Jobs
Contact
A-Z
News
Explore
Residents
Business
Government
Open Menu
Close Menu
Explore
Residents
Business
Government
Print
Reading Mode
Back to Calendar
Return
ITEM 9
City Council Memorandum Human Resources Memo No. N/A
Date:
November 10, 2022
To:
Mayor and Council
Thru:
Joshua H. Wright, City Manager
Rae Lynn Nielsen, Human Resources Director
From:
Fernanda Osgood, Benefits & Compensation Manager
Subject:
Agreement No. HR2-948-4496, with ReliaStar Life Insurance Company, for Basic and Voluntary Life and Accidental Death and Dismemberment Insurance
Proposed Motion:
Move City Council approve Agreement No. HR2-948-4496, with ReliaStar Life Insurance Company, for basic and voluntary life and accidental death and dismemberment insurance, in an amount not to exceed
$960,000
per year, for the period of two years, beginning January 1, 2023, through December 31, 2024, with the option of up to three additional two-year extensions.
Background/Discussion:
The City provides a life insurance benefit as a piece of the employee benefits package. The basic life and accidental death and dismemberment (ADD) insurance is funded by the City, and all optional coverage is funded by the employee based on the benefit selected. City staff reviews the employee benefits package each year with the assistance of an employee benefits consulting firm. This benefit provides basic life and accidental death and dismemberment insurance and optional life insurance for spouses and dependent children to benefit eligible classes.
On April 26, 2022, the City issued a request for proposal; after evaluation, staff recommends a new agreement with the current provider, ReliaStar Life Insurance Company, for basic life and accidental death and dismemberment insurance and optional life insurance for spouses and dependent children coverage. For plan year 2023, there will be a small rate increase for voluntary life insurance premiums in order for spouse coverage to be the same as employee premiums.
Evaluation:
On April 26, 2022, City staff issued Request for Proposal No. HR2-948-4496, with ReliaStar Life Insurance Company, for basic and voluntary life and accidental death and dismemberment insurance. Notification was sent to all registered vendors. Proposals were received from the following offerers:
Metropolitan Life Insurance Company
Minnesota Life Insurance Company
ReliaStar Life Insurance Company
The Evaluation Committee evaluated the proposals recommends award to ReliaStar Life Insurance Company, which submitted the most advantageous offer to the City in accordance with the evaluation criteria.
Financial Implications:
Each type of life insurance is funded differently depending on whether it is a City provided benefit or the optional, employee-paid benefit. The City funded Basic and ADD benefits are paid from all cost centers across all funds where employees work. The Optional Voluntary Term and ADD benefit is paid from the earnings of employees who opt for this coverage. In both cases, the funds are collected in a payroll clearing liability account to pay the total amount due to the insurance company. Retirees may opt for this coverage as well, and this amount is collected in a separate General Fund liability account and paid to the insurance company.
Fiscal Impact
Account No.
Fund Name
Program Name
Dollar Amount
CIP Funded Y/N
XXX.XXXX.5161
Various Funds
N/A
$960,000
N
Attachments
Agreement
AgendaQuick ©2005 - 2024 Destiny Software Inc.
All Rights Reserved.