Explanation
BACKGROUND:
Funding for runout of short-term disability claims and administrative fees is necessary to complete the requirements of the city’s short term disability program under the Hartford Life and Accident Insurance Company. The Department of Human Resources requests to contract with the Hartford Life and Accident Insurance Company and to provide funding from January 1, 2027 through December 31, 2027 for this program. Funding is requested for runout claims and administrative fees continuing through December 31, 2027. This contract was initiated on February 1, 2021.
In April of 2026, the Department of Human Resources, with assistance from Marsh & McLennan Agency, the City’s employee benefits and wellness consultant, went out to bid for a short-term disability third party administrator via RFP032768.
The RFP team interviewed 6 short term disability third party administrators as finalists. After careful consideration and evaluation, Metropolitan Life Insurance Co. was selected as being the lowest and best bid for short-term disability program services for the City. Due to this vendor change, runout claims and administrative fees need to be paid under existing contractual obligations.
The maximum obligation liability for short term disability program services for run out claims and administration fees under the Hartford Life and Accident Insurance Company is $225,000.00.
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 Department of Human Resources to enter into a contract with the Hartford Life and Accident Insurance Company and to provide all runout claims and administrative fees for the short term disability program from January 1, 2027 through December 31, 2027; to authorize the expenditure of $225,000.00 from the Employee Benefits Fund, or so much thereof as may be...
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