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Agenda 12/10/2024 Item #16E 3 (Agreement No. 25-004-NS from Lincoln National Life Insurance Company (Lincoln) for three years effective January 1, 2025, in the estimated annual amount of $1,201,486.)12/10/2024 Item # 16.E.3 ID# 2024-2182 Executive Summary Recommendation to approve the purchase of Group Life insurance, Accidental Death insurance, Long Term Disability insurance, and Short-Term Disability Claims and Family Medical Leave Act Administration Services, collectively referred to as Agreement No. 25-004-NS, from Lincoln National Life Insurance Company (Lincoln) for three years effective January 1, 2025, in the estimated annual amount of $1,201,486. OBJECTIVE: To provide a competitive, high-value Group Life and Disability insurance program as part of the County’s comprehensive group insurance package and administer the County’s self-insured Short-Term Disability and Family Medical Leave Act (“FMLA”) programs. CONSIDERATIONS: The Risk Management Division administers a Group Insurance Program for the County’s eligible employees, including employees of participating constitutional officers. Through this program, the County provides life and accidental death insurance coverage equal to two times the employee’s salary and a 40% short- and long-term disability benefit. Employees may also opt to purchase additional short- and long-term disability coverage, increasing their benefit to a maximum of 66 2/3% of salary (a 26 2/3% buy-up option). The short-term disability benefit is self-funded, while all other benefits are fully insured. Additionally, employees can further purchase additional voluntary life and accidental death coverage for themselves and their dependents. Given the complexities of disability claims, life insurance, long-term disability insurance, and short-term disability, administration must be integrated and managed by the same carrier. The Standard underwrites the current Group Life and Disability program and expires on December 31, 2024. In anticipation of this expiration, Willis Towers Watson Midwest, Inc., the County’s retained Benefits Brokerage and Actuarial firm, solicited providers by contacting seven carriers. Proposals were received from five carriers, including the incumbent, Standard Insurance Company. Based on current enrollment, the estimated program cost for each firm is shown below. Carrier Total Annual Cost Cost Difference from Lowest Proposal Lincoln $1,201,486 NA Unum $1,207,611 $6,125 Guardian $1,235,851 $34,365 Voya $1,414,433 $57,789 Standard Insurance Company $1,435,739 $234,253 New York Life Declined to Quote Prudential Late Respondent The above total annual cost is based on the carriers providing Group Life Insurance, Accidental Death and Dismemberment Insurance, and Long-Term Disability Insurance (the “Insurance”), as well as providing administrative services in the handling of Short-Term Disability and Absence Management Claims (FMLA, etc.) (“Claims Management”). Staff, including representatives from Human Resources, completed interviews with Lincoln, Unum, and Guardian to assess their ability to manage and integrate the Short-Term Disability and Absence Management (FMLA) claims and administration services with the County’s practices and procedures. Upon completion of those interviews, staff is recommending the purchase of short-term disability and leave management administrative services, long-term disability, and group life insurance be awarded to Lincoln for the following reasons: 1. Lowest overall program cost. 2. Three-year price guarantee (subject to the number of covered lives not changing by 15%, a modification to the Plan, or regulatory/legislative changes). 3. Ease of use of the online portal for administrative personnel. The attached Agreement with Lincoln includes the Absence Management Service Agreement (FMLA, etc.), and the Page 8398 of 10663 12/10/2024 Item # 16.E.3 ID# 2024-2182 Self-Insured Short Term Disability Plan Administrative Services Only Agreement (pertaining to the Short-Term Disability program) effective January 1, 2025 (collectively referred to as Agreement No. 25-004-NS (the “Agreement”) for SAP contract management tracking purposes), with a three-year term. The Group Life proposal is attached to the Agreement as part of this insurance package. FISCAL IMPACT: The total estimated annual cost of the Group Life, Disability insurance program, and FMLA Administration is $1,201,486 based on the current reportable payroll. Sufficient funds are available in Fund 5017, Group Health and Life, for this purchase. Rates are guaranteed for three years. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this item. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a majority vote for Board approval. — SRT RECOMMENDATIONS: To approve the purchase of (1) Group Life insurance, Accidental Death insurance, and Long Term Disability insurance, and (2) Short Term Disability Claims and Family Medical Leave Act Administration Services, collectively referred to as Agreement No. 25-004-NS, from Lincoln, with an effective date of January 1, 2025, and authorize the Chairman to sign the Agreement, and delegate signature authority to the Director of Risk Management to sign ancillary documents to bind insurance coverages. PREPARED BY: Sonja Sweet, Manager, Risk Management Division ATTACHMENTS: 1. 25-0041-NS Agreement 2. Lincoln Life ADD short long term disability Proposal 3. CCG Life DI Marketing Results 12-2-24 Page 8399 of 10663 Page 8400 of 10663 Page 8401 of 10663 Page 8402 of 10663 Page 8403 of 10663 Page 8404 of 10663 Page 8405 of 10663 Page 8406 of 10663 Page 8407 of 10663 Page 8408 of 10663 Page 8409 of 10663 Page 8410 of 10663 Page 8411 of 10663 Page 8412 of 10663 Page 8413 of 10663 Page 8414 of 10663 Page 8415 of 10663 Page 8416 of 10663 Page 8417 of 10663 Page 8418 of 10663 Page 8419 of 10663 Page 8420 of 10663 Page 8421 of 10663 Page 8422 of 10663 Page 8423 of 10663 Page 8424 of 10663 Page 8425 of 10663 Page 8426 of 10663 Page 8427 of 10663 Page 8428 of 10663 Page 8429 of 10663 Page 8430 of 10663 Page 8431 of 10663 Page 8432 of 10663 Page 8433 of 10663 Page 8434 of 10663 Page 8435 of 10663 Page 8436 of 10663 Page 8437 of 10663 Page 8438 of 10663 Page 8439 of 10663 Page 8440 of 10663 Page 8441 of 10663 Page 8442 of 10663 Page 8443 of 10663 Page 8444 of 10663 Page 8445 of 10663 Page 8446 of 10663 Page 8447 of 10663 Page 8448 of 10663 Page 8449 of 10663 Page 8450 of 10663 Page 8451 of 10663 Page 8452 of 10663 Page 8453 of 10663 Page 8454 of 10663 Page 8455 of 10663 Page 8456 of 10663 Page 8457 of 10663 Page 8458 of 10663 Page 8459 of 10663 Page 8460 of 10663 Page 8461 of 10663 Page 8462 of 10663 Page 8463 of 10663 Page 8464 of 10663 Page 8465 of 10663 Page 8466 of 10663 Page 8467 of 10663 Page 8468 of 10663 Page 8469 of 10663 Page 8470 of 10663 Page 8471 of 10663 Page 8472 of 10663 Page 8473 of 10663 Page 8474 of 10663 Page 8475 of 10663 Page 8476 of 10663 Page 8477 of 10663 wtwco.com April 11th, 2024 Collier County Government © 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. Life & Disability Marketing Results Page 8478 of 10663 wtwco.com Disclaimer 2 This document contains confidential and proprietary work product of WTW, which owns all related intellectual property rights, and the information contained herein may not be used, reproduced, or distributed without WTW’s written consent. The recipient may not place any reliance on this document, or the information  contained herein or related hereto, that would result in the creation of any duty or liability by WTW to such recipient. © 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. Page 8479 of 10663 wtwco.com Discussion guide •Executive summary •Life, AD&D, Short-Term Disability, Long-Term Disability, and Family Medical Leave Act Administration Marketing results1 Next Steps2 © 2024 WTW. Proprietary and confidential. For WTW and WTW client use only.3 Health & Benefits broker compensation disclosure3 •Select Finalist and schedule finalist meetings Page 8480 of 10663 wtwco.com Marketing Results 4© 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. Page 8481 of 10663 wtwco.com 5 Executive summary © 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. Carrier/Vendor Life AD&D Short-term Disability Long-Term Disability FMLA Administration Responses The Standard (Incumbent)Non-competitive Guardian Competitive Pricing Lincoln Financial Competitive Pricing New York Life XXX Prudential Late Respondent Unum Competitive Pricing Voya Non-competitive WTW conducted marketing for life and disability benefits for Collier County Government employees and marketed with the following carriers. Page 8482 of 10663 wtwco.com 6 Executive summary © 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. Of the six new carriers WTW engaged with along with the incumbent, there were four carriers that provided proposal. Page 8483 of 10663 wtwco.com © 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. Page 8484 of 10663 wtwco.com 8© 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. Page 8485 of 10663 wtwco.com 9© 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. Page 8486 of 10663 wtwco.com 10© 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. Page 8487 of 10663 wtwco.com 11© 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. Page 8488 of 10663 wtwco.com 12© 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. Page 8489 of 10663 wtwco.com 13© 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. Page 8490 of 10663 wtwco.com 14© 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. Page 8491 of 10663 wtwco.com 15 Next Steps © 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. •Determine which carriers Collier County Government wishes to present at a finalist meeting •Determine if on-site meeting or virtual meeting works best for Collier County Government •Select date range for finalist meetings Page 8492 of 10663 wtwco.com Health & Benefits Broker Compensation Disclosure 16© 2024 WTW. Proprietary and confidential. For WTW and WTW client use only. Page 8493 of 10663