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HomeMy WebLinkAboutContractCity of Renton 2024 Renewal Summary Policy 648039 Thank you for choosing Standard Insurance Company (The Standard) as your employee benefits partner since June 1, 2010. We appreciate your business and the opportunity to renew our commitment. We strive to provide City of Renton and your employees outstanding value, expertise and personal service. As always, our goal is to help you take care of your business and your employees. Our team remains committed to helping you achieve strategic goals for your benefits program, streamline administration and increase employee satisfaction. In short — better results with less noise. Thank you again for your continued business. Our Approach to Renewals — Continued Partnership The renewal rates for your Group Life, Disability insurance will be effective January 1, 2024. For your renewal, we utilized manual rates to determine the appropriate rate for renewal. Our manual rates use the demographics of your employees to determine the appropriate rates. Factors such as gender, age, salary, occupation and plan design contribute to determining the manual rate. Please consider this renewal package the next step in our ongoing conversation about how we can best meet your needs. We may be able to work together to help you get more value out of your benefits program or reduce overall costs. We’d be happy to re-evaluate your plan design and benefits usage and discuss your options. Your Basic Life Renewal We understand that handling a Life insurance claim takes a special touch. Our Life benefits analysts complete annual grief training. This program helps them empathize with beneficiaries and recognize when they need special attention. We strive to help you make a tough time easier. Our goal is to provide support with easy claim filing, timely decisions, and prompt payment of approved claims. Census Demographics for Basic Life Categories Prior Calculation Current Calculation Change Female Lives 191 206 15 Male Lives 372 384 12 Benefit Volume $32,464,500 $34,635,500 $2,171,000 % Benefit Volume Age 50 + 40% 38% -2% CAG-23-401 Based on our thorough analysis, we’re offering the renewal rate[s] listed below. Class 1: Commissioned Police (Grade pc 60 & 61) and Non-Commissioned Employees of the Renton Police Officers Guild (Grade pn) Renewal Date Current Rate * Renewal Rate * Volume Monthly Premium Change ** January 1, 2024 $0.060 $0.050 $10,137,000 $-101 Class 2: Council Members Renewal Date Current Rate * Renewal Rate * Volume Monthly Premium Change ** January 1, 2024 $0.790 $0.790 $87,500 $0 Class 3: All other Members Renewal Date Current Rate * Renewal Rate * Volume Monthly Premium Change ** January 1, 2024 $0.060 $0.050 $22,240,000 $-222 Product Total Monthly Premium Change ** Basic Life $-323 * Rate mode is Per $1000 of Benefit ** Final premium change will be determined based on your group’s composition at billing time Rate will be guaranteed for 3 years until January 1, 2027. The Standard is committed to helping you provide employees and their beneficiaries with the support they need. Below is a reminder of the additional services and tools offered with your Life plan. The Life Services Toolkit For employees, online services include estate planning and state-specific will preparation, identity theft prevention, financial calculators, wellness resources and more. For beneficiaries, the Life Services Toolkit offers grief and loss support by phone, online and face-to-face. They can also take advantage of access to financial counselors, legal consultation and other support services. This service is offered through a vendor that is not affiliated with The Standard. Travel Assistance Travel Assistance can provide a sense of security for your employees and their eligible family members anytime they travel with minimal restrictions. Available 24 hours a day — with access online or through a single phone call — Travel Assistance offers a full range of trip planning and travel support, including emergency evacuation services and medical, legal, and translation service referrals. This service is offered through a vendor that is not affiliated with The Standard. Your Additional Life Renewal Your Additional Life insurance from The Standard allows you to expand the benefit options you offer your employees. Your Additional Life plan can offer choice, flexibility, convenience and greater peace of mind for employees. Census Demographics for Additional Life Categories Prior Calculation Current Calculation Change Female Lives 43 42 -1 Male Lives 74 70 -4 Benefit Volume $13,850,000 $13,425,000 $-425,000 % Benefit Volume Age 50 + 38% 39% 1% Based on our thorough analysis, we’re offering the renewal rate[s] listed below. Age Graded Rates for Additional Life: Age Band Current Rate * Renewal Rate * Volume Monthly Premium Change ** 0 – 29 $0.082 $0.082 $100,000 $0 30 – 34 $0.100 $0.100 $1,500,000 $0 35 – 39 $0.127 $0.127 $1,600,000 $0 40 – 44 $0.208 $0.208 $2,050,000 $0 45 – 49 $0.326 $0.326 $2,950,000 $0 50 – 54 $0.571 $0.571 $1,900,000 $0 55 – 59 $0.897 $0.897 $2,025,000 $0 60 – 64 $1.368 $1.368 $975,000 $0 65 – 69 $2.338 $2.338 $250,000 $0 70 – 74 $2.942 $2.942 $50,000 $0 75 – 79 $6.307 $6.307 $25,000 $0 80 – 99 $8.718 $8.718 $0 $0 Total Monthly Premium Change: $0 * Rate mode is Per $1000 of Benefit Age Graded Rates for Additional Spouse Life: Age Band Current Rate * Renewal Rate * Volume Monthly Premium Change ** 0 - 29 $0.082 $0.082 $0 $0 30 - 34 $0.100 $0.100 $450,000 $0 35 - 39 $0.127 $0.127 $400,000 $0 40 - 44 $0.208 $0.208 $300,000 $0 45 - 49 $0.326 $0.326 $650,000 $0 50 - 54 $0.571 $0.571 $375,000 $0 55 - 59 $0.897 $0.897 $275,000 $0 60 - 64 $1.368 $1.368 $150,000 $0 65 - 69 $2.338 $2.338 $50,000 $0 70 - 74 $2.942 $2.942 $0 $0 75 - 79 $6.307 $6.307 $0 $0 80 - 99 $8.718 $8.718 $0 $0 Total Monthly Premium Change: $0 * Rate mode is Per $1000, Elective ** Final premium change will be determined based on your group’s composition at billing time Rate will be guaranteed for 3 years until January 1, 2027. Your Long Term Disability Renewal The Standard’s Long Term Disability insurance helps your employees protect a portion of their incomes. Our holistic approach can also support productivity by helping employees stay at or return to work. This coverage includes a Reasonable Accommodation Expense Benefit, which reimburses employers for approved workplace modifications of up to $25,000 that enable disabled employees to return to or remain at work. The Reasonable Accommodation Expense Benefit is separate from the LTD benefit payment. Census Demographics for Long Term Disability Categories Prior Calculation Current Calculation Change Female Lives 177 189 12 Male Lives 276 282 6 Benefit Volume $3,465,705 $3,813,331 $347,626 % Benefit Volume Age 50 + 48% 49% 1% Based on our thorough analysis, we’re offering the renewal rate[s] listed below. Renewal Date Current Rate * Renewal Rate * Monthly Premium Change ** January 1, 2024 $0.290 $0.240 $-1,907 * Rate mode is Percent of Insured Earnings ** Final premium change will be determined based on your group’s composition at billing time Rate will be guaranteed for 3 years until January 1, 2027. Thank You and Next Steps We appreciate the opportunity to continue our partnership with City of Renton. A summary of our Renewal Offer is in the chart below. Thank you for allowing Standard Insurance Company the opportunity to support your insurance needs. Product & Services * Through 12/31/23 Effective 01/01/24 Basic Life Class 1 $0.060 Per $1000 of Benefit $0.050 Per $1000 of Benefit Class 2 $0.790 Per $1000 of Benefit $0.790 Per $1000 of Benefit Class 3 $0.060 Per $1000 of Benefit $0.050 Per $1000 of Benefit Basic AD&D $0.025 Per $1000 of Benefit $0.020 Per $1000 of Benefit Additional Life Rate Varies Rate Varies, no change Additional Spouse Dependent Life Rate Varies Rate Varies, no change Additional Child Dependent Life $0.123 Per $1000, Elective $0.123 Per $1000, Elective LTD $0.290 Percent of Insured Earnings $0.240 Percent of Insured Earnings Spouse & Child Dependent Life $0.310 Per Member, Required $0.310 Per Member, Required *The above shown rates are monthly. You can count on us to help you retain and attract employees by providing the benefits and services they value – now and for years to come. We’re always available to address any questions you have about this renewal or for any service needs. Please reach out to the Seattle group office at (0) - and we’ll be happy to help. ___________________________________ Armondo Pavone, Mayor _______________________________ Date Attest:_____________________________ Jason Seth, City Clerk 11/14/2023 777777777777777777777777777777777777777777777777777777777©2023 ARTHUR J. GALLAGHER & CO. | AJG.COM | Page 7Life and AD&D Plans Current vs Renewal SummaryCLASS DESCRIPTION:Class 1: All Full-time Active Employees who are Commissioned Police (Grade pc 60 & 61) andNon-Commissioned Employees of the Renton Police Officers Guild (Grade pn)Class 2: All Full-time Active Employees who are Council MembersClass 3: All Full-time Active Employees who are All Other MembersCURRENTRENEWALCarrier NameThe StandardThe StandardPLAN DESIGN*Class 1 & Class 3Class 2Class 1 & Class 3Class 2EmployeeLife BenefitClass I: Commissioned Police (Grade PC 60 & 61) and Non-Commissioned Employees of the Renton Police Officers Guild (Grade PN)1x Annual Earnings to max $125,000N/A1x Annual Earnings to max $125,000N/AClass II: Council MembersN/A$12,500N/A$12,500Class III: All other Employees1x Annual Earnings to max $50,000N/A1x Annual Earnings to max $50,000N/AAD&D BenefitClass I: Commissioned Police (Grade PC 60 & 61) and Non-Commissioned Employees of the Renton Police Officers Guild (Grade PN)Same as Life amountN/ASame as Life amountN/AClass II: Council MembersNAN/ANAN/AClass III: All other EmployeesSame as Life amountN/ASame as Life amountN/ABenefit Reduction Schedule (% benefit reduces by at age)50% at age 75; 70% at age 80; 80% at age 8550% at age 75; 70% at age 80; 80% at age 8550% at age 75; 70% at age 80; 80% at age 8550% at age 75; 70% at age 80; 80% at age 85Spouse Life Benefit$1,000 not to exceed 100% of EE's amountN/A$1,000 not to exceed 100% of EE's amountN/ASpouse AD&D BenefitSame as Life amountN/ASame as Life amountN/ASpouse Benefit Reduction Schedule (% benefit reduces by at age)50% at age 75; 70% at age 80; 80% at age 85N/A50% at age 75; 70% at age 80; 80% at age 85N/ADependent Child(ren)Life BenefitLive Birth to age 25: $1,000 not to exceed 100% of EE's amountN/ALive Birth to age 25: $1,000 not to exceed 100% of EE's amountN/AAD&D BenefitSame as Life amountN/ASame as Life amountN/ADefinition of EarningsAnnual EarningsAnnual EarningsAnnual EarningsAnnual EarningsWaiver of Premium IncludedNot-IncludedIncludedNot-IncludedAccelerated Benefit Amount 75% to max $500,000Not-Included75% to max $500,000Not-IncludedConvertible/PortableIncludedIncludedIncludedIncludedSuicide ExclusionAD&D: IncludedN/AAD&D: IncludedN/ALeave of Absence Maximum Duration60 Days60 Days60 Days60 DaysCOST ANALYSISRatesVolume/Unit(s)Class 1 + Class 3Volume/Unit(s)Class 2Covered Lives CURRENTRENEWALLife Rate Per $1,000 Vol$34,548,000 $87,500590$0.060$0.790$0.050$0.790AD&D Rate Per $1,000 Vol$34,548,000$0590$0.025$0.000$0.020$0.000Dependent Life per Unit583$0.310$0.000$0.310$0.000Estimated Monthly Premium$3,117$69$2,599$69Estimated Annual Premium$37,408$830$31,189$830Estimated Combined Annual Premium$38,237$32,019Dollar Difference from Current-$6,219Percent Change from Current-16.26% 99999999999999999999999999999999999999999999999999999999999999999999©2023 ARTHUR J. GALLAGHER & CO. | AJG.COM | Page 9Long Term Disability Plan Summary Current vs Renewal Definition of Disability LanguageAnd Definition of Disability - During the Own Occ period (first 24 months), the insured is disabled when Unum determines that: the insured is limited from performing the material and substantial duties of his/her regular occupation due to sickness or injury; AND the insured has a 20% or more loss of indexed monthly earnings due to the same injury or illnessOr Definition of Disability -During the Own Occ period (first 24 months), the employee is disabled when the Unum determines that due to his or her sickness or injury: * the employee is unable to perform the material and substantial duties of his or her regular occupation and is not working in his or her regular occupation or any other occupation; or * the employee is unable to perform one or more of the material and substantial duties of his or her regular occupation, and the employee has a 20% or more loss in his or her indexed monthly earning while working in his or her regular occupation or in any occupation.Duties Only Definition -No earnings loss requiredCLASS DESCRIPTIONClass I:Employees not represented by a bargaining unit, including the elected Mayor and Judges, but not CouncilmembersClass II:Employees represented by AFSCME or Police Non-Commissioned GuildCURRENTRENEWALCarrier NameThe StandardThe StandardPLAN DESIGN*Benefit60% to max $9,00060% to max $9,000Elimination Period90 Days90 DaysDuration of BenefitsSSNRA or To age 65SSNRA or To age 65Own Occupation ContinuationClass I:From the end of the Benefit Waiting Period to the end of the Maximum Benefit PeriodFrom the end of the Benefit Waiting Period to the end of the Maximum Benefit PeriodClass II:24 Months24 MonthsFeatures and LimitationsDefinition of EarningsMonthly Earnings including Employee Deferred Compensation to 401(k) and Fringe BenefitsMonthly Earnings including Employee Deferred Compensation to 401(k) and Fringe BenefitsDefinition of DisabilityAnd Definition of DisabilityAnd Definition of DisabilityTotal and Partial Disability IncludedIncludedReturn to Work12 Months12 MonthsWorkplace Modification BenefitUp to $25,000Up to $25,000Rehabilitation BenefitIncludedIncludedMinimum Benefit$100 or 10% of benefit whichever is greater $100 or 10% of benefit whichever is greaterPre-Existing Condition Limitation3/123/12Earnings Test20% Own Occ / 20% Any Occ20% Own Occ / 20% Any OccSocial Security IntegrationPrimary offsetPrimary offsetDisability LimitationsMental HealthNoneNoneSubstance AbuseNoneNoneWaiver of Premium IncludedIncludedContinuity of CoverageIncludedIncludedCOST ANALYSISRatesCovered Payroll Covered LivesCURRENTRENEWALPer $100 of Covered Payroll$3,813,331471$0.290$0.240Estimated Monthly Premium$11,059$9,152Estimated Annual Premium$132,704$109,824Dollar Difference from Current-$22,880Percent Change from Current-17.24%