Report to Mayor and City Council
Tuesday, July 21, 2020
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF CIGNA POLICY RENEWALS TO PROVIDE GROUP LIFE AND AD&D, VOLUNTARY LIFE, SHORT TERM DISABILITY AND LONG TERM DISABILITY BENEFITS TO CITY EMPLOYEES AND RENEWAL OF EMPLOYEE ASSISTANCE PROGRAM (CITY COUNCIL)
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I. SUMMARY
Cigna has confirmed a three (3) year rate guarantee (Exhibit 1) effective retroactive to March 1, 2020 for 36 months. The next renewal is March 1, 2023. Cigna has determined that there are no rate increases required during the entirety of the renewal period and further, there are rate reductions for Basic Life and Short Term Disability.
Staff is submitting the renewal proposal for the policies to the City Council with a recommendation that CIGNA continue to serve as the City's vendor for Group Life and AD&D Insurance, Voluntary Life, Short Term Disability and Long Term Disability, which originally went into effect March 1, 2017. The rates that were previously in place continued in place after March 2020. However, as a result of another bid proposal, Cigna met the reduced rates on two lines of coverage and agreed to make those reduced coverage line rates effective 8/1/2020.
II. RECOMMENDATION
Recommendation
1. APPROVE renewal of CIGNA policies for Group Life and AD&D Insurance, Voluntary Life, Short Term Disability and Long Term Disability benefits for an additional thirty-six months with guaranteed rates equal to the current rates paid by City, with the exception Basic Life and Short Term Disability which rates will be reduced for that period.
2. APPROVE renewal of CIGNA Employee Assistance Program (EAP) with a rate pass effective for twenty-four months.
3. AUTHORIZE the Mayor to sign all documents that are necessary to effectuate the renewal of the policies.
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III. ALTERNATIVES
The City Council may take other action deemed appropriate.
IV. BACKGROUND
On February 21, 2017, the City Council approved CIGNA to be the pro...
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