Report to Mayor and City Council
Tuesday, February 21, 2017
Consent
SUBJECT:
Title
CONSIDER AWARD OF CONTRACTS TO CIGNA TO PROVIDE GROUP LIFE INSURANCE, SHORT TERM DISABILITY, AND LONG TERM DISABILITY BENEFITS TO CITY EMPLOYEES (CITY COUNCIL)
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I. SUMMARY
At the request of the Mayor this item was continued to the February 21, 2017 Council meeting to address questions regarding pre-existing health conditions and portability. Staff briefed the Mayor and this item is being resubmitted to the City Council with a recommendation that CIGNA be awarded the City's contracts for Group Life Insurance, Short Term Disability, and Long Term Disability effective March 1, 2017. With CIGNA entering into City's contracts for these benefits, employees will continue to receive the same level of benefits, and the City will avoid rate increases as proposed by the City's current provider (Sun Life) for these benefits.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AWARD contracts to CIGNA to provide Group Life Insurance, Short and Long Term Disability benefits with a thirty-six month rate guarantee.
2. AUTHORIZE the Mayor to sign the contracts after approval as to form by the City Attorney.
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III. ALTERNATIVES
The City Council may take other action deemed appropriate.
IV. BACKGROUND
Effective December 1, 2012, Sun Life was awarded the contracts to provide Group Life Insurance, Short and Long Term Disability to eligible City employees, elected officials and retirees. These contracts will be expiring effective February 28, 2017. Sun Life proposed renewal of the contracts with rate increases and with only a two-year rate guarantee for the Group Life Insurance and Long Term Disability and a one-year rate guarantee for the Short Term Disability.
As procedure and as a result of Sun Life's proposed rate increases, staff had the City's broker test the market for proposals. Staff also requested a second broker to shop the market f...
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