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Home My WebLink About13.F.1. 2012 Dental, Life and Long-term Disability Insurance I �3.�: �, City of Shakopee MEMORANDUM TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator �,�� .� SUBIECT: 2012 Dental, Life and Long-Term Disability Insurance DATE: October 13, 2011 Introduction The Council is asked to approve the City's dental, life and long-term disability insurance offerings for 2012 and the set the employer contribution rates for those benefits. Background Three components of the City's employee benefits package are dental, life and long-term disability I insurance. For 2012, the City has received the following renewal offers from our existing carriers: Insurance Company Benefit Premium Term of Employer Changes? Changes? Contract Contribution Dollar value of Dental Delta Dental No + 3.5% 1 yr. , single coverage I Life NIS / Madison No -15.26% ° National Life 3 yrs. 100% Long-Term NIS / Madison I Disability National Life No -10.65% 3 yrs. 100% The actual renewal rates for each type of coverage are as follows: i I Dental Insurance -- 2012 Monthly Premiums Total City Employee Premium Contribution Cost Single $38.25 $38.25 0 I 2-Party $81.45 $38.25 $43.Z0 � Family $116.30 $38.25 $78.05 I i � I Insurance Rate Benefit � $0.205 per $100 of covered monthly 2�3 of base salary paid out after an Long-Term income (approximately $11.50 per individual has been unable to work for i Disability month for an employee at the mid- 6 months � range of our pay plan) I Life Insurance $4.03 per month per employee $25,000 life &$25,000 accidental death Budget Impact The preliminary 2012 operating budget provided for an estimated 3% increase in the city's costs for dental insurance and a flat dollar amount for life and long-term disability. Therefore, the savings achieved from the lower life and long-term disability costs can be diverted to cover the slightly larger � than expected dental costs and the end result will be benefit offerings that are within budget. I� Recommendation � Staff recommends that the City (1) accept the renewal offers from Delta Dental and National Insurance Services (NIS) / Madison National Life; (2) continue contributing a dollar amount equal to the cost of i single coverage toward the monthly premium for dental insurance; and (3) continue to pay the full cost I of basic life and long-term disability insurance. Relationship to Vision Providing City employees with competitive insurance benefits helps the City attract and retain well- qualified staff. It also allows staff to more easily meet their own medical needs and those of their families; which allows employees to focus on their work. This contributes to Goal E: Deliver effective I and efficient public services by a staff of well-trained, caring and professional employees. Requested Action I If it concurs, the Council should offer a motion to authorize appropriate officials to enter into contracts with Delta Dental for the renewal of the City's group insurance plan for 2012 and with National ' Insurance Services (NIS), for renewal of the City's group life and long-term disability insurance for 2012, 2013 and 2014, at the quoted prices. � � I I I I – — — CITY OF SHAKOPEE _ ,. � � Delta Preferred Delta Premier Network In-Network Out-of-Network Delta Premier Calendar Year Deductible N/A $25S/ $75F $SOS/ $150F Calendar Year Maximum $2,000 $2,000 $1,000 Diagnostic & Preventive 100% 80% 100% ' Basic Services 90% 50% 80% Basic Oral Surgery 100% 50% 80% Basic Periodontics (non-surgical) 80% 50% 50% Basic Endodontics 80% 50% 50% Surgical Periodontics 80% 50% 50% Complex Surgical Extractions 80% 80% 80% Prosthetic repairs & adjustments 50% 50% 50% Waived for Preventive Yes No Yes Orthodontics 50% to $1,000 U&C 90th COST SCHEDULE Current 2011 Rates 2012 Renewal Single $36.95 $38.24 Single + � $78.70 $81.45 Famil $112.35 $116.28 Precentage Increase 3.5% _ � � ' Preliminary renewal rates renewal letters should be mailed out no later than 10/17/11. This is not meant fo be a complete plan description. This is a summary meant onty (or illustrative purposes and is nof a guarantee of current or future benefits. Consult the plan booklet for exact details. I Prepared by Financial Concepts, Inc. 10/13/2011 CITY OF SHAKOPEE Lliglbility�. Pcrmenant employee pmsent and peCorming all of his nortnal job duties at the Particlpants pnnclpal place of business, excluding lhe employee's personal resdence for a minimum oi 30 hours erweek. ' Elimination PcrioA � Regular 180 days � 180 tlays Buy Down 30 days 30 tlays Benefit Percentage 66.67 % 66.67 % Monthly Maximum Benefit $6,945 $6,945 Benefit Duration SSNRA SSNR4 Own Occupation Limitation 30 months 30 months Definilion of Disa6iliTy Loss of dulies or 20 % monthly income loss Loss of duties or 20% monthly income loss Mental Illness Limita[ion 2 years 2 years DruglAlcohol Limitation 2 years 2 years Pre-existing Limitation 3/3/12 3/3/12 Survivor Benefit 3 months 3 months COST SCHEDLILE Base Buy Down Base Buy Down Rale per $100 C.M.E. g0230 $0740 $Q205 $0740 MonthlyPremium $1,51723 $31A9 $1,35231 $31.01 Annual Premium $18,206.73 �372.07 516,227.73 $37207 Combined Annual Total $18,578.80 $16,599.81 Annual Difference N/A -51.978.99 . i. Rate Guarantee 128� 120� 1 12/3 V2014 _�. , This is wt meant to be a complefe plan tlescnption. This is a summary meanl onry /or ilWStrative Auryoses antl is no! a gua2ntee of cunenl oilulure benefils ConsWt /he pla� booklel !or exact tletails. Preparetl by Financial Concepts, Inc. 10/13/2011 CITY OF SHAKOPEE i � Eligibility: Permanent employee present antl performing all of his normal job duties at lhe PaRicipants principal place of business, excluding the em lo ee's ersonal resitlence for a minimum of 30 hours er week. Class Class DefiniYion Life Amount 1 All Eligible Employees 525,000 � i i: i i i Age Reductions None None Guaranteelssue 325,000 $25,000 9 months elimination period; before age 60 9 months elimination period; before age 60 Waiver of Premium ends at age 70 ends at age 70 COSTSCHEDULE Rate per $1000 $0.160 $0.136 AD&D 0.030 �.025 $0.190 $0.161 Monthly Premium $586.39 $496.89 I Annual Premium $7,036.65 $5,962.64 Annual Increase N/A $1,074.02 � , Rate Guarantee 12/3U2011 12131I2014 �:. i �: i , 7his is not meant to be a complete p�an tlescnption. This is a summary meant onty for illust�ative purposes and is not a guarantee ot cuvent or (ufure benetits. ConsWf fhe plan booklet for exact tlefai/s. Preparetl by Financial Concepts, Inc. 10/13/2011