Fort Walton Beach Council agenda — 02-11-03 regular Council agenda — reading text

CD e z~~ 2m m LL. Iri . I) 0 LO . ~~ N..... c: c: - c:( o e 1) 00 >- CO co l- 3 (,) m .(' I) - cnm EI't (' N~ ..... EI't EI't e zlX! c o en o CJ m Q) co C c3: N o I Lit c .. en II) Ii) Q~ E mts~ i c(,) c Q) ' 0. Qj cU::~~ ct:: tS 255 0- in ~ a. xl- O) 0 co C ' c w.... 3 c 0) :: u> O) m in .- Q) CI tJ 0) O) CO)> Q) O) ~ g " c .- IX! E 0:: .... 0..a:: ~ : en as co S fI) 3 _ :: 3 E >- co 00 CD oo/P. ftI 0.. C g..0).... cc>~- t- c: ~ g 0) CD co (,) C co O) 0.. tS E Q) en ~ Q) co->_.... J:; C CD <( .~ - sOO c " CQ>' o,Sm" c aJl! ::: eco:!:: c8~=~ a... N coO) . CO:3: oo..:c:IX! II) a . o.. c: 0) 0 .. o IX).o~-=t CDco... I 9 C .... .~ . 5 0 N N I S a a c S 0 . 0 L-::)~ E:i ftI c a N IEs ,..... ~I I  o o CITY COUNCIL MEETING February 11, 2003 Agreement With ING Employee Benefits For Life Insurance Coverage of City Employees and Retirees Agenda Item No.- 12  o o CITY OF FORT WALTON BEACH MEMORANDUM DATE: February 4, 2003 TO: Reid Silverboard, City Manager FROM: Mark Wiltsie, Human Resources Director SUBJECT: Life Insurance for City Employees & Retirees Baclmround: As part of the total benefit package for our employees, the City secures and pays the premiums for term life insurance coverage. The policy, which includes Accidental Death and Dismemberment ( AD& D), has a face value of$20, 000. Upon retirement, employees In may elect to continue this coverage with the total premium paid by the retiree. addition to the $ 20, 000 basic life policy, employees may elect supplemental coverage for themselves and their families. Premiums for all supplemental coverage are borne by the employee through payroll deduction. Following a November 1999 RFP issuance, the City' s coverage was placed with Standard Insurance Company at the rates identified on exhibit A (current). These rates remained consistent for a 3- year period. Analvsis: On November 19, 2002, the City received renewal quotes from Standard for the claim increase in premium, year commencing March 1, 2003. As Standard proposed a 30% staff decided to remarket our life insurance coverage and subsequently issued an RFP on December 18, 2002 On January 27, 2003, proposals were received, opened, and tabulated. The proposers and their respective rates are also identified on exhibit A. Upon our review of the RFP tabulation, staff's recommendation for placement of this coverage is to: 1  o o Company: INO Employee Benefits Insurer Representative: D. Steve DeWeese Agent: Lon Bryan, LB Bryan & Co. Proposed Life and AD& D monthly rate: 0. 36/ 1000 coverage ( Annual rate for 20, 000 life policy - $ 86.40) Award Considerations: 1. INO meets all the requirements included in the City' s RFP. 2. Proposed rates are $ 0. 02/ 1000 coverage less than the current rates. As current annual rate per covered policy holder is $ 91.20, this represents a $ 4. 80 reduction in premium per employee/ retiree. 3. INO is one of the nation' s largest group life insurance companies with $327. 7 billion oflife insurance in force. As well, INO is rated A+ superior by A.M. Best. 4. In addition to proposing lower than current premiums for basic life coverage, INO has offered rates for supplemental coverage lower than existing and those proposed by other respondents in almost all age groups. 5. Staffhas contacted several references who are currently insured by INO and we have received favorable recommendations. References included the cities of Atlantic Beach, Clearwater, Dunedin, and Tampa. 6. INO offered a 2- year rate guarantee. 2  o o The following compares the current and proposed rates for basic life coverage for employees and retirees: Provider Annual cost/ employee Retiree annual cost Standard Life Insurance ( Current) $ 91.20 $ 79. 20 ING Employee Benefits (proposed) $ 86.40 $ 79. 20 Premium Difference <$ 4. 80> - 0- Note: Retiree cost is less than employee rate as retirees are not eligible for AD& D coverage. It should be noted that Standard Insurance Company, through the RFP process, proposed employees ($. 196/ 1000 coverage) than ING; however, this rate is a lower rate for current contingent upon a higher rate ($ 1. 648/ 1000) for retirees. For this reason, the proposal submitted by Standard is not being recommended. As the