Explanation
BACKGROUND: As a result of a Request For Proposal process in accordance with Section 329.14 of the Columbus City Codes, two short-term disability insurance bid responses were reviewed by the City’s Evaluation Committee, comprised of five members.
Each proposal was evaluated on the following criteria as required by section 329.14: competency to perform, quality and feasibility of the offerors technical proposal, ability to perform the required service competently, past performance, and the cost structure of the proposal. Dearborn National is recommended as the short term disability insurance administrator. The short term disability insurance administration rate of $2.75 per employee per month is effective February 1, 2012 until January 31, 2012, renewable annually with a two year renewal option. Dearborn National offers the ability to duplicate negotiated benefits.
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 2012-13 trust fund expenditures using a three year average of actual city utilization, expected changes due to union negotiations, as well as input from insurance carriers.
Contract compliance number is 36-2598882
FISCAL IMPACT: To enter into contract with Dearborn National to establish the maximum obligation liability, and to authorize the expenditure of $2,840,000.00 for short term disability administrative and claims services from February 1, 2014 through January 31, 2015. Funding is available in the 2014 budget 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 enter into contract with Dearborn National to provide all eligible employees short term disability insurance coverage from February 1, 2014 throug...
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