Agenda

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County Administrator's Report 10. 33.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	09/06/2018
Issue: Voluntary Long Term Disability Insurance
From:	Eric Kleinert
Department:	Human Resources
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Voluntary Long Term Disability - Eric Kleinert, Human Resources Department Director

That the Board take the following action concerning Voluntary Long Term Disability Insurance (PD 15-16.042):

A. Approve the awarding of a Contract to Lincoln National Life Insurance Company for Long Term Disability Insurance, effective January 1, 2019, for a period of 24 months based on current enrollment, for all eligible employees.

This will reduce the premiums of the County’s current voluntary long term disability plans. The coverage level of 40% of salary with a 180-day elimination period will decrease from $.00158 to $.00143 per salary dollar. The coverage level of 50% of salary with a 180-day elimination period will decrease from $.00199 to $.00180 per salary dollar. The coverage level of 50% of salary with a 90-day elimination period will decrease from $.00235 to $.00212 per salary dollar and the coverage level of 60% of salary with a 180-day elimination period will decrease from $.00266 to $.00240 per salary dollar;

B. Authorize USI to contact Madison Life Insurance Company to terminate our present Contract early on or before November 30, 2018, to end coverage as of midnight December 31, 2018;

C. Authorize the County Administrator to sign the Lincoln Financial Life Insurance Joinder Agreement for Long Term Disability Insurance (Application for Joinder Agreement will be drafted upon approval of this Board action; and

D. Authorize the Human Resources Department to sign Lincoln National Life Insurance Administration and Benefit Supplement Sheet, Not Actively at Work Supplement, and Employer Authorization forms.

[Funding Source: Fund 501, Internal Service Fund]

BACKGROUND:

USI solicited the market for the County and received six proposals:

Guardian                                                              Lincoln National Life Insurance
The Standard Life Insurance Company               Met Life Insurance Company
Madison Life Insurance Service                           Sun Life Financial

The County has received a 24 month guaranteed rate for all the voluntary long term disability programs from Lincoln Financial Life Insurance. All four plans received a cost reduction for the employees that elect coverage while maintaining the current plan designs. Total cost savings for the employees enrolled in our present plan would be $8,495 per year or $16,990 for the length of the Contract. Savings for the life and long term disability Contracts was a bundle deal through Lincoln National Financial Life Insurance Company.

BUDGETARY IMPACT:

There is no budgetary impact.

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

The Human Resources Department will conduct open enrollment meetings and service all employee groups. All appointing authorities (payrolls) will be advised of any administrative changes in the program.

POLICY/REQUIREMENT FOR BOARD ACTION:

N/A

IMPLEMENTATION/COORDINATION:

A voucher will be the instrument utilized for making payment against the Contract. The Human Resources Department will coordinate with the County Attorney’s Office and other appointing authorities to ensure changes are made.

Attachments
No file(s) attached.