CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #1 to Contract #2739, Group Life/Accidental Death & Dismemberment and FMLA, to VOYA for an amount not to exceed $170,764, and a total award of $757,854
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DEPARTMENT: Human Resources
SUBMITTED BY: Helga Oles, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City provides basic life insurance and AD&D at no charge to its employees. Basic life insurance provides coverage up to $300,000 and AD&D insurance provides coverage up to $300,000 for each covered employee at the City, Naper Settlement, Naperville Public Library, and NCTV. Employees may purchase optional life insurance for themselves, their spouse and/or their children at their own expense. Retirees may also purchase limited life insurance benefits through the City's agreement with Reliastar/VOYA. The City's Group Life and AD&D insurance and FMLA administration contract with VOYA renewed for a three-year contract from January 1, 2023, through December 31, 2025.
DISCUSSION:
This Change Order is requested to add $170,764 to the current contract as there are insufficient funds to pay the remaining invoices for the 2025 fiscal year. The City's cost for basic life insurance, AD&D, and FMLA administration is based upon the number of employees covered and the volume of insurance provided to covered employees. The monthly cost varies based upon salary, total headcount, and contract totals of eligible participants with estimated adjustments for each year.
FISCAL IMPACT:
CIP #: N/A
The requested award will be charged to the Employer Life Insurance expense accounts across various funds and the Human Resources Services account for FMLA administration in the General Fund. The 2025 Budget includes a total of $217,791 for Group Life/Accidental Death & Dismemberment and $20,093 for FMLA Administration.
This Change Order increases the annual contract award to $252,618. As a result, the requested award exceeds the current...
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