HomeMy WebLinkAboutChg Co Life-Disability CarriersDeschutes County Board of Commissioners
1300 NW Wall St., Suite 200, Bend, OR 97701-1960
(541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of 03/07/2012
Please see directions for completing this document on the next page.
DATE: 03/02/2012.
FROM: Ronda Connor Personnel 3215
TITLE OF AGENDA ITEM:
Consideration of Authorization of Interim County Administration to approve changing Life, Long Term
Disability, and Voluntary Life Insurance carriers, after and subject to certain policy volumes being
approved.
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
Deschutes County provides a benefit to employees of Life Insurance and Long Term Disability (LTD)
Insurance. Deschutes County also offers employees the option of purchasing additional life insurance
through payroll deduction at group rates. The County's agent of record, Beecher Carlson, put these
products out to bid earlier this year. The results have been favorable, with options to increase benefits
while still saving on premiums over our current policy. EBAC recommends changing carriers from our
current carrier, Lincoln Financial Group, to Cigna. EBAC also recommends changing the LTD policy
from a maximum benefit of$3,333 per month to $6,000 per month. Interim County Administrator
recommends changing the LTD benefit from $3,333 to $5,000.
FISCAL IMPLICATIONS:
Keeping all base benefits the same and changing to Cigna would result in an annual net savings of
$138,471 based on a new annual premium of$201,837. Changing the LTD policy as recommend by
EBAC would result in an annual savings to $105,651. Changing the LTD benefit to Interim County
Administrator's recommendation would result in an annaul savings of $1 08,232.
RECOMMENDATION & ACTION REQUESTED:
Approve change in carriers to Cigna with a May 1,2012 effective date; to include an increase to the
LTD benefit to a mondy max of $5,000.
ATTENDANCE: Ronda Connor
DISTRIBUTION OF DOCUMENTS:
NIA
Deschutes County
Annual Cost Projection
April 1, 2012
Number of Employees
Current Volume
Premium Ratel% of covered payroll
813
$3,493,419
0 .52%
Monthly
Annual
$ Change
% Change
Rate Guarantee
$18,166
$217,989
813
$3,493,419
0.40%
$13,974
$167,684
($50,305)
-23.1%
Until 811/2015
813
$3,493,419
0.28%
$9,782
$117,379
($100,610)
-46.2%
Until 81112015
813 813
$3,968 ,238 $4 ,037 ,603
0 .31% 0 .31%
$12,302 $12,517
$147,618 $150,199
($70 ,371) ($67,791 )
-32.3% -31 .1%
Until 8/112015 Until 81112015
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