Title
Resolution to Approve the Renewal Contracts with Unum Life Insurance Company of America, Inc. to Provide Group Term Life, Accidental Death and Dismemberment, Short-Term Disability, and Long-Term Disability Insurance Coverage to City Employees and/or Their Dependents and Authorize the City Administrator to Execute the Necessary Documentation ($420,000.00)
Memorandum
The attached Resolution authorizes the City Administrator to execute the renewal of group term life, accidental death and dismemberment, short-term disability, and long term disability coverage with our group insurance provider. The estimated cost of this employee benefit renewal is $420,000.
This Plan is a fully-insured program, and requires the City to pay for the total cost of basic life insurance premiums, and share with employees the cost of employee optional life 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. The City currently pays the following premiums: $0.14/1000 for basic life insurance coverage, $0.11/1000 for optional life insurance coverage, and $2.20/1000 for retiree life insurance coverage. For the upcoming Fiscal Year 2008-2009, there is no change to these premium rates. The City currently pays $0.035/1000 for accidental death and dismemberment coverage, and $0.47/100 for short-term disability coverage. For the upcoming Fiscal Year 2008-2009, there is no change to these premium rates.
Employees currently pay the following premiums: $0.11/1000 for optional life insurance coverage; $1.68 or $2.84 for optional dependent life insurance coverage, and $0.34/100 for optional long-term disability coverage. For the upcoming Fiscal Year 2008-2009, there is no change to these premium rates.
Unum Life Insurance Company received Human Rights approval on May 1, 2008.
The above referenced cost proje...
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