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Res No 095-21-15715RESOLUTION NO.095-21-15715 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 2021-2022. WHEREAS, the City's Agent of Record, Brown and Brown of Florida, with coordination of City Staff solicited more than three quotes and compared the insurance rates, benefits plan design, provider network, as well as the City's previous claims experience/ratio; and WHEREAS, the City Staff wishes to recommend 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 1. The foregoing recitals are hereby ratified and confirmed as being true and they are incorporated into this resolution by reference as if set forth in full herein. Section 2. 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 2021-2022. Section 3. Corrections. Conforming language or technical scrivener -type corrections may be made by the City Attorney for any conforming amendments to be incorporated into the final resolution for signature. Section 4. Severability. If any section clause, sentence, or phrase of this resolution is for any reason held invalid or unconstitutional by a court of competent jurisdiction, the holding shall not affect the validity of the remaining portions of this resolution. Section 5. Effective Date. This resolution shall become effective immediately upon adoption. PASSED AND ADOPTED this 17`h day of August, 2021. ATTEST: APPROVED: / CITY CLERK AYOR READ AND APPROVED AS TO FORM, COMMISSION VOTE: LANGUAGE, LEGALITY AND EXECUT N THE E� CITY ATTORNEY Mayor Philips: Commissioner Corey: Commissioner Harris: Commissioner Liebman: Commissioner Gil: 5-0 Yea Yea Yea Yea Yea Agenda Item No:6. City Commission Agenda item Report Meeting Date: August 17, 2021 Submitted by: Samantha Fraga-Lopez Submitting Department: Human Resources Rem Type: Resolution Agenda Section: 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 2021-2022. 3/5 (City Manager) Suggested Action: Attachments: 21-22 Memo —Life —ADD —Long Term.docx 21-22 Reso_Life ADD_Long Term.docx Life- Long Term & AD&D Comparison.pdf CITY OF SOUTH MIAMI South Miami OFFICE OF THE CITY MANAGER THE CITY OF PLEASANT LIVING INTER -OFFICE MEMORANDUM To: The Honorable Mayor & Members of the City Commission FROM: Shari Kamali, City Manager VIA: Samantha Fraga-Lopez, Assistant City Manager DATE: August 17, 2021 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 2021-2022. BACKGROUND: The City's Benefit Consultant, Brown and Brown of Florida, Inc., solicited more than three 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 2021-2022 Plan. Mutual of Omaha, the City's current insurance carrier, provided the best coverage and a renewal rate with a 0% increase for Life Insurance and Accidental Death and Dismemberment Coverage and a $2,646.64 annual increase for Long -Term Disability coverage. The renewal is appropriately funded in the proposed budget for Fiscal Year 2021-2022. RECOMMENDATION: Based upon the proposals received, the City staff recommends the renew with the current carrier, Mutual of Omaha. AMOUNT: The estimated total annual costs paid by the City for Life Insurance, AD&D, and Long -Term Disability insurance coverages is $33,696.64 based on today's personnel. ACCOUNT: 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 2021-2022 budget. ATTACHMENTS: Proposed resolution Rate Comparisons Comparison 2 October 2021 Basic Life and Long -Term Disability Comparison for City of South Miami TOTAL ANNUAL PREMIUM TOTAL % Change All R&Time Cily •All other FUIFTIme Managers Actively at Employees Actively in Work Work 2x Salary to $320,000 Is Salary to $75,000 2x Sala to $320,000 Is Sala to $75.000 $320.000 $75,000 to 65% to 50% 80% to $256,000 I 80% to $60,000 Included Included Not Included Noo-Contributo 100% 24 months $6.410,350 $0.150 $0.020 $1,153.86 $13.846.36 AII Full -Time City All other Full -Time Managers Actively at Employees Actively at I Work Work 2x Salary to $320,000 ix Salary to $75,000 2x Sala to $320.000 I.Salaryto$75.000 5320,000 $75,000 to 65 % 10 50% 75% to $240,000 I 75% to 556,250 Included Included Included Non,Contributorte 100% 24 Months $6.410.350 $0.155 $0.020 $1,121.a' it 461.74 0.0% 9.4 % .2.8% $0.00 515.154.05-$384.62 $2.646.64 $33,696.14 ash Declined to Door. $15,154.07 R.hn ah—n era baa un .—date pn ydad riot r t. are..bP0 W nMerwrlhy erJ etlual enruFenl rne.mrP.,von h I., Web.fn. n„lw mn The Put posy sad er w...eae Wit-11a.d...y .M.1 mehrxh pmr.led h.ren Standard F., lull 5 October 2021 Basic Life and Long -Term Disability Comparison for City of South Miami 7 Eli iblll! /Classes Benefits 7 Maximum Monthly Benefit Benefit %7� Nat Quated Not Quated Elimination Period Maximum Benefit Period Pre-existing Condition Limitation Mental 6 Nervous Survtvor Income Definition of Dlsablity Own Occupation Coverage Period Contribution Type Participation Requirement Rate Guarantee (months) Covered Volume LTD Rate per $100 Monthly8enerit Monthly Premium Total Annual LTD Premium 7" Not Quoted Not Quoted S Change in Annual Premium TOTAL FINANCIAL SUMMARY TOTAL ANNUAL PREMIUM TOTAL % Change Rates shown are based on census data provided Final rates are subpd to underwrtng and actual ennDbnent This comparison is for Oustrative purposes only. The hull policy and certificate of coverage wd supersede any 9 and all materials provided herein tlnitedHealthcare Page 2 of 2