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Res No 096-22-15849RESOLUTION NO. 096 -22 -15849 A Resolution authoriz ing the City Manager to purchase life, accidental death & d ismemb e rment ins u rance (AD&D), and long-term d isability in sura nce benefits from M u tual of Omaha for full-time employees for Fiscal Year 2022- 2023. WHEREAS, th e C ity 's Agent of Record, Brown a nd Brown of F lorida, w it h coord inat ion of Ci ty Staff so li cited more than three quote s and compared the ins urance rates, benefi ts plan design, prov ider network, as we ll as t he C ity 's previous c laims experience/ratio; and WHEREAS, t he City Staff wis hes to recommend the se lection of Mutua l of Omaha for t he provision of Life, AD&D, and Long-Term Disability insurance benefits for all fu ll-time emp loyees; and WHEREAS, the prem ium shal l be charged to depa rtmenta l line item s 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 fo rego in g recital s are hereby ratified and confirmed as being true and the y are incorporated into this re so lution by reference as if set fort h in fu ll here in. Section 2. The City Com m ission hereby a uthorized the City Manager to execute the Life, AD&D, and Long-Term disabi li ty po li cy w ith Mutua l of Omaha fo r the City of South Miami full t ime employees and participat ing retirees for the 2022-2023. Section 3. Corrections. Conformi ng language or technica l scr ivener-type correct ions may be made by the City Attorney for any conforming amendm e nts to be incorporated into t he final reso lut ion for s ignat ure. Section 4. Severability. If any sec tion c lause , sentence, or phrase of th is reso lution is for any reason he ld in va lid or unconstitut iona l by a co urt of competent juris diction , the hold ing sha ll not affect the va li dity of th e remaining portion s of this reso lution. Section 5 . Effective Date. Th is resolution s ha ll become effective immediately upon adoptio n. PASSED AND ADOPTED th is 16th day of August, 2022. ATTEST : LI\ LER~ APPROVED: , • ~~/ Page 1 of2 Res. No . 096-22-15849 REA D AND APPROVED AS TO FORM , LANGUAGE, LEGALITY AND EXECUTIO;:,~ C l~~ COMM ISSION VOT E: Mayo r Ph i lips : Commissioner Corey: Com mi ss ioner Harri s : Commiss ioner Li eb man: Commissioner Gil: Page 2 of 2 5-0 Yea Yea Yea Yea Yea Agenda Item No:3. City Commission Agenda Item Report Meeting Date: August 16, 2022 Submitted by: Samantha Fraga-Lopez Submitting Department: City Manager Item 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 2022-2023. 3/5 (City Manager) Suggested Action: Attachments: 22-23 Memo_Life_ADD_Long Term.docx 22-23 Reso_Life_ADD_Long Term.docx Comparison_Life_2022_CSM.pdf 1 CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER 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 16, 2022 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 2022-2023. 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 2022-2023Plan. 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 0% annual increase for Long-Term Disability coverage. The renewal is appropriately funded in the proposed budget for Fiscal Year 2022-2023. 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 $37,754.64 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 2022-2023 budget. ATTACHMENTS: Proposed resolution Rate Comparisons Comparison 2 THE CITY OF PLEASANT LIVING October 2022 Basic Life and Long-Term Disability Comparison for City of South Miami LIFE & AD&D Carrier Eligibility/Classes All Full-Time City Managers Actively at Work All other Full-Time Employees Actively at Work All Full-Time City Managers Actively at Work All other Full-Time Employees Actively at Work Benefits Life Benefit 2x Salary to $320,000 1x Salary to $75,000 2x Salary to $320,000 1x Salary to $75,000 AD&D Benefit 2x Salary to $320,000 1x Salary to $75,000 2x Salary to $320,000 1x Salary to $75,000 Guarantee Issue $320,000 $75,000 $320,000 $75,000 Reduction Formula At Age 65 At Age 70 Additional Benefits Accelerated Benefit 80% to $256,000 80% to $60,000 80% to $256,000 80% to $60,000 Waiver of Premium Conversion Portability Contribution Type Participation Requirements Rate Guarantee (months) Rates Covered Volume Life Rate per $1,000 AD&D Rate per $1,000 Monthly Premium Total Annual Life/AD&D Premium % Change in Total Annual Premium $ Change in Total Annual Premium LONG TERM DISABILITY Carrier Eligibility/Classes Benefits Maximum Monthly Benefit Benefit % Elimination Period Maximum Benefit Period Pre-existing Condition Limitation Mental & Nervous Survivor Income Definition of Disabilty Own Occupation Coverage Period Contribution Type Participation Requirement Rate Guarantee (months) Rates Covered Volume LTD Rate per $100 Monthly Benefit Monthly Premium Total Annual LTD Premium % Change in Annual Premium $ Change in Annual Premium TOTAL FINANCIAL SUMMARY TOTAL ANNUAL PREMIUM TOTAL % Change Declined to Quote Cigna Declined to Quote Cigna Florida Blue Not Quoted 83.7% $69,349.50 116.7% $26,613.97 Florida Blue Not Quoted All Full-Time Employees Actively at Work $4,118.83 $49,425.95 Mutual of Omaha $6,917,900 $0.160 $6,917,900 $0.210 to 65% to 50% Non-Contributory Included Not Included Included 90 Days $14,942.66 Current 100% Expires 9/31/2023 $1,245.22 60% Mutual of Omaha All Full-Time Employees Actively at Work $6,000 $0.020 SSNRA 3/12 24 Months 3 Months $22,811.98 $37,754.64 Non-Contributory $1,901.00 24 Months $633,666 $0.300 100% Current Expires 9/30/2023 $0.030 $1,660.30 Standard to 65% to 50% Included Included Included Non-Contributory 100% 24 Months $19,923.55 Standard 33.3% $4,980.89 $0.650 24 Months $633,666 $6,000 60% 90 Days SSNRA 3/12 100% 24 Months 3 Months 24 Months Non-Contributory Page 1 of 8 5 ~ ~ ~ ~ Rale.s shown are based on census data provided. Fi"la l rales are subject to underwritiig and actual enrolment. This cor11>arison is for iluslrative purposes onty. The fu l policy and certifrcete of coverage will supersede any and an malerials provided herein . October 2022 Basic Life and Long-Term Disability Comparison for City of South Miami LIFE & AD&D Carrier Eligibility/Classes All Full-Time City Managers Actively at Work All other Full-Time Employees Actively at Work Benefits Life Benefit 2x Salary to $320,000 1x Salary to $75,000 AD&D Benefit 2x Salary to $320,000 1x Salary to $75,000 Guarantee Issue $320,000 $75,000 Reduction Formula At Age 65 At Age 70 Additional Benefits Accelerated Benefit 80% to $256,000 80% to $60,000 Waiver of Premium Conversion Portability Contribution Type Participation Requirements Rate Guarantee (months) Rates Covered Volume Life Rate per $1,000 AD&D Rate per $1,000 Monthly Premium Total Annual Life/AD&D Premium % Change in Total Annual Premium $ Change in Total Annual Premium LONG TERM DISABILITY Carrier Eligibility/Classes Benefits Maximum Monthly Benefit Benefit % Elimination Period Maximum Benefit Period Pre-existing Condition Limitation Mental & Nervous Survivor Income Definition of Disabilty Own Occupation Coverage Period Contribution Type Participation Requirement Rate Guarantee (months) Rates Covered Volume LTD Rate per $100 Monthly Benefit Monthly Premium Total Annual LTD Premium % Change in Annual Premium $ Change in Annual Premium TOTAL FINANCIAL SUMMARY TOTAL ANNUAL PREMIUM TOTAL % Change Mutual of Omaha $6,917,900 $0.160 to 65% to 50% Non-Contributory Included Not Included Included 90 Days $14,942.66 Current 100% Expires 9/31/2023 $1,245.22 60% Mutual of Omaha All Full-Time Employees Actively at Work $6,000 $0.020 SSNRA 3/12 24 Months 3 Months $22,811.98 $37,754.64 Non-Contributory $1,901.00 24 Months $633,666 $0.300 100% Current Expires 9/30/2023 MetLife Not Quoted MetLife Not Quoted Lincoln Declined to Quote Lincoln Declined to Quote Declined to Quote Guardian Declined to Quote Guardian Humana Not Quoted Humana Not Quoted Page 2 of 8 6 ~ ~ ~ ~ ~ Rale.s shown are based on census data provided. Fi"la l rales are subject to underwritiig and actual enrolment. This cor11>arison is for iluslrative purposes onty. The fu l policy and certifrcete of coverage will supersede any and an malerials provided herein . October 2022 Basic Life and Long-Term Disability Comparison for City of South Miami LIFE & AD&D Carrier Eligibility/Classes All Full-Time City Managers Actively at Work All other Full-Time Employees Actively at Work Benefits Life Benefit 2x Salary to $320,000 1x Salary to $75,000 AD&D Benefit 2x Salary to $320,000 1x Salary to $75,000 Guarantee Issue $320,000 $75,000 Reduction Formula At Age 65 At Age 70 Additional Benefits Accelerated Benefit 80% to $256,000 80% to $60,000 Waiver of Premium Conversion Portability Contribution Type Participation Requirements Rate Guarantee (months) Rates Covered Volume Life Rate per $1,000 AD&D Rate per $1,000 Monthly Premium Total Annual Life/AD&D Premium % Change in Total Annual Premium $ Change in Total Annual Premium LONG TERM DISABILITY Carrier Eligibility/Classes Benefits Maximum Monthly Benefit Benefit % Elimination Period Maximum Benefit Period Pre-existing Condition Limitation Mental & Nervous Survivor Income Definition of Disabilty Own Occupation Coverage Period Contribution Type Participation Requirement Rate Guarantee (months) Rates Covered Volume LTD Rate per $100 Monthly Benefit Monthly Premium Total Annual LTD Premium % Change in Annual Premium $ Change in Annual Premium TOTAL FINANCIAL SUMMARY TOTAL ANNUAL PREMIUM TOTAL % Change Mutual of Omaha $6,917,900 $0.160 to 65% to 50% Non-Contributory Included Not Included Included 90 Days $14,942.66 Current 100% Expires 9/31/2023 $1,245.22 60% Mutual of Omaha All Full-Time Employees Actively at Work $6,000 $0.020 SSNRA 3/12 24 Months 3 Months $22,811.98 $37,754.64 Non-Contributory $1,901.00 24 Months $633,666 $0.300 100% Current Expires 9/30/2023 UnitedHealthcare Not Quoted UnitedHealthcare Not Quoted Page 3 of 8 7 ~ ~ Rale.s shown are based on census data provided. Fi"la l rales are subject to underwritiig and actual enrolment. This cor11>arison is for iluslrative purposes onty. The fu l policy and certifrcete of coverage will supersede any and an malerials provided herein . October 2022 Voluntary Life Insurance Comparison for City of South Miami Carrier Class Benefit Descriptions Employee Spouse Children Guarantee Issue Amount Reduction Schedule Age 65 Age 70 Additional Benefits Accelerated Benefit Waiver of Premium Conversion Portability Minimum participation Rate Guarantee in months Rates per $1,000 Employee Spouse (rates based on employee's age)Employee Spouse Employee Spouse Employee Spouse Under 25 $0.070 $0.070 $0.070 $0.070 25-29 $0.070 $0.070 $0.070 $0.070 30-34 $0.080 $0.080 $0.080 $0.080 35-39 $0.110 $0.110 $0.110 $0.110 40-44 $0.190 $0.190 $0.190 $0.190 45-49 $0.350 $0.350 $0.350 $0.350 50-54 $0.550 $0.550 $0.550 $0.550 55-59 $0.940 $0.940 $0.940 $0.940 60-64 $1.070 $1.070 $1.070 $1.070 65-69 $2.010 $2.010 $2.010 $2.010 70-74 $3.320 N/A $3.320 $3.320 75-79 $11.020 N/A $3.320 $3.320 80+$11.020 N/A $3.320 $3.320 Child AD&D Florida Blue Not Quoted CignaStandard All Full-Time Employees Actively at Work Up to $500,000 in increments of $10,000 Up to $250,000 in increments of $5,000 Birth to age 25, $10,000 Declined to Quote Up to $250,000 in increments of $5,000, not to exceed 100% of employee's amount. Coverage terminates at age 70. Mutual of Omaha All Full-Time Employees Actively at Work Up to $500,000 in increments of $10,000, not to exceed 5x salary 14 days to age 26, $10,000 Employee $100,000; Spouse $30,000; Child $10,000 Employee $100,000; Spouse $30,000; Child $10,000 to 65% to 50% 80% to $400,000 Included Included Greater of 20% or 10 enrolled Included Included Included Included to 65% to 50% 80% to $400,000 Emp./Sp. $0.030 per $1,000 $0.200 per $1,000 Expires 9/30/2023 Current $0.03 per $1,000 24 Months $0.200 per $1,000 Page 4 of 8 8Rates shown 11re bas.ed on cens.us data provided. Fnal rates are subjed to underwrling and actual enrolmenl Thts: comparison is. for ifkJstratlve purposes onty. Th.e fl.I I poltcy and certifcale of coverage wl supersede any end eu r'T'l8terl81S provided hereWI . October 2022 Voluntary Life Insurance Comparison for City of South Miami Carrier Class Benefit Descriptions Employee Spouse Children Guarantee Issue Amount Reduction Schedule Age 65 Age 70 Additional Benefits Accelerated Benefit Waiver of Premium Conversion Portability Minimum participation Rate Guarantee in months Rates per $1,000 Employee Spouse (rates based on employee's age) Under 25 $0.070 $0.070 25-29 $0.070 $0.070 30-34 $0.080 $0.080 35-39 $0.110 $0.110 40-44 $0.190 $0.190 45-49 $0.350 $0.350 50-54 $0.550 $0.550 55-59 $0.940 $0.940 60-64 $1.070 $1.070 65-69 $2.010 $2.010 70-74 $3.320 N/A 75-79 $11.020 N/A 80+$11.020 N/A Child AD&D Up to $250,000 in increments of $5,000, not to exceed 100% of employee's amount. Coverage terminates at age 70. Mutual of Omaha All Full-Time Employees Actively at Work Up to $500,000 in increments of $10,000, not to exceed 5x salary 14 days to age 26, $10,000 Employee $100,000; Spouse $30,000; Child $10,000 Included Included Included to 65% to 50% 80% to $400,000 Emp./Sp. $0.030 per $1,000 $0.200 per $1,000 Expires 9/30/2023 Current Employee Spouse Employee Spouse Employee Spouse Lincoln Declined to Quote Guardian Declined to Quote Humana Not Quoted Page 5 of 8 9Rates shown 11re bas.ed on cens.us data provided. Fnal rates are subjed to underwrling and actual enrolmenl Thts: comparison is. for ifkJstratlve purposes onty. Th.e fl.I I poltcy and certifcale of coverage wl supersede any end eu r'T'l8terl81S provided hereWI . October 2022 Voluntary Life Insurance Comparison for City of South Miami Carrier Class Benefit Descriptions Employee Spouse Children Guarantee Issue Amount Reduction Schedule Age 65 Age 70 Additional Benefits Accelerated Benefit Waiver of Premium Conversion Portability Minimum participation Rate Guarantee in months Rates per $1,000 Employee Spouse (rates based on employee's age) Under 25 $0.070 $0.070 25-29 $0.070 $0.070 30-34 $0.080 $0.080 35-39 $0.110 $0.110 40-44 $0.190 $0.190 45-49 $0.350 $0.350 50-54 $0.550 $0.550 55-59 $0.940 $0.940 60-64 $1.070 $1.070 65-69 $2.010 $2.010 70-74 $3.320 N/A 75-79 $11.020 N/A 80+$11.020 N/A Child AD&D Up to $250,000 in increments of $5,000, not to exceed 100% of employee's amount. Coverage terminates at age 70. Mutual of Omaha All Full-Time Employees Actively at Work Up to $500,000 in increments of $10,000, not to exceed 5x salary 14 days to age 26, $10,000 Employee $100,000; Spouse $30,000; Child $10,000 Included Included Included to 65% to 50% 80% to $400,000 Emp./Sp. $0.030 per $1,000 $0.200 per $1,000 Expires 9/30/2023 Current Employee Spouse Employee Spouse MetLife Not Quoted UnitedHealthcare Not Quoted Page 6 of 8 10Rates shown 11re bas.ed on cens.us data provided. Fnal rates are subjed to underwrling and actual enrolmenl Thts: comparison is. for ifkJstratlve purposes onty. Th.e fl.I I poltcy and certifcale of coverage wl supersede any end eu r'T'l8terl81S provided hereWI . October 2022 Short Term Disability Comparison for City of South Miami Carrier Mutual of Omaha Standard Cigna Florida Blue Guardian Class Defined All Full-Time Employees Actively at Work All Full-Time Employees Actively at Work Plan Benefits STD Benefit 60%60% Maximum Weekly Benefit $1,000 $1,000 Benefit Duration 12 Weeks 83 Days Pre-existing Condition Limitation 3/12 Not Included Elimination Period (days) Accident 7 Days 7 Days Declined to Quote Not Quoted Declined to Quote Illness 7 Days 7 Days Contribution Type Voluntary Voluntary Participation Requirement Greater of 25% or 10 enrolled Rate Guarantee (months)Expires 9/30/2023 36 Months Rates per $10 of Weekly Benefit Current Under 20 $0.300 $0.440 20-24 $0.300 $0.440 25-29 $0.300 $0.440 30-34 $0.300 $0.440 35-39 $0.300 $0.440 40-44 $0.300 $0.440 45-49 $0.340 $0.560 50-54 $0.400 $0.560 55-59 $0.530 $0.560 60-64 $0.640 $0.760 65-69 $0.730 $0.760 70+$0.800 $0.760 Page 7 of 8 11 IR.aites s h o w n are ba:sed once. sus dalai pr,o icled . fina l ral.es, are subjed to u derwrtfulg a d actual e n rolment is oomp.rnison is tor smi,w e p rposes only. The fuU policy and! ceiflmcate of co, erage w 1il supersede any and a l maferia Is pm,-.,;ided herein. October 2022 Short Term Disability Comparison for City of South Miami Carrier Mutual of Omaha Class Defined All Full-Time Employees Actively at Work Plan Benefits STD Benefit 60% Maximum Weekly Benefit $1,000 Benefit Duration 12 Weeks Pre-existing Condition Limitation 3/12 Elimination Period (days) Accident 7 Days Illness 7 Days Contribution Type Voluntary Participation Requirement Rate Guarantee (months)Expires 9/30/2023 Rates per $10 of Weekly Benefit Current Under 20 $0.300 20-24 $0.300 25-29 $0.300 30-34 $0.300 35-39 $0.300 40-44 $0.300 45-49 $0.340 50-54 $0.400 55-59 $0.530 60-64 $0.640 65-69 $0.730 70+$0.800 Humana Lincoln MetLife UnitedHealthcare Not Quoted Declined to Quote Not Quote Not Quoted Page 8 of 8 12 IR.aites s h o w n are ba:sed once. sus dalai pr,o icled . fina l ral.es, are subjed to u derwrtfulg a d actual e n rolment is oomp.rnison is tor smi,w e p rposes only. The fuU policy and! ceiflmcate of co, erage w 1il supersede any and a l maferia Is pm,-.,;ided herein.