Staff recommends approving an agreement with Jefferson Pilot Financial Insurance Company to provide basic and voluntary life insurance to the employees of the City of Leesburg.
Insurance Company has provided basic and voluntary life insurance to the City
of Leesburg and its employees since
10/1/01. During that time frame, the premium rates
for basic life and AD
Also during that time frame, the City has allowed its retirees the opportunity to maintain up to $15,000 of life insurance benefit at their own cost but at the City’s group rate. Even though retirees paid for their own coverage, this practice of paying a blended rate for active employees and retirees drove the cost of providing basic life insurance for our active employees up considerably.
the City’s request, L. B. Bryan and Company, remarketed the City’s life insurance
program and further requested separate rates for active employee and for retirees.
Jefferson Pilot Financial Insurance Company, an A+ (A.M. Best) rated insurance
company, offered the lowest and best proposal at $.30 per $1,000 of life
insurance for active employees, and $.057 per $1,000 of coverage for retirees.
This proposal translates into a 30% reduction in cost to the City for providing
basic life and AD&D insurance to their active employees or a savings of
$37,000 per year, and only an increase of $0.16 per $1,000 of life insurance
coverage for retirees. In addition for retirees, this proposal also includes a
“no age reduction clause” that prevents their amount of life insurance coverage
to be automatically reduced each year as they get older. This proposal also
guarantees these rates for three
Other advantages of the Jefferson Pilot Financial Insurance Company proposal include no increase in premiums for employees that purchase additional voluntary coverage, and an increase in the guaranteed issue amount from $85,000 to $100,000. Guaranteed issue amount is the amount of voluntary insurance that a newly eligible employee can purchased without having to answer medical questions or take a medical exam.
2. Deny plan.
Provide some other option.
Approval of this agreement will result in a $37,000 per year decrease in the City’s cost of providing basic life insurance to our employees
Department: Human Resources_________
Prepared by: Dann Herrin_____________
Attachments: Yes____ No __X____
Advertised: ____Not Required ______
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
Carol to add Mayor and City Clerk to contract for
RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH JEFFERSON
PILOT FINANCIAL INSURANCE COMPANY TO PROVDE BASIC AND VOLUNTARY LIFE AND
AD&D INSURANCE TO THE CITY OF LEESBURG AND ITS EMPLOYEES; AND PROVIDING AN EFFECTIVE
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to execute an agreement with Jefferson Pilot Financial Insurance Company whose address is 8801 Indian Hills Drive, Omaha, Nebraska 68114-4066, to provide basic and supplemental life and AD&D insurance to the City of Leesburg and its employees.
THAT this resolution shall become effective October 1, 2006.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _____ day of _________ 2006.