Res No 181-16-14736RESOLUTION NO.181-16-14736
A Resolution authorizing the City Manager to purchase life insurance,accidental death &
dismemberment insurance (AD&D)andlong term disability insurance benefits from
Mutual of Omaha for the City of South Miamifull time employees and participating
retirees.
WHEREAS,the Benefits Consultant,Brown&BrownofFlorida secured two competitive quotes for the
City'sGroup Life insurance,AD&D and Long Term Disability and staff recommends Mutual ofOmahaasthe
selected Life insurance,AD&DandLongTerm Disability Insuranceprovider;and.
WHEREAS,Citystaffcomparedtheinsuranceratesfor Life insurance,AD&DandLongTerm Disability
plan,aswellas the City's previous claimsratio;and
WHEREAS,the CityCommissionwishestoapprovetheselectionofMutualofOmahaforthe
provisionof Life insurance,AD&DandLongTerm Disability insurancebenefitsforall full timeemployeesand
participating retirees.
WHEREAS,the premium charges shallbecharged to departmental lineitemsin their respective account
numbers.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI,FLORIDA THAT:
Section I.TheCityCommissionhereby authorizes the CityManager to execute the Life insurance,
AD&DandLongTerm Disability policywith Mutual ofOmahafor full timeemployeesand retirees forthe 2016-
2017 Fiscal Year.
Section 2.This resolution shalltakeeffectimmediatelyuponadoption.
PASSED AND ADOPTED this 20 day of Sept,.2016.
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM,
LANGUAGE,L^LITY)
EREOF:
CITY ATTORNEY
APPROVED:
COMMISSION VOTE:5-0
Mayor Stoddard:Yea
ViceMayor Welsh:Yea
Commissioner Edmond:Yea
Commissioner Harris:Yea
Commissioner Liebman:Yea
Soutn1 Miami
THE CITY OF PLEASANT LIVING
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
To:The Honorable Mayor &Members of the City Commission
From:Steven Alexander,City Manager
Date:September 20,2016 Agenda Item No.:
Subject:
Background:
RECOMMENDED ACTION:
AMOUNT:
Account:
Attachments:
A Resolution authorizing the City Manager to purchase Life Insurance,
Accidental Death and Dismemberment Insurance (AD&D)and Long Term
Disability Insurance benefits from Mutual of Omaha for the City of South
Miami full time employees.
Typically,costs are expected to raise 10%each year and based on that industry
forecast the City budgeted foran increase of 10%to allow for proper
assumptions in this regard.TheCity's benefits consultant,Brown &Brown of
Florida,Inc.per Resolution 137-16-14692,solicited quotes for the employees
Life Insurance,AD&D and Long Term Disability Insurance coverage for South
Miamifull time employees for the Plan Year 2016-2017.Lincoln,the City's
current insurance carrier,first proposed renewal rate represented 8%increase.
After intense negotiations with Mutual of Omaha,the final renewal rate is 7%
less than last year's premium amount.
TheCitywillcontinueto provide life insurance for1 time annual salary uptoa
maximumof$75,000andLongTermDisability Insurance for60%of salary for
fulltime employees.Staff recommends the coverage under the MutualofOmaha
with a savings of7%with a significantly higher benefit percentage versus last
year's coverage (versus 40%of salary)for $30,588.The renewal is
appropriately fundedin the proposed Budget forFiscalYear 2016-2017.
Staff recommends MutualofOmahaforLife Insurance,AD&D andLongTerm
Disability Insurance asthe provider for the FY 2016-2017.TheCity contributed
$32,948.57 for FY 15/16,this amount will decrease to$30,588 under the
proposed Mutual of Omaha Plan.
$30,588.
FiscalYear 2016/2017 Budget.
Proposed resolution
2016/2017 BenefitsRenewal Summary fromBrown&Brown Insurance.
October2016LifeandLongTermDisabilityComparisonforCityofSouth Miami
LIFE&AD&D
Carrier ^^^^^^^BWnTwSTn^^^^^^^B ^^BmTnff^TVSTxSfitlTsC^^H
Life Benefit
Classl:Ail Full Time Employees 1x Earnings to $75,000 1x Earnings to $75,000
Class 2:AllFullTimeCity Managers 2x Earnings to $320,000 2x Earnings to $320,000
Guarantee Issue
Classl:AllFull Time Employees $75,000 $75,000
Class 2:AllFull Time City Managers $320,000 $320,000
Reduction Formula
At Age 65 by 35%to 65%
At Age 70 by additional 15%to 50%
Participation Requirements 100%100%
Rate Guarantee (months)
Covered Volume
12 Months
$7,500,000
24 Months
$7,500,000
Life Rate per $1,000 $0,190 $0,160
AD&D Rate per $1,000 $0,020 $0,020
Monthly Premium $1,500.00 $1,350.00
Annual Premium $18,000.00 $16,200.00
%Change in Annual Premium -10%
LONG TERM DISABILITY
Carrier •Lincoln •
Class Defined All Full Time Employees AllFull Time Employees
Benefit %40%60%
Maximum Monthly Benefit $6,000 $6,000
Definition of Disabilty (own occ)24 Months 24 Months
Elimination Period 90 Days 90Days
Maximum Benefit Period SSNRA RBD to SSNRA
Pre-existing Condition Limitation 3/12 3/12
Mental &Nervous 24 Months 24 Months
Survivor Income 3 Month 3 Month
Participation Requirement 100%100%
Rate Guarantee (months)
Covered Volume
12 Months 24 Months
$545,000$545,000
LTD Rate per $100 Monthly Benefit $0,240 $0,220
Monthly Premium $1,245.71 $1,199.00
Annual Premium $14,948.57 $14,388.00
%Change in Annual Premium -4%
TOTAL FINANCIAL SUMMARY
TOTAL MONTHLY PREMIUM $2,745.71 $2,549.00
TOTAL ANNUAL PREMIUM $32,948.57 $30,588.00
%Change in Total Annual Premium -7%
Rates shown are based on oensus data provided.Final rates are subject to underwriting and actual enroDment
This comparison isfor BhistrauVe purposes only The full poOcyand certificate of coverage wffl supersede any
and all materials provided herein.Page1 ol 1