DATE: September 21, 2021
TO: Board of Supervisors
SUBMITTED BY: Hollis Magill, Director of Human Resources
SUBJECT: Second Amendment to Agreement with ReliaStar Life Insurance Company
RECOMMENDED ACTION(S):
TITLE
Approve and Authorize the Chairman to execute a Second Amendment to Agreement No. 18-708 with ReliaStar Life Insurance Company extending the term by two years from December 31, 2021 to December 31, 2023, which includes one optional one-year extension, and increasing the maximum by $440,000 to a total of $1,100,000.
REPORT
There is no net County Cost associated with this action. Approval of the recommended action would extend the Agreement No. 18-708 (hereinafter the "Agreement") term from three years to years which includes an optional one-year extension of the Agreement upon written consent by both parties. The original term of the Agreement was for three years with no extensions, as rates were not guaranteed beyond three years at that time. However, ReliaStar Life Insurance Company (hereinafter "ReliaStar") agreed to an additional year with no increase in life and accidental death & dismemberment ("AD&D") insurance rates. The optional one-year extension will also be at current rates, assuming that ReliaStar's Incurred Loss Ratio is at or below 70%.
The maximum amount of the Agreement will increase from $660,000 to $1,100,000 due the increase in the term; there is no increase in the cost of life insurance or employee assistance program ("EAP") services as a result of the recommended action. 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 life and AD&D insurance premium and EAP rates under the Agreement will remain ...
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