Agenda Packets - 1983/04/11 - Laserfiche WebLink

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�1NTO: Mayor & Council �IlC7 FROM: finance Di rccLor-'Prc:aur(,r Rragnr DATE: April 7, 1983 RE: GROUP LIFE INSURANCE COVERAGE Due to the fact that our present group life insurance carrier is not renewing coverage when our present policy expires on May 1, 1983, we have had to look elsewhere for coverage. This has proved to be a benefit to the employees. Two proposals have been obtained. They are: 1) United States Fidelity & Guarantee $0.29 per $1,000 per employee per month minimum required: $8,000 cost per employee per month $2.32 2) Guardian Life $0.36 per $1,000 per employee per month minimum required: $10,000 cost per employee per month $3.60 These rates are more favorable than our present rate of $0.47 per $1,000 per employee per month. Presently $5,000 is carried on each employee for a monthly cost of $2.35. I would recommend Council authorize the Mayor & Clerk -Administrator to enter into a contract with the United States Fidelity & Guarantee Company to provide $10,000 group life insurance coverage to City employees at a cost of $2.90 per month per employee. For an additional $0.55 per month each employee would have an additional $5,000 of coverage. Our present policy is to contribute up to a maximum of $125.00 per month toward an employees'life and health insurance benefits. Those employees carrying family health insurance coverage are presently using the maximum of $125.00; they would, therefore, pay the additional $0.55 per month through payroll deduction. Employees with single health insurance coverage arc not presently using the maximum; the City would, therefore, pay the additional $0.55 per employee per month for those employees. For the period May 1, 1983 - December 31, 1983 this would amount to $39.60. If you have any questions do not hesitate to contact me. 41 DB/ds