DEPARTMENT: Human Resources
DEPARTMENT HEAD: Lori Steward, Human Resources Director
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT: Basic Life and Accidental Death & Dismemberment, Voluntary Supplemental Life Insurance, and Dependent Life Insurance
SUMMARY:
This ordinance authorizes the City Manager or his designee to execute a contract with Dearborn Life Insurance Company, in an estimated annual amount of $1,538,871 to provide Basic Life and Accidental Death & Dismemberment (AD&D), Voluntary Supplemental Life Insurance, and Dependent Life Insurance to all eligible City of San Antonio employees and their eligible dependents. The term of this contract is for three (3) years beginning January 1, 2021 and ending December 31, 2023, with an option to extend the contract for up to two (2) one (1) year extensions, subject to and contingent upon funding from the City Council.
BACKGROUND INFORMATION:
The City's Employee Benefits program provides group term life insurance and AD&D insurance to approximately 11,265 benefit eligible uniformed and civilian employees at no cost to the employee. This benefit is equal to one times the employee's annual base salary up to $300,000. 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 base salary. The sum of all basic and supplemental coverage is not to exceed $1.5 million per employee. Civilian employees may also enroll in dependent life insurance coverage for a spouse or domestic partner at $25,000 and for children at $10,000 each.
The current contract for these services with Dearborn Life Insurance Company, including all extensions, will expire on December 31, 2020. The Human Resources Department conducted a search for a vendor with broad knowledge and experience in providing basic term, AD&D, and voluntary supplemental term life insurance coverage and dependent life insurance coverage.
PROCUREMENT PRO...
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