CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the recommendation by GCG Financial to award basic life insurance, AD&D insurance and voluntary life insurance renewal to Reliastar Life Insurance Company through Voya Financial for a two-year term and for an amount not to exceed $252,000
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DEPARTMENT: Human Resources
SUBMITTED BY: James Sheehan, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
City Council approved GCG Financial (GCG) as the City's employee benefits broker. One of GCG's duties is to price, recommend and negotiate the award of a group life insurance vendor for the City of Naperville. GCG previously recommended and the City approved Reliastar/VOYA for our group life insurance products.
The City's current contract with Reliastar/VOYA for basic life, accidental death and dismemberment (AD&D) and optional life insurance will expire on December 31, 2018.
The City provides basic life insurance and AD&D coverage at 1.5 times an employee's salary up to a maximum of $300,000 at no cost to the employee. Employees may purchase optional life insurance covering themselves, their spouse and/or their children at their own expense. Retirees may also purchase limited life insurance benefits through our agreement with Reliastar/VOYA.
The City's cost for basic life insurance and AD&D is based upon the volume of insurance provided to covered employees. The total cost will vary based upon salary and current headcount, therefore the above totals are based on estimates using the City's current employee population with an estimated salary adjustment for each year.
DISCUSSION:
GCG reached out to Reliastar/VOYA for a renewal quote. Reliastar/VOYA offered a renewal with no cost increase to the City and no rate changes for the voluntary portion of the policy. In light of Voya's willingness to extend the current premiums for 24 months, GCG recommends the City of Naperville renew with the Reliastar/VOYA coverage for the period of January 1, 2019 to Decem...
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