Agenda

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County Administrator's Report 13. 4.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	08/04/2016
Issue: Voluntary Long Term Disability Insurance
From:	Thomas Turner
Department:	Human Resources
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Voluntary Long-Term Disability Insurance - Thomas G. "Tom" Turner, Human Resources Department Director

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

A. Approve and award a Contract to National Insurance Services Trust for Long-Term Disability Insurance, PD 15-16.042, effective January 1, 2017, for a period of 36 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 $.00166 to $.00158 per salary dollar. The coverage level of 50% of salary with a 180-day elimination period will decrease from $.00209 to $.00199 per salary dollar. The coverage level of 50% of salary with a 90-day elimination period will decrease from $.00247 to $.00235 per salary dollar, and the coverage level of 60% of salary with a 180-day elimination period will decrease from $.0028 to $.00266; and

B. Authorize the County Administrator to sign the Amendment #2 to National Insurance Services Trust Joinder Agreement for Long-Term Disability Insurance.

[Funding Source: Fund 501, Internal Service Fund]

BACKGROUND:

The Office of Purchasing solicited a Request for Proposal. On May 6, 2016, four proposals were received from the following:

Cigna Life Insurance Company
Met Life Insurance Company
National Insurance Service
The Standard Life Insurance Company

The County has received a 36 month guaranteed rate for all the voluntary long term disability programs from National Insurance Service. All four plans will have a cost reduction for the employees that elect coverage while maintaining the current plan designs.

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. We will advise all
appointment authorities (payrolls) 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
Adm #2 to National Ins Services Trust Joinder Agreement for Long Term Disability Insurance