DATE: April 25, 2023
TO: Board of Supervisors
SUBMITTED BY: Hollis Magill, Director of Human Resources
SUBJECT: First Amendment to Agreement with ReliaStar Life Insurance Company
RECOMMENDED ACTION(S):
TITLE
Approve and Authorize the Chairman to execute First Amendment to Agreement with ReliaStar Life Insurance Company (“Agreement”), extending the term by one year, from May 1, 2023 through and including April 30, 2024, and add one optional eight-month extension, through and including December 31, 2024.
REPORT
There is no net County Cost associated with this action. The term of the Agreement, which provides optional Accident, Critical Illness, and Hospital Confinement Indemnity insurance to County employees, is for three years, beginning on May 1, 2020, through and including April 30, 2023. The Agreement does not include any extensions, as rates were not guaranteed beyond three years at the time it was executed. However, ReliaStar Life Insurance Company (hereinafter “ReliaStar”) has agreed to guarantee the rates under the Agreement through and including December 31, 2024. Approval of the recommended action would extend the Agreement’s term for another year, through and including April 30, 2024, with an optional eight-month extension period, upon written approval of both parties. This item is countywide.
ALTERNATIVE ACTION(S):
Your Board may direct staff to initiate the RFP process for this benefit instead of extending the current Agreement. However, such a process may not result in reduced costs or increased services, as the current rates are less than three years old.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended action. The Accident, Critical Illness, and Hospital Confinement Indemnity insurance premium rates under the Agreement will remain unchanged and will continue to be paid by participating employees.
DISCUSSION:
On February 25, 2020, your Board approved the Agreement No. 20-072, which provides County employees with the option to purchase Accident, Critical Illness, and Hospital Confinement Indemnity insurance benefits through ReliaStar. The purpose of the recommended action is to extend the Agreement term from three (3) years to four (4) years, and to add an optional eight-month extension, at current rates. The recommended action does not extend the Agreement beyond five years, nor does it provide for an increase in the current Accident, Critical Illness, or Hospital Confinement Indemnity insurance rates without written consent from your Board.
REFERENCE MATERIAL:
BAI #40, February 25, 2020
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - First Amendment to Agreement with ReliaStar
CAO ANALYST:
Fine Nai