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CITY OF SAN BERN"RDINO -)~~QUEST FOR COUNCIL ACTION
I=.om:
Gordon R. Johnson
~-:r"-i -,\'_'~;:SUbjiit: Employee Life Insurance Rat~
,._~ -. _ ~ Adjustment
Dept:
Personnel
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Date: January 4, 1990
Synopsis of Previous Council action:
None.
Recommended motion:
Adopt Resolution.
~LiJL
~ ~gnature
Gordon R. Johnson
Phone:
384-5161
Contact person:
Supporting data attached:
Yes
Ward:
n/a
FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.)
(Acct. DescriPtion)
Finance:
- "\uncil Notes:
/'
75.0262
Agenda Item No.
1.3
CITY OF SAN SERN)(ADINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
In March 1989, the Council approved
Hancock term life insurance rates
$.56/$1000. The Council directed
insurance market to see if we could get
an increase in
from $.43/$1000
staff to check
a better rate.
John
to
the
A local broker shopped the markets extensively, considering
some 40 carriers but receiving quotes for only two. This
poor response was due to retirees making up such a high
percentage of enrollees. The most favorable quote, from
Standard of Oregon, is for $.49/$1000. No dividends would be
payable to the City if it has favorable experience. For such
dividends to be made available, the rate would increase to
$.51/$1000.
Due to the City's improved claims experience this year and
projected experience in 1990, John Hancock will reduce our
life insurance rate to $.49/$1000 effective January 1, 1990.
This rate will be in effect through July 31, 1990. Future
renewals will be on a yearly basis starting August 1, 1990,
putting life insurance on the same year as the PERS Health
Plans. If claims plus retention are significantly below
premiums, in 1990 the City will be eligible for a dividend.
Staff recommends Council approval of the lower life insurance
rates offered by John Hancock with the rates agreement as
described above. Attached is a resolution authorizing this
change.
PD INCREASE jr 12/19/89
75-0264
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1 RESOLUTION NO.
2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AMENDMENT TO THE AGREEMENT WITH JOHN HANCOCK
3 LIFE INSURANCE COMPANY, RELATING TO A CHANGE IN RATES FOR CITY-
PAID LIFE INSURANCE FROM $.56/$1000 TO $.49/$1000 EFFECTIVE
4 JANUARY 1, 1990.
S BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
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SECTION 1.
The Director of Personnel of the City of San
8 Bernardino is hereby authorized and directed to execute on
9 behalf of said City an amendment attached hereto and incor-
10 porated herein, as Exhibit A to agreement with John Hancock Life
11 Insurance, relating to a change in rates effective January 1,
12 1990, affecting the City-paid life insurance.
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I HEREBY CERTIFY that the foregoing resolution was duly
Mayor
and Common Council of the City of San
adopted by the
il Bernard ino at a
day of
meeting thereof held on the
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1990, by the following vote to wit:
Council Members
AYES:
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NAYS:
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ABSENT:
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City Clerk
The foregoing resolution is hereby approved this
day of
, 1990.
W.R. nBobn Holcomb, Mayor
City of San Bernardino
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AMENDMENT TO THE AGREEMENT WITH JOHN HANCOCK LIFE INSURANCE
COMPANY, RELATING TO A CHANGE IN RATES FOR CITY-PAID LIFE
INSURANCE EFFECTIVE JANUARY 1, 1990.
Approved as to form and legal content:
PD JH-L-INSURANCE jr 1/4/90
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Exhi bit A
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AMENDMENT TO AGREEMENT
(life insurance)
THIS AMENDMENT TO AGREEMENT is entered into effective
January 1, 1990, between JOHN HANCOCK MUTUAL LIFE INSURANCE
and the CITY OF
SAN
COMPANY
OF BOSTON, MASSACHUSETTS
BERNARDINO, a municipal corporation, "City".
The parties agree as follows:
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1. Recitals.
(a) John Hancock Life and City entered into an
agreement on April 1, 1987, under which agreement term life
insurance is provided certain
City employees and
their
dependents, and accidental death and dismemberment insurance is
provided by John Hancock Life to participating employees.
(b) John Hancock Life and City now desire to amend
the agreement to provide for a rate decrease from $.56/$1000 of
life insurance to $.49/$1000 of coverage, effective through
July 31, 1990.
2.
Other Provisions.
All other terms, conditions and
covenents of the agreement shall remain in full force and
effect.
IN WITNESS WHEREOF, the parties hereto have executed this
Amendment to Agreement on the dates set forth below.
JOHN HANCOCK LIFE INSURANCE COMPANY
By
Title
Date
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AMENDMENT TO AGREEMENT (life insurance)
Page 2
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CITY OF SAN BERNARDINO
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By
Date
Director of Personnel
ATTEST:
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city Clerk
11 Approved as to form in legal content:
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PD JH-L-AMENDMENT jyr 1-4-90