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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />OCTOBER 3, 2011 <br />TITLE: <br />EMPLOYEE GROUP INSURANCE <br />RENEWALS <br />al1 <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />r....61W <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Attorney to prepare and authorize the City Manager and Clerk of the Council to <br />execute agreements for long term disability, medical, dental, vision, employee assistance, <br />employee group life and accidental death and dismemberment insurance. <br />DISCUSSION <br />The City's employee group benefit policies, contracts and agreements are renewed annually on <br />January 1. This year the City will contract with a new provider for employee group life, accidental <br />death & dismemberment, long -term disability, and renew contracts with the current providers for <br />employee assistance, dental and flexible spending plans. <br />Life and Accidental Death & Dismemberment and <br />Long -Term Disability <br />Currently the City provides life and accidental death & dismemberment (AD &D) coverage and <br />long -term disability (LTD) insurance through AIG Life Insurance Company for full -time employees. <br />Bids were solicited for life, AD &D and LTD providers to ensure that the renewal rates from our <br />current provider were competitive based on the current market. As a result of the bid process, <br />Aetna was selected to provide life, AD &D and LTD coverage effective January 1, 2012. This <br />selection reflects a combined decrease in premiums of 14.0% (while maintaining an identical <br />benefit structure to our current plan). <br />Aetna has agreed to a three -year rate guarantee for the Life, AD &D and LTD rates through <br />December 31, 2014. <br />25A -1 <br />