The URL can be used to link to this page

Home My WebLink About1992-006 . .' 1 2 3 4 5 6 RESOLUTION NO. 92-06 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE ADOPTION OF UNUM INSURANCE COMPANY LONG TERM DISABILITY POLICY FOR AGEMENT/CONFIDENTIAL AND MID MANAGEMENT EMPLOYEES. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: WHEREAS, the Council adopted Resolution No. 87-155 on May 18, 1987, relating to implementation of a long term disability program 7 for management and confidential employees, 8 9 10 11 12 13 14 15 16 17 18 WHEREAS, Council later authorized the addition of Mid anagement employees to that policy, WHEREAS, UNUM Insurance Company has prepared a comprehensive document incorporating all relevant parts of the application or insurance adopted by Resolution No. 87-155 plus subsequent to that application as described in the staff report. NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL THE CITY OF SAN BERNARDINO that the UNUM Insurance Company LTD olicy be adopted, replacing the present policy with Standard Life nsurance Company, a copy of which is attached hereto, marked Exhibit 'A" and incorporated herein by reference as fully as though set forth 19 20 21 22 t length. This Resolution shall apply only to the Management 1 onfidential and Mid-Management city employees. I HEREBY CERTIFY that the foregoing Resolution was duly 23 dopted by the Mayor 24 III 1 1 25 1 1 1 1 1 26 1 1 1 1 1 27 1 1 1 1 1 28 1 1 1 1 1 12/23/91 and Common council of the city of San Bernardino 1 at a regular 2 January 3 4 Council Members: 5 ESTRADA REILLY 6 HERNANDEZ MAUDSLEY 7 MINOR POPE-LUDLAM 8 MILLER 9 10 11 12 day of 13 14 RESOLU~ION'AUTH~RIZING THE ADOPTION O~ UNUM 'IN~U~A~C~ COMPANY LONG TERM DISABILITY JOLICY FOR MANAGEMENT/CONFIDENTIAL AND MID MANAGE- MENT EMPLOYEES. meeting thereof, held of the 6th daj' 0 , 1992, by the following vote, to wit: AYES NAYS ABSTAIN x x x x x x x .K".d I.~ /).5'+Vd-YcL-cf' '. CITY CLERK I The foregoing Resolution is hereby approved this 8th Januarv , 1992. ~ ,.'. .~ ..--:Z._ ~ 15 Approved as to form 16 and legal content: JAMES F. PENMAN 17 city Attorney 18 By: 19 20 21 22 23 24 25 26 27 28 (, , lA_ ." /1 ~-~''"'(' ! ,7 / ( :..,.'/.. 12/23/91 -2- 1--- ;-8715./87\ :mD'ovee Benefits · ; II/ftf.{tUA. Res. No. 92-06 adopted 1/6/92 UNUM GROUP INSURANCE PROPOSAL Prepared for: CITY OF SAN BERNARDINO Prepared by: Dennis Van Uffelen ?:mplovee :<3enerits Benefits Service .')7-88 (5.90\ ~(QUO ..cnq =rm::isaoliit'l With UNUM as your disaoility carner. youll be bUYing more than a contract. You can expect fair management of claims, as well as promot and courte- ous service. Expertise UNUM's expertise in the Long Term Disability business is one reason we have been the industry leader for 14 years running: UNUM's Rehabilitation staff members are all certified as both Rehabilitation Counselors (CRG) and Insurance Re- habilitation Specialists (CIRS), each with a minimum of a Master's degree In Rehabilitation or a closely related field. Our SOCial Security Specialists have an average of nine years experience each in disability and vocational related fields and all are active members of The National Organization of Social Security Claimant Representatives (NOSSCR). Our Disability Benefits Specialists are highly trained individuals who handle only L TO claims and work closely with disabled employees. In 1987, over 250.000 checks were issued to our claimants. With an average of 10 years each in disability and insurance related fields, UNUM's Regional Benefits Representa- tives conduct face-to-face interviews with a number of claimants to obtain first-hand information and proVide one- on-one service to employees. Consulting Physicians located in eacn benefits office offer an average of 1 5 years experience in the mooical profes- sion, are each Board Certified Special- ists. and maintain active membershio on nospltal medical staffs. This combi- nation of expertise and active practice ensures too quality mooical advice on our claims management process. , , -, .7~1~~~. 'IIJ~ /llt ,.", . ! U ! ,. i> J~ Service But expertise IS only part aT the wtal picture. Some of the services we oro- vide to attain a balanced approach 10 claims management ano cas! contaln- '11ent Include the following: Six regionally located BeneTlt oTiices provide local claim service, enhancing our ability to proVide prompt service, UNUM's SOCial Security Claimant Ad- vocacy Program is the most compre- hensive in the inoustry, assisting claim- ants in securing legal representation. providing professional testimony at hearings, procuring necessary medical and vocational evidence, and conduct- ing personal meetings with claimants and physicians. Because employers and employees contribute to the cost of Social Security, we think thev should share in the benefit. Our Rehabilitation Program ensures that every claim IS reviewed for possi- ble rehabilitation, and where feasible, we assist disabled employees in return- ing to productive lifestyles through ser- vices such as vocational counseling, job placement, skills assessment and educational development. For the poli- cyholder, the cost of hiring and training replacement workers IS eliminated and more favorable plan experience may be reflected in premium rate, To save the oolicvholder administrative tasks, UNUM assists In proViding tax statements to disaoled emoloyees and orovides information necessary for tax reporting purposes. With the rising costs or disabilitv and disability insurance. dont risk bUVlng . rom a camer wno sells on IV a ccntracl - do business with the leaoers In L TO ". UNUM, . Emoloyee Benerit Plan ReVIew. ADrll :990 EmDlovee 6enerits About Your LTD Income Protection Plan , ~ 7 -fJ:, 15 87! Graue Long Term Oisabliitv Some Basic Contract Highlights: . We cleariy define what we mean by "disability". . Benefits are based on the proportion of income lost or on 50% of earnings. . The amount of benefit an insured em- ployee receives directly from UNUM will not change due to a "cost of liv- ing" increase from another disability income source. . Partial disability benefits are standard. . All premium payments are waived once benefits begin. . An employee who qualifies for dIsabil- ity benefits is guaranteed a minimum monthly benefit equal to the greater of 1 0% of the benefit before reductions for other income benefits or $100. This benefit is paid regardless of in- come from other sources. Some Basic Questions and Answers In order to make both this proposal and your contract easier to understand. we are Including some of the questions most asked by employers about a UNUM L TO plan: What does UNUM consider to be "disability"? See the definition of disability card in the Special Features section. What happens to the monthly benefit under this plan if the employee is eligible for benefits from other sources? 'he disability benefits unaer this alan will be reduced by the income sources ;Istea In the SpeCial Features secllon of :his proposal. Does an accident or sickness have ;0 be job-related to aualitv for L TO benefits? No. There IS no reauirement that an .'3.ccident or SICKness Which causes j,sabilltv oe lob-related. 1/'/II/hIUM If payments from any other sources go up because of "cost of living" increases, will benefits under this plan be reduced accordingly? After the initial deduction for income received from each of the sources listed in the Special Features section. the monthly benefit received directly from UNUM will never be further re- duced due to any "cost of living' in- creases payable from these sources. This freeze will last as long as the em- ployee remains disabled. even if your company drops this plan or changes carriers. Must premium payments continue to be made for a disabled employee? The payment of premiums is waived for the penod during which the employee receives disability benefits. How long does an employee have to wait before benefits begin? The employee must be disabled for a penod of time speCified In your contract as the elimination penod. Benefits are not paid to the employee during this period, but upon completion of this period, monthly benefit payments will begin. (See Benefits and Cost Sum- mary page for our elimination period.) When do benefits end? Benefits will end on the earliest of the following dates: :. when the disability ends. 2. when the emPloyee dies (see SUrvi- vor Benetlt feature-\. 3. when the Duration of Benefits" as outlined in the SpeCial Features section is compieted, or 4. wnen the emoiovee"s current earn- ngs exceed 80% 01 hiS or ner Inaexed Jre-OIsaollity earnings. 2eeMonthlv 3enerit Amount" card in the Soeclal ~'3atures section tor an explanation of ,ndexed pre-disability earnings. 5. Benefits may cease upon vOluntary -etrrement or may continue ana offset .'llth retirement benerits. CheCK the Senerlt Integration Sources~ulllnea n the SpeCial Features secllon. "'ot avatlable In NebraSKa or Nevaaa. .;wen Employee Benefits When It Comes to L TD, More People Come To UNUM ;68-78'~0901 Group Long ierm Disability The UNUM complex of companies has been providing disability income protec- tion since 1938 and Group L TD since 1962. Today we have over 30,600 LTD contracts in force, insuring over 3.2 million people. making us the industry leader: These decades of experience and thousands of cases have exposed us to every conceivable type of prob- lem a disability can cause, not only for the disabled employee and his or her family, but especially for his or her employer. This experience has enabled us to produce a Group L TD product which has become a pattern for the industry, one which has succeeded because it meets the requirements of both employer and employee. A Commitment to Leadership UNUM is committed to staying on top of the L TD market. We reinforce our commitment year after year with new features, better service, and consistent underwriting and benefit administration. The Wisdom of Right, Not Rate Because UNUM has long set the stan- dard with our quality contract and unexcelled service, our clients know the Wisdom of buying the right contract in- stead of buying on the basIs of lowest rate alone. For them and us. value per dollar of premium IS the only true yard- stick. Our know-how pays off when It comes lime 10 pay oeneTlts. We evaluate a group when It IS underwritten. not when the first claim IS made. We approach a claim With a life insurance company philosophy. which means we are onent- ed to paYing benefits as opposed to attempting to settle a claim. Innovative Ideas We've become a leader In our field by reinforcing present strengths and by creating Ideas that anticipate the future ,eeds of our clients. One Innovative idea IS our monthly maximum disability aenetlt of uo to $35.000 for eligible . _~mnlovee denelir P,liln Hew;w Aonl 1 'j9(} i '/I'IIIIIUIi groups, which is designed to meet the special needs of high income earners. And we offer this high maximum to age 65 and beyond. Another example of innovation is our improved partial disability benefit, which protects eligibility for benefits by adjust- ing the insured employee's pre-disability earnings with a prescnbed formula for the purpose of determining the current earnings cap. This benefit allows an employee who has been re- ceiving total disability benefits to return to his or her own occupation on a lim- ited basis. A third example is our reaction to the 1978 Amendment to the Age Discrimi- nation in Employment Act. We commu- nicated extenSively with government regulatory bodies to reduce costs and risks to our policyholders. We succeeded in having the "UNUM Option" approved in the final interpreta- tion. We've designed other options to our basic L TD plan that give you even more flexibility in plan design. Why a UNUM L TD Plan? . Unlike many other companies, UNUM designs its L TD plans to stand alone. Other products such as group life insurance or medical insurance aren't needed to support or stabilize your L TD program - a practice of many earners. . We Will underwnte an L TD plan jar companies that have as few as 2 employees all the way up to compa- nies which employ thousands. We are pleased that many of America's larg- est industnal, financial and service organizations are among our growing list of L TD policyholders. . UNUM offers a quality contract. one that has become a benchmark in the L TD field because It offers excectlonal benefits at a reasonable cost. . As part of our ongoing risk manage- ment. fhe designers of your clan Will ~ell you what your company does not need as well as what it does. i,overl EmPlovee Benetits Could You Afford to Pay Double Salaries? Don't Rely on the Government! ,',4,;; Grauo l...Jnq :2rm OiS801litv That's the only choice you have If you don't have a Long Term Disability income plan tor your employees. How long can you afford to pay a disabled employee's salary? How will you tell that employee you can no longer afford to pay that salary when you are forced to hire a replacement? What IS the cost to your bUSiness if you don't stop that salary? Between now and retirement. you or anyone of your employees could earn severa: hundred thousands of dollars. In fact. the total could easily come to a million or more. And, If you thinK the proolem or disability IS a minor one. or can only happen to someone else's emoloyees. the following may come as a shock: ,! ;; ~ ,"<'1 Age 20 ,~ge 30 'Ige 35 _rk~llh Many employers believe that :~e dlsabllltv portion or the SOCial Secumy system Will provide for Their reeds. While the Social Security SYS'em does provide a floor of benefl's for 'Tlost workers. it IS generally ret the single answer 10 disability InCCC1e neeos. Especlallv as an employees .-:=:ome :ncreases. 'he Social Secunr, :enefir oecomesJ. less effective Incc;re repiacement. Social Security 8rQVIOes benetits on a reauclnCJ scale, ::;,S :ncome Increases. ::-:at mears "nat ! ,'l111111A These figures' show lhat betore age 60 the actuarial probabilitv of at least three monfhs disaollity IS greater [:,an the probability of death. an eventuality you most likely now cover with your group life Insurance plan. Disabilities do happen. And. unless you have the plan to offset their effect. the alternatives available to you, your company. and your disabled emplovee can be devastatina. '''tatistlcs from 10HO CSO \lonalirvLlhlc :lnd l')H~ CGDT Di:..ahilit,' L::,iv, ""'C'~[\ (1; :\c'tt:;lril's II,) <),29 .. Age 40 ~ge 50 Age 60 ~ni~ahilit\ higher Income earners wlil receive a seneflt that IS substantially lower as a ;)ercentage or Income man lower ncome earners. ~ TO coverage IS :",ecessarv 10 orovloe a reasonable stancara or liVing Tor ',Jour emPlOyees. -:\'F;r ~. 8 7 i 5' n 71 ::mOlovee ~eneTits " ", " ,.1, r. ',' '1"n '~~1,'" . //lff" i GROUP LTD BENEFITS DESCRIPTIONS :mDlovee "3enerits l//',Iff{fl Definition of Disability (2yr w/Partial) "Disabilityll and "disabledll mean that because of injury or sickness: 1. the claimant cannot perform each of the material duties of his or her regular occupation; and 2. after benefits have been paid for 24 months, ~mant cannot perform each of the material duties of any gai~ -1;;..accupation for which he or she is reasonably fitted by train~education, or experience. NOTE: The above is a definition of total disability. "Partial disability" and "partially disabled" mean that because of injury or sickness the claimant, while unable to perform all the material duties of his or her regular occupation on a full-time basis, is: A. performing at least one of the material duties of his or her regular occupation or another occupation on a part-time or full- time basis; and B. earning currently at least 20% less per month than his or her "indexed pre-disability earnings"* due to that same injury or sickness. NOTE: To qualify for partial disability benefits, the disabled employee must be totally disabled through the elimination period. ,', See "Monthly Benefit Amount" page. 507.-~4 (6/91l Monthly Benefit Amount (Direct Reduction) The monthly benefit a disabled employee will receive from UNUM will be equal to the percentage of basic monthly earnings you elect, up to the set maximum, less any other income benefits as listed on the "Benefits Integration Sources" page. 1269~86 ;.'1715'1371 :mglOvee -leneTits "" , 1111 ffA ; i II { f f!f"~ Definition of Disability (LTOC) "Disability" and "disabledll mean that because of injury or sickness the claimant cannot perform each of the material duties of his or her regular occupation. "Partial disability" and "partially disabled" mean that because of injury or sickness the claimant, while unable to perform all the material duties of his or her regular occupation on a full-time basis, is: A. performing at least one of the material duties of his or her regular occupation or another occupation on a part-time or full- time basis; and B. earning currently at least 20% less per month than his or her indexed pre-disability earnings due to that same injury or sickness. NOTE: To qualify for partial disability benefits, the disabled employee must be disabled through the elimination period. 866-86 (11/86l '.ij7,'jS7 EmDlovee 03eneriis , I //If''lr{{~ Benefit Integration Sources (Primary and Family) The Amount of Benefit received directly from UNUM will be reduced by the following: 1. Any primary or family income benefits from Social Security or a similar plan or act which are: a. disability benefits for which: i. the claimant is eligible; and ii. his spouse, child or children are eligible because of his disability; or b. retirement benefits received by the employee or received by the employee's spouse, child or children because of the employee's receipt of the retirement benefits. NOTE: Item l.b will not apply to disabilities which begin after age 70 for those employees already receiving Social Security retirement benefits while continuing to work beyond age 70. 2. Any "retirement plan"* benefits which are disability benefits and/or retirement benefits which the employee receives under the employer's retirement plan. NOTE: As used here, "received" does not include any amount rolled over or transferred to any eligible retirement plan as that term is defined in Section 402 of the Internal Revenue Code and any future amendments which affect the definition of an eligible retirement plan. 3. Any amount of disability income benefits for which the employee is eligible under Worker's Compensation or other similar legislation. 4. Any amount of disability income benefits for which the employee is eligible under any Compulsory Benefit act or law such as DBL (NY), SDI (CA), TDB (NJ) or Rhode Island Cash Sickness. 5. Any disability income benefits for which the employee is eligible from any other group insurance plan. 6. Any amount of disability income benefits for which the employee is eligible under any governmental system as a result of employment with the employer. "Retirement plan" means a plan which provides retirement benefits to employees which is not funded wholly by employee contributions. The term shall not include a profit-sharing plan, a thrift plan, an individual retirement account (IRA), a tax sheltered annuity (TSA), a stock ownership plan, or a non-qualified plan of deferred compensation. 365-84 (6/91) ~O-87!5187'1 1- Em~lovee deneJiis //If'fYOrn Exclusions and Ltmitations (3-12 Full Mat) This plan will not cover any disability resulting from: 1. War, or any act of war, or active participation in a riot. 2. Intentionally self- inflicted injuries. 3. A pre-existing condition. A disability which begins during the first 12 months of coverage caused or contributed to by a pre-existing condition won't be covered. A pre-existing condition is a sickness or injury for which the employee received medical treatment, consultation, care or services including diagnostic measures, or took prescribed drugs or medicines during the 3 months prior to his/her effective date. 8-83 (11/86) Rate Guarantee (2 Years) In order to help you budget for future costs, we are able to include a two-year rate guarantee in this plan. This rate guarantee will be in effect for two years from the date of policy issue provided that: a. The group contract is not amended to change eligibility or benefits or to add a subsidiary or affiliate. b. The number of insured employees does not vary by more than 25% of the number of pmployees insured on the effective nate. 73-83 (11/86) '7.",:87\ ~molo"ee 3enetiis lllt,fllm i 1 , , Duration of Benefits (Decreasing Duration of Benefits Plan - ADEA 1) This plan, known as the "UNUM Option", is based on an equal cost benefit for each employee as required by law. This is a plan proposed by UNUM to the government and, it was included in the final interpretative Bulletin for the (1978) Age Discrimination in Employment Act Amendment. Age at Disablement Duration of Benefits (In Years) Less than 60 60 61 62 63 64 65 66 67 68 69 or Older To Age 65, but not less than 5 years 5 4 3 1/2 3 2 1/2 2 1 3/4 1 1/2 1 1/4 1 NOTE: Employees who remain at work at age 70 or older will continue to be eligible for benefits. 21..83 (11f86) Indexed Pre-Disability Earnings "Indexed pre-disability earnings" means the insured's basic monthly earnings in effect just prior to the date disability began adjusted on the first anniversary of benefit payments and each following anniversary. Each adjustment will be based on the lesser of 10% or the current annual percentage increase in the Consumer Price Index. 44-88 -.,')liS/57) EmDlovee l3enetits //lill/f~~ Continuity of Coverage Feature (Standard w/o EDG) Our Continuity of Coverage feature provides that an employee insured by the prior carrier of your Group LTD Plan will neither lose nor gain coverage solely because of the change in carrier. This protects persons who would otherwise not get full coverage upon changing carriers because of failure to be actively at work due to accident or sickness or because of a pre-existing condition. All coverage afforded under this protection continuation feature, is of course, subject to payment of premiums. If an employee is not actively at work: An employee who is insured with the prior carrier and who is not actively at work due to injury or sickness on the day the employer changes carriers will be covered on the same basis as he/she would have been covered by the prior carrier's contract. And, we will pay the benefits that would have been paid by the prior carrier had coverage remained in force, less any benefits for which the prior carrier is liable. Effects of a pre-existing condition: Benefits may be payable for a disability due to a pre-existing condition for an employee who was (1) insured by the prior carrier at the time of transfer and (2) was in active employment and insured under this policy on its effective date. The employee must satisfy the pre-existing exclusion under this policy or the prior carrier's policy, giving consideration towards continuous time insured under both policies. The benefit will be determined according to this policy's benefit schedule, but limited to the prior carrier's maximum monthly benefit. No benefit will be paid if the employee cannot satisfy either pre-existing condition exclusion. .170-84( 11/8']) '871')'87 r---- Emoiovee :8eneiits . ." q 1111!J'~ / II /111 ff,,,,~~, ! i Benefits. A Specialized Approach In its most basic sense, long term disability income protection insurance is a promise made by UNUM to an employer. This promise allows you to offer your eligible employees real financial security in the event they are disabled by injury or sickness. The most important measure of this promise is not how elaborate it is or how little it costs. The true test is how well the promise will be kept when an employee suffers a long term sickness or serious injury. UNUM's approach to paying benefits insures that our promises are well kept! We approach a claim with a life insurance company philosophy which means we are oriented to paying legitimate benefits as opposed to the settlement of a claim. This assures that your employees are fairly treated while keeping your rates as stable as possible. Because of the unique nature of disability and to help us be very responsive to your needs, we administer long term disability benefits from regional locations. We have disability benefits offices in Los Angeles, Chicago, Atlanta, Tarrytown (just outside of New York City) and at our Portland, Maine headquarters. This allows us to take an active part in explaining the administration provisions of our policies and to offer added assurance to both our policyholders and their employees that we stand ready to handle any inquiry or solve any problem quickly. Each policyholder is assigned to a specific Disability Benefits Unit within a regional office. This structure assures both you and your disabled employee that a trained professional at UNUM is not only responsible for your benefit administration, but is also personally familiar with it. Because at UNUM, we believe our responsibility extends beyond merely paying benefits. We can also work with you to help disabled employees return to work -- whether to their previous job or to a new one. Everyone benefits from this approach: you, UNUM and -- most importantly -- the employees, who once again can resume a productive and satisfying life. ~18~84 (11/86) -'-~-87{5ii:l71 I ~mDloveei3ene,its .l ill!' {(fIlA ...i .I.i~~t About Administration You will receive a complete administration kit which contains the few forms necessary to enroll employees, pay premiums and, if and when the time comes, help employees apply for benefits. The administration kit also contains a clear and easy to understand guide to assist you in administering your plan. UNUM has available a special "self-accounting" process to streamline premium payments and assure that you pay only what is due each month. This means no more waiting for credits. Nor will you receive a large retroactive bill because the insurance company failed to add an employee to your plan. Administration that is kept up-to-date means no adjustments. You control payments and enrollment so that bills and cash outlay are always correct and current -- a real plus! 47_83 (11/86) '17151371 :mOlovee <8enerits / .I /ifl1i~ll~ , l'll~~~~ Service The Personal Touch UNUM has long had a reputation for good, efficient service. This did not come about unexpectedly. Instead, it is the constant and continual re-evaluation of the needs of our clients and the changing marketplace that have given us a service reputation we're proud of! To complement our sales staff, UNUM has a service force that devotes 100% of its time to servicing the needs of our clients. You can count on your own Account Representative to know your plan in detail and to assist you with administration, enrollment ,and every other aspect of your plan. Legislated changes often affect insurance plans -- your Account Representative stands ready to assist you with any necessary plan updates. And, since UNUM is constantly innovating to meet consumer needs -- your Account Rep can keep you informed of new ways to improve and update your coverage. You can count on UNUM's "personal touch" service reputation. Our network of professional Account Representatives is working for you. They are the best. That's why they can do the best for you. 44-83 (11/86) "B715'871 ::mDlovee 3enetits 'l/!jjjJtl~ Proportionate Loss Formula (W/WIB) If the insured is earning more than 20% of his indexed pre-disability earnings (see "indexed Pre-disability Earnings" page) in his regular occupation or another occupation, then the monthly benefit will be figured as follows: 1. During the first 12 months, the monthly benefit will not be reduced by any earnings until the gross monthly benefit plus the insured's earnings exceed 100% of his indexed pre-disability earnings. The monthly benefit will then be reduced by that excess amount. 2. After 12 months, the following formula will be used to figure the monthly benefit. (A divided by B) x C A = The insured's "indexed pre-disability earnings " minus the insured's monthly earnings received while he is disabled. B = The insured's II indexed pre-disability earnings " C = The benefit as figured above. The benefit payable will never be less than the m1n1mum monthly benefit shown in the policy specifications. (See "Minimum Monthly Benefits" page) . 404-88 Minimum Benefit Amount A disabled employee who qualifies for disability benefits is guaranteed to receive from UNUM a minimum amount of 10% of the benefit before any reductions for other income benefits, or $100, whichever is greater. This minimum benefit will be paid regardless of income from other sources. 413-85 (11(861 ,',-871~'F!71 ::muloyee 8enefits ""T7ill~" ! 1/ Illf~~~~fJ.~ Mental Illness All disabilities resulting from a mental or nervous condition will be limited under the plan to 24 months of benefit payments unless the employee is hospital-confined at the end of the 24-month benefit period. Benefits will be paid until the employee is discharged. Then, UNUM will pay the employee a "recovery period benefit" not to exceed 90 days. NOTE: If the employee remains disabled but is not hospital-confined after the 24-month period, and is then confined or re-confined to a hospital for 14 days or more, the monthly benefit will be paid during that confinement. 374-84 (11/86) Survivor Income Benefit If an employee dies after being disabled for six months or longer and while receiving benefits, UNUM will pay his or her eligible survivor or estate, if there are no survivors, a benefit equal to three times the insured's gross monthly benefit*. "Gross monthly benefit" means the insured's benefit amount before any reduction for other income benefits and earnings. "Eligible survivor" means the insured employee's spouse if living, otherwise the insured employee's child or children under age twenty-five. * Not available in Nebraska or Nevada. Survivor Benefit is a flat $200 in Nebraska and $500 in Nevada. 412-85 (6/91J 1 ~,-37.'5187\ ::mpioyee Benefits /.,I./IJ/J...W.l'/~. . .. !; 1)~~!IJ Accumulation of the Elimination Period This benefit is standard in all our new LTD policies. disabled employees are not penalized for trying to go during the elimination period. It assures that back to work If your policy contains an elimination period of 30 days or more: A disability can cease during the elimination period for any 3 days or less and not require the beginning of a new elimination period. If your policy contains an elimination period of 60 days or more: A disability can cease during the elimination period for any 5 days or less and not require the beginning of a new elimination period. If your policy contains an elimination period of 90 days or more: A disability can cease during the elimination period for any 7 days or less and not require the beginning of a new elimination period. If your policy contains an elimination period of 180 days or more: A disability can cease during the elimination period for any 14 days or less and not require the beginning of a new elimination period. NOTE: The days the employee is not disabled will, of course, not count toward satisfying the elimination period required before benefits begin. 373-840 (11186) ij7i'j'27' Employee Benetits lilli/IIU/IM jJNUH's Work Incentive _UCllOfit We believe that one of our major responsibilities as a disability insurer is to do everything possible to help disabled claimants return to productive employment. Too often, finnncial obstacle.s arise which discourrJge e.mployees from attempting to return to work. Day care expenses. transportation costs, and insurance related costs for other cQverages are among the major obstacles. We think it is important to alleviate these obstacles and we have. WIth the Work Incentive Benefit we ,.ill not offset with return to work earnings for the first twelve months of an attempted return to work until the gross benefit plus the claimant's return to work earnings exceed 100% of indexed pre-disability earnings. Our nationwide staff of Certified Rehabilitation Coullselors and our entire LTD Benefits staff stand ready to provide the 'lua lity of rehabilitation service which )'ou expect of the LTD leader. .,-i371'5'87' Employee Benefits Clir~nt ~nformaLi()11 Shptd /lJ/II/II///IIII! Legal Name: F.ffcctive Date 0 f Insllrl1nc,~: Type of Organization: ( j Employpr ) Trust Divisions/Subsidiarip.:s/Affili.ntes Covered: '\:~::;OCi:lli_cn ') Clt!l(;r- Name: Address: Re 1 ,1t ionship: ~1atlln'> of Busin0ss: Eligibility: Does yau.r compCluy employ resLdents r_~lltsid0 c[ Cnlifornin or jn Cl1nndi1?: ) Y 8S () No Waiting Period: Present Employees: New Employees: ( ) None ( '1 S()mc as nf:W pmployee ( ) Other ( ) On complnLion of dnys of active employment ( ) First (If thp month coincidirlg wii:h 01: next following ___n month(s) of Clctive employme-nt ( ) Other Contributions: Will employees contribu\:0 to cost" ( ) Yes Percentage of Employer contribution: 0mployee --_.~-"~ ( ) No oependent " "0 Prior carrier(s): (PLEASE SUBfllT ^ COPY !IF TilE l'R TOR PL,\N) Coverage Effective Dat~ Term. Date Prior Carrieres) Weekly Income: Employer TAx-In: or ['"bUc Social Security 1169- Correspondent: Tele. # Basic Monthly Earnings Options: ( ) Salary Only ( ) Salary and Commissions ( ) Salary, Commissions & Bonuses ( ) W-2* ( ) Calendar Year ( ) Tax Year ( ) K-l* Partners Only ( ) Calendar Year ) TAX Y~ar -hAre bonuses to b8 incluc1p-d: ) Yes ) No Bonus Questions: 1. Is the bonus hased on A pre-rieL0rmined formulA? 2. How long has the bonus plAn h~~(:'-n in pffcct? Hmv !i1i1ny Limes has it bee,n paid? 3. Dof'.s th(~ company p,xpecL to contiJ1llf' thr:- bOllll~, p1.'111 illdofinitp,ly? 4. Is the bonus payont based on cc~r:;rc)l1Y nr-illrlivic11J:li i10~-f"nn;]TlC:p,? S. \~'hat is the crit~,r;J for o]jgihi !_ty'~ n. Are disaolect eiTIpJoY8P,S elJgihlp for (-h0 ilonlls'? Bookl.et.s: Imprint: hrokpr' c: Il,l!ni-' (111 th" hnck CO\'PC ( ) Yes"~~'; l (~'n';'Please attAch a busin8s~ cilnl h'ith l.!-i0 pxnct lli1nw/Cit"m 111f!l0 nnd Elddress to be (Over 50 li\/es) Do you \<"flnt: rn1 ir'ybold(,1.1 s logo Oil fl.01lt cov0-r? ) Yc:s (I f yes, o~-ig_!ni11 h1 flck ,"ind i<Jhit.(' r~llt- i:-; (N[1I1 ,"pd. ) ) No llspd) ( ! No Forward bookl.,~ts to: '1 1\J1 il:v);' i dnl"'- nrOkp1"-~ r*11]0Ase give physical nctdress. ERISA INFORMATION: (Optional uud01" 100 Lives) Is the Summary Plan Descrjption to tJP ior:l11d0ri ill pritlt0rl (:~rtj_fj_cate materials? !'>lhnt is the employer identificRtiol1 11llmb0-r of till: p]('!ll :;DI'Il:-:;or nssi?,llpd by the Internal Revenue Service? EIN What is the Plan Number assigned hy tll~ plnn sponsor? P,j') How are the fiscal records for ll1p pt.11l tn,1111tnillr>-ri? ( ) Calendar Yf~ar ( ) Policy 't"r;flr ( J Fisr::l) Y".11- If other than calendar yeRr, \,.'h,1l i'~ I.hp ):lst drlY nf i:l1f' Policy or Fiscal Year? ,:0.87(5/871 LONG TERM DISABILITY BENEFITS & COST SUMMARY //!jgll. Employee Benefits Prepared For: CITY OF SAN BERNARDINO Submitted By: Dennis Van Uffelen This proposal is for all active full-time employees working at least 30 hours per week in the following eligible classes: All employees per census Number of Eligible Employees: 167 Amount of Benefit: 60% of salary to a maximum monthly benefit of $5,000 (Benefits reduce by amounts from: () Primary Social Security (X) Primary and Family Social Security and other sources. See Benefit Integration Sources card), PERS Benefits are payable for: -Tb n6~~5 -- ADEA Compliance Elimination Period: 30 days Monthly Covered Payroll: $601,391 Premium Calculation Factor: .66% (as a percent of Covered Payroll) Total Monthly Cost: $3,969.18 ~ -# ..... ...., r-t / ')..:) , '"'" r'- - ,tj Z 3~ ~1 / (; E r-7~~ Special Features: 2 Year Rate Guarantee 3/12 Pre-Existing Condition Maternity Covered as any other Illness $100/10% Minimum Monthly Benefit (greater of) Survivor Income Benefit Indexation of Pre-Disability Earnings Work Incentive Benefit Social Security Appeals Assistance Certified Rehabilitation Coordinators Flexible Basic Monthly Earnings Definitions Definition of Disability: Five Year Own Occupation with Partial Disability NOTE: The above quoted rate assumes that coverage will be bound by 12(31(91. If coverage is bound after 12(31(91 the rate will increase to .73% of covered payroll. The above is based on census data received by UNUM. Actual costs will be based on the final enrollment data of employees insured under the plan on its effective date. Benefits and rates shown are effecti.ve until December 31, 1991. ":'0.87i51871 Employee Benefits CITY OF SAN BERNARDINO Plan Design 60% of salary 30 day elimination period Own Occupation to age 65 To Age 65 Benefit Duration C.P. = $601,391 If coverage is bound by 12/31/91 If coverage is bound after 12/31/91 60% of salary 30 day elimination period 2 year Own Occupation 1 Year Benefit Duration C.P. = $601,391 If coverage is bound by 12/31/91 If coverage is bound after 12/31/91 ..0.87(5187\ PLAN OPTIONS Rate .95% 1. 02% .36% .43% . . ...... .'.' 1. "'~~" . ,. . ",l V " i'rJ ,il/ f fll( /1, 11l~ L ~~ . . Monthly Cost S5,713.21 $6,134.19 $2,165.01 $2,585.98 ,.!I _ / 2 <f~ ?.--" Er-'~ fI -:K- 1/ employee Benefits GrOUD Long Term Disability Definitions of Basic Monthly Earnings You may choose one of these defini- tions of Basic Monthly Earnings to suit the needs of your company. Salary Only "Basic monthly earnings" means the insured's monthly rate of earnings from the employer in effect just prior to the date disability begins. It does not in- clude commissions, bonuses, overtime pay and other extra compensation. Salary and Commissions "Basic monthly earnings" means the insured's monthly rate of earnings from the employer in effect just prior to the date disability begins. It includes earn- ings received from commissions but not bonuses, overtime pay and other extra compensation. CommiSSions will be averaged for the lesser of: 1 . the 12 month period of employ- ment just prior to the date disability begins; or 2. the period of employment. Salary, Commissions and Bonuses "Basic monthly earnings" means the insured's monthly rate of earnings from the employer in effect just prior to the date disability begins. It includes earn- ings received from commissions and bonuses, but not overtime payor other extra compensation. Commissions and bonuses will be aver- aged for the lesser of: 1. the 12 month period of employ- ment just prior to the date disability begins; or 2. the period of employment. Prior Year W.2 Income "Basic monthly earnings" means the insured's average monthly earnings as figured: 1. from the W-2 form (from the box which reflects wages, tips and other compensation) received from the employer for the calendar year just prior to the date disability be- gins; or 2. for the period of employment If no W-2 form was received. :7<;3HI,,;(tQ\ . " ." 1J II~~~'IJJ . ,!YO! ' ;1111 . , "'IJ/h. ~ Salary and Bonus "Basic monthly earnings" means the insured's monthly rate of earnings from the employer in effect just prior to the date disability begins. It includes earn- ings from bonuses, but not commis- sions, overtime payor other extra compensation. Deferred Compensation "Basic monthly earnings" means the insured's monthly rate of earnings from the employer in effect just prior to the date disability begins. It includes em- ployee pre-tax contributions to a de- ferred compensation plan which is de- fined by a documented, pre-determined formula, but not commissions, bonuses, overtime payor other extra compensation. Deferred Compensation With Commissions "Basic monthly earnings" means the insured's monthly rate of earnings from the employer in effect just prior to the date disability begins. It includes em- ployee pre-tax contributions to a de- ferred compensation plan which is de- fined by a documented, pre-determined formula and earnings received from commissions, but not bonuses, over- time payor other extra compensation. Commissions will be averaged for the lesser of: 1 ' the 12 month period of employ- ment just prior to the date disability begins; or 2. the period of employment. Deferred Compensation With Com- missions & Bonuses "Basic monthly earnings" means the Insured's monthly rate of earnings from the employer in effect just prior to the date disability begins. It includes employee pre-tax contributions to a deferred compensation plan which is defined by a documented, pre-deter- mined formula and earnings received from commissions and bonuses. but not overtime payor other extra compensation. Employee Benefits Why UNUM's Contract is Superior... Group Long Term Oisallility The following IS a shorthand list of "reasons why" brokers and consultants recommend UNUM more than any other L TO writer. o UNUM has totally re-defined disability coverage with our Income Protection Plan. See Definition of Disability card for details. o Easy to read, easy to understand con- tract language. o Rate guarantees to allow you to bud- get better for future costs. See the rate guarantee card for the length of your guarantee. o Benefits from UNUM won't be reduced by "cost of living" increases in benefits from other Income sources le.g., So- cial Secunty) once the first reduction for these benefits is made. o Three-month SUNivor Income Benefit paid to spouse and/or any children under 25. or to estate If there are no sUNivors. A benefit equal to three times the insured's gross monthly benefit will be paid. o Higher minimum monthly benefit - either 10% of the benefit before any reductions for other income benefits or $100, whichever is greater. . We will pay In addition to: 1. Any formal or informal salary contin- uation by the employer unless pro- vided by group Insurance of the employer. 2. NO-fauII automooii8 insurance benefits. except in Pennsylvania where It IS reqUIred by law. 'not available In Nebraska or Nevada, j "IIIJII~' /l/ll"flt~ 3. Any individual disability income policies. 4. Any franchise disability income policy. 5. Any individual disability income plans purchased through a profes- sional or other association. 6. Military disability benefits. 7. Benefits from thrift plans, profit sharing plans, or deferred compensa- tion plans. o No exclusion for alcoholism or drug addiction. . ContinUity of Coverage guarantees presemlv covered employees won't lose benefits strictly as a result of a switch in insurance carrier. o You may choose a 50%, 60% or 70% of salary benefit with a 60% or 70% All Sources feature. or a 60%/40% or 70%/40% split salary benefit with an All Sources feature. o Mental Illness will be treated the same as any other disability for at least two years. o And your contract is backed by: 1. A Sales Representative able to design a plan to meet individual client needs. 2. Client Representatives in each local office for your administrative support needs. 3. Regional Benefit offices staffed by trained disability Income specialists. Employee Benefits Group Long Term Disability 1/ jllllllllllllli UNUM's L TD XL Series: How Benefits Are Paid XL Series Xi... Series XL Series XL Series 2 Year Long Long 2 Year With Zero Term Term With Day Income Own Partial Residual Protection Occ A Totally Disabled any Full Benefit Full Benefit Full Benefif Full Benefit occ through EP and be- yond, and not working. B Totally Disabled own Pays a benefit in pro- Same as XL Series 2 Same as XL Series 2 Same as XL Senes 2 occ through EP and be- portion to loss of earn- year with Partial year with Partial year with Partial yond. and returns to ings until age 65 or until work. in another ace. 80% of indexed pre- disability earnings are reached. Plus an 80% loss ~ full benefit. C Totally Disabled own Full benefit 2 yrs.. then Same as XL Series 2 Full benetlt to age Same as XL Series Dce through EP and be- benefits could cease -'par with Partial 85. (We no lonqer '.TIP yond. Not Totally Dis- through "any occ" test. have a right to test abled any occ, but re- ability to work at a fuses to work at another new occupation for occ. continued payment of benefits.) D Totally Disabled own Full benefit until return Same as XL Series 2 Same as XL Series 2 Same as XL Series 2 occ through EP. and to work, then pays a year with Partial year with Partial year with Partial returns to own oce with benefit in proportion to a reduction in ability to loss of earnings until work. 80% of indexed pre- disability earnings reached. Plus, 80% loss ~ full benefit. E Not Totally Disabled No Benefit If a 20% loss of Same as XL Series 2 No Benefit own ace through EP, earnings has been year with Zero Day but working in own ace suffered through the Residual wIth a reduction in abil- EP, at end of EP, a Ity to work. benefit is paid in pro- portion to loss of earnings until age 65 or until 80% of in. dexed pre-disability earnings are reached. F Not Totally Disabled No Benefit If a 20% loss of Same as XL Series 2 No Benefit own occ through EP, earnings has been year with Zero Day but working in another suffered through the Residual ace with a reduction in EP, at end of EP, a ability to work. benefit is paid in pro- portion to loss of earnings until age 65 or until 80% of in- dexed pre-disability earnings are reached. 80% loss of earnings pays a full benefit. 1174.841890\