HomeMy WebLinkAboutItem 17 - UNUM MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER v"
MEETING DATE: MAY 16, 2017
SUBJECT: APPROVAL FOR CONTRACT RENEWAL WITH UNUM FOR
BASIC LIFE/AD&D, LONG TERM DISABILITY AND VOLUNTARY
EMPLOYEE BENEFITS.
RECOMMENDATION:
City Council to consider award of an annual renewal contract with UNUM for basic
employee life/AD&D, long term disability, voluntary employee and dependent life/AD&D
and voluntary short term disability.
FUNDING SOURCE:
Funds are available in account 100-45674-109-1 (Health Insurance Premium) in the
estimated annual amount of $290,000.
BACKGROUND:
The City of Grapevine provides life insurance and long term disability to all benefit eligible
employees. The City also provides the option for employees to purchase voluntary
life/AD&D and short term disability coverage. This is the first year of an optional one year
renewal with UNUM Insurance. The plan is renewing this year with a 10% rate increase
over current. The increase is the result of the City's claims loss ratio of 135% on the long
term disability, causing UNUM to pay 35% for the plan cost over premiums. City
employee's voluntary coverage premiums will not increase for FY18.
City staff reviewed the proposal options and determined that UNUM's current plan would
continue to provide the best service and pricing for meeting the needs of the City.
Staff recommends approval.
5/3/2017 2:29:22 PM