DATE: December 11, 2018
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, Director of Human Resources
SUBJECT: Agreement with ReliaStar Life Insurance Company to Provide Life and Accidental Death & Dismemberment Insurance to County of Fresno Employees
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute an Agreement with Reliastar Life Insurance Company to provide employer-paid basic life and accidental death & dismemberment insurance coverage and optional employee-paid supplemental life insurance coverage to County of Fresno employees, effective December 31, 2018, not to exceed three (3) consecutive years, total not to exceed $600,000.
REPORT
Approval of the recommended action will allow Reliastar Life Insurance Company (Reliastar) to provide employer-paid life and accidental death & dismemberment (AD&D) insurance coverage, as well as optional, employee-paid term life insurance to County employees. The approximate annual cost of the employer-paid life and AD&D coverage is $147,000 for calendar year 2019 and is funded through salaries and benefits charged to the departments of the covered employees. There is no net County cost associated with the employee-paid supplemental life insurance coverage. This item is countywide.
ALTERNATIVE ACTION(S):
Your Board may select a different insurance carrier; however, selecting a different carrier would increase net County cost, as Reliastar provided the lowest rates for employer-paid life and AD&D coverage. Your Board may select lower coverage levels for the employer-paid basic life and AD&D coverage than what is being proposed.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
On May 1, 2018, your Board made a finding that it was in the best interest of the County to waive the competitive bidding process consistent with Administrative Policy No. 34 under the "unusual or extraordinary circumstances" exception for the solicitation of ancillary benefits including life and disability insurance...
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