Summary:
The contract with Standard Insurance Company for Group Term Life, Accidental Death and Dismemberment (AD&D), Short-Term Disability (STD) and Long-Term Disability (LTD) Insurance expires on December 31, 2015. The Human Resources Division and Procurement and Contracts Division are requesting approval to extend the current contract for an additional two (2) years.
The two-year contract extension will allow the City to build sufficient claim history for the fully-insured LTD benefit (effective 1/1/2014) to receive competitive rates on a Request for Proposals (RFP) solicitation. The contract extension will also allow the following two upcoming insurance solicitations to be separated by one year, thus better managing both City resources and employee benefit changes:
- Health Plan Administrative Services, effective in Calendar Year 2017.
- Life and Disability Insurance Services, effective in Calendar Year 2018.
The following terms for the two-year contract extension have been negotiated with Standard Insurance Company for Calendar Years 2016 and 2017:
- No increase to STD and AD&D Insurance premiums.
- Life and LTD insurance premiums would increase by 10% due to significant claims volume.
- No increase to the LTD Administrative Service Only for participants with a date of disability prior to January 1, 2014.
All other terms of the current Standard Insurance Company contract for Life and Disability Insurance Services (RFP10-0296) will remain unchanged from Calendar Year 2015. |