Title
Resolution to Authorize Additional Payments to Unum Life Insurance Company of America for Associated Group Term Life, Accident, and Disability Insurance Policies for City Employees and their Eligible Dependents ($93,312.15) (8 Votes Required)
Memorandum
The attached Resolution authorizes additional payments 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. The City is in a current contract with Unum Life Insurance Company of America through 12/31/18. The estimated annual cost of this employee benefit was $440,000 for January-December, 2018; this amount was approved by Council on December 18, 2018 (Enactment # R-17-467). Additional funds are being requested at this time in the amount of $93,312.15 for the 2018 plan year.
Costs exceeded the expected amount due to the following: The City of Ann Arbor increased the life insurance benefit amount for retirees from $5,000 to $10,000 as average funeral costs have increased over the years; a benefit audit was completed and several benefits were adjusted to align with language in union contracts; and administrative billing audit was completed and corrections were made.
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.
Staff
Prepared By: Jessica Hull, Employee Benefits Supervisor
Reviewed By: Robyn Wilkerson, Director of Human Resources and Labor Relations
Approved By: Howard S. Lazarus, City Administrator
Body
Whereas, The City provides group term life insurance coverage to City employees and their eligible dependents, optional life insurance ...
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