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Council awards employee and retiree life and AD&D insurance to Standard after limited competitive response
Summary
City awarded the basic life and AD&D insurance contract to Standard after staff said only one bidder offered full retiree coverage; the renewal rate was about 8% and Standard offered a two-year rate guarantee.
The Groves City Council approved awarding the bid for employee basic life and accidental death & dismemberment (AD&D) insurance and retiree life insurance to Standard (the carrier referenced as “standard” in the meeting). Staff recommended Standard after soliciting quotes; meeting presenters said Standard was the only carrier that submitted a full proposal that included retiree coverage.
Elizabeth (city insurance presenter) told council the renewal from Standard was about an 8% increase from the prior year; she said the carrier offers a two-year rate guarantee and that other carriers either did not bid or could not provide the retiree coverage the city requires. Staff said retirees who left before Oct. 1, 2012, receive a $10,000 basic-life benefit and that retirees after that date are offered a basic-life plus AD&D package per the city’s policy.
Council voted to accept the recommendation and to authorize the city manager to negotiate and execute necessary documents. The mayor and council members recorded ayes and the motion passed; staff said the contract will be administered through existing HR and finance procedures and that retirees on file will retain current beneficiary designations unless changes are communicated.
Staff reported the current annual premium space (presented figure) and said the budget included room for the increase; no exact multi-year cost projection was provided in the meeting.
