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County selects Standard for life, long-term and short-term disability after RFP; life coverage for employees raised to $50,000
Summary
Following a market solicitation, staff recommended and the purchasing committee approved moving long-term disability, short-term disability and life insurance to The Standard; the change reduces LTD premium rate and funds a modest increase in active employee paid life coverage.
Rutherford County’s purchasing committee approved staff’s recommendation to award long-term disability (LTD), short-term disability (STD) and group life insurance to The Standard following an open RFP process.
Wes Dozier of Gallagher and county staff reviewed the bids and told the committee The Standard offered lower rates for LTD and voluntary STD while matching or improving provisions. Staff reported the incumbent LTD rate was 15¢ per $100 of covered payroll and The Standard’s quote reduced that rate to 13¢ per $100; staff estimated combined schools-and-county annual LTD spend at about $672,000 and projected approximately $89,000 annual savings from the lower LTD rate.
The committee heard that the RFP produced three-year guaranteed rates with two optional one-year extensions. On STD (employee-paid), The Standard’s quoted rates for the existing 0/7 elimination period were lower than the expiring rates, and staff described an optional additional 30-day elimination period that employees could choose to lower their individual premiums. Staff emphasized that the RFP process sought no-net-loss of benefits as a requirement for finalist consideration.
On group life insurance staff proposed increasing the employer-paid base coverage for active employees from $35,000 to $50,000. Staff said the $50,000 option raised county costs by an average of roughly $12,700 per year when averaged across implementation credits and a three-year period; projected LTD savings were presented as offsetting that increase. The proposal also increased the voluntary coverage maximum available during the implementation open enrollment period and noted portability and conversion options would remain available to employees under the new carrier.
After questions about carrier ratings, administrative service, and whether the new vendor was the incumbent, the committee approved the recommendation. A motion to accept The Standard for LTD, STD and life insurance and to increase the employer-paid active life benefit to $50,000 passed on roll call.
Ending: Staff will finalize contract language with The Standard, execute implementation and open-enrollment procedures, and return to the committee with any outstanding carrier-specific administrative details requested during the meeting.
