Agenda - Council - 08/26/2008 - Laserfiche WebLink

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~ Co.se * I Requestfor Authorization to Appoint an Agent of Record for Life and Disability Insurance By: Givonna Reed Kone, Human Resources Manager Background In 2004, CBIZ Benefits became the City's Agent of Record for the City of Ramsey's life and disability insurance plans. An attractive feature of CBIZ was an Alliance that was formed for the purpo~e of securing volume discounts for member cities. Over time, the Alliance has dwindled in size and the Alliance's current life insurance carrier, the Standard, will no longer offer discounts to alliances. The City of Ramsey incurred no life insurance or long term disability claims during 2008 so we will not incur an increase in premiums for 2009 from the Standard. That said, as a member of a larger pool, the City may realize a reduction in premiums for 2009. The League of Minnesota Cities partners with Ochs, Inc. to offer life, disability and long term care insurance to Minnesota cities and counties. The Municipal Pool provides benefits to more than 20,000 members. Ochs, Inc. serves as an insurance broker and as the administrator for the Municipal Pool. Staff recommends that the City Council appoint Ochs, Inc. as its agent of record for life and disability benefits. Staff recommends that CBrz be retained as the City's agent of record for health and dental benefits. Funding Source Ochs, Inc. would be paid by the City's selected insurance carrier; thus, appointing Ochs will result in no additional cost to the City. Basic life insurance is paid by the City at a rate of $1.51 per month per employee for $10,000 of coverage. These funds are included in the 2008 General Fund Budget. Supplemental life insurance and long term disability are voluntary benefits and premiums are paid by employees. Committee Action Make a motion to appoint Ochs, Inc. as the City's agent of record. Reviewed by: ~kO , City Administrator (. cc: 08/26/08 -109-