Item Description:
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Agmt PR00004636 with the Standard Insurance Co. for the provision of a group Short- and Long-Term Disability Insurance plan for HC employees and Term Life Insurance for employees and their dependents, 01/01/24-12/31/29, NTE $27,500,000
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Resolution:
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BE IT RESOLVED, that the Hennepin County Board of Commissioners delegates to the County Administrator authority to negotiate and finalize Agreement PR00004636 with the Standard Insurance Company for the provision of a group Short- and Long-Term Disability insurance plan and Term Life Insurance for Hennepin County employees and their dependents during the period of January 1, 2024 through December 31, 2029 in an amount not to exceed $27,500,000; that following review by the County Attorney’s Office, the Chair of the Board be authorized to sign the Agreement on behalf of the county; and that the Controller be authorized to disburse funds as directed.
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Background:
Pursuant to M.S. 471.6161 which requires governmental units to release a request for proposal (RFP) for these services at least every 60 months, Human Resources Total Rewards Division and Purchasing and Contract Services released an RFP on June 20, 2023. The RPF was posted on the county’s website and six companies were directly contacted.
Following review and evaluation, Human Resources Total Rewards Division staff recommends that the Short- and Long-Term Disability contract be awarded to Standard Insurance Company, the incumbent, for the following reasons:
• Three-year rate guarantee
• Performance guarantees
• No disruption with continuing with the same vendor with positive past county experience
• Seamless transition from Short Term Disability to Long Term Disability for employees who have both coverages
• Continued service commitment to the county; and
• A strong stay-at-work/return-to-work program which has been a partnership that helps to manage costs while decreasing lost work time for departments.
Staff recommends that the Term Life Insurance contract also be awarded to Standard Insurance Company, the incumbent, for the following reasons:
• Three-year rate guarantee
• Contingent rate guarantees for the fourth and fifth year of the contract
The optional employee-paid additional term life insurance plan will remain the same as current. This life insurance plan provides up to a maximum of $500,000. When additional life insurance is elected, optional dependent term life insurance is available up to a maximum of $250,000 for spouse/domestic partner and up to a maximum of $15,000 for each eligible dependent.
Both basic and additional life plans include accidental death and dismemberment coverage to a maximum benefit amount which equals the life insurance amount.
Other features and provisions of the life insurance plan include:
• Life premium calculator - calculator to determine premium
• Life needs estimator - worksheet to guide employees in calculating the amount of group life insurance coverage they may need
• Travel assistance - medical situations or other emergencies for employee and family when traveling more than 100 miles or more from home
• Life services toolkit - will preparation, making advance funeral arrangements, handling of basic financial matters, six grief sessions for beneficiaries
• Accelerated death benefit - available for employees under the age of 60 who have a terminal illness; they may receive a one-time lump sum payment (up to 75% of their life insurance benefit)
recommendation
Recommendation from County Administrator: Recommend Approval