entrepreneurial 6

7 City of Los Angeles Team Pierre Chamberland Executive Sponsor Kevin Kanoon Relationship Leader Chicago, IL Terri Arceneaux Implementation Leader Atlanta, GA Brad Fusco Operations Leader Atlanta, GA Implementation Ongoing Service Delivery Solution Architecture Data Management Account Management Direct Billing and Payroll Back Office Processing Configuration Quality Assurance Call Center Data Management Quality Assurance 7

8 Our integrated participant experience: Integration of all tools & resources available Responsive design extends to tablets & mobile devices Widgets surfacing key information to simplify access for priority items Mobile-enabled packaging of plan & resource information Comprehensive array of member support options Key Outcomes: Improved understanding of the value of total compensation & programs Increased employee engagement Increased accessibility for employees Reduced paper processes Confidential Not for Distribution 8 8

9 Implementation Schedule Summary Project Initiation [Contracting.Kickoff.Discovery] Phase 1 - Implementation Cycle [Requirements.Configuration.Data.QA] Phase 2 - Implementation Cycle [Requirements.Configuration.Data.QA] Phase 3 - Implementation Cycle [Requirements.Configuration.Data.QA] Phase 4 - Implementation Cycle [Requirements.Configuration.Data.QA] Q Q Q Q Q Q Q Client Training UAT Feedback End-to-End Testing & Transition Stabilization & Project Closure Annual Enrollment Planning & Rollout 9

10 Mercer Transition Experience Mercer entered into a license agreement with SBC Systems in 2005 to implement their US clients on the BenefitWorks platform Morneau Shepell acquired SBC Systems and the BenefitWorks software in 2012 The City of Los Angeles is currently being administered by Mercer on an older version of BenefitWorks The BenefitWorks platform has extensively evolved into Morneau Shepell s Ariel platform which will support the City of Los Angeles Morneau Shepell implementation teams have significant technical, operational, and implementation experience implementing Mercer clients on the Ariel platform More than 500 former Mercer benefits administration employees currently work for Morneau Shepell 10

11 City of Los Angeles Partnership with Morneau Shepell Alignment with City of Los Angeles Personnel Department Ethos & Goals Elevates the City of Los Angeles employee benefits experience Engages employees with the LA Well benefits program Leverages City Business Inclusion Partners Committed to supporting the City of Los Angeles Benefits administration needs for the long term 11

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