Res No 161-18-15194RESOLUTION NO. 161-18-15194
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 2018-2019.
WHEREAS, the Benefits Consultant, Brown and Brown of Florida recommended Mutual of
Omaha as the selected Life, AD&D, and Long-Term Disability Insurance provider; and
WHEREAS, the City's Agent of Record, Brown and Brown of Florida, compared the
insurance rates, benefits plan design, provider network, as well as the City's previous claims
experience/ratio; and
WHEREAS, the City Commission wishes to approve the selection of Mutual of
Omaha for the provision of Life, AD&D, and Long-Term Disability insurance benefits for all full-
time employees and participating retirees; and
WHEREAS, the premium shall be charged to departmental line items in 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. The City Commission hereby authorized the City Manager to execute the Life, AD&D, and
Long-Term disability policy with Mutual of Omaha for the City of South Miami full time employees and
participating retirees for the 2018-2019.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this 4th day of September, 2018.
ATTEST:
MAYOR
COMMISSION VOTE: 5-0
Mayor Stoddard: Yea
Vice Mayor Harris: Yea
Commissioner Welsh: Yea
Commissioner Liebman: Yea
Commissioner Gil: Yea
City Commission Agenda Item Report
Meeting Date: September 4,2018
Submitted by: Samantha Fraga-Lopez
Submitting Department: Human Resources
Item Type: Resolution
Agenda Section: CONSENT AGENDA
Subject:
Agenda nem No:6.
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 2018-2019.315 (City Manager-Human Resources)
Suggested Action:
Attachments:
Memo_Life_ADD_Long Term.docx
Comparison_Life.VoILife STD LTD Vol LTD_2018_City of South MiamiJinalSold.pdf
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souihfJiami CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM THE (lTY OF PlJASANT LIVING
To:
FROM:
DATE:
SUBJECT:
BACKGROUND:
The Honorable Mayor & Members of the City Commission
Steven Alexander, City Manager
September 4, 2018 Agenda Item No.: __
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 2018-2019.
The City's Benefit Consultant, Brown and Brown of Florida, Inc., solicited
quotes for the employee's Life Insurance, AD&D, and Long-Term Disability
Insurance coverages for South Miami full-time employees for the Fiscal
Year 2018-2019 Plan. Mutual of Omaha, the City's current insurance
carrier, provided a renewal rate with a 0% increase for Life Insurance and
AD&D, and a total increase of $2,945 for the 2018 -2019 calendar year for
long term disability. The renewal is appropriately funded in the proposed
budget for Fiscal Year 2018-2019.
RECOMMENDATION: Based upon the proposals received, Brown and Brown recommend the City
renew with the current carrier, Mutual of Omaha.
AMOUNT:
ACCOUNT:
ATTACHMENTS:
The estimated total annual costs paid by the City for Life Insurance, AD&D,
and Long-Term Disability insurance coverages is about $35,000 based on
today's personnel.
Premium charges for Life Insurance, AD&D, and Long-Term Disability
insurance will be charged to the designated departmental budget line
items as proposed in the Fiscal Year 2018-2019 budget.
Proposed resolution
2018-2019 Comparison
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October 2017 Basic Life and Long-Term Disability Comparison for City of South Miami
LIFE & AD&D
Carner
Elinibilitv/Classes
Benefits
Ufe Benefit
AO&D Benefit
Guarantee Issue
Reduction Formula
AtAge 65
AtAoe 70
Additional Benefits
Acceferafed Benefit 80% to
Waiver of Premium
Conversion
Poriab;1itV
Contribution TvOe
ParticiDation Rem.irements
Rate Guarantee (months)
Rates Current
Covered Volume $6,928,250
Ufe Rate per $1,000 $0.160
AD&D Rate Der $1,000 $0.020
Monthlv Premium $1,247.09
Total Annual LifefAD&D Premium $14,965.02
% Change in Total Annual Premium
$ Channe in Total Annual Premium
LONG TERM DISABILITY
Carner Mutual of Omaha
80% to
to 65%
80%
24
Renewal
$6,928,250
$0.160
$0.020
$1,247.09
$14,96502
0.0%
$0.00
Mutual of Omaha
All Full-Time EriiDiOVees ActlveiV at Work All Full-Time ErT1PiOVees ActivelYat Work
$6,000
60%
90 Days
SSNRA
3/12
24 Months
3 Months
24 Months
Non-Contributorv
100%
Until 9/30/2018
Current
$613,529
$0.220
$1,349.76
$16,19717
$6,000
60%
90 Days
SSNRA
3/12
24 Months
3 Months
24 Months
Non-Contributorv
100%
24 Months
Current
$613,529
$0.260
$1,595.18
$19,142.10
18.2%
$2,944.94
TOTAL FINANCIAL SUMMARY ~~ TOTAL ANNUAL PREMIUM
TOTAL % Change
TOTAL $ Chanae
Rates sht>wn are b.as".t! all CMSUS dElla prOl'ki,;-1j Final rales are subJec-llo uIl(Ierwn11ng aM acfual enronment
This e\}mp~liSQn is fOI H;ijstratrv<l purposes onl)'. The full petey Bmj certinctlte IJ[ co"erllg:e wiil supersede ally
anlj ~11 m~terlDls pro\'lde(j herein
9.5%
$2,944.94
?agB 1 of 1
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