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Consent

Brentwood City Commission Agenda

Meeting Date:	05/08/2023
Resolution 2023-50 - Extension of Long-Term Disability Benefit Program with Hartford Life
Submitted by:	April Curlin, Human Resource
Department:	Human Resource

Information

Subject

Resolution 2023-50 - Authorizing Extension of Long-Term Disability Benefit Program with Hartford Life and Accident Insurance Company

Background

The City currently provides a Long Term Disability (LTD) benefit program through a fully insured plan with Hartford Life and Accident Insurance Company.

The Long Term Disability program provides employees who are unable to work due to a non-work related disability with benefits equal to 50% of their regular monthly earnings. Benefits begin after a 26-week waiting period and continue until the employee is able to return to work or until the employee’s normal social security retirement age. The current policy provides a maximum monthly benefit of $7,000 and the employee’s eligibility for benefits is based upon their inability to perform their own job up to their normal social security retirement age.

The City Commission approved the renewal of the LTD program in June 2018 for a three-year period that ended June 30, 2021. Sometime after these renewals, Hartford notified our insurance broker that they were extending the rate guarantee for the benefit program to June 30, 2023. On November 22, 2021, the City Commission authorized the extension of the LTD program though June 30, 2023. Earlier this year, Hartford notified our insurance broker they are renewing the LTD program at the same rates through July 1, 2025. Although the City would typically re-bid this coverage upon its expiration in June, staff is recommending a waiver of competitive bidding due to the likelihood of a cost increase in the event the coverage were to be rebid and the potential to lose the very advantageous "own occupation" benefit criteria, which is not as common in today's market.

The existing benefit program through Hartford will continue through these dates unless the City acts to cancel the program. While Hartford does not require a formal renewal of the programs, staff believes it is appropriate for City Commission authorization to continue the LTD benefit program under Hartford through the extended rate guarantee periods.

The LTD program costs approximately $48,000 per year.

Staff Recommendation

Staff recommends the City Commission authorize continuation of the LTD benefit program with Hartford for the extended rate guarantee periods (to June 30, 2025).

Fiscal Impact

Attachments
Resolution 2023-50
July 2023 Renewal Letter
Rate Trends
Signed Resolution