TO: Mayor and Commissioners
FROM: Duane D'Andrea, Human Resources Director
THROUGH: Terrence R. Moore, ICMA-CM
DATE: September 18, 2023
Title
AMEND AND RENEW AGREEMENT WITH THE STANDARD FOR EMPLOYEE BASIC LIFE, SUPPLEMENTAL, SPOUSE AND DEPENDENT LIFE INSURANCE, EMPLOYEE ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE AND RETIREE LIFE EFFECTIVE OCTOBER 1, 2023.
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Recommended Action:
Recommendation
Motion to amend and renew agreement with The Standard for Employee Basic Life, Supplemental, Spouse and Dependent Life Insurance, Employee Accidental Death and Dismemberment Insurance and Retiree Life effective October 1, 2023.
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Background:
Beginning October 1, 2017, the City has been insured with The Standard for Employee Basic Life, Supplemental, Spouse and Dependent Life Insurance, Employee Accidental Death and Dismemberment Insurance and Retiree Life with a three (3) year rate guarantee of $0.20 per thousand insured (monthly) for basic and retiree life which ended October 1, 2020.
The contract was amended effective October 1, 2020 with a two (2) year rate guarantee and a minimal price increase of $0.22 per thousand insured (monthly) for basic and retiree life which was set to end October 1, 2022.
On October 1, 2021, the contract was amended to extend the rate guarantee for a total of three (3) years to October 1, 2023.
With our upcoming renewal, The Standard notified our benefit consultants, The Gehring Group, that due to high claims experience specifically from the retiree class, there will be a rate increase.
The City then requested The Gehring Group to request proposals for a new life insurance carrier for the City that would mirror the current plan coverage.
The Consultant had received four (4) quotes:
• The Standard - Option 1: overall premium increase to both basic life and retiree life of 32.7%, for an annual premium increase of $58,814.76 of which the city would be responsible for $45,772.92 annually.
• ...
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