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County Administrator's Report 10. 13.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	09/16/2013
Issue: Recommendation Concerning Group Life Insurance (P.D. 12-13.057)
From:	Thomas Turner
Department:	Human Resources
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Group Life Insurance - Thomas G. "Tom" Turner, Human Resources Department Director

That the Board take the following action concerning Life & AD&D Insurance (PD 12-13.057):

A. Award a Contract to Cigna Life Insurance Company for Group Life and AD&D Insurance, PD 12-13.057, to provide the following:

1. An annual premium amount estimated to be $350,172, per Fiscal Year, based on current enrollment, for all eligible employees and retirees, effective October 1, 2013, for a period of 36 months; and

2. All eligible employees will receive $40,000 life and AD&D insurance, and 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. Employees will have the option to purchase additional supplemental life insurance for themselves and their family members; and

B. Authorize the Interim County Administrator to sign a Cigna Life Insurance Application for Group Life Insurance. (The Application for Group Life Insurance will be drafted upon approval of this Board action.)

[Funding Source: Fund 501, Internal Service Fund, Cost Center 150110, Object Code 54501]

BACKGROUND:

The Office of Purchasing solicited a Request for Proposal. On August 27, 2013, eight proposals were received from the following:

Minnesota Life
Sun Life
Blue Cross Blue Shield/Florida Combined Life
Cigna Life Insurance Company
ReliaStar/ING Symetra
The Standard Life Insurance Company
Symetra
United Health Care

This was the second Request for Proposal for the County’s life insurance because it was learned the County would be acquiring the Escambia County Jail employees (434) and the City of Pensacola library employees (62).

The County has received a three year guaranteed rate for basic life insurance from Cigna Life Insurance at the following rates: $.185 per $1,000 of life insurance and $.022 per $1,000 of AD&D insurance for active employees and retirees. The proposed coverage is $40,000 life and AD&D insurance for active employees and an additional $10,000 for employees that do not elect the County’s group health insurance.

Based on the present number of participants, the County would save approximately $38,412 a year for three years, for a total savings of approximately $115,236. Supplemental life insurance premiums will remain the same. The estimated total cost for life insurance is $350,172. The total premium includes the jail and library personnel.

BUDGETARY IMPACT:

Funds will be available upon approval in next year’s Fiscal Year budget. The projected cost savings for this Contract is $115,236 for the County.

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

The Human Resources Department will service all employee groups. We will advise all appointing authorities (payrolls) of any administrative changes in the program.

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 other appointing authorities to ensure changes are made.

Attachments
No file(s) attached.