HomeMy WebLinkAboutItem 4.03 Prop Chg Ins Provider CITY CLERK
File # 720-50
II Iii II o I
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 1, 1999
SUBJECT:
Life, Accidental Death & Dismemberme_nt (AD&b), Long Term
Disability (LTD) and Short Term Disability (STD) Insurance -
Proposed Change in Providers
(Report Prepared by: Julie Carter, Assistant to the City Magager)
ATTACHMENTS:
RECOMMENDATION.'.
None
~~Authorize the City Manager to execute the necessary
documents
tO
change Life/AD&D, LTD and STD insurance carriers. .
FINANCIAL STATEMENT: This action will result esti. matedgnnua! ,savings of approximately
$7,899.31 for the City of Dublin. Further, the proposed STD insurance, which is entirely employee
funded, will result in annual savings of $854.00. RateS'with the new insurance c .arri'er are guaranteed for
two 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 )ours per
week; LTD insurance is provided to employees who regularly work 20 or more hours per week. The ~ity
also maintains STD insurance at the employees expense if working regularly 20 hours or more per week.
The benefit levels provided through the City's current policies do not exceed those provided by most
employers. Life insurance benefits are capped at a flat $50,000. Briefly, the LTD coverage has a 60-day
waiting period and is designed to compliment the City General Leave policy,' to provide coverage for
catastrophic, long-term occurrences. The monthly LTD benefit is 60% of monthly earnings up to a
maximum of $7,500 per month.
The City of Dublin works with an independent insurance broker to s~cure.~e_~9_s_t~co_:_mpetitlve rates.
Recently, the City's broker conducted a market survey of comparable Life/AD&D, LTD and STD
carriers. Consequently, another insurance carrier was identified ~ providing comparable itnsurance
coverage at a lower cost to the City.
Based on FY 1998-99 payroll estimates, the proposed program would result in estimated an~.~ ual cost
savings to the City of $7,899.31 and the employee funded STD plan change would result in s.avings of
$854.00. As proposed, the new insurance would be effective July 1, 1999 and the proposed pro'Cider will
guarantee the rates for two years.
It is recommended that the City Council authorize the City Manager to execute the appropriate dot cuments
to change Life/AD&D, LTD and STD carriers.
H/cc-forms/agdastmt.doc
ITEM NO.