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Res. No. 032-00-10925RESOLUTION NO.32-00-10925 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OFSOUTH MIAMI,FLORIDA,RELATING TO ENTERING INTO A CONTRACT WITH HIGHMARK &FORTIS TO PROVIDE LIFE/AD &D AND LONG TERM DISABILITY INSURANCE FOR CITY OF SOUTH MIAMI FULL TIME EMPLOYEES. WHEREAS,to provide better benefits for City employees at competitive rates, the City Manager solicited for "Request for Proposals"to provide Life/AD &D and Long Term Disability Insurance;and, WHEREAS,three(3)companies submittedbids for LifeandAD&D Insurance; and, WHEREAS,two (2)companies submitted bids for the Long Term Disability Insurance;and, WHEREAS,the City's Agent of Record has reviewed all proposals and has made a recommendation,ina report which is attached hereto and made a part of this resolution; and, WHEREAS,the Agent of Record and the City Manager are recommending that Highmark and Fortis provide the following coverage for all full time employees: 1.Life/AD &D Insurance. 2.Long TermDisabilityInsurance. NOW,THEREFORE,BEITRESOLVED BY THEMAYORANDCITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA: Section 1.ThattheCity Manager be,and hereby is,authorized to execute contracts with Highmark and Fortis pursuant to premium rates listed hereto of the Agent of Recordreport attached tothis resolution. Section2.ThecontractsauthorizedinSection1shall become effective the earliestdate allowed by the carriers. LTD Life/AD/D LTD Life/AD/D CITYOFSOUTH MIAMI PROPOSALCOMPARISON LIFE/AD&DANDLONGTERM DISABILITY Highmark Monthly Rate N/A N/A 1x salary,(max 50,000) Per $1,000 •24/$1,277.50 monthly Fortis Monthly Rate 40%/50%/60%$1,700.97/$2,712.36/$3,677.78 1x salary (max 50,000) Per $1,000 0.31/$1,650.13 monthly Florida League of Cities/Reliance Monthly Rate Standard Life Insurance Co. LTD Life/AD/D N/A N/A Per $1,000 1x salary(max 100,000).29/$1,543.70 monthly UNUM Monthly Rate LTD Life/AD/D 40%/50%/60%$2,590.19/$3,155.32/$3,814.65 Per $1,000 Nobid provided Nobid provided 2/1/00 02/01^00 TUE 17:21 FAS TO: FROM: DATE: NOTES: <F!iGHMARK. Life&Casualty Group HighoM't life InMirincc CwifWry Hijjhumrk life towftnee Companyof New Yo»« HighmarkCasually inwtane*Company HiRhm.vk Service*CotKMny FAX COVER SHEET tTA^e-nx E»>ftrz-o nwiaht Franz i(oo c»~ry of7 Sour//Mi 4^ @001 <s>pages {zdC)&c$-c<Jr liJCteAst*^*t Ltf&ffrDkb fay*4(c,erz TeCI yf SAtAfl-f,$Sb,QOO l»i^x(^tfM * °^—<,?C>[tJ/GTV fioccooei u4iwi^<*>o Ail.&v^pL^f££\ -A^'kb "*<0i /*//tnn>Pri>i-pc-A/us ATLANTA OFFICE 1701 Barrett Lakes Blvd,Ste 150 Kennesaw GA 30144 800-444-3086 770-425-2070 770-425-7787 fax Frederick R.Schremp,CLU Valerie Owens,RHU JACKSONVILLE OFFICE 100 Executive Way,Ste 113 Ponte Vedra Beach FL 32082 800-825-9133 904-280-7192 904-280-7194 fax Mary M.Kinzler 02/01/00 TUE 17:22 FAX ^0Q2 0^*~**Q_,\^—£-5*r-t **~*~», FEB-01-00 TUE 03:55 FM FLCRSDfi LEAGUE FAX NO.4073177:81 P,02 GROUP LIFE RELIANCE STANDARD LIFE INSURANCE COMPANY 'JFE AND ACCIDENTAL DEATH AND DISMEMHFRMeNT BENEf ITS 1.Each Employe©-1 XSalary f '0 0,D••'-'J ~7W A x //H cJ>M ~ 2 Life and AD &Dbenefits reduce by 50%at age 70 with amaximum benefit of $5,000. 3-£E £15 SS SSS5T "^by *e emp,oyer'and ind,yidual ""**-™yrot 4'2!ttSX^|WW""^ma'ntaln *"""^°f C0V6rafie he/she was ef,Sifc,e * LIFE AND AD &DRATES fPER $1 ,qqq qf BFNEFIT PER MONTH) Life/AD&D $.29 Total$.29/$1,000 FEB 31 '0006:09PMFORTIS BENEFITS MIA. Fortis Benefits Insurance Company Alhanbra International Center,255 Alhambra Circle,Suite333 Coral Gables,FL 33134 (305)446-5504 (800)242-9292 FAX*(305)448-6250 LONG-TERM DISABILITY =.1 FORTIS9 GroupName:City of South Miami Effective Date:03/01/2000 Presented by:Susan Perry Redding,CLU,ChFC Quote Expires:10/27/49S9 2-DDO Description Monthly Benefit Maximum Minimum elimination Period Maximum Benefit Duration Dual Definition of Disability Own Occupation Teat or Earnings Teat Benefit Integration Pre-ExistingCondition At Issue New Entrants Quality of Care Benefit Rehabilitation Benefit Survivor Benefit Long-Term OisABiLiTyiNsuRANCB Schbdule Full-time employees 40%of covered earnings $6,000 $100 3months;Zerodayresidual SocialSecurity Normal RetirementAge (SSNRA) Unlimited partial disability 24 monthe;thenSocialSecurity Qjalifled 80%:indexed at 7.5% Full FamilyDirect 3/3/12 3/3/12 Yes Managed 3 months RATI (Wr $100 :qp RftONfHLY Payroll)Covered Monthly Payroll MONTHLY PfUSMIUM 0.37 Guarantee Issue Rate Guarantee Contributions Participation Requirement Alcohol,Drug/Chemical, Mental Illness rtuM i«Mama*P.'h/nf Rri rth Miami 459,722 $6,000 15 months 100%employer;0%employee 100%minimum participationrequired 12 months Special Conditions $1,700.97 Eligible Employcw 162 «t oaouxcM is ot:t02iaii>v Fortis BenefitsInsuranceCompany Alhambra International Center,255 Alhambra Circle,Suite 333 Coral Gables,FL 33134 (305)448-5504 (800)242-9292 FAX:(306)448-6250 LONG-TERM DISABILITY J>^ ..•••:• FORTIS' GroupName:City of South Miami EffectiveData:03/01/2000 Presented by:Suaan Perry Redding,CLU,ChFC Quote Expires:10/27ttW"2-:2 00> Description Monthly Benefit Maximum Minimum Elimination Period Maximum Benefit Duration DualDefinition of Diaability Own Occupation Test or Earnings Test Benefit Integration Pre-ExistingCondition At Issue New Entrants Quality of Care Benefit Rehabilitation Benefit Survivor Benefit LONQ-THRM DI8ADILTTY INSURANCE SCHED&LB Full-time employees 50%ofcovered earnings $8,000 $100 3 months;Zerodayresidua! SocialSecurity Normal Retirement Age (SSNRA) Unlimited partial disability 24 months:then Soda!Security Qualified 80%;indexed at 7.5% FullFamilyDirect Full waiver Full waiverof pre-ex Yes Managed 3 months •Rate(Pbr$101d of Monthly Payroll)'Covered monthly Payroll MOWtilLY PREMIUM •....ELIGIBLE gMPUQYIEjT 0.59 459,722 $2,712.38 152 Guarantee leaue Rate Guarantee Contributions Participation Requirement Alcohol,Drug/Chemical, Mental Illness Group NaTtagi'l/of South Miami $8,000 15 months 100%employer;0%employee 100%minimum participation required 12 months SpecialConditions •bin siU3N3a snaoj Wdt0:i0 ggUJSfc.ifcK,,.,,, o Fortis Benefits Insurance Company Ajhambra International Center,256 Alhambra Circle,Suite 333 Coral Gable*FL 93134 (305)446-6604 (800)242-9292 FAX:(305)448-8250 FORTIS1 Group Name:CityofSouth Miami Effective Date:03/01/2000 LONG-TERMDISABILITY Presented by:Suaan Perry Redding,CLU,ChFC Quote Expires;10/27/198$-*2-0&(3 Description Monthly Benefit Maximum Minimum Elimination Period Maximum Benefit Duration Dual Definition of Diaability Own Occupation Teat or Earnings Test Benefit Integration Pre-ExistingCondition At Issue New Entrants Quality of Care Benefit Rehabilitation Benefit Survivor Benefit LpNQ'TERM DISABILITY INSURANCE SCHEDULE Full-time employees 60%ofcoveredearnings $8,000 $100 3 month);Zero day residual Social Security Normal Retirement Age (SSNRA) Unlimited partial disability 24 months;then Social Security Qualified 80%;indexed at 7.6% Full Family Direct 3/3/12 3/3/12 Yes Managed 3 months Rate (pbr nop o«monthly payroll)Covered Monthly Payroll MONTHLYfREMIUM, $3,677.76 ELK3IfiLE:EMPLOYEE8 0.80 Guarantee Issue Rate Guarantee Contributions Participation Requirement Alcohol,Drug/Chemical. Mental Illness Group Narrg^'of Scutti Miami 459,722 $8,000 iSmontha 100%employer;0%employee 100%minimum participation required 12 monthsSpecial Conditions !52 •©ik siijGsaa snaoj wd30:Z0 fi^s^ysjr, ^ Fortis Benefits Insurance Company Alhambra International Center,266 Alhanbra Circle,Suite 333 Coral Gables,FL 33134 0O5}446-55O4 000)242-9292 PAX:(305)448-8250 ..•-!U FORTIS' LIFE Group Name:CityofSouth Miami Effective Date:03/01/2000 Presented by:Suaan Perry Redding,CLU,ChFC Quote Expires:10/27/1999 LIFE AND ACCIDENTAL DEATH &DISMEMBERMENT (AD4D)INSURANCE 8CHE0ULE Description Full-time employees Guarantee lasue Contributions Participation Requirement Rounding Age Reductions LIFE AD&D TOTAL Life Amount 1x earnings Life Maximum $50,000 AD&D Amount 1x earnings AD&D Maximum $50,000 Thelesserof$50,000andthe current life carrier Guarantee Issue amount Employer100% Employee0% 100%minimum participation required Multiples of earnings are rounded to the next higher $1,000,if not already an exact multiple of $1,000. At age 85,redLce by 33%ofthe original sciedule amount;at age 70,reduce by 33%of the In force amount. Rate 0.28 0.03 PROPOSEDPLANRATES Total Volume Monthly Premium Number of Employees 5,323,000 $1,490.44 152 5,323,000 $159.69 $1,660.13 152 Rates are guaranteed for15 months. Group ^ai^J.cCity of South Miami •tflW S1IJ3N3S SlliJOJ Wdi£:98 00/92 Nyf*1'6'*2 ^ Fortis Benefits Insurance Company Alhambra International Center,255 Alhanbra Circle,Suite 333 Coral Gables,Fl 33134 (305)446-5504 000)242-9292 FAX:(305)448-8250 FORTIS" LIFE Group Name:City of South Miami Effective Date:03/01/2000 Presented by:Susan Perry Redding,CLU,ChFC 2.00D Quote Expires:10/27/1899 LIFE AND ACCIDENTAL PBATH &DISMEMBERMENT (AD&D).INSURANCESCH^OUUT Description Full-time employees Guarantee Issue Contributions Participation Requirement Rounding Age Reductions LIFE AD&D TOTAL Life Amount 1x earnings Life Maximum $50,000 AD&D Amount 1x earnings AD&D Maximum $50,000 Thelesserof $50,000 andthe current life carrier Guarantee Issue amount Employer100% Employee0% 100%minimum participation required Multiples of earnings are rounded to the next higher 51,000,If not already an exact multiple of $1,000. At age 65,redLce by 33%of the original schedule amount;at age 70,reduce by 33%of the In force amount. Rate 0.28 0.03 PROP08ED PLANRATES Total Volume Monthly Premium Number of Employees 5,323,000 $1,490.44 152 5,323.000 $159.69 $1,650.13 152 Rates are guaranteed for15 months. Group VAiS-.cOity of South Miami 'UIW S1IJ3.M33 SI ISOJ WdZS:90 00,92 Nyf*1'**2 -u i.•_••;—_;rr uiiuilrKU'JtLttu'S hl_H '35-4 335 6060 TO 913u56o7249S P.02/04 Unum* Protecting everything you work for .'numProvident ^ORPORATION" 211 Congress Street, ortland.ME 04122 rouncain Square, "hactanoosa,T\"37402 "wv-.ununi.com '»»y.-.s.«,r»»j«.tCofp.w»hoo •;•«!*•:he IrjAchOiie i.jgo.i.-.J <»!or'-its rcfjjKred .fi-j.n.ijl..,r •-'"f'finijffil Cor?Of«l«in. Ilgfcti frifrvjj. iong Term Disability Long Term Disability Benefits &Cost Summary 02/01/2000 Y Prepared for:The City ofMiami Submitted by:Susan Redding SSP30 hoS SJem °My «""«****•*«*•MWn.empIoyees Number of Eligible Employees:15 i MonthlyBenefitAmount: £^A:40%of basic monthly earnings to amaximum benefit of SiO.OOO per month.^50°/0 0f baSiC m0Qthly ear<^to amaximum benefit of $10,000 per £LA£LC:60%of basic monthly earnings to month.a a maximum benefit of $10,000 per 90Days 2 Year Own Occupation including Zero-Day Residual.y Primary and Family To age 65/70 *ADEA Compliance Elimination Period: Definition of Disability: Social Security Integration: Duration of Benefits: Total Monthly Covered Payroll: Rate as %of Covered Payroll: TotalMonthly Cost: RATE GUARANTEE: PLANA $470,944 PLANB $470,944 PLANC $470,944 .55 .67 .81 S2.590.19 $3,155.32 $3,814.65 TWO YEARS