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County Administrator's Report 11. 20.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning Group Life & Accidental Death and Dismemberment (AD&D) and Voluntary Long-Term Disability Insurance (PD 15-16.042) - Jana Still, Human Resources Department Director
That the Board take the following actions concerning Group Life & AD&D and Voluntary Long-Term Disability Insurance (PD 15-16.042):
A. Approve a one-year extension with Lincoln National Life Insurance Company for Group Life & AD&D and Voluntary Long-Term Disability Insurance until December 31, 2021, as the rates will remain the same at $.081 per thousand dollars of coverage for basic life, and $.0185 per thousand dollars for AD&D coverage. These rates will continue to save the employees approximately $8,500 in Long-Term Disability premiums and the County approximately $20,436 in premiums for group life and AD&D insurance;
B. Approve Amendment 2 that grandfathered all employee elections prior to April 1, 2020; and
C. Authorize the County Administrator to sign the Lincoln National Life Insurance Amendment. |
| BACKGROUND: |
The original Contract with Lincoln National Life Insurance Company was for 24 months and they have agreed to a one-year extension. New rates are $.081 per thousand dollars of coverage for basic life, and $.0185 per thousand dollars for AD&D coverage. Previous rates were $.088 for basic life, and $.02 for AD&D. This will save the employees approximately $8,500 in Long-Term Disability premiums, and also save the County approximately $20,436 in premiums for group life and AD&D insurance.
The Amendment for the life insurance Agreement will grandfather all employee elections prior to April 1, 2020. Employee elections after April 1, 2020, will reflect the current Agreement. The new Agreement will place restrictions on enrolling in supplemental dependent life coverage when an employee is not enrolled in supplemental coverage themselves. Also, supplemental dependent life coverage will be solely based on the amount of supplemental life coverage the employee has, rather than a combination of supplemental life and basic life for the employee. Additionally, supplemental life insurance for children will be reduced from three options to one option, and now includes $20,000.00 in life coverage with no AD&D. Previously it was $10,000.00 in life coverage with included AD&D. Finally, employee supplemental life insurance will start at $20,000.00, where previously the minimum was $10,000.00. |
| BUDGETARY IMPACT: |
| There is no budgetary impact, as costs remain the same as last year. |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| N/A |
| PERSONNEL: |
| N/A |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| Board Meeting CAR II. 32 and 33 of September 6, 2018
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| IMPLEMENTATION/COORDINATION: |
| A Purchase Order will be the instrument utilized for making payment against the Contract. The total cost of the life insurance Contract will be $315,000.00 with the county paying for approximately $110,000.00 of this total. Employees pay for the remaining amount through premiums. In regards to the LTD contract, the employees pay 100% of the cost, however a P.O. is required to initiate the contract at $76,000.00. |
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