Title
Resolution to Authorize Payments to Unum Life Insurance Company of America and to Renew Associated Group Term Life, Accident, and Disability Insurance Policies for City Employees and their Eligible Dependents, and to Authorize the City Administrator to Execute the Necessary Documentation ($629,657 annually).
Memorandum
The attached Resolution authorizes renewal of the group term life, optional life, accidental death and dismemberment, short-term disability, and optional long term disability insurance policies with our group insurance provider, and related payments. The City is in a current contract with Unum Life Insurance Company of America through 12/31/2020. This renewal would allow the City to extend the contract for two years through 12/31/2022. The estimated annual cost of this employee benefit is $629,657 annually.
Unum's products are fully-insured. The City will pay the total cost of basic insurance premiums, and share with employees the cost of employee optional insurance premiums. Employee labor contracts and employee benefit plans establish the level of life insurance, accidental death and dismemberment, and short term and long-term disability insurance coverage for City employees.
Marsh & McLennan Agency, our healthcare advisor, conducts the bidding on our behalf and recommends a service provider. We last completed this bidding process for these lines of coverage for plan year 2019. UNUM remained the best option and offered a two-year rate guarantee through 2020. UNUM held these rates again for plan years 2021 & 2022. We did not go out to bid for these services this year as UNUM has proven to be an excellent partner offering superior customer service and various ways to ease administration for these complex benefits.
Budget/Fiscal Impact: The above referenced cost projections are in accordance with the approved FY21 Risk Fund budget and anticipated FY22 and FY23 Risk Fund budget. The benefit coverage levels will remain the same for...
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