HomeMy WebLinkAboutAgenda Report - April 15, 2020 C-15AGENDA ITEM bt 5
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AGENDA TITLE
MEETING DATE:
SUBMITTED BY:
Adopt Resolution Approving Renewal and Amendment to Plan Documents for
standard lnsurance company Effective April 1 ,2020 to July 1,2023, and Further
Authorizing the City Manager to Execute Agreement
April 15, 2020
Human Resources Manager
RECOMMENDED ACTION: Adopt resolution approving renewal and amendment to plan
documents for Standard lnsurance Company effective April 1 ,2020
to July 1, 2023, and further authorizing the City Manager to execute
agreement.
BACKGROUND INFORMATION: The City of Lodi contracts with Standard lnsurance Company (The
Standard) for life and accidental death and dismemberment (AD&D)
insurance. lnsurance coverage varies between bargaining units
which are defined in the Memorandums of Understanding or Statements of Benefits.
During recent negotiations with the AFSCME units, the City agreed to changes in life and AD&D
insurance for AFSCME General Services Unit, and Maintenance and Operators Unit, increasing the life
insurance benefit from $10,000 to 925,000. ln addition, the City agreed to increase the Accidentál Death
and Dismemberment benefit for the Police Officers Association of Lodi (POAL) from $25,000 to $S0,000.
Life and AD&D benefits remain the same for all other bargaining groups.
The term of this agreement shall begin on April 1,2020 and continue in effect through July 1,2023.
FISCAL IMPACT:
FUNDING AVAILABLE:
Annual cost of approximately g1 10,000
lncluded in Benefits Fund appropriations (65522000)
//¿/¿ aart
Adele Post (Apr8,2020)
Adele Post, Human Resources Manager
(7 , ..Y
Andrew Keys (Apr8, 2020F
Andrew Keys, Deputy City Manager/lnternal Services Director
-ffie-steveSchwabàdér (Apr 8. 2020)APPROVED
Stephen Schwabauer, City Manager
Proposal Prepared on:
March 24, 2020
Proposed Effective Date:
May 1, 2020
Standard Insurance Company
Your Employee
Benefits Proposal
Presented by:
Prepared for:City of Lodi
Life and AD&D Insurance
Dependent Life Insurance
Accidental Death and Dismemberment
Insurance
Plan 1- 2241364;
Proposed Effective Date
May 01, 2020
Prepared for:
City of Lodi
1
Life and AD&D Insurance
Handling a Life insurance claim takes a special touch. All of our Life benefits employees complete annual grief training helping them to
empathize with beneficiaries and recognize when they need special attention. And we're focused on settling claims quickly: Our median
calculation turnaround time in 2018 was 5 days for clean claims and 6 days for all claims (internal company data as of January 2019).
Covered Members
1
An active Elected City Council employee of the Employer.
An active Non-safety employee of the Employer working 40 or more hours per week.
An active Police, Police Dispatcher or Fire Mid-Management employee of the Employer working 40 or more hours per week.
An active supervisory Fire or Police employee of the Employer.
• Class 1: All Executive Management
• Class 2: City Manager and City Attorney
• Class 3: Police Chief and Fire Chief
• Class 4: Mid-Management members, other than Confidential
Mid-Management members
• Class 5: Confidential Mid-Management
• Class 6: IBEW members
• Class 7: Police Mid-Management
• Class 8: Fire Mid-Management
• Class 9: Dispatchers
• Class 10: General Service members, other than Confidential
General Service members
• Class 11: Confidential General Service members
• Class 12: Maintenance & Operator members
• Class 13: Council Members
• Class 14: Police Corporals, Police Officers and Police Officer
Trainees
a
Basic
Class 1 Class 2 Class 3 Class 4
Benefit Schedule 2 x Annual Earnings, Plus
$2,000
1.50 x Annual Earnings, Plus
$12,000
2 x Annual Earnings, Plus
$2,000 2 x Annual Earnings
Rounding Up to next $1,000 Up to next $1,000 Up to next $1,000 Up to next $1,000
Maximum Benefit $250,000 $250,000 $250,000 $250,000
Guarantee Issue Full Benefit Full Benefit Full Benefit Full Benefit
AD&D Benefit Matches Life Benefit Matches Life Benefit Matches Life Benefit n/a
Age Reduction Schedule To 65% at age 70
To 50% at age 75
To 65% at age 70
To 50% at age 75
To 65% at age 70
To 50% at age 75
To 65% at age 70
To 50% at age 75
Employer Contribution 100%100%100%100%
Minimum Participation 100%100%100%100%
Plan 1- 2241364;
Proposed Effective Date
May 01, 2020
Prepared for:
City of Lodi
2
Basic
Class 5 Class 6 Class 7 Class 8
Benefit Schedule 2 x Annual Earnings 2 x Annual Earnings Flat $25,000 Flat $25,000
Rounding Up to next $1,000 Up to next $1,000 n/a n/a
Maximum Benefit $250,000 $250,000 n/a n/a
Guarantee Issue Full Benefit Full Benefit Full Benefit Full Benefit
AD&D Benefit n/a n/a Matches Life Benefit Matches Life Benefit
Age Reduction Schedule To 65% at age 70
To 50% at age 75
To 65% at age 70
To 50% at age 75
To 65% at age 70
To 50% at age 75
To 65% at age 70
To 50% at age 75
Employer Contribution 100%100%100%100%
Minimum Participation 100%100%100%100%
Basic
Class 9 Class 10 Class 11 Class 12
Benefit Schedule Flat $10,000 Flat $25,000 Flat $25,000 Flat $25,000
Rounding n/a n/a n/a n/a
Maximum Benefit n/a n/a n/a n/a
Guarantee Issue Full Benefit Full Benefit Full Benefit Full Benefit
AD&D Benefit Flat $25,000 Matches Life Benefit Matches Life Benefit Matches Life Benefit
Age Reduction Schedule To 65% at age 70
To 50% at age 75
To 65% at age 70
To 50% at age 75
To 65% at age 70
To 50% at age 75
To 65% at age 70
To 50% at age 75
Employer Contribution 100%100%100%100%
Minimum Participation 100%100%100%100%
Basic
Class 13 Class 14
Benefit Schedule Flat $10,000 Flat $25,000
Rounding n/a n/a
Maximum Benefit n/a n/a
Guarantee Issue Full Benefit Full Benefit
AD&D Benefit Matches Life Benefit Matches Life Benefit
Age Reduction Schedule To 65% at age 70
To 50% at age 75
To 65% at age 70
To 50% at age 75
Employer Contribution 100%100%
Minimum Participation 100%100%
Plan 1- 2241364;
Proposed Effective Date
May 01, 2020
Prepared for:
City of Lodi
3
abcd
Life Highlights
Basic
Waiver of Premium
Eligible to age 60
Waived for life
abcd
AD&D Highlights
Basic
Loss of life 100%
Loss of both hands, or both
feet, or sight of both eyes
100%
Loss of one hand and one
foot 100%
Loss of sight of one eye and
either one hand or one foot
100%
Loss of one hand or one foot 50%
Loss of sight of one eye 50%
Seat Belt Benefit AD&D benefit payable up to $10,000
Air Bag Benefit AD&D benefit payable up to $5,000
Family Benefits Package Included
Portability Included
Line of Duty Benefit AD&D Benefit payable up to $50,000
Additional Plan Design Details
• The Family Benefits Package includes:
– The Higher Education Benefit reimburses tuition expenses up to $5,000 per child per year towards a 4-year college education for the
deceased's children - not to exceed a cumulative total of $20,000 or 25% of the AD&D benefit per child, whichever is less.
– Career Adjustment Benefit reimburses tuition expenses up to $5,000 per year to help a spouse to return to the workforce after the death
of their spouse - not to exceed the cumulative total of $10,000 or 25% of the AD&D benefit, whichever is less.
– Child Care Benefit reimburses a family's child care expenses up to $5,000 per year - not to exceed $10,000 or 25% of the AD&D benefit,
whichever is less.
• For Class 3, 7, 8, 9, 14: A Line of Duty benefit is included which provides an additional AD&D benefit for public safety officers who suffer
death or dismemberment in an accident while acting in the line of duty.
•For Class 1 & 2: An additional AD&D benefit of $25,000 is included at a rate of $0.03 per $1,000 of benefit
•For Class 10, 11 & 12: An additional AD&D benefit of $10,000 is included at a rate of $0.03 per $1,000 of benefit
• The AD&D Occupational Assistance service is included and provides access to a Workplace Possibilities (SM) Consultant who helps those
with a specified accidental dismemberment return to productive work and life.
• All other provisions of the existing plan remain unchanged.
Plan 1- 2241364;
Proposed Effective Date
May 01, 2020
Prepared for:
City of Lodi
4
ABCD
Cost
Basic
Life
Members 339
Volume $25,293,250
Rate: Per $1,000 .310
Monthly Premium $7,841
AD&D
Members 260
Volume $8,451,250
Rate: Per $1,000 .040
Monthly Premium $338
Total Billed Premium $8,179
Rate Guarantee Until 01-Jul-2023
Assumptions
•For Class 9: This is not our customary age-reduction schedule. We assume you have determined that the schedule you requested
complies with the ADEA.
Conditions
•Member must be insured under Basic Life in order to be eligible for Basic AD&D
•The elected benefit amount for Basic AD&D must match the benefit amount for Basic Life
More Information
For additional information on the available features and benefits of Life and AD&D Insurance from The Standard,click here:
http://www.standard.com/group-life-add
Plan 1- 2241364;
Proposed Effective Date
May 01, 2020
Prepared for:
City of Lodi
5
Dependent Life Insurance
Covered Members
4
An active supervisory Fire or Police employee of the Employer.
An active Elected City Council employee of the Employer.
An active Non-safety employee of the Employer working 40 or more hours per week.
An active Police, Police Dispatcher or Fire Mid-Management employee of the Employer working 40 or more hours per week.
a
Spouse and Child
Benefit Schedule Spouse: $1,500
Child: $1,500
Guarantee Issue Full Benefit
abcd
Life Highlights
Spouse and Child
Conversion Included
Portability Included
abcd
Additional Plan Design Details
•Life insurance for dependents continues automatically, without premium payment, for five months after the death of the insured member.
•Dependents coverage includes child(ren) from live birth through age 25.
ABCD
Cost
Spouse and Child
Elective: Paid by each Member electing coverage
Life
Members To Be Determined
Rate: Per Member $0.49
Rate Guarantee Until 01-Jul-2023
Plan 1- 2241364;
Proposed Effective Date
May 01, 2020
Prepared for:
City of Lodi
6
Conditions
•Except as provided in the Additional Plan Design Details, we require evidence of insurability for:
– Increases in elected benefit amounts from the current plan to this plan.
More Information
For additional information on the available features and benefits of Dependent Life Insurance from The Standard, click here:
http://www.standard.com/group-life-add
Plan 1- 2241364;
Proposed Effective Date
May 01, 2020
Prepared for:
City of Lodi
7
Accidental Death and Dismemberment Insurance
Support after an accidental death or severe injury can provide much-needed financial assistance through a difficult time. Our AD&D insurance
includes a Family Benefits Package designed to help surviving family members maintain their standard of living and pursue their dreams.
Covered Members
5
An active supervisory Fire or Police employee of the Employer.
An active Non-safety employee of the Employer working 40 or more hours per week.
An active Police, Police Dispatcher or Fire Mid-Management employee of the Employer working 40 or more hours per week.
An active Elected City Council employee of the Employer.
a
Employee
Benefit Schedule Flat $10,000
Age Reduction Schedule To 65% at age 70
To 50% at age 75
Employer Contribution 100%
Additional Plan Design Details
•All other provisions of the existing plan remain unchanged.
abcd
Cost
Employee
Members 149
Volume $1,486,500
Rate: Per $1,000 .030
Monthly Premium $45
Rate Guarantee Until 01-Jul-2023
More Information
For additional information on the available features and benefits of Accidental Death and Dismemberment Insurance from The Standard, click
here: http://www.standard.com/group-add
Plan 1- 2241364;
Proposed Effective Date
May 01, 2020
Prepared for:
City of Lodi
Producer Compensation Disclosure
We recognize the valuable role of insurance advisors, consultants and brokers ("producers") in helping their clients design an employee benefits
program, and we support reasonable and fair compensation for these services. Producers may be eligible to receive compensation from The
Standard.
The commission quoted in this proposal are noted below. Additionally, fees for administrative, marketing or consulting services may apply.
If applicable, fees are noted below.
No commissions included for Life.
Unless participation is declined by the producer or client, contingent compensation is additional compensation that may also be paid and is
dependent on the satisfaction of one or more minimum requirements, such as a specified amount of new premium volume or persistency in
connection with the producer's block of business. For information about our customary producer rewards program visit
www.standard.com/financial-professional/insurance-benefits/compensation.Some producers may have a contingent compensation
arrangement that differs from our customary program. Please consult with your producer for additional details.
About This Employee Benefits Proposal
We appreciate the opportunity to provide you with this benefit and cost summary proposal from The Standard. This document outlines certain
important features of the group insurance coverages available. This is not a contract or an offer to contract for such coverages. Detailed
information about other important features of the coverage proposed is available on request. Just ask your broker/consultant or your
representative at The Standard.
A completed application must be submitted before a group can be considered for coverage. Insurance will be effective after the application is
accepted by The Standard. If approved, we will issue a contract containing our customary language. It will not duplicate policy language from
another carrier. The group contract will contain provisions and defined terms not described in this Employee Benefits Proposal. The group
contract will control if there are discrepancies between it and this proposal.
This benefit and cost summary proposal expires on June 22, 2020, unless replaced or withdrawn by The Standard.
The proposed premium rate and plan design for each coverage are based on the underwriting data received by The Standard. Final premium
rates and plan provisions will be determined by The Standard on the basis of: applicable state laws, policyholder contributions, confirmation of
occupations, the actual composition of the group of persons who will become insured and our current underwriting rules and practices.
Financial Strength Ratings
For information about our Financial strengths ratings visit www.standard.com/about
RESOLUTION NO. 2O2O-73
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING RENEWAL AND AMENDMENT TO PLAN
DOCUMENTS WITH STANDARD INSURANCE COMPANY
FOR LIFE AND ACCIDENTAL DEATH AND
DISMEMBERMENT INSURANCE; AND FURTHER
AUTHORIZING THE CITY MANAGER
TO EXECUTE AGREEMENT
WHEREAS, the City of Lodi contracts with Standard lnsurance Company for life and
accidental death and dismemberment (AD&D) benefits provided to City of Lodi employees; and
WHEREAS, during recent negotiations with AFSCME General
Maintenance and Operators Units, the City agreed to make changes to
insurance, increasing the life insurance benefit from $10,000 to $25,000; and
Services and
life and AD&D
WHEREAS, the City also agreed to increase the Accidental Death and Dismemberment
benefit for the Police Officers Association of Lodi (POAL) from $25,000 to $50,000; and
WHEREAS, the term of this agreement shall be from April 1,2020 through July 1 ,2023.
NOW, THEREFORE, BE lT RESOLVED that the Lodi City Council does hereby approve
the renewal and amendment to plan documents with Standard lnsurance Company; and
BE lT FURTHER RESOLVED that the City Council does hereby authorize the
City Manager to execute the agreement with Standard lnsurance Company on behalf of the City
of Lodi with the changes outlined above.
Dated: April 15,2020
I hereby certify that Resolution No. 2020-73 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held April 15,2020, by the following vote:
AYES: COUNCIL MEMBERS - Chandler, Mounce, Nakanishi, and Mayor Kuehne
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - None
ABSTAIN: COUNCIL MEMBERS - None
q7.rr.r-a-W J"""*
PAMELA M. FARRIS
Assistant City Clerk
2020-73