SUBJECT/RECOMMENDATION:
Title
Approve a purchase order to Metropolitan Life Insurance Company dba MetLife for life insurance premiums for City Basic Life, Classified Non-SAMP Life, SAMP Life, SAMP Supplemental Life, Retiree Life, and Long-Term Disability (LTD) coverage in the amount not to exceed $849,000 for a three-year term beginning from January 1, 2025 through December 31, 2027, pursuant to RFP 60-24 and authorize the appropriate officials to execute same. (consent)
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SUMMARY:
The City of Clearwater offers life insurance for approximately 1400 employees and long-term disability for 55 employees as part of our comprehensive group benefits program. Unum has been the provider of Basic Life insurance, Classified Non-SAMP Life, SAMP Supplemental Life, Retiree Life and Long-Term Disability since 2012 and this benefit was due for a competitive marketing of rates.
On September 4, 2024, the City issued RFP 60-24, Life Insurance and Long-Term Disability Insurance and received ten responses on October 1, 2024. A committee comprised of staff representing the Finance Department and Human Resources independently reviewed each submittal received from ten qualified vendors and MetLife was the top ranked firm.
Met Life offers equivalent group life insurance benefits with a 47% reduction in cost, a three-year rate guarantee, and additional services such as beneficiary support, grief counseling, will preparation, estate resolution, funeral discounts and planning, and financial wellness services.
The group life insurance benefits provided by MetLife include:
• Classified Non-SAMP Life Insurance: Coverage equal to 1.5 times the employee’s annual base salary capped at $50,000.
• SAMP Life Insurance: Coverage equal in an amount equivalent to 1 times the employee’s annual base salary.
• Voluntary SAMP Supplemental Life Insurance: Coverage offered in increments of $50,000, up to a maximum of $500,000 with premiums payroll-deducted from the employee’s salary.
• Basic Life Insurance: Coverage of $2,500 for all employees, excluding Classified Non-SAMP employees.
• Basic Life insurance for Retirees: Coverage of $1,000 for grandfathered retirees.
• Long Term Disability Insurance: Available to employees who are not enrolled in the City Pension Plan.
APPROPRIATION CODE AND AMOUNT:
Funds are available in the Central Insurance Fund code 5907590-545500 (Insurance Premium-Life) and 5907590-545700 (Insurance Premium- Disability) to fund this contract. The Central Insurance Fund is an internal service fund of the City.
Funding will be included in the fiscal year 2026/27 budget for the final year of the contract.
STRATEGIC PRIORITY:
High Performing Government: Provide evidence-based measurement tools to continually guide municipal performance and promote accountable governance. The Human Resources department has the responsibility to review, confirm and document the reasonableness of plan expenses and services. The RFP process reaped continued savings on premiums for three years.
Superior Public Service: Attract and retain top-quality personnel through the maintenance of a competitive compensation program. The continued savings on premiums is a benefit as part of the overall compensation package to all employees.
