STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: October 27, 2021
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Elizabeth Reich
______________________________________________________________________
SUBJECT
Title
Authorize (1) a three-year service contract, with one two-year renewal option, for City paid long term disability benefits and administration of grandfathered life insurance policies - Standard Insurance Company, most advantageous proposer of two - Not to exceed $8,626,122 - Financing: Employee Benefits Fund (subject to annual appropriations); and (2) a three-year service contract, with one two-year renewal option, for pre-paid legal and identity theft protection services - MetLife Legal Plans, Inc., most advantageous proposer of five - Financing: No cost consideration to the City (coverage to be paid for by the employee - see Fiscal Information)
Body
BACKGROUND
This action does not encumber funds; the purpose of a service contract is to establish firm pricing for services, for a specific term, which are ordered on an as needed basis.
This third-party administrator contract will provide City-Paid Long-Term Disability (LTD) for full-time employees working 40 hours a week and with 1-year or more of service. This benefit will pay 60 percent of income replacement after 90-days of the employee becoming disabled, terminally ill and being unable to work. LTD is typically a basic component to any health benefits program but will be a new benefit to City employees. Implementation of this program will also help the City replace the outdated Catastrophic Leave Program by 2023.
The awarded vendor will also provide administration services to support approximately 2,500 grandfathered self-funded life policies with an average policy amount of $2,500. The awarded vendor is including the provision of this service with the City-Paid LTD benefits.
This action will also provide legal resources and i...
Click here for full text