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County Administrator's Report 13. 1.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning Group Life and Accidental Death & Dismemberment Insurance - Thomas G. "Tom" Turner, Human Resources Department Director
That the Board take the following action concerning Group Life and Accidental Death & Dismemberment (AD&D) Insurance, PD 15-16.042:
A. Approve and award a Contract to Standard Insurance Company for Group Life and AD&D Insurance, PD 15-16.042, effective October 1, 2016, for a period of 39 months based on current enrollment, for all eligible employees. All eligible employees will receive $40,000 life and $40,000 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 $10,000 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 for themselves and their family members. These are the same levels of this benefit as currently exists; and
B. Authorize the County Administrator to sign the Standard Insurance Application for Group Life Insurance.
[Funding Source: Fund 501, Internal Service Fund; Cost Center 150110, Object Code 54501] |
| BACKGROUND: |
The Office of Purchasing solicited a Request for Proposal. On May 6, 2016, five proposals were received from the following:
Blue Cross Blue Shield/Florida Combined Life
Cigna Life Insurance Company
Met Life Insurance Company
Minnesota Life
The Standard Insurance Company
The County has received a 39 month guaranteed rate for basic life insurance from The Standard Insurance Company at the following rates: $.099 per $1,000 of life insurance and $.02 per $1,000 of AD&D insurance for active employees and retirees. The proposed coverage is $40,000 life and $40,000 AD&D insurance for active employees, an additional $10,000 life and $10,000 AD&D for employees that do not elect the County’s group health insurance, and $5,000 life coverage for retirees.
Based on the present number of participants, the County would save approximately $84,000, per year for three years, for a total savings of approximately $273,000 through the 39 month Contract. In 2013, all core benefits (health, dental, Section 125 (flexible benefits), vision, and long term disability) anniversary dates were adjusted from a fiscal to a calendar year anniversary and plan year, except group life. The Standard Insurance Company has agreed to extend the Contract by three months to align all plans together. Supplemental life insurance premiums will remain the same. The estimated total cost for life insurance is $350,000. |
| BUDGETARY IMPACT: |
| Funds will be available upon approval in next year’s fiscal year budget. The projected cost savings for this Contract is $273,000 for the County. |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| Kristin Hual, Assistant County Attorney, reviewed and approved the Application as to form and legal sufficiency. |
| 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 the other appointing authorities to ensure changes are made.
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