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County Administrator's Report 10. 32.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning Life Insurance - Eric Kleinert, Human Resources Department Director
That the Board take the following action concerning Life & AD&D Insurance:
A. Approve the awarding of a Contract to Lincoln National Life Insurance Company effective January 1, 2019, to December 31, 2020, for a period of 24 months based on current enrollment, for all eligible employees.
All eligible employees will receive $40,000 life and AD&D insurance. All eligible employees that do not elect the County’s group health insurance will receive an additional $10,000 of life and AD&D insurance. Retirees will receive $5,000 of life insurance paid by the County. Active Employees will have the option to purchase additional supplemental life for themselves and their family members. Child supplemental life insurance will drop to one option of $10,000 coverage for $2.00 per month. The child age requirement will change to 14 days to age 19 (age 26, if unmarried and full-time student);
B. Authorize USI to contact Standard Life Insurance 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 a Lincoln National Life Insurance Application for Group Life Insurance (Application for Group Life Insurance 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; Cost Center 150110, Object Code 54501] |
| BACKGROUND: |
USI solicited the market for the County and received five proposals:
Guardian Lincoln National Life Insurance Company
The Standard Life Insurance Company Met Life Insurance Company
Sun Life Financial
The County has received a 24 month guaranteed rate for basic life insurance from Lincoln Financial Life Insurance Company at the following rates: $.081 per $1,000 of life insurance for active eligible employees and retirees, $.018 per $1,000 of AD&D insurance for active eligible employees and $1.49 per family unit for dependent life insurance. The proposed coverage is $40,000 life and AD&D insurance for active employees, an additional $10,000 for employees that do not elect the County’s group health insurance and are not Medicare eligible or have Tricare. $5,000 coverage for retirees and life insurance for dependents of active employees in the amount of $5,000 for a spouse and $2,000 per eligible child.
Based on the present number of participants, the County would save approximately $20,436 per year for two years, for a total savings of approximately $40,872 through the proposed Contract with Lincoln National Life Insurance. Savings for life and long term disability Contracts was a bundle deal through Lincoln National Life Insurance Company.
The County was already saving $84,061.44 with the present Contract with Standard Life Insurance over the previous provider Cigna Life Insurance.
Supplemental life insurance premiums will remain the same. The child life insurance options of $2,000 and $5,000 will be eliminated and there will be one child life insurance option for $10,000 with a $2.00 monthly premium. Age requirements for children covered by the child life insurance will change to 14 days to age 19 (age 26, if unmarried and a full-time student). The estimated total cost for life insurance is $350,172.
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| BUDGETARY IMPACT: |
Funds will be available upon approval in next year’s Fiscal year budget. The projected cost savings for the County for this Contract is $40,872.
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| LEGAL CONSIDERATIONS/SIGN-OFF: |
| N/A |
| PERSONNEL: |
The Human Resources Department will service all employee groups. All appointing authorities (payrolls) will be advised of any administrative changes in the program.
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| POLICY/REQUIREMENT FOR BOARD ACTION: |
| N/A |
| IMPLEMENTATION/COORDINATION: |
A Purchase Order will be the instrument utilized for making payment against the Contract. The Human Resources Department will coordinate with the County Attorney’s Office and the other appointing authorities to ensure changes are made.
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