Explanation
BACKGROUND:
Funding for the short term disability insurance program is necessary to insure continuation of the program in accordance with the negotiated labor contracts. The Human Resources Department requests to contract with The Hartford Life and Accident Insurance Company and to provide funding from February 1, 2023 through January 31, 2024 for this program.
The effective date for the contract is February 1, 2023; the contract term is 3 years, with two (2) one (1) year renewals. This represents year three of the three year contract.
The total obligation of this contract in year two is $4,000,000.00. The breakdown of expense is $200,000.00 for administrative fees and $3,800,000.00 for claims.
Cost estimates for 2023 are based on 2021-2022 benefits fund expenditures using a two-year average of actual city utilization, expected changes due to union negotiations, as well as input from the city's employee benefits consultant.
Emergency action is requested to ensure the life insurance program for city employees is able to commence as soon as contractually possible, thereby maintaining continuity of service.
FISCAL IMPACT: Funding is available in the 2023 Employee Benefits Fund for this contract. This ordinance is contingent on the passage of the 2023 insurance appropriation ordinance 3284-2022.
Title
To authorize the Human Resources Director to contract with The Hartford Life and Accident Insurance Company to provide all eligible employees short term disability insurance coverage from February 1, 2023 through January 31, 2024; to authorize the expenditure of $4,000,000.00 from the Employee Benefits Fund, or so much thereof as may be necessary to pay the costs of said contract; and to declare an emergency. ($4,000,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to contract with The Hartford Life and Accident Insurance Company to provide all eligible employees short term disability insurance administration fro...
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