Title:
Consider and take action on a resolution approving a one-year renewal of group life, accidental death and dismemberment, voluntary life and accidental death and dismemberment, voluntary short-term disability, and long-term disability insurance benefits with Mutual of Omaha effective October 1, 2026 (Director of Human Resources and Civil Service)
Background:
Approval of this item will exercise the final one-year renewal available under the City’s existing agreement with Mutual of Omaha for group life, accidental death and dismemberment, voluntary life and accidental death and dismemberment, voluntary short-term disability, and long-term disability insurance benefits effective October 1, 2026.
Mutual of Omaha provided the City with a packaged renewal offer for the benefit plans currently in force. The renewal rates for Life and AD&D, Voluntary Life and AD&D, Voluntary Short-Term Disability, and Long-Term Disability remain unchanged from the current rates. Mutual of Omaha’s renewal proposal provides a rate guarantee through October 1, 2028; however, the City has only one renewal year remaining under the existing agreement.
Following this final renewal term, the City will need to conduct a request for proposals (RFP) process before entering into a subsequent agreement for these benefit coverages.
The packaged renewal is contingent upon all in-force lines of coverage remaining with Mutual of Omaha. The renewal proposal states that removing or terminating a line of coverage may result in the remaining lines being re-rated.
Based on the enrollment and coverage volumes shown in the renewal exhibits, the estimated annual cost to the City for the Life and AD&D and Long-Term Disability coverages is approximately $129,536. Voluntary Life, Voluntary AD&D, and Voluntary Short-Term Disability are employee-paid benefits and do not result in a City premium cost. Actual City costs may vary based on eligible enrollment, covered payroll, and coverage changes during the renewal term.
CONTRACT ORIGINATION:
Attachments:
1. Proposed Resolution
2. Mutual of Omaha Renewal Information and Exhibits
FUNDING
{X} Funding in the amount of $129,536 is available from the Employee Benefit Fund as follows: $62,012 from Life Insurance Payments account #40301650-54653, and $67,524 from Long Term Disability Payments account # 40301650-54648.
STRATEGIC PLANNING