Explanation
BACKGROUND:
Funding for the short term disability insurance program is necessary to ensure continuation of the program in accordance with the negotiated labor contracts. The Human Resources Department requests to contract with The Hartford Life and Accident Insurance Company and to provide funding from February 1, 2022 through January 31, 2023 for this program.
The effective date for the contract is February 1, 2022; the contract term is 3 years, with two (2) one (1) year renewals. This represents year two of the three year contract.
The total obligation of this contract in year two is $3,600,000.00. The breakdown of expense is $200,000.00 for administrative fees and $3,400,000.00 for claims.
Cost estimates for 2022 are based on 2020-2021 benefits fund expenditures using a two-year average of actual city utilization, expected changes due to union negotiations, as well as input 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.
FISCAL IMPACT: Funding is available in the 2022 Employee Benefits Fund for this contract. This ordinance is contingent on the passage of the 2022 insurance appropriation ordinance 0014-2022.
Title
To authorize the Human Resources Director to enter into contract with The Hartford Life and Accident Insurance Company to provide all eligible employees short term disability insurance coverage from February 1, 2022 through January 31, 2023, and to authorize the expenditure of $3,600,000.00 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. ($3,600,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to contract with The Hartford Life and Accident Insurance Company to provide all eligible employees short term disability insurance adminis...
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