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ITEM 17

City Council Memorandum Human Resources Memo No. N/A

Date:

November 4, 2024

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Tadd Wille, Assistant City Manager
Rae Lynn Nielsen, Human Resources Director

From:

Fernanda Acurio, Benefits & Compensation Manager

Subject:

Agreement No. HR2-948-4496, Amendment No. 1, 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, Amendment No. 1, with ReliaStar Life Insurance Company, for basic and voluntary life and accidental death and dismemberment insurance, in an amount not to exceed $960,000, for the period of one year, beginning January 1, 2025, through December 31, 2025.

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 (AD&D) insurance is funded by the City and all supplemental 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 supplemental life insurance for spouses and dependent children to benefit-eligible classes. There will be no rate increase for CY2025.

Evaluation:

On November 7, 2022, City Council approved an agreement with ReliaStar Life Insurance Company for basic and voluntary life and accidental death and dismemberment insurance, for a two-year period, with the option of up to three two-year extensions. Staff recommends a one-year extension of the Agreement.

Financial Implications:

Each type of life insurance is funded differently depending on whether it is a City-provided benefit or the supplemental, employee-paid benefit. The City funded Basic and AD&D benefits are paid from all cost centers across all funds where employees work. The Supplemental Voluntary Term and AD&D 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

Attachments

CY 2025 VOYA Amendment