Explanation
BACKGROUND: To maintain insurance programs in accordance with the negotiated labor contracts, additional funding of the short term disability insurance program is necessary to insure continuation of employee insurance coverage. Cost estimates were based on 2010-11 trust fund expenditures using a three year average of actual city utilization, expected changes due to union negotiations, as well as input from insurance carriersand from the City's employee benefits consultant. The contract is for a three-year period, subject to annual appropriation; this ordinance represents the second year.
Contract compliance number is 36-2598882
FISCAL IMPACT: To modify and extend the contract with Fort Dearborn Life Insurance Company to establish the maximum obligation liability, and to authorize the expenditure of $2,789,311 for short term disability administrative and claims services from February 1, 2012 through January 31, 2013. Funding is available after passage of the 2012 budget, Ordinance No.2250-2011 for this contract. This ordinance is an emergency measure to ensure continued insurance coverage as negotiated by union contracts.
Title
To authorize the Human Resources Director to modify and extend the contract with Fort Dearborn Life Insurance Company to provide all eligible employees short term disability insurance coverage from February 1, 2012 through January 31, 2013, and to authorize the expenditure of $2,789,311 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. ($2,789,311.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to modify and extend the contract with Fort Dearborn Life Insurance Company to provide all eligible employees short term disability insurance administration from February 1, 2012 through January 31, 2013; and
WHEREAS, it is necessary to authorize the expenditure of up to $2,789,311, or so much thereof as may be ne...
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