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 ($615,000 in 2022, $615,000 in 2023)
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 12/31/2022. This mid contract renewal would allow the City to extend the contract for an additional year through 12/31/2023 while also reducing the rates effective 1/1/2022. The City's estimated two-year cost of this employee benefit is reduced from $440,000 in 2022 and $440,000 in 2023 to $425,000 in 2022 and $425,000 in 2023 effective 1/1/2022. 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, and this renewal decreases the rates through 2023. 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 comple...
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