Backup Documents 09/08/2015 Item #16E 3 ORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP
TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO i Q
THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGNATURE
Print on pink paper. Attach to original document. The completed routing slip and original documents are to be forwarded to the County Attorney Office
at the time the item is placed on the agenda. All completed routing slips and original documents must be received in the County Attorney Office no later
than Monday preceding the Board meeting.
**NEW** ROUTINGSLIP
Complete routing lines#1 through#2 as appropriate for additional signatures,dates,and/or information needed. If the document is already complete with the
exception of the Chairman's signature,draw a line through routing lines#1 through#2,complete the checklist,and forward to the County Attorney Office.
Route to Addressee(s) (List in routing order) Office Initials Date
1.
2.
3. County Attorney Office County Attorney Office
WS- 11 •2• I5
4. BCC Office Board of County
Commissioners \`�z\
5. Minutes and Records Clerk of Court's Office T
1 //z-1 c c`;/5
PRIMARY CONTACT INFORMATION
Normally the primary contact is the person who created/prepared the Executive Summary. Primary contact information is needed in the event one of the
addressees above,may need to contact staff for additional or missing information.
Name of Primary Staff Jeff Walker/Alice Toppe 252-8906
Contact/ Department
Agenda Date Item was September 8,2015 Agenda Item Number 16E3
Approved by the BCC
Type of Document Aetna Disability Service Agreement Number of Original One(1)
Attached Documents Attached
PO number or account n/a
number if document is
to be recorded
INSTRUCTIONS & CHECKLIST
Initial the Yes column or mark"N/A" in the Not Applicable column whichever is Yes N/A(Not
appropriate. (Initial) Applicable)
1. Does the document require the chairman's original signa re STAMP OK j\ -•
2. Does the document need to be sent to another agency for additiona signatures? If yes, JW
provide the Contact Information(Name;Agency;Address; Phone)on an attached sheet.
3. Original document has been signed/initialed for legal sufficiency. (All documents to be
signed by the Chairman,with the exception of most letters,must be reviewed and signedIQ,�
by the Office of the County Attorney. �'^�"
4. All handwritten strike-through and revisions have been initialed by the County Attorney's N/A
Office and all other parties except the BCC Chairman and the Clerk to the Board
5. The Chairman's signature line date has been entered as the date of BCC approval of the N/A
document or the final negotiated contract date whichever is applicable.
6. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's JW
signature and initials are required.
7. In most cases(some contracts are an exception),the original document and this routing slip N/A
should be provided to the County Attorney Office at the time the item is input into SIRE.
Some documents are time sensitive and require forwarding to Tallahassee within a certain
time frame or the BCC's actions are nullified. Be aware of your deadlines!
8. The document was approved by the BCC on 9/8/15 and all changes made during t 111
meeting have been incorporated in the attached document. The County Attorney !
Office has reviewed the chances,if a' I licable.
9. Initials of attorneyverifying that the attached document is the version approved bythe '-d".1-07,"
fy� g pp
BCC,all changes directed by the BCC have been made, and the document is ready fo'the
Chairman's signature. i .
[04-COA-01030/1220424/111:Forms/County Forms/BCC Forms/Original Documents Routing Slip WWS Original 9.0 .! Revised 1 ..05,Revised 2.24.05;
Revised 11/30/12
I 6 E 3
MEMORANDUM
Date: November 2, 2015
To: Jeff Walker, Director
Risk Management Department
From: Teresa Cannon, Deputy Clerk
Minutes & Records Department
Re: Aetna Disability Service Agreement
Attached for your records is one (1) copy of the resolution referenced above,
(Item #16E3) adopted by the Board of County Commissioners on Tuesday,
September 8, 2015.
The Minutes and Record's Department has held the original document for the
Official Record of the Board.
If you have any questions, please contact me 252-8411.
Thank you.
Attachment
16E3 3
Collier County Government Disability Rate Summary
aletnam
Proposed Disability Rates
Administrative Service Contract
Per Employee
Coverage Lives Per Month Monthly Fees
Short Term Disability
ASC 2,011 $2.547 $5,121
We have assumed an annual incidence rate of 3.71%.
Monthly Fees $5,121
Annual Fees $61,453
The above fees are subject to verification of lives as appropriate. If the actual amounts differ
by more than 10%from our assumed amounts then we reserve the right to reevaluate the
fees.
March 2015 aria Page 1
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16F
Collier County Government Disability Rate Summary
Fully Insured Long Term Disability
Rate Per$100
Monthly of Monthly Monthly
Long Term Disability Lives Covered Payroll Covered Payroll Premium
Core Only 953 4,147,062 $0.124 $5,138
Buy-Up 1,062 4,703,669 $0396 $18,650
Monthly Total 2,015 8,850,731 $23,788
Annual Premium $285,457
The above fees are subject to verification of lives as appropriate.If the actual amounts differ
by more than 10%from our assumed amounts then we reserve the right to reevaluate the
fees.
March 2015 Wirral Page 2
16E 7
Collier County Government Short Term Disability Administrative Services Plan
Administrative Services Contract
Short Term Disability Schedule of Benefits
Effective Date 01/01/2016
Contract Period 36 months
ASC Short Term Disability
Number of Eligible Employees 2,011
Class 1:All Active FT excluding those defined in Class 2
Eligibility Class 2:County Attorney and Board Aide
Class 3:County Mgr
Eligibility Waiting Period First of the month following Date of Hire
Minimum Hours Per Week 30 hours
Employee Contribution 100%for Buy-up
Employer FICA Match Not Included
Participation Requirement None
March 2015 " Page 3
�,P
Collier County Government Short Term Disability Administrative Services Plan
ASC Short Term Disability Schedule
We will administer this plan in accordance with current plan specifications.
Injury-Day Benefits begin 8th day
Illness-Day Benefits begin 8th day
Maximum Benefit Period 26 weeks
Definition of Covered Earnings Base rate of earnings exclusive of commissions, bonuses,
overtime or extra compensation.
Class 1:Core:40%of earnings, Buy-up:66 2/3%of earnings;
Benefit Percentage Class 2:50%of earnings
Class 3:66 2/3%of earnings
Percentage Cap N/A
Maximum Weekly Benefit Class 1:$2,000
Class 2 &3:$2,250
Minimum Benefit None
Coverage Type Non-Occupational
Definition of Disability Inability to perform own occupation and have a 20%earnings
loss.
Partial Disability Benefit Included
First Day Hospitalization Not Included
Integration Method Not Applicable-LTD will still be affected by Offsets
Rehabilitation Provision Voluntary
Separate Periods of Disability Less than 15 consecutive days
Pre-existing Condition Exclusion Not Included
Does not cover any disability that:
•Occupational disabilities
•Self-inflicted injuries
Exclusions • Committing or attempting to commit a criminal act
•Act of war,driving while intoxicated
• Insurrection
• Rebellion
•Taking part in a riot or civil commotion
March 2015 acting Page 4
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16E3
Collier County Government Administrative Services
Administrative Services Contract
Basic Services
Self-Funded(ASC) Short Term Disability
Core Services and Programs included in Administrative Fees
Eligibility Verification Included
Clinical Model: Physician Review,Senior Nurse
Review, Behavioral Health Unit, Case Management Included
Intake(3 point contact) Included
Claim Determination Included
Contract Issuance Included
W2s(included if Aetna pays benefit) Included
Standard Reporting Included
Standard Portal Included
Standard Correspondence Included
Independent Medical Examination Included
Vocational Rehabilitation(fee for external services)
Included
Social Security Assistance(fee for external services
per event) Included
Physician Peer Review Included
Special Investigations Unit(fee for external
services) Included
Subrogation Not Included
Appeals 1 Level
Optional Services
Reverse File Feed $10,000 per file
Eligibility File requiring customization $150 per hour
Dedicated 800 number $5,000 per line
Customization of Communication Letters $150 per hour
Customization of Intake Script $150 per hour
Customization of Reports $150 per hour
Fee Based is direct billed back to the customer at Aetna's cost.
*Aetna will not be fiduciary on non-ERISA plans
March 2015 ' ett' Page 5
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1 bE
Collier County Government Long Term Disability
Long Term Disability Schedule of Benefits
Effective Date 01/01/2016
Contract Period 36 months
Commission Level 10%Commissions on Buy-up
Long Term Disability
Number of Eligible Employees 2,015
Total Covered Payroll $8,850,731
Class 1: EEs excluding Exec Mgr to Board,County Mgr&County
Eligibility Attorney;
Class 2:Exec Mgr to Board&County Attorney;
Class 3:County Mgr.
Eligibility Waiting Period First of the month following Date of Hire
Minimum Hours Per Week 30 hours
Employee Contribution 100%Post-Tax for Buy-up
Employer FICA Match Included on Employer paid lines
Evidence of Insurability included for Late Entrants on Buy-up
Participation Requirement None
March 2015 MIME Page 6
Collier County Government Long Term Disability
Long Term Disability Schedule
For additional details,refer to the LTD Plan Provisions and Glossary sections.
Class 1:Core 40%of earnings;Buy-up 66 2/3%of earnings;
Monthly Benefit Percent Class 2:50%of earnings
Class 3:66 2/3%of earnings
Monthly Maximum Benefit Class 1&2:$9,000;
Class 3:$10,000
Monthly Minimum Benefit $100
Elimination Period 180 days
Base rate of earnings exclusive of commissions,bonuses,
Definition of Covered Earnings overtime or extra compensation.
Own Occupation Period Class 1:24 months;
Class 2&3:Own Occupation
Work Incentive Benefit Included, 12 months
Partial Disability Benefit Proportional Loss Formula(See LTD Plan Provisions)
Integration Method Direct Employee Only
Zero Day Residual Included
Maximum Benefit Period ADEA 1 with SSNRA(See LTD Plan Provisions)
Rehabilitation Program Mandatory
Rehabilitation Incentive Benefit Included
Child Care Benefit Included
Separate Periods of Disability During the Elimination Period: less than 30 consecutive days.
After the Elimination Period: Less than 6 consecutive months.
Mental/Nervous Limitation 24 months of benefit payments per occurrence
Alcohol/Drug Limitation 24 months of benefit payments per occurrence
Survivor Benefit 3 months of gross benefit payable in a lump sum
Pre-existing Condition Exclusion 3/12
Cost of Living Adjustment Not Included
Does not cover any disability that result from:
•Self-inflicted injuries
•Committing or attempting to commit a criminal act,
•Act of war,
Exclusions • Driving while intoxicated
• Insurrection
• Rebellion
•Taking part in a riot or civil commotion
• Pre-existing conditions.
Conversion Not Included
Benefit Escalator Not Included
Extended Disability Benefit Included
Accidental Personal Loss indemnity Included
Benefit
March 2015 MinaPage 7
CA
16E3
Collier County Government Disability Glossary
Disability Glossary
Contribution Percentage The percentage of premium paid by the employee.
The requirement disabled employees must meet to be eligible to
Definition of Disability receive benefits.
The amount of an employee's earnings used to calculate benefit
Definition of Earnings
payments.
Eligibility Waiting Period The continuous period of time the employee must be working before
becoming eligible for disability coverage.
Eligible Class The group(s)of employees who are eligible for coverage.
Elimination Period The period of time the employee must be disabled prior to receiving
benefits.
Satisfactory evidence of good health that is submitted in certain
Evidence of Insurability situations.Completion of Aetna's Evidence of Insurability statement is
required.
Exclusions Those conditions for which benefits are not paid.
Employer FICA Match Employer FICA match program applies only to taxes paid on the
Employer portion of benefits.
The United States of America,the Commonwealth of Puerto Rico,
Home Area Guam,and the Virgin Islands of the United States.
Maximum Benefit The maximum disability benefit payable.
Maximum Benefit Period The maximum period of time benefits are payable after satisfaction of
the elimination period.
Minimum Benefit The minimum disability benefit payable.
The minimum number of hours that employees regularly work each
Minimum Hours week to be eligible for disability coverage.
Partial Disability Benefit The method used to offset employment earnings during a period of
disability.
Physical,mental or vocational rehabilitation designed to maximize the
Rehabilitation disabled employee's work capabilities.
Scheduled Benefit The gross disability benefit payable.
Separate Periods of The maximum amount of time a disabled employee can return to work
Disability and have it considered the same period of disability.The periods of
disability must be due to the same or related condition.
Types of Disabilities The determination of whether disabilities occurring on or off the job
are covered.
March 2015 MOW Page 8
CA
16E3
Collier County Government Long Term Disability Plan Provisions
LTD Plan Provisions
Any day that an individual is unable to perform the material
duties of his/her own occupation;or while unable to perform the
material duties of his/her own occupation, is performing at least
one of the material duties of any occupation on a part-time or
full-time basis and has lost at least 20%of his/her indexed pre-
Own Occupation Test
disability earnings due to a disabling condition.
Please note:The loss of a professional or occupational license or
certification that is required by your own occupation does not
mean you meet the test of disability.You must meet the plan's
test of disability to be considered disabled.
Any day that an individual is unable to perform the material
duties of any occupation for which he/she is or may become
fitted,based on training,education or experience;or while
Any Occupation Test unable to perform the material duties of any reasonable
occupation,is performing at least one of the material duties of
any occupation on a part-time or full-time basis and has lost at
least 20%of his/her indexed pre-disability earnings due to a
disabling condition.
During the disabled employee's active participation in an Aetna
Approved Rehabilitation Program,Aetna will pay an additional
Rehabilitation Incentive Benefit 10%net monthly benefit,but not more than$500 per month.
This incentive will be paid up to 6 consecutive months for each
period of disability.
An additional monthly benefit paid for child care expenses for a
Child Care Benefit disabled employee participating in an approved rehabilitation
program of$250 per month per dependent child under age 13
with a maximum of$500 payable up to 24 months.
Benefit Escalator Not Included
A benefit paid to an eligible survivor if the employee dies while
benefits are payable.The amount of the benefit is equal to the
Survivor Benefit gross monthly benefit multiplied by the number of months
shown in the Schedule of Benefits. An eligible survivor is defined
as the spouse and/or unmarried dependent children under age
25.
March 2015 MUM'. Page 9
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16E3
Collier County Government Long Term Disability Plan Provisions
Other income sources which are used to reduce the monthly
benefit.This includes but is not limited to:
• 50%of the Jones Act/Maritime Doctrine.
•Statutory disability, retirement,or unemployment benefits.
•Automobile no-fault;Social Security, Railroad Retirement,
Other Income Benefits Canada Pension Plan,Quebec Pension Plan.
• Other Disability benefits arranged for by the employer.
• Disability Payments resulting from membership in any
association, union,or other organization.
• Retirement and Pension benefits.
• 3rd Party Liability payments.
•Group Mortgage or Group Credit disability benefits.
If while monthly benefits are payable,an individual has
employment income from any occupation which is greater than
20%of indexed pre-disability earnings,the monthly net benefit
Work Incentive Benefit will be adjusted as follows:
During the first 12 months the employee has such employment
income,the monthly benefit will be reduced only to the extent
the amount of that employment income plus the gross monthly
benefit exceeds 100%of indexed pre-disability earnings.
Proportional Loss Formula After 12 months,the adjusted benefit will be determined as
follows:
(A divided by B)x C where:
A=Indexed pre-disability earnings minus such employment
income.
B=Indexed pre-disability earnings.
C=The monthly net benefit.
This is your predisability earnings plus any increase made on
Adjusted Predisability Earnings each January 1,starting on the January 1 following 12 months of
(Indexing) a period of disability.The increase on each such January 1 will be
by the percentage increase in the Consumer Price Index,rounded
to the nearest tenth;but not by more than 10%.
March 2015 aetnar Page 10
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16E3
Collier County Government Long Term Disability Plan Provisions
There is no period of time where you have to be'totally disabled'
(including during the elimination period).
Residual test of disability:An insured is considered to be disabled
if:
•from the date that the insured becomes disabled until the
end of the own occ period:the insured is unable to perform
Zero Day Residual the material duties of their own occupation solely because
(Residual Test of Disability) of disease or injury and the insured's work earnings are no
more than 80%of their adjusted predisability earnings.
• after the end of the own occ period:the insured is unable to
work at any reasonable occupation (which includes that the
insured's work earnings be no more than 60%of their
adjusted predisability earnings)solely because of disease or
injury.
Integration Method The method used to offset other income benefits.Our quote
includes the following:
Direct Under direct integration,offsets are subtracted from the
Scheduled Monthly Benefit
Social Security Type Other income benefit sources include those which are payable to
the employee's spouse,children and dependents.
A period of disability will end after the number of months listed
in the Schedule of Benefits are payable if it is determined that
the disability is primarily caused by:
•a Mental Health or Psychiatric condition, including physical
manifestations of these conditions,but excluding those
conditions with demonstrable,structural brain damage;or
•Alcohol and/or Drug Abuse.
There are two exceptions which apply if you are confined as an
Mental/Nervous Limitation inpatient in a hospital or treatment facility for treatment of that
Alcohol/Drug Limitation condition at the end of such period:
• If the inpatient confinement lasts less than 30 days,the
period of disability will cease when you are no longer
confined.
• If the inpatient confinement lasts 30 days or more,the
period of disability may continue until 90 days after the date
you have not be so continuously confined.
The Separate Periods of Disability section does not apply beyond
such period to periods of disability which are subject to the
above.
March 2015 aetna Page 11
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Collier County Government Long Term Disability Plan Provisions
These employees are not covered since they are not active
Employees on COBRA,lay-off, employees and they also do not meet the minimum hours
leave of absence or severance worked requirement.
No benefit is payable for any disability that is caused by or
contributed to by a "pre-existing condition"and starts before the
end of the first 12 months following your effective date of
coverage.
A disease or injury is a pre-existing condition if, during the 3
Pre-Existing Condition Exclusion months before your effective date coverage:
• it was diagnosed or treated;or
• services were received for the diagnosis or treatment of the
disease or injury;or
•you took drugs or medicines prescribed or recommended by
a physician for that condition.
A reduced disability benefit may be payable for up to 60 months
beyond the maximum duration if disabled employee is confined
Extended Disability Benefit or receiving home health care and requires substantial assistance
to perform 2 or more ADIs or substantial supervision due to
cognitive impairment. Benefit is reduced to 85%of the monthly
benefit,after offsets applied,up to$5000/month
Accidental Personal Loss Subject to the elimination period,a set number of benefit
Indemnity Benefit payments wilt be made if an employee suffers a covered
accidental personal loss according to the following schedule:
Personal Loss Benefit Payments
Both hands; Both feet; Entire
sight of both eyes; Hearing in
both ears;Speech;One hand
&one foot;One hand and 46 Months
entire sight in one eye;One
foot and entire sight in one
eye
One arm;One leg 35 Months
One hand;One foot 23 Months
Entire sight in one eye; Entire 15 Months
hearing in one ear
Employees who enroll for any contributory LTD coverage more
Evidence of insurability than 31 days later than the date they are first eligible must
provide medical evidence of insurability.
Cessation of employment,contract termination,ineligible class,
Termination of Coverage failure to make contribution.
March 2015 a.*p_a Page 12 .
16E3 3
Collier County Government Long Term Disability Plan Provisions
Maximum Benefit Period
Benefits are payable while disabled according to the following schedule or until the 1983 amended
Social Security Normal Retirement Age,if later.
Age when disability occurs Benefits period
61 or younger continue to end of month age 65
62 42 months
63 36 months
64 30 months
65 24 months
66 21 months
67 18 months
68 15 months
69+ 12 months
The 1983 Normal Retirement Age(NRA)amendment to the Social Security Act results in the
following schedule:
Year of Birth Normal Retirement Age(NRA)
1937 or earlier 65
1938 65&2 months
1939 65&4 months
1940 65&6 months
1941 65&8 months
1942 65& 10 months
19434954 66
1955 66&2 months
1956 66&4 months
1957 66&6 months
1958 66&8 months
1959 66&10 months
1960 and later 67
March 2015 as Page 13
IN WITNESS WHEREOF,authorized representatives of the parties have confirmed the agreement of the
parties to the foregoing terms by affixing their signatures below:
Collier County Board of Commissioners
By:
Name:TIM NANCE ATTEST:
DWIGHT E. BRO9C, Clerk
Ti tie: CHAIRMAN
B,
Date: September 8, 2015 .
A4it to Chairman's
1lnitbture only.
Attaa
By:
Name:Eric Bunce
Title:Sales Executive
Date: C28 (
.. /1 'aiz
qty
6-4) to Iif
Assistant • Attorney
Page 14
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