95-21729 Reso RESOLUTION NO. 95-21729
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, EXTENDING THE BASIC
AND SUPPLEMENTAL LIFE INSURANCE PLANS, ACCIDENTAL
DEATH & DISMEMBERMENT PLAN AND RETIREES'
SUPPLEMENTAL LIFE INSURANCE PLAN WITH ITT HARTFORD
LIFE INSURANCE COMPANIES FOR FISCAL YEAR 1995/96.
WHEREAS, Invitation to Bid No. 95-93/98 was awarded to ITT Hartford Life Insurance
Companies for a one year period on July 27, 1994, with the option to renew for up to four additional
one year periods; and
WHEREAS, Chapter 2 of the City of Miami Beach Code Relating to Employees' Group Life
Insurance Plans was amended by ordinance effective November 1, 1994 to increase the $1,000
retiree life insurance benefit to $5,000 for eligible retirees; and
WHEREAS, ITT Hartford's bid response offered a two year rate guarantee for the Basic and
Supplemental Life Insurance Plans and the Accidental Death & Dismemberment Plan, which has
been evaluated by the Administration and the Group Insurance Board and found to be reasonable
with the exception of the Retirees Supplemental Life Insurance Plan rate; and
WHEREAS, a second enrollment period for the Retirees Supplemental Life Insurance Plan
has resulted in a total enrollment in excess of 35% of eligible retirees, meeting ITT Hartford's
renewal offer of a 33% rate decrease effective October 1, 1995 for the Retirees Supplemental Life
Insurance Plan, which has been evaluated by the Administration and the Group Insurance Board
and found to be reasonable; and
WHEREAS, the Administration and Group Insurance Board, at its September 15, 1995
meeting, recommend the extension for a second one year period commencing October 1, 1995,
with no change in rates for the Basic and Supplemental Life insurance Plans and the Accidental
Death & Dismemberment Plan, and a 33% rate decrease for the Retirees Supplemental Life
Insurance Plan.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and the City
Commission hereby extend the Basic and Supplemental Life Insurance Plans, the Accidental Death
& Dismemberment Plan and the Retirees' Supplemental Life Insurance Plan with ITT Hartford Life
Insurance Companies for the Fiscal Year 1995/96.
Y of ptem
27th day Seb, , 1995.
ADOPTED this /
AYOR
AT ST: FORM APPROVED
L AL D P
TY CLERK
By
Date 9/2° /7`5
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. / a 3 -9 5
TO: Mayor Seymour Gelber and
• Members of the City Commission DATE: September 27 , 1995
FROM: Jose Garcia-Pedrosa
City Manager
SUBJECT: RESOLUTION AP RING THE EXTENSION OF GROUP BASIC AND
SUPPLEMENTAL LIFE INSURANCE PLANS, ACCIDENTAL DEATH &
DISMEMBERMENT PLAN AND RETIREES SUPPLEMENTAL LIFE INSURANCE
PLAN WITH ITT HARTFORD LIFE INSURANCE COMPANIES FOR FISCAL
YEAR 1995/96 AND AUTHORIZING THE MAYOR AND THE CITY CLERK TO
EXECUTE A RESOLUTION.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission approve the resolution authorizing the
extension for a second one-year period of the existing Bid Award No. 95-93/98 with ITT Hartford
Life Insurance Companies for Fiscal Year 1995/96, with the same rates as Fiscal Year 1994/95 for
Basic and Supplemental Life Insurance Plans and Accidental Death & Dismemberment Plan, and
a 33 percent reduction (-33%) in rate for the $4,000 Retiree Supplemental Life Insurance Plan.
BACKGROUND
Invitation to Bid No. 95-93/98 was awarded to ITT Hartford Life Insurance Companies for a one
year period on July 27, 1994, with the option to renew for up to four additional one year periods.
ITT Hartford's bid response offered a two year rate guarantee for the Basic and Supplemental Life
Insurance Plans, the Accidental Death & Dismemberment Plan and the Retirees Supplemental Life
Insurance Plan. Therefore, the rates for Fiscal Year 1995/96 are the same rates as for Fiscal Year
1994/95 for Basic and Supplemental Life Insurance Plans and Accidental Death & Dismemberment
Plan. The renewal was been evaluated by the City Administration and the Group Insurance Board
and found to be reasonable, with the exception of the Retirees Supplemental Life Insurance Plan.
Chapter 2 of the City of Miami Beach City Code Relating to Employees' Group Life Insurance Plans
was amended by ordinance to increase the $1,000 life insurance benefit to $5,000, with the first
$1,000 at the Basic Life Insurance Plan rate, split 50/50 between the retiree and the City of Miami
Beach, and the remaining $4,000 at a separate rate, paid entirely by the retiree. Those who retire
on or after November 1, 1994 are eligible for the $5,000 life insurance benefit. Eligible retirees
enrolled in the $1,000 life insurance benefit as of November 1, 1994 had an opportunity to enroll
in the additional $4,000 life insurance benefit.
AGENDA ITEM 1
DATE 9-21-9 S
At the request of the Group Insurance Board, the City Administration negotiated with ITT Hartford
for a rate reduction for the Retiree Supplemental Life Insurance Plan. ITT Hartford offered a 33%
rate reduction for Fiscal Year 1995/96 if at least 35% of eligible retirees enrolled in the Plan. The
City Administration notified eligible retirees of an "Open Enrollment" period to enroll in the Retiree
Supplemental Life Insurance Plan. As of August 29, 1995, 42% of eligible retirees have enrolled,
with enrollment continuing through September 30, 1995.
ANALYSIS
ITT Hartford's bid response offered a two year rate guarantee for the Basic and Supplemental Life
Insurance Plans, the Accidental Death & Dismemberment Plan and the Retirees Supplemental Life
Insurance Plan. Therefore, the rates for Fiscal Year 1995/96 are the same rates as Fiscal Year
1994/95 for Basic and Supplemental Life Insurance Plans and Accidental Death & Dismemberment
Plan. A 33 percent reduction (-33%) in rate for the $4,000 Retiree Supplemental Life Insurance
Plan for Fiscal Year 1995/96 was negotiated and the carrier's enrollment requirement has been
met. These renewals have been evaluated by the City Administration and the Group Insurance
Board and found to be reasonable.
The City Administration and the Group Insurance Board recommend the extension for a second
one year period commencing October 1, 1995, based on the following:
Premium Rates - No change in premium rates for the Basic and Supplemental Life
Insurance Plans and the Accidental Death & Dismemberment Plan, as the commencement
of the second year of a two year rate guarantee.
Premium Rate Reductions - A 33.0% decrease in the premium rate for the Retirees
Supplemental Life Insurance Plan, meeting the carrier's enrollment requirement.
The Group Insurance Board at its September 15, 1995 meeting voted to recommend acceptance
of ITT Hartford's renewal offers. The Group Insurance Board is comprised of the presidents of the
American Federation of State, County and Municipal Employees (AFSCME), and the
Communication Workers of America (CWA) , a retiree representative and three Administration
representatives as well as the Human Resources Director.
BID AMOUNT
$278,848. Cost in Fiscal Year 1994/95 for Basic &
Supplemental Life Insurance Plans, Accidental Death
& Dismemberment Plan, and Retirees Supplemental
Life Insurance Plan.
9,297. - Estimated cost change in Fiscal Year 1995/96, based
on rate reduction for those currently enrolled in
Retirees Supplemental Life Insurance Plan and new
premiums for those enrolling effective 10/1/95 in the
Retirees Supplemental Life Insurance Plan. No
change in cost to the City.
$288,145. Estimated annual cost to be shared equally between
City and Employee/Retiree contributions for the Basic
& Supplemental Life Insurance Plans, Accidental
Death & Dismemberment Plan, and retiree-only
contributions for the Retirees Supplemental Life
Insurance Plan for Fiscal Year 1995/96.
CONCLUSION
The Administration recommends that the City Commission approve the attached resolution
extending the contract between the City of Miami Beach and ITT Hartford Life Insurance
Companies.
TCA:DMR/LS
