Insurance, Group Life and Disability

There are approximately 3225 active employees and 562 retirees eligible for and covered under the City paid Group Life and AD&D Plan; 1,799 active employees and 599 retirees are covered under the Member paid Voluntary AD&D Plan; 1004 employees, 399 spouses and 376 dependent children are covered under the Member paid Group Supplemental Life Plan and approximately 427 employees (217 management, 210 exempt professionals/non-management) are covered under the City paid Long Term Disability plan. Those eligible for participation in the City's Plans include all full-time employees scheduled to regularly work 40 hours per week (40, 42, 48 or 52 hours per week for Fire Department employees), temporary employees hired for six months or more scheduled to regularly work 40 hours per week, elected officials and retirees who have elected to stay in the Plan. There is an approximate two month waiting period before coverage begins for new employees. New employees whose start date is between the first and the fifteenth day of the month may count that month as the first month of their required two month waiting period. Employees are eligible to continue Basic Life and Voluntary AD&D upon retirement from City service provided they are actively enrolled when they leave employment. Basic life insurance benefits of $5,000 are currently made available to non-management retirees upon retirement only. No age reduction occurs for this benefit. Management retirees may select $50,000, $25,000, or $10,000 of coverage, which will decrease by 50% at age 70. If retirees do not continue coverage into retirement, they may not elect to re-enroll at a later date. The City provides employees covered by the Long Term Disability plan a Short Term Disability plan on a self insured basis. The Offeror shall be able to provide administrative services for the Short Term Disability plan. Employees covered by collective bargaining agreements have specific Insurance schedules. These schedules are represented by classes in the current basic life certificate. It is required that current Plan designs are matched completely, but additional options for the voluntary products will be considered. It is the responsibility of the Offeror to identify deviations from the current Plans offered. The Standard Insurance Company has provided Basic Group Term Life/AD&D; Voluntary Supplemental Life; Spouse Voluntary Supplemental Life; Child(ren) Voluntary Supplemental Life; and Voluntary Personal Accidental Death and Dismemberment (AD&D) Plans since April 1, 2006. Last year, the City spent approximately $363,619 for Basic Life, $319,383 for Supplemental Life, $144,478 for AD&D, and $87,872 for LTD Plans. Basic Life Insurance with AD&D is paid 100% by the City for active employees, elected officials and management. Long term disability is paid 100% by the City for management, elected officials and professional employees who elect enrollment in a Defined Contribution pension plan. Employees pay 100% of the cost for Voluntary Supplemental Life; Spouse Voluntary Supplemental Life; Child(ren) Voluntary Supplemental Life and Voluntary Personal (AD&D). Retirees pay 100% of their Insurance premiums through deductions from their pension checks or by direct remittance to the City. The current Plans are fully insured (with the exception of Short Term Disability) with some experience rating and proposals shall be made on a similar basis. The City currently contracts with Gallagher Benefit Services, Inc. ("Consultant") to provide consulting services for group insurance plans and other employee benefits. The Consultant shall serve as agent of record for the services provided under agreements resulting from this proposal. The purpose of this RFP is to receive proposals from providers of ancillary insurance services, not brokers. Commissions are not required; however, if commissions are built into the rate structure, the commissions must be disclosed on the Detailed Cost Summary – Plan Cost form .
Addendum #1: Base Agreement added. Please use the See What Changed link to view all the changes made by this addendum.