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<br /> . Memorandum - Personnel Policy/Insurance Benefits <br /> Page Three <br /> February 13, 1998 <br /> The LTD coverage being proposed has the following specifics: <br /> . Begins at 30 weeks <br /> . Benefit duration is 36 months <br /> . Benefit amount will be 60% of earnings, with a S5,000/month <br /> maxImum <br /> . No limit on self-reported injury limit <br /> The total cost for providing this coverage through Fortis Benefits <br /> Insurance Company is $1,727.16. This rate is guaranteed for 27 months. <br /> Summary of LiftlSTD/LTD Insurance Proposals <br /> The proposal of Fortis Benefits for these three coverages is made for several reasons. First, the <br /> rates are competitive for the coverage offered. Second, the coverage for these items is seamless. <br /> In other words, the change from STD to LTD for an employee is simplified due tot he coverage <br /> being handled by the same company. Third, the company has both local customer service and <br /> claims unit. <br /> The total cost for these three coverages is $6,089. In providing these three coverages at its cost, <br /> . rather than the employee, the City will incur an increased cost each year in the amount of$4,013. <br /> Other Items <br /> Staff is also preparing some alternative proposals for changes to the Sick Leave and Severance <br /> components of the Personnel Policy. These changes will hopefully dovetail the addition of the <br /> STD, LTD, and Life Insurance identified above. <br /> The Council may wish to also discuss how the City may wish to proceed with these items under <br /> negotiations with the Local 49. <br /> Request <br /> The City Council is asked to give direction to staff regarding these coverages, and if appropriate, <br /> direct staff to place this item on the next Council meeting agenda for action. <br /> BF/sls <br /> . <br />