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File #: 0008-2020    Version: 1
Type: Ordinance Status: Passed
File created: 12/20/2019 In control: Administration Committee
On agenda: 1/13/2020 Final action: 1/15/2020
Title: To authorize the Human Resources Director to modify and extend the contract with Dearborn National Life Insurance Company to provide all eligible employees short term disability insurance coverage from February 1, 2020 through January 31, 2021, and to authorize the expenditure of $3,650,000.00 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. ($3,650,000.00)
Attachments: 1. 0008-2020 Disability STD Attachment
Explanation
BACKGROUND:

Additional funding for the short term disability insurance program is necessary to insure continuation of the program in accordance with the negotiated labor contracts. The Human Resources Department requests to modify and extend the existing contract with Dearborn National Life Insurance Company for one year and to provide for funding February 1, 2020 through January 31, 2021 for this program. Due to ongoing labor negotiations with collective bargaining contracts citywide in 2018, and subsequent major changes to the City’s health insurance benefits, the Department of Human Resources decided it was not in the City’s best interest to engage in the request for proposal process for life insurance in 2019.

The Department of Human Resources will bid this contract in 2020 for a start date of February 1, 2021. The current contract, legislated via Ordinance 0019-2019, represents the final year of a three year contract.

The total obligation of this contract is $7,000,000, including this modification.

Cost estimates for 2020 are based on 2018-19 trust fund expenditures using a two year average of actual city utilization, expected changes due to union negotiations, as well as input from insurance carriers and from the City's employee benefits consultant.
Emergency action is requested to ensure the life insurance program for city employees is able to commence as soon as contractually possible, thereby maintaining continuity of service.

Contract compliance number is 36-2598882

FISCAL IMPACT: Funding is available in the 2020 Employee Benefits Fund for this contract. This ordinance is contingent on the passage of the 2020 insurance appropriation ordinance 0001-2020.

Title

To authorize the Human Resources Director to modify and extend the contract with Dearborn National Life Insurance Company to provide all eligible employees short term disability insurance coverage from February 1, 2020 through January 31, 2021, and to authorize the ...

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