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CITY' OF SAN BER~DINO - REQUEST ()R COUNCIL ACTION
Dept:
Personnel
JOhnsiS\fC'O.-AD!.c.llt Off.
\2R9 AI'R 20 t,:\ S 2"
Resolution to authorize the execution of
Subject: an amendment to the agreement wi th John
Hancock Life Insurance Company, to change
the rates for City-paid life insurance
from $.43/$1000 to $.56/$1000 effective
February 1, 1989.and repeal of Resolution
No. 89-57.
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From:
Gordon R.
Date:
Apri 1 17; 1989
Synopsis of Previous Council action:
Adopted resolution no. 89-57 at re9ular meeting on ~'1arch 13, 1989.
Recommended motion:
Adopt resolution.
~((QL
, ~ature
Contact person:
Gordon R. Johnson
Phone:
5161
Supporting data attached:
Ward:
FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.)
(Acct. DescriPtion)
Finance:
Council Notes:
75-0262
Agenda Item No.
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CITY OF SAN BERNA::4DINO - REQUEST. FQ COUNCIL ACTION
STAFF REPORT
On March 13, 1939, the Common Council adopted resolution number a9~57, amending
the City's agreement- with John Hancock Hutual Life Insurance Company. Recital l(a)
of that agreement stated that John Hancock provides term life and accidental death
. and dismemberment (AD&D) insurance to participating employees. The reference to
AD&D insurance was erroneous as Transamerica Occidental Life Insurance Company
provides that coverage.
The City Attorney has advised that resolution number 39-57 should be repealed and
a new resolution adopted. In your packet is a new resolution which is identical
to resolution number 39-57 except the new resolution omits reference to AD&D in-
surance. For your reference, resolution number 89-57 is also enclosed.
75-0264
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AMENDMENT TO THE AGREEMENT WITH JOHN HANCOCK
LIFE INSURANCE COMPANY, RELATING TO A CHANGE IN RATES FOR
CITY-PAID LIFE INSURANCE FROM $.43/$1000 TO $.56/$1000
EFFECTIVE FEBRUARY 1, 1989. AND REPEAL OF RESOLUTION NO. 89~
57.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. Resolution No. 89-57 is hereby repealed.
SECTION 2. The Mayor of the City of San Bernardino is
hereby authorized and directed to execute on behalf of said
City an amendment to agreement with John Hancock Life Insur-
ance, relating to a change in rates effective February 1,
1989, affecting the City-paid life insurance.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
day of
meeting .thereof held on the
, 1989, by the following vote to wit:
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AYES:
Counc il Member s
NAYS:
ABSENT:
CITY CLERK
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(Continued)
Page 1
04/13/89
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AMENDMENT
COMPANY,
INSURANCE
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TO THE AGREEMENT WITH JOHN HANCOCK LIFE INSURANCE
RELATING TO A CHANGE IN RATES FOR CITY-PAID LIFE
EFFECTIVE FEBRUARY I, 1989.
The foregoing resolution is hereby approved this
of
day
, 1989.
Evlyn WilCOX, Mayor
City of San Bernardino
Approved as to form and legal content:
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If
City Attorney
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AMENDMENT TO AGREEMENT
(life insurance)
THIS AMENDMENT TO AGREEMENT is entered into effective
4 February 1, 1989, between JOHN HANCOCK MUTUAL LIFE INSURANCE
5 COMPANY OF BOSTON, MASSACHUSETTS and the CITY OF SAN BERNAR-
6 DINO, a municipal corporation, ftCityft.
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The parties agree as follows:
1.
Recitals.
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I agreement
(a) John Hancock Life and City entered into an
on February 1. 1989 , under which agreement term
11 life insurance is provided certain City employees and their
12 dependents.
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(b) John Hancock Life and City now desire to amend
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the agreement to provide for a rate increase fr~m $.43/$1000
15 of life insurance to $.56/$1000 of coverge, effective through
16 December 31, 1989.
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2.
Other Provisions. All other terms, conditions and
18. covenants of the agreement shall remain in full force and
19 effect.
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IN WITNESS WHEREOF, the parties hereto have executed
21 this Amendment to Agreement on the dates set forth below.
22 JOHN HANCOCK LIFE INSURANCE COMPANY
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By
Title
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Date
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2. AMENDMENT TO AGREEMENT (life insurance)
Page 2
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I ATTEST:
CITY OF SAN BERNARDINO
By
Date
Mayor
City Clerk
Approved as to form in legal content:
iAJ.-lre
City Attorney
,
I . CITY OF SAN BEIC) .RDIMO - REQUES't--{ ')R COUNCIL ACTIOI
Gordon R. Johnson
From: Director of Persame1
REC'I').-AOMIS~kt:
1959 FEB 2 a I,!/':Q: 12
Resolution to authorize the execution 0'
an arrendment to the agreement with Jolm
Hancock Life Insurance Catpany, to chan<.
the rates for City-paid life insurarce
fram $.43/$1000 to $.56/$1000 effective
February 1, 1989.
Dept: Persoone1
Daw: February 23, 1989
Synopsis of Previous Council action:
None.
Recommended motion:
Adopt resolution.
~IG QL,
. . Sig~re. --
Conwct person:
Gordon R. Johnson
Phone:
5161
Supporting data attached:
WBrd:
FUNDING REQUIREMENTS:
Amount: $' . "on
Source: (Acct. No.)
784-00020224 (Life Insurance Acct.l
(Acct. DescriDtionl
Finll1Cll:
elL XJ /--'
Council Notas:
75.0262
Aaenda ItAm Nn __
Cl'fY OF SAN BE~A.RDINO - REQUES-rJ..OR COUNCIL ACTIOt
STAFF REPORT
The John Hancock employee
the following amounts of
bargaining units:
term life insurance policy provides
city-paid insurance for the listed
o Management
o Confidential
o Middle Management
o General
o Police
o Fire
$50,000
$25,000
$10,000
$ 5,000
$ 5,000
$ 3,000
Retirees may purchase the amount of insurance listed above
that they are insured for on the date prior to retirement.
Their amount of insurance decreases to 25% of the above
values when the retiree turns 70 years old. There are
presently 282 retirees who have this coverage.
Currently, the rate for this insurance is 43 cents per $1000
each month whether for active or retired employees. That rate
has been in effect since April 1, 1987. However, we are
facing a rate increase this year due to our experience during
1988. John Hancock has given us two options for funding it
effective January 28, 1989:
OPTION 1
Combined rate
56 cents
OPTION 2
Separate rates
Actives
Retirees
.43 cents
$1. 72
During 1988, the city spent $48,500 for this benefit. Under
option 1, the added monthly cost to the city would be about
$1500. Under option 2, there would be no added cost to the
city since the retirees would pick up the entire added
charge. The total cost for this option from January 28
through July 31, 1989, would be about $9000.
I have only projected the costs for this option through July
31, 1989, so that the life insurance contract will coincide
with the PERS medical plans contract year. I plan to seek
proposals from various insurance companies for providing life
insurance starting August 1, 1989, to insure we are getting
the best available rate.
I recommend that all of our employee-related insurance plans
(ie: dental, vision, life insurance, LTD and AD&D) be changed
to an August 1 rate effective date beginning this year, so
that all rate changes will have the same effective date and
the new rates will be known in time to incorporate the city's
portion of them in the new budget each year.
I recommend option 1 since it would maintain past practice
and cushion the impact on retirees.
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AMENDMENT TO THE AGREEMENT WITH JOHN HANCOCK
LIFE INSURANCE COMPANY, RELATING TO A CHANGE IN RATES FOR
CITY-PAID LIFE INSURANCE FROM $.43/$1000 TO $.56/$1000
EFFECTIVE FEBRUARY 1, 1989.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Director of Personnel of the City of San
Bernardino is hereby authorized and directed to execute on
behalf of said City an amendment to agreement with John
Hancock Life Insurance, relating to a change in rates
effective February 1, 1989, affecting the City-paid life
insurance.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
day of
meeting thereof held on the
, 1989, by the following vote to wit:
AYES:
Council Members
NAYS:
ABSENT:
CITY CLERK
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AMENDMENT
COMPANY,
INSURANCE
TO THE AGREEMENT WITH JOHN HANCOCK LIFE INSURANCE
RELATING TO A CHANGE IN RATES FOR CITY-PAID LIFE
EFFECTIVE FEBRUARY 1, 1989.
The foregoing resolution is hereby approved this
of
, 1989.
day
Evlyn WilCOX, Mayor
City of San Bernardino
11 Approved as to form and legal content:
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AMENDMENT TO AGREEMENT
(life insurance)
THIS AMENDMENT TO AGREEMENT is entered into effective
February 1, 1989, between JOHN HANCOCK MUTUAL LIFE INSORANCE
5 COMPANY OF BOSTON, MASSACHUSETTS and the CITY OF SAN BERNAR-
6 DINO, a municipal corporation, "City".
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The parties agree as follows:
1.
Recitals.
(a) John Hancock Life and City entered into an
agreement on April 1, 1987
, under which agreement term
11 life insurance is provided certain City employees and their
12 dependents, and accidental death and dismemberment insurance
13 is provided by John Hancock Life to participating employees.
14
(b) John Hancock Life and City now desire to amend
15 the agreement to provide for a rate increase from $.43/$1000
16 of life insurance to $.56/$1000 of coverge, effective through
17 December 31, 1989.
18
2.
Other Provisions. All other terms, conditions and
19 covenants of the agreement shall remain in . full force and
20 effect.
21
IN WITNESS WHEREOF, the parties hereto have. executed
22 this Amendment to Agreement on the dates set forth below.
23 JOHN HANCOCK LIFE INSURANCE COMPANY
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AMENDMENT TO AGREEMENT (life insurance)
Page 2
CITY OF SAN BERNARDINO
By
Mayor
Date
ATTEST:
City Clerk
Approved as to form in legal content:
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