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HomeMy WebLinkAbout~Master - Proposal for continuance of Group Life and Long-Term Disabilities policies RESOLUTION NO. 17-358 RESOLUTION APPROVING RENEWAL OF GROUP LIFE AND LONGTERM DISABILITY INSURANCE COVERAGES FOR THE CITY OF AMES WHEREAS,National Insurance Services (NIS) has provided two benefits for City employees since 2003; these are Group Life insurance (including Accidental Death & Dismemberment, or AD&D), and Long-Term Disability(LTD)insurance; and, WHEREAS, NIS is the administrator for a group program which covers numerous government and school system accounts, and the Life and LTD insurance policies are provided through Madison National Life Insurance Company; and, WHEREAS, these two policy renewals were last approved by the City Council for three-year terms beginning July 1, 2014, through June 30, 2017; and, WHEREAS, the insurer is proposing no change to the City's LTD insurance rate, and an 11.8%increase to the City's current rate for Life Insurance and AD&D; and, WHEREAS, this rate increase reflects the City's loss experience over the past five years, where the average of claims paid is 162% higher than the combined premiums paid; both of the proposed rates are guaranteed from July 1, 2017, through July 1, 2020; and, WHEREAS, the incumbent insurance company, Madison National Life, has provided outstanding claims service; while NIS has continued to provide excellent billing and administrative support services in its capacity as group administrator; and, WHEREAS, the NIS/Madison National proposal is to maintain the existing coverages with the new three-year rate guarantees as summarized: the rate for Basic Life insurance (with AD&D) will increase from$0.17 per $1,000 of coverage per month to $0.19; this is estimated to cost the City $63,472 in 2017/18, an increase of$5,770 from the budgeted amount; and, the rate for Long-Term Disability will remain at $0.505 per $100 of covered payroll, which is estimated to cost the City $127,628 in 2017/18; and, WHEREAS, the cost increase for the Life/AD&D coverage was not anticipated when the 2017/18 budget was prepared, so the budget will need to be amended at a later time to cover that expense; and, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the proposal from National Insurance Services for continuing the current group life and long- term disability policies with the guaranteed rates as specified for the new three-year period of July 1, 2017, through June 30, 2020, is hereby accepted. ADOPTED THIS 13" day of June, 2017. -W& Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Gartin Seconded by: Corrieri Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin,Nelson, Orazem Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 13'day of June, 2017.