CCP 02-23-1998 - Laserfiche WebLink

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.. . Memorandum - Personnel Policy/Insurance Benefits Page Three February 19, 1998 b. Proposed Again, staff solicited proposals which would provide an L TD insurance benefit at the cost of the City. Similar to STD, there are a variety of components which must be evaluated to determine which coverage best fits the need of City employees. The L TD coverage being proposed has the following specifics: . Begins at 3 months (13 weeks) . Benefit duration is 36 months . Benetit amount will be 60% of earnings, with a $5,000/month maxImum . No limit on self-reported injury limit The total cost for providing this coverage through Fortis Benefits Insurance Company is $1,727.16. This rate is guaranteed for 27 months. Summary of Lift/STD/LTD Insurance Proposals The proposal of Fortis Benefits for these three coverages is made for several reasons. First, the . rates are competitive for the coverage offered. Second, the coverage for these items is seamless. In other words, the change from STD to L TD for an employee is simplified due to the coverage being handled by the same company. Third, the company has both a local customer service and claims unit. The total cost for these three coverages is $6,089. In providing these three coverages at its.cost, rather than the employee, the City will incur an increased cost each year in the amount of$4,OI3. This cost is for non-union employees only. Other Items Staff is also preparing some alternative proposals for changes to the Sick Leave and Severance components of the Personnel Policy. These changes will hopefully dovetail the addition of the STD, L TD, and Life Insurance identified above. Request. Staff recommends adoption of Resolution #98-30, Authorizing Changes to the Employee Benefit Plan. BF/sls .