Title
Consider and take action on a resolution authorizing an agreement with Mutual of Omaha for Employee life, long term disability, short term disability and voluntary life insurance (Director of Human Resources and Civil Service)
Background:
Approval of this item will adopt the employee life, long term disability, short term disability and voluntary life insurance benefit program and authorize the City Manager to execute all contracts related to the program, and establish employee contribution levels for the program.
The City’s current life, voluntary life, short and long term disability with Mutual of Omaha, was reviewed by staff with IPS Advisors (benefits consultant for the City) with the following goals in mind: to continue to provide coverage for employees similar to benchmark programs provided by similar employers, and add long term disability insurance that is fully funded by the City. After meeting with the City Council on July 26 and reviewing these goals, the City conducted a request for proposals (RFP) for all elements of the life insurance benefit program. Proposals were received on September 9.
After evaluating responses from ten plans, IPS selected four proposals as “finalists” Mutual of Omaha, Lincoln, Municipal Pool, and Symetra. These plans all had the same benefit levels as the current plan and quoted costs ranged from zero to 19.5 % increase for basic life, zero increase to current voluntary life and a 15% decrease for current voluntary short term disability.
Current Plan
The current benefits are as follows:
· Basic life and Accidental Death and Dismemberment at twice earnings with $100,000 cap, costs $0.05 per $1,000 with 100% employer contribution
a. Voluntary life & Accident with $300,000 cap for employee costs $0.050 per $1,000 for age 24 to $2.380 per $1,000 for age 95 paid entirely by employee
b. Voluntary life for spouse/children $150,000 cap for spouse and $10,000 cap for children paid entirely by employee
· Long term di...
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