From
Lisa Norris, Human Resources Director
Title
Amend the Life and Long Term Disability Insurance agreement effective January 1, 2015 through December 31, 2018 through Dearborn National to an estimated total four-year contract amount of $2,090,000 and authorize the City Manager to renew this contract for additional one-year periods beyond the original contract period if such cost is appropriated in the annual budget and does not increase by more than 25% or $50,000, over all renewal years combined.
Presenter
Ashley Land, Human Resources Manager
Recommend Action
Approve
Analysis
The 2015 Life and LTD agreement through Dearborn National for four years was previously approved at the September 2, 2014 council meeting via Legislative File 14-3961. Following that meeting, Human Resources realized that the rates quoted for Dearborn on Life Insurance were incorrect in part. In condensing the quotes for council onto one spreadsheet, we had inadvertently misaligned columns which caused the rates to not align properly with the carrier who quoted them for certain areas. Additionally, on LTD, the carrier confirmed that the 4th year rate is a "not to exceed rate" based on loss-ratios that will be reviewed at that time. As a result, we wanted to confirm with the Finance and Government Committee and Council these corrections to ensure transparency, although the impact is minimal. The following clarifies corrections to the Legislative File and contract with Dearborn National that will be finalized for the plan year beginning January 1, 2015. The Finance and Government Sub-Committee will be briefed on this item the same day as this council consideration and we expect them to support this item. Because all areas of the contract were approved in detail on the previous council date, only the corrections are noted below.
1. The city-paid Basic Life Insurance premium is decreasing from .12/$1,000 to .069/$1,000 of base salary. The original contract reflected a rate...
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