DEPARTMENT: Human Resources
DEPARTMENT HEAD: Lori Steward
COUNCIL DISTRICTS IMPACTED: City-Wide
SUBJECT:
Basic Term, Accidental Death & Dismemberment (AD&D) Voluntary Supplemental Term Life Insurance and Dependent Life Insurance
SUMMARY:
This Ordinance authorizes the City Manager or her designee to execute a contract with Dearborn National Life Insurance Company at an estimated annual amount of $1,555,474.00 to provide Group Basic Term Life, Accidental Death & Dismemberment (AD&D) insurance, Voluntary Supplemental Term Life insurance and Dependent Life insurance coverage. The term of this contract is for three (3) years beginning January 1, 2016, and ending December 31, 2018, with an option to extend the contract for up to two (2) one (1) year extensions, subject to and contingent upon funding by City Council.
BACKGROUND INFORMATION:
The City's Employee Benefits program provides group term life insurance and AD&D insurance to approximately 11,000 eligible uniformed and civilian employees at no cost to the employee. This benefit is equal to one times the employee's annual base salary. In addition, civilian employees may elect, at their own cost, voluntary supplemental term life insurance coverage equal to one to five times the employee's annual salary.
The current contract for these services with Dearborn National Life Insurance Company, including all extensions, will expire on December 31, 2015.
The Human Resources Department issued a Request for Proposal (RFP) for basic term, AD&D, and voluntary supplemental term life insurance coverage on July 6, 2015. The scope of the services contained language to improve efficiency of administration of life and accident benefits and offer competitive pricing for the City and employees who purchase the additional life insurance. The RFP was released on the City's web site and advertised in the Express-News on July 6, 2015. Pre-submittal conference was held on July 17, 2015, to allow ...
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