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 for this contract.
Title
To authorize the Director of the Human Resources Department to enter into a contract with Metropolitan Life Insurance Co and to provide all eligible employees short-term disability services and life insurance coverage from January 1, 2027 through December 31, 2029; to authorize the expenditure of $6,105,000.00 from the Employee Benefits Fund, or so much thereof as may be necessary to pay the costs of said contract. ($6,105,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to enter into a contract with Metropolitan Life Insurance Co. to provide all eligible employees with short-term disability services and life insurance from January 1, 2027 through December 31, 2029; and
WHEREAS, it is necessary to authorize the expenditure of up to $6,105,000.00, or so much thereof as may be necessary to pay contract costs for short-term disability third party administrator and life insurance services; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Human Resources to request contract and expenditure authority; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Human Resources is hereby authorized to enter into contract with Metropolitan Life Insurance Co. to provide short-term disability third party administrator and life insurance services from January 1, 2027 through December 31, 2029.
SECTION 2. That the expenditure of $6,105,000.00 or so much thereof as may be necessary for coverage is hereby authorized to be expended as follows:
Department: 4602 | Fund: 5502 | Subfund: 550208 | Program: RM005 | Amount: $205,000.00 (STD Admin)
Department: 4602 | Fund: 5502 | Subfund: 550208 | Program: RM006 | Amount: $4,100,000.00 (STD Claims)
Department: 4602 | Fund: 5502 | Subfund: 550203 | Program: RM005 | Amount: $1,800,000.00 (Life Insurance Premiums)
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.