HomeMy WebLinkAboutItem 8.3 LifeAD&DLongTrmDisblty
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CITY or OUBLIII
AGBJIDIt STATBROf1'
CITY COUNCIL MEETIIG DAft: February 14, 1994
SUBJECT: Life, Accidental Death & Dismemberment (AD&D) and Long
Term Disability (LTD) Insurance - Proposed Change in
providers (Prepared by: Lou Ann Riera-Texeira,
Assistant to the city Manager)
RBCOMMBRDAfION;~Authorize the City Manager to execute the necessary
~~~~ documents to change Life/AD&D and LTD insurance
\I" v. carr lers .
FDWlCIAL
This action will result in an estimated annual savings
of approximately $1,428. Further, the proposed LTD
rates are considerably less than the current rates and
are guaranteed for three years.
DESCRIPTION: The City currently provides Life, AD&D and LTD
insurance to regular city employees. Life/AD&D insurance is provided
to employees who regularly work 40 hours per week; LTD insurance is
provided to employees who regularly work 20 or more hours per week.
The benefit levels provided through these policies do not exceed those
provided by most emp~oyers. Life insurance benefits are capped at a
flat $50,000 (this 15 different from some employers which provide
benefits based on actual salary, i.e., 2 times annual salary). Briefly,
the LTD coverage has a 60-day waiting period and is designed to
compliment the city's General Leave pOlicy, to provide coverage for
catastrophic, long-term occurrences.
The City of Dublin works with an independent insurance broker to secure
the most competitive rates. Recently, the City'S broker conducted a
market survey of comparable Life/AO&D and LTD carriers. Consequently,
another insurance carrier was identified as providing comparable
insurance coverage at a lower cost to the city.
Based on FY 1993-94 payroll estimates, the proposed program would result
in an estimated annual cost savings to the city of $1,428. The actual
savings for FY 1993-94 will be prorated, as the proposed coverage will
be in effect for only a portion of Fiscal Year 1993-94. In addition,
the proposed provider will guarantee the rates for three years.
It is recommended that the city council authorize the City Manager to
execute the appropriate documents to change Life and LTD insurance
carriers.
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ITEM NO. .8. '7
COPIES TO:
CITY CLERK
FILE ~