STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: November 10, 2021
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Elizabeth Reich
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SUBJECT
Title
Authorize 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)
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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 one-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 Implementation of this program will also help the City replace the outdated Catastrophic Leave Program by 2023.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.
A six-member committee from the following departments reviewed and evaluated the qualifications:
* City Controller's Office (1)
* Department of Human Resources (2)
* Department of Transportation (1)
* Office of Community Care (1)
* Office of Procurement Services (1)*
*The Office of Procurement Services only evaluated the cost and local...
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