12THE CITY OF PLEASANT LIVING
To:
FROM:
DATE:
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
The Honorable Mayor & Members of the City Commission
Steven Alexander, City Manager
Agenda Item No.: /,.. August 15, 2017
, SUBJECT: A Resolution authorizing the City Manager to purchase life, accidental
death & dismemberment insurance (AD&D) and long term disability
insurance benefits from Mutual of Omaha for full time employees for
Fiscal Year 2017-2018.
Background: Typically, costs are expected to increase 10-15% each year and based
on that industry forecast, the city budgeted for an increase of 15% to
allow for proper assumptions in this regard. The City's benefits agent on
record, 'Brown & Brown of Florida, Inc. per Resolution #137-16-14692,
solicited quotes for the employee's Life Insurance, AD&D and Long Term
Disability insurance coverages for South Miami full time employees for
the Year 2017-2018 Plan. Mutual of Omaha, the City's current insurance
carrier, renewal rate represented no increase from last year. The renewal
is appropriately funded in the proposed Budget for Fiscal Year 2017-
2018.
Recommendation: Based upon the proposals received, staff recommends the City renew
with the current carrier, Mutual of Omaha.
Amount: The estimated total annual costs for the City for Life Insurance, AD&D
and Long Term Disability insurance coverages is about $32,000.
Account: Premium charges for Life Insurance, AD&D and Long Term Disability
insurances will be charged to the designated departmental budge line
items as proposed in the Fiscal Year 2017-2018 budget.
Attachments: Proposed resolution and 2017-2018 comparison.
1 RESOLUTION NO. ____ _
2 A Resolution authorizing the City Manager to purchase life, accidental death &
3 dismemberment insurance and long term disability insurance benefits from Mutual of
4 Omaha for the City of South Miami full time employees and participating retirees.
5 WHEREAS, the City, through its Agent of Record, Brown & Brown of Florida secured three competitive
6 quotes for the City's Group Life, AD&D and Long Term Disability and recommended Mutual of Omaha as the
7 selected Life, AD&D and Long Term Disability Insurance provider.
8 WHEREAS, the City, through its Agent of Record, Brown & Brown of Florida compared the insurance
9 rates, Life, AD&D and Long Term Disability plan design, provider network as well as the City's previous claims
10 experience/ratio; and
11 WHEREAS, the City Commission wishes to approve the selection of Mutual of Omaha for the provision
12 of Life, AD&D and Long Term Disability insurance benefits for all full time employees and participating retirees.
13 WHEREAS, the premium shall be charged to departmental line items in their respective account
14 numbers.
15 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
16 THE CITY OF SOUTH MIAMI, FLORIDA THAT:
17 Section I. The City Commission hereby authorizes the City Manager to execute the Life, AD&D and
18 Long Term Disability policy with Mutual of Omaha for full time employees and retirees for the 2017-
19 2018 Fiscal Year.
20 Section 2. This resolution shall take effect immediately upon adoption.
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PASSED AND ADOPTED this __ day of ____ " 2017.
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM,
LANGUAGE, LEGALITY AND
EXECUTION THEREOF:
CITY ATTORNEY
APPROVED:
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Welsh:
Commissioner Harris:
Commissioner Liebman:
Commissioner Edmond
October 2017 Basic Life and Long-Term Disability Comparison for City of South Miami
LIFE & AD&D
Carrier
LONG TERM DISABILITY
Carrier
Until 9/30/2018
Current
$6,710,550
$0.160
$0.020
$1,207.90
$14,494.79
Mutual of Omaha
All Full-Time Employees Actively at Work Full-Time
$6,000
60%
90 Days
SSNRA
3/12
24 Months
3 Months
24 Months
Included
Non-Contributory
100%
Until 9/30/2018
Current
$592,144
.$0.240
$1,421.15
$17,053.75
TOTAL FINANCIAL SUMMARY
TOTAL ANNUAL PREMIUM
TOTAL % Change
TOTAL $ Change
Rates shown are based on census data provided. Final rates are subject to underwtnlng and actual enrollment.
This comparison Is for illustrative purposes only. The futrpollcy and certificate of coverage will supersede any
and all materlals provided herein.
Guardian
Page 2 of 11
October 2017 Basic Life and Long-Term Disability Comparison for City of South Miami
LIFE & AD&D
Carrier
LONG TERM DISABILITY
Carrier
)
to 65%
Until 9/30/2018
Current
$6,710,550
$0.160
$0.020
$1,207.90
$14,494.79
Mutual of Omaha The Hartford
All FUll-Time Employees Actively at Work
$6,000
60%
90 Days
SSNRA
3/12
24 Months
3 Months
24 Months
Included
Non-Contributory
100%
Until 9/30/2018
Current
$592,144
$0.240
$1,421.15
$17,053.75
TOTAL FINANCIAL SUMMARY
TOTAL ANNUAL PREMIUM
TOTAL % Change
TOTAL $ Change
Rates shown are based on census data provided. Final rates are subject to underwriilng and actual enrollment.
This comparison Is for illustrative purposes "nly. The full policY and certificate of coverage will supersede any
aod all materials provided herein. Page30f11
October 2017 Basic Life and Long-Term Disability Comparison for City of South Miami
LIFE & AD&D
Carrier
LONG TERM DISABILITY
Carrier
Period
Until 9/30/2018
Current
$6,710,550
$0.160
$0.020
$1,207.90
$14,494.79
Mutual of Omaha
All Full-Time Employees Actively at Work
$6,000
60%
90 Days
SSNRA
3/12
24 Months
3 Months
24 Months
Included
Non-Contributory
100%
Until 9/30/2018
Current
$592,144
$0.240
$1,421.15
$17,053.75
MetLife
All Full-Time Public Safety All other Full-Time
Employees Actively at Employees Actively at
Work Work
.$6,000 ..
60%
90 Days
RBDw/SSNRA
3/12
24 Months
3 Months
None I 24 Months
SSNRA
Non-Contributory
100%
24 Months
Sold with Basic Life
$578,273
$0.489
$2,827.75
$33,933.06
98.98%
$16,879.31
TOTAL FINANCIAL SUMMARY
TOTAL ANNUAL PREMIUM
TOTAL % Change
TOTAL $ Chanae
Rates shown are based on census <lata provide<!. Final rates are subject to underWrftlng and actual enrollment.
This comparison Is for illustrative purposes only. The full policy and certificate of coverage wm superse<!eany
an<lall materials provide<! herein. Page 5 of 11
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October 2017 Basic Life and Long-Term Disability Comparison for City of South Miami
LIFE & AD&D
Carrier
LONG TERM DISABILITY
Carrier
Until 9/30./20.18
Current
$6,710.,550.
$0..160.
$0..0.20.
$1,20.7.90.
$14,494.79
Mutual of Omaha The Standard
All Full-Time Employees Actively at Work
$6,0.0.0.
60.%
90. Days
SSNRA
3/12
24 Months
3 Months
24 Months
Included
Non-Contributory
10.0.%
Until 9/30./20. 18
Current
$592,144
$0..240.
$1,421.15
$17,0.53.75
TOTALANANC~LSUMMARY
TOTAL ANNUAL PREMIUM
TOTAL % Change
TOTAL $ Change
• Rates shown are based on census data provided. Final rates are subject to underwrHlng end actual enrollment.
This comparison Is for illustrative purposes only. The full policy and certificate of coverage wID supersede any
and ali materials provided herein. Page8of11
October 2017 Basic Life and Long-Term Disability Comparison for City of South Miami
LIFE & AD&D
Carrier
Eligibility/Classes
Benefits
Life Benefit
AD&D Benefit
Guarantee Issue
Reduction Formula
At Age 65
AtAge 70
Other
Additional Benefits
Accelerated Benefit
Waiver of Premium
Conversion
Portabilitv
Contribution Type
Participation Requirements
Rate Guarantee (months) Until 9/30/2018
Rates Current
Covered Volume $6,710,550
Life Rate per $1,000 $0.160
AD&D Rate per $1,000 $0.020
Monthlv Premium $1,207.90
Total Annual Life/AD&D Premium $14,494.79
0/0 Change in Total Annual Premium
$ Channe in Total Annual Premium
LONG TERM DISABILITY
Carrier Mutual of Omaha
All Full-Time Employees Actively at Work
$6,000
60%
90 Days
SSNRA
3/12
24 Months
3 Months
24 Months
Included
Non-Contributorv
100%
Until 9/30/2018
Current
$592,144
$0.240
$1,421.15
$17,053.75
TOTAL FINANCIAL SUMMARY
TOTAL ANNUAL PREMIUM
TOTAL % Change
TOTAL $ Change
Rates !'hown are based on census datl' provided. Final rates are subject to underwriting and actual enrollment.
This comparison Is for Illustrative purposes only. The full policy and certificate of coverage will supersede any
. and all materials provided herein.
Sun Life
at Work
Page 9 of 1.1
October 2017 Basic Life and Long-Term Disability Comparison for City of South Miami
LIFE & AD&D
Carrier
to 65%
Until 9/30/2018
Current
$6,710,550
$0.160
$0.020
$1,207:90
$14,494.79
to 65%
LONG TERM DISABILITY
Carrier Mutual of Omaha United Healthcare
All Full-Time Employees Actively at Work
$6,000
60%
90 Days
SSNRA
3/12
24 Months
3 Months
Period 24 Months
Included
Non-Contributory
100%
Until 9/30/2018
Current
$592,144
$0.240
$1,421.15
$17,053.75
TOTAL FINANCIAL SUMMARY
TOTAL ANNUAL PREMIUM
TOTAL % Change
TOTAL $ Chanae
• Rates shown are based on census data provided. Final rates are subject to underwrijlng and actual enrollment.
This comparison Is for illustrative purposes only. The full policy and certificate of coverage will supersede any
and all materials provided herein.
7.15%
Page 11 of 11
October 2017 Basic Life and Long-Term Disability Comparison for City of South Miami
LIFE & AD&D
Carrier
LONG TERM DISABILITY
Carrier
to 65%
Until 9/30/2018
Current
$6,710,550 .
$0.160.
$0.020
$1,207.90
$14,494.79
Mutual of Omaha
All Full-Time Employees Actively at Work
$6,000
60%
90 Days
SSNRA
3/12
24 Months
3 Months
24 Months
Included
Non-Contributory
100%
Until 9/30/2018
Current
$592,144
$0.240
$1,421.15
$17,053.75
TOTAL FINANCIAL SUMMARY
TOTAL ANNUAL PREMIUM
TOTAL % Change
TOTAL $ Chanqe
• Rates shown are based on census "ata provided. Final rates are subject to underWrnlng an" actual enrollment.
TlIIs comparison Is for illustrative purposes only. The full policy an" certificate of coveraga win supersede any
an" all materials provided herein.
35%
Prudential
Page 7 of 11