09-21-2006 2:10 PM — Metro today delivered more bad news to troubled employee benefits advisor 1Point Solutions, a day after the company was feted as a member of the Nashville Area Chamber of Commerce's Future 50 for a second year.
"We are terminating the contract with 1Point," said Dorothy Berry, Metro Human Resources Director. Metro had selected Dickson-based 1Point in January to administer flexible savings accounts which about 1,000 city employees use.
There is also word that the company have shut down operations today. A source told NashvillePost.com that employees received an e-mail announcing the move. No one from the company can be reached.
Berry said employees insisted on the change after learning about the issues with 1Point and founder Barry Stokes in lawsuits by Smyrna-based Beck/Arnley Worldparts and Reliance Worldwide. Under an emergency contract, Berry said, Metro is going with its No. 2 selection in January, Fringe Benefits Management Co. "We are going with them until we can put out a (request for proposal)," she said.
Trouble with 1Point started soon after Metro selected the company. "We had a rough start," Berry said, adding that the company was going through changing banks.
This summer, Metro Finance Director David Manning blistered the company in a Metro Benefits Board meeting because of poor customer service. Interestingly, in its Future 50 profile, the company said its biggest challenge was "keeping pace with demand for services from clients."
On Monday, Metro officials went to 1Point's office to talk with the company and got hard-copy information on the accounts. Berry said a request was made for the technical data and records to be sent electronically. But that didn't happen. She said she learned this morning that the company handling data storage for 1Point has deactivated 1Point's access to the system.
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