Explanation
BACKGROUND:
Funding for the short-term disability and life insurance programs is necessary to ensure continuation of the city’s short-term disability and life insurance programs. The Department of Human Resources requests to contract with Metropolitan Life Insurance Co. from January 1, 2027 through December 31, 2029 and to provide funding from January 1, 2027 through December 31, 2027 for these programs. This contract has an initial term of three years with the option of two one-year renewals.
In April of 2026, the Department of Human Resources, with assistance from Marsh & McLennan Agency, our employee benefits and wellness consultant, went out to bid for a short-term disability third party administrator and life insurance via RFP032908.
The RFP team interviewed four short-term disability third party administrators and life insurance finalists of the five bids provided:
Prudential Group Insurance
MetLife
New York Life Group Benefit Solutions
Standard Insurance Company
The Hartford
Unum
After careful consideration and evaluation, Metropolitan Life Insurance Co. was selected as being the lowest and best bid.
Cost estimates for 2027 are based on weighted 2024, 2025 and 2026 benefit fund expenditures, using a weighted average of actual city utilization, expected changes due to union negotiations, as well as input from the City's employee benefits and wellness consultant. The Department of Human Resources requests to contract with Metropolitan Life Insurance Co. from January 1, 2027 through December 31, 2029 and to provide funding for January 1, 2027 through December 31, 2027.
The maximum obligation liability for short-term disability third party administrator and life insurance services from January 1, 2027 through December 31, 2027 for Metropolitan Life Insurance Co is $6,105,000.00.
This ordinance is contingent on the passage of the 2027 insurance appropriation ordinance 2680-2026.
FISCAL IMPACT: Funding is available in the 2027 Employee Benefits Fund...
Click here for full text