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File #: 18-8256    Version: 1 Name: 2019 Life and LTD
Type: Agenda Item Status: Consent Agenda
File created: 9/6/2018 In control: Human Resources
On agenda: 10/16/2018 Final action: 10/16/2018
Title: Award The Hartford a five-year agreement for Life Insurance effective January 1, 2019 through December 31, 2023 in the amount of $2,616,647, with the option to renew for additional one-year increments. Additionally, award Hartford a five-year agreement for Long-Term Disability insurance effective January 1, 2019 through December 31, 2023 in the amount of $564,186 with the option to renew for additional one-year increments, and uthorize the City Manager to execute annual renewal options for both contracts with aggregate price fluctuations of the lesser of up to $50,000 or 25%, per contract, of the original contract value so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal terms
Attachments: 1. Life-LTD RFP Analysis-Council Attachments.pdf, 2. Expenditure Information Form-Life Insurance.pdf, 3. Expenditure Information Form-LTD.pdf
From
Lisa Norris, Human Resources Director

Title
Award The Hartford a five-year agreement for Life Insurance effective January 1, 2019 through December 31, 2023 in the amount of $2,616,647, with the option to renew for additional one-year increments. Additionally, award Hartford a five-year agreement for Long-Term Disability insurance effective January 1, 2019 through December 31, 2023 in the amount of $564,186 with the option to renew for additional one-year increments, and uthorize the City Manager to execute annual renewal options for both contracts with aggregate price fluctuations of the lesser of up to $50,000 or 25%, per contract, of the original contract value so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal terms

Presenter
Lisa Norris, Human Resources Director

Recommend Action
Approve

Analysis
The City's current agreement with Dearborn for Life Insurance and Long Term Disability benefits began on January 1, 2015 and expires December 31, 2018. Current benefits offered include:
- City paid Basic life insurance equal to two-times the employee's annual base salary to a maximum of $500,000;
- Voluntary, employee paid Life Insurance options:
1) Employee Supplemental Life equal to 1x, 2x, or 3x annual base salary to a maximum of $350,000;
2) Employee and/or Spouse Accidental Death and Dismemberment Insurance equal to 1x, 2x, 3x, 4x, or 5x annual base salary;
3) Spouse Supplemental Life insurance in increments of $1,000 and up to a maximum $350,000
4) Child Life Insurance in increments of $1,000 to a maximum of $20,000

The City also offers Long-term Disability coverage to employees at no cost to the employee that includes benefit eligibility after 180 days off work, and up to 50% of their pre-disability earnings, with minimum and maximum exceptions and limitations.

The City issued Request for Proposals 18078 & 18079 due in May 2018 for competitive proposals on these benefits ...

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