RFP for benefits administration: Examples, how to implement & benefits in 2025

The benefits administration RFP might be the most overlooked strategic document in your HR toolkit. While most companies treat it as just another procurement hoop to jump through, forward-thinking HR leaders are using it as a powerful lever to improve their entire benefits strategy.

Let's be honest, if you’re researching how to make RFPs, your current benefits administration system probably isn't delivering what you hoped it would. Maybe you're juggling five different vendor relationships, watching utilization rates hover at disappointing levels, or fielding complaints from your global team about inconsistent experiences. The right RFP can solve all of this.

In 2025, the difference between a thriving benefits program and a money pit often comes down to the platform powering it. This isn't just about finding software that processes claims correctly (though that matters); it's about identifying a partner who will take your benefits from an administrative afterthought and turn them into a strategic advantage that drives retention, engagement, and competitive advantage.

This guide cuts through the complexity with real-world RFP examples that have delivered exceptional results. We'll show you exactly what questions to ask (and which ones waste everyone's time), how to structure your evaluation process, and most importantly, how to measure success beyond basic implementation metrics. Here’s everything you need to know about creating RFPs that set your business up for administrative success.

Key takeaways

• A well-crafted RFP for benefits administration is more than a procurement tool — it’s a strategic asset that helps HR align vendors with long-term goals.
• Common RFP types include requests for Lifestyle Spending Accounts, global benefits platforms, and consolidated spending account management, each with unique implementation needs.
• Best-practice RFPs clearly define scope, evaluation criteria, and submission guidelines, allowing HR teams to compare vendors objectively and reduce administrative complexity.
• RFPs offer benefits such as transparency, structured decision-making, better vendor alignment, and improved ROI from benefits programs.
• Implementation starts with a needs assessment, stakeholder engagement, and a timeline that allows for thorough vendor evaluation and transition planning.
• Forma simplifies vendor selection and benefits administration through flexible platform design, compliance expertise, and support for global, tax-compliant programs. <span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">Schedule a demo today</span>.

What is an RFP for benefits administration?

An RFP for benefits administration is a formal document used to solicit proposals from vendors who provide employee benefits management services. It outlines your company's requirements and expectations for administering health insurance, retirement plans, wellness programs, and other employee benefits.

Issuing an RFP for employee benefits is an opportunity to clearly define your needs and goals upfront. This sets the stage for a productive partnership by ensuring potential vendors understand your unique challenges and priorities from the start.

A well-crafted RFP should cover essential elements like:

• Types of benefits offered (e.g., medical, dental, vision)
• Desired technology capabilities (e.g., mobile app, payroll integration)
• Service level expectations (e.g., employee support, reporting)
• Compliance and security requirements (e.g., HIPAA, ERISA)

By spelling out these details, you give vendors the context they need to propose tailored solutions that align with your benefits strategy.

Examples of RFP for benefits administration

RFP processes in benefits administration are designed to help companies evaluate and select the best vendor to manage their employee benefit programs. A well-crafted RFP allows HR and procurement teams to compare service offerings, assess platform capabilities, and ensure alignment with organizational goals. 

Below are three examples of RFPs that align well with the solutions Forma provides.

1. RFP for a Lifestyle Spending Account Platform

Here's an example scenario: Your company is preparing an RFP for a Lifestyle Spending Account platform to enhance employee benefits. This RFP should clearly outline how these flexible benefits will support employee wellness, productivity, and work-life balance. 

The document needs to specify requirements for customizable spending categories, including mental health resources, fitness programs, professional development, and caregiving support, while also addressing payment options, approval workflows, and the overall employee experience.

How to implement

Your implementation section should feature questions about program flexibility and how the platform integrates with existing payroll and HRIS systems. Requesting information about reporting capabilities and analytics will help your team demonstrate program value to leadership. 

Make sure that you ask vendors to provide relevant case studies that showcase how they've supported companies with similar workforce characteristics, especially those with distributed or global teams.

Best practices to implement

Before finalizing your RFP, consider conducting brief employee surveys to understand preferences across different workforce segments. This research helps prioritize features that will drive the highest engagement. Including representative use cases gives vendors clear context to demonstrate how their solutions address your specific scenarios. 

Finally, develop a balanced scoring system that objectively compares platform usability, configuration options, and support services according to your organization's unique priorities.

2. RFP for a Global Benefits Administration Platform

Considering another example scenario: Your multinational enterprise is expanding into new markets and requires a centralized platform to manage benefits across diverse countries. 

The RFP should outline requirements for a solution that ensures compliance with local regulations, supports multiple currencies and languages, and offers the flexibility to provide region-specific benefits while maintaining consistent administration standards. This document will serve as the foundation for selecting a partner capable of supporting your global benefits strategy.

How to implement

Your implementation section should include detailed questions about global compliance capabilities, user experience localization features, and international customer support availability across different time zones. 

Request comprehensive demonstrations of the admin dashboard, specifically showing multi-country deployment workflows, currency conversion handling, and real-time tracking of benefits utilization across regions. Consider asking about localized communication tools and regional reporting capabilities.

Best practices to implement

Before finalizing the RFP, regional HR leaders and stakeholders should be involved in defining critical requirements to ensure the document reflects local priorities and regulatory nuances. Ask potential vendors to explain their process for managing compliance updates in different jurisdictions and whether they maintain relationships with in-country fulfillment partners. Creating a diverse evaluation committee with representatives from different regions will help ensure the selected solution truly meets global needs.

3. RFP for Consolidated Spending Account Management

In another scenario, your company is streamlining operations by consolidating multiple spending account types, including HSAs, FSAs, HRAs, and commuter benefits, under a single provider. 

The RFP should focus on platform integration capabilities, intuitive employee experience across all account types, streamlined reimbursement processes, and comprehensive unified reporting. This consolidation aims to reduce administrative burden while improving employee satisfaction and benefit utilization.

How to implement

Your implementation section should clearly list all required account types and ask vendors specific questions about their claims processing workflows, account switching experience, and mobile accessibility features. 

Also, you should include requests for API documentation and integration specifications to evaluate compatibility with your existing HRIS and payroll systems. Another added suggestion here would be to consider requesting information about card functionality and how the platform handles different tax treatments across account types.

Best practices to implement

Prior to distributing the RFP, your team should define clear KPIs for measuring engagement, administrative efficiency, and cost savings. Potential vendors should be asked to provide sample rollout plans and employee education strategies specific to account consolidation. 

Companies that prioritize vendors with demonstrated successful experience in full-service transitions similar to their situation often see better outcomes. Furthermore, references from organizations that have completed similar consolidation projects can offer valuable insights into implementation challenges and successes.

Benefits of using an RFP for benefits administration

Using an RFP for benefits administration isn’t just about vendor selection; it’s a strategic move that brings structure, clarity, and long-term value to your benefits program. Here’s why you should consider making one.

Ensures comprehensive evaluation

An RFP allows you to assess vendors using predefined, objective criteria systematically. This structured approach ensures you go beyond surface-level features, eliminate any bias, and thoroughly evaluate what truly matters. You can:

• Dig into key aspects like cost, service quality, and tech capabilities
• Ask about mobile app usability and platform integrations
• Evaluate real-world impact through case studies and measurable results
• Score vendor responses with a consistent rubric

By targeting the questions that matter most, you’ll gather the insights you need to make an informed decision with confidence.

Promotes transparency

An RFP adds structure and fairness to the vendor selection process. It ensures that all vendors are evaluated under the same conditions, which is especially critical in regulated or high-stakes environments.

• Clearly define requirements and selection criteria from the start
• Level the playing field for all potential partners
• Build trust internally and externally through fairness and openness

Even when not required, embracing transparency demonstrates your commitment to finding the best-fit partner for your team.

Facilitates an apples-to-apples comparison

Comparing benefits vendors can be overwhelming due to variations in pricing, service models, and technology. An RFP helps simplify the process.

• Standardize vendor responses by asking the same set of questions
• Directly compare features, strengths, and limitations side by side
• Highlight key differentiators to aid final decision-making

For example, one vendor might offer advanced AI-powered tools, while another shines in employee engagement metrics. The RFP reveals which best aligns with your goals.

Aligns benefits strategy with business needs

Most importantly, an RFP helps you align vendor capabilities with your broader organizational strategy. It lets you focus on the unique needs of your workforce and the direction of your benefits program.

• Tailor questions based on employee demographics and business goals
• Prioritize features that support wellness, retention, or compliance
• Collaborate with HR, finance, and IT to define what success looks like

This alignment ensures your benefits strategy is more than just a checklist. It becomes a tool for business growth and employee satisfaction. By running a thoughtful RFP process, you not only find the right vendor but also clarify your long-term vision for benefits administration.

Key components of a benefits administration RFP

When crafting your RFP, it's important to clearly define the scope of services you require. This ensures potential vendors understand exactly what you need and can propose solutions that fit your unique benefits landscape.

1. Scope of services

Start by specifying the types of benefits you offer, such as medical, dental, vision, life insurance, and disability coverage. If you provide any voluntary or ancillary benefits, include those as well.

Next, outline your technology requirements. Do you need a platform that integrates seamlessly with your existing payroll system? Is a mobile app for employee self-service a must-have? Spell out these expectations so vendors can showcase their capabilities in these areas.

Don't forget to highlight your compliance and regulatory needs. Whether it's HIPAA, ERISA, or state-specific mandates, make sure vendors are equipped to keep your benefits programs fully compliant.

2. Evaluation criteria

To objectively compare vendor proposals, establish clear evaluation criteria and weighting in your RFP. Common factors to consider include:

• Cost efficiency (30% weight): Assess vendor pricing models, hidden fees, and overall value for your benefits spend.
• Service quality (25% weight): Evaluate vendor track record, client references, and SLAs for employee support and issue resolution.
• Benefits innovation (20% weight): Look for advanced features like AI-powered decision support tools, personalized recommendations, and integrated wellness programs.
• User experience (15% weight): Prioritize platforms with intuitive, mobile-friendly designs that make it easy for employees to engage with their benefits.
• Compliance focus (10% weight): Verify vendor security measures, audit processes, and regulatory expertise to mitigate risk.

3. Submission guidelines

Finally, set expectations for how vendors should respond to your RFP. Provide clear instructions on proposal formatting, such as page limits, required sections, and file types (e.g., PDF).

Include key deadlines for intent to bid, questions, and final submission. Specify a single point of contact for all RFP communications to streamline the process.

By following these guidelines, you can develop a comprehensive RFP that attracts best-fit vendors and positions you to select the ideal benefits administration partner.

Want to learn more about what to include in your RFP? Download our Flexible Benefits RFP Toolkit here

How to implement a benefits administration RFP

Before diving into the RFP process, it's important to lay the groundwork for success. This means taking the time to understand your current benefits landscape, define your future needs, and engage the right stakeholders.

Conduct an internal needs assessment

Start by analyzing your employee demographics and coverage requirements. Consider factors like age, family status, and geographic distribution to determine which benefits will be most valuable to your workforce.

Next, map your existing benefits offerings against regulatory mandates like the Affordable Care Act (ACA) and ERISA. Identify any gaps or areas of non-compliance that need to be addressed in your RFP.

Finally, audit your current HR technology capabilities. Evaluate your HRIS, payroll, and other systems to determine what types of integrations and data exchanges will be necessary with a new benefits administration platform.

Engage key stakeholders

Selecting a benefits administration vendor impacts multiple areas of your organization. That's why it's essential to involve key stakeholders from HR, procurement, legal, and finance in the RFP process.

Gather input from these teams on their priorities and pain points. What challenges do they face with the current benefits setup? What capabilities would make their jobs easier? Use these insights to shape your RFP requirements.

Consider forming a cross-functional RFP committee to evaluate vendor proposals. This promotes buy-in and ensures diverse perspectives are represented in the decision-making process.

Develop RFP timeline and budget

Give yourself ample time to conduct a thorough RFP process. A typical timeline includes:

• 2-3 weeks for RFP development and stakeholder review
• 4-6 weeks for vendors to submit proposals
• 2-3 weeks for proposal evaluation and vendor selection
• 8-12 weeks for implementation and testing

Build your budget to account for both upfront and ongoing costs. In addition to base subscription fees, factor in expenses for data migration, employee communications, and internal training. Many organizations find it helpful to use an RFP scoring matrix that weighs both cost and non-cost factors to arrive at the best overall value.

With these foundational steps complete, you'll be well-positioned to craft an RFP that aligns with your benefits strategy and sets clear expectations for vendors. Streamlining the RFP process can then help you efficiently identify the right partner to bring your vision to life.

What should you look for in a benefits administration partner?

When evaluating benefits administration partners, prioritize vendors with a strong history of success in your industry. Look for those who can provide client references and demonstrate proven results in areas like cost savings, process efficiency, and employee engagement. Their ability to showcase real-world outcomes is a key indicator of their value.

Security and scalability are essential. Your partner must ensure HIPAA-compliant data handling, have robust security protocols in place, and be prepared with disaster recovery plans. At the same time, the platform should offer flexible configurations, seamless integration with your existing HR systems, and the ability to grow with your organization.

Finally, choose a vendor focused on delivering an exceptional employee experience. The platform should be intuitive, accessible across devices, and offer features like personalized support and multilingual options. Ask potential partners to show how their solution drives ROI by reducing manual tasks, improving adoption, and maximizing your benefits investment.

Tips for evaluating benefits administration RFP responses

Once you've issued your RFP and received proposals from potential benefits administration partners, it's time to dive into the evaluation process. This is your opportunity to thoroughly assess each vendor's capabilities and determine the best fit for your organization.

Establish scoring criteria upfront

Before reviewing any proposals, define clear scoring criteria aligned with your priorities. Assign weights to each RFP section, giving higher values to the factors that matter most for your benefits strategy.

For example, if employee experience is a top goal, you might allocate 30% of the total score to user interface and decision support features. If cost savings is the primary driver, pricing models and ROI projections may be weighted more heavily.

A structured scoring rubric keeps your evaluation objective and focused on what's most important.

Involve a cross-functional review team

Assemble a diverse RFP review committee with representation from key departments like HR, IT, and legal. Each stakeholder brings a unique lens to the evaluation process.

Your IT colleagues can validate technical requirements around systems integration and data security. Legal experts will hone in on compliance and contracting considerations. HR leaders can assess cultural fit and change management needs.

Involving a cross-functional team promotes well-rounded decision-making and buy-in across the organization.

Conduct vendor demos and reference checks

RFP responses can only tell you so much. To truly get a feel for each vendor's platform and service model, schedule live demos and reference calls.

During platform walkthroughs, pay attention to ease of use and configurability. Does the interface seem intuitive to employees and administrators? Can the system flex to accommodate your unique benefits structure and eligibility rules?

When speaking with client references, probe for insights on the vendor's responsiveness, implementation approach, and ability to drive results. Ask references to share specific examples of how the partnership has impacted employee engagement and benefits utilization.

Does a good RFP document make a difference?

Yes, a well-crafted RFP makes a significant difference in selecting the right partner for benefits administration. It goes beyond comparing prices and services; it ensures you're evaluating vendors based on what truly matters: compliance expertise, user experience, scalability, and alignment with your workforce's needs. 

A strong RFP document helps you clearly define expectations, identify red flags early, and ultimately make a strategic, future-proof choice. When benefits administration is done right, it leads to better employee engagement, fewer compliance risks, and less administrative friction for your HR team.

That’s exactly where Forma stands out as one of the top third-party administrators in the industry. We help companies simplify complex benefits delivery through customizable Lifestyle Spending Accounts (LSAs), tax-compliant flexible benefits, and seamless global support, all managed from one powerful platform.

Working with Forma means:

• Eliminating administrative burdens through automated claims processing, tax reporting, and employee communication
• Global scalability with support for employees in over 100 countries
• Flexible program design that adapts to your team’s evolving needs
• Real-time reporting and analytics for better decision-making and ROI tracking
• Dedicated compliance expertise to reduce risk and maintain peace of mind

Whether you're launching an RFP or reassessing your current providers, Forma gives you the infrastructure, service, and flexibility you need to elevate your benefits strategy. 

<span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">Schedule a demo today</span> to see how Forma can help you deliver smarter, simpler, and more impactful employee benefits without the administrative hassle.