Council approves hiring Marsh McLennan Agency to advise on employee benefits

The Aberdeen City Council approved staff’s request to retain a benefits-brokerage service, Marsh McLennan Agency (MMA), to provide actuarial analysis, carrier negotiations, employee education and compliance support for city employee benefit programs. HR manager Kristen told the council the city previously relied on carrier input but not an independent broker; MMA was recommended by comparable municipalities (Brookings, Watertown, and the State of South Dakota) and provided analytics for the city to consider. Kristen said the partnership would help the city balance competitive benefits and fiscal responsibility by negotiating rates and improving employee support. Council approved the engagement by roll-call vote. Staff said MMA will perform market analysis, help with long-term planning and carrier negotiations, and strengthen employee education and compliance. The council noted the HR department's limited staffing and supported using outside expertise to manage increasingly complex benefit offerings. Discussion vs. decision: Discussion focused on HR capacity and the value of a third-party broker. The formal decision was to engage MMA and proceed with contracting. Ending: Councilmembers thanked HR for the work and approved the vendor engagement to begin the next steps of benefits analysis and negotiation.