Agenda 04/27/2010 Item #16E 2
Agenda Item No. 16E2
April 27, 2010
Page 1 of 3
EXECUTIVE SUMMARY
Recommendation to approve the purchase of Group Life, Long Term Disability, Short
Term Disability Administration Services, and Accidental Death Insurance in the amount
of $1,177,154 which equates to a reduction of 22.89% and authorize the County
Manager or designee to execute any applications or other documents necessary to
bind coverage and services.
OBJECTIVE: To provide a competitive, best value Group Life and Disability insurance program as
part of the County's comprehensive group insurance package.
CONSIDERATIONS: The Board of County Commissioners through its Risk Management Department
administers a Group Insurance Program for its employees and their eligible dependents. As part of this
program, the County provides two times salary life and accidental death insurance (three times salary
for senior management); and a 40% short and long term disability benefit. Employees may also
purchase additional voluntary life and accidental death coverage. Further, they can purchase
additional short and long term disability coverage to a maximum benefit of 66 2/3% (a 26 2/3% buy-up
benefit).
Willis, Inc" the County's benefits brokerage and actuarial firm, marketed the life and disability program
at the request of the Risk Management staff to determine if program costs could be reduced; benefits
could be enhanced; and to assure the delivery of best value products and services.
Willis received proposals from seven carriers including the incumbent carrier, SunLife.
After reviewing the proposals, the list was narrowed to three carriers for further review. These are
Hartford, Reliance Standard, and Standard Insurance Company. All three provided price quotes that
will save the Board substantial premium dollars and each carrier matched or improved program
benefits. Upon final analysis, Willis recommends that the County select Reliance Standard Life as the
preferred carrier/vendor for the following reasons.
· Premium Savings- Reliance Standard offers the greatest savings on the core, employer paid
portion of the program, thus saving the Board an estimated premium of $239,748 per year,
· Voluntary Life- Reliance Standard doubled the guaranteed issue amount on voluntary life
insurance from $100,000 to $200,000 and will allow spouse coverage up to $500,000, The
current program only allows spouses to receive $10,000 of coverage. This cost is paid by the
employee, not the County.
· Long Term Disability - Reliance is offering a broader "own occupation" definition of disability to
age 65 for Class 3 and 4 employees as opposed to a standard two year "own occupation"
definition.
· Identity Theft - As part of their proposals, Hartford and Standard provide assistance after the
identity theft has taken place. However, the assistance is limited. Reliance provides credit
monitoring and provides a full turnkey operation for the restoration of one's credit, should it be
stolen.
. Reliance Standard is offering a three year rate guarantee.
Agenda Item No, 16E2
April 27, 2010
Page 2 of 3
Staff concurs with this recommendation. It is recommended that the program commence effective July
1,2010.
FISCAL IMPACT: The total estimated annual cost of the Group Life and Disability insurance program
is $1,177,154 based upon current reportable salaries. The estimated annual savings to the Board is
$239,748 or $719,244 over the three year guarantee period. There are sufficient funds available in
Fund 517 for this purchase.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office and is
legally sufficient for Board action. - CMG
RECOMMENDATION: It is recommended that the Board approves the purchase of Group Life, Long
Term Disability, Short Term Disability Administration Services, and Accidental Death Insurance from
Reliance Standard Life Insurance Company as outlined in the executive summary and authorize the
County Manager or designee to sign the documents necessary to bind coverage and services.
PREPARED BY: Jeffrey A. Walker, CPCU, ARM, Director, Risk Management
Item Number:
Item Summary:
Meeting Date:
Agenda Item No. 16E2
April 27, 2010
Page 3 of 3
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
16E2
Recommendation to approve the purchase of Group Life, Long Term Disability, Short Term
Disability Administration Services, and Accidental Death Insurance in the amount of
$1,177,154 which equates to a reduction of 22.89% and authorize the County Manager or
designee to execute any applications or other documents necessary to bind coverage and
services.
4/27/2010 9:00:00 AM
Prepared By
Jeffrey A. Walker, CPCU,
ARM
Administrative Services
Division
Director - Risk Management
Date
Risk Management
4/9/201010:47:27 AM
Approved By
Colleen Greene
County Attorney
Assistant County Attorney
Date
County Attorney
4/12/20102:22 PM
Approved By
Jeffrey A. Walker, CPCU,
ARM
Administrative Services
Division
Director - Risk Management
Date
Risk Management
4/13/20108:18 AM
Approved By
Len Golden Price
Administrative Services
Division
Administrator - Administrative Services
Date
Administrative Services Division
4/13/20105:24 PM
Approved By
Jeff Klatzkow
County Attorney
Date
Approved By
4/16/20104:18 PM
Therese Stanley
Office of Management &
Budget
Manager - Operations Support - Trans
Date
Office of Management & Budget
4/19/2010 1 :22 PM
Approved By
Leo E. OChs, Jr,
County Managers Office
County Manager
Date
County Managers Office
4/20/201012:04 PM