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....., 0, SAN .RNARD~ - REQULJr FOR COUNCIL ~
From:
Gordon R. Johnson
Director of Personnel
Personnel
Subject:
Resolution Adjusting the Rates
For Long Term Disability Insurance
For Management/Confidential and
Middle-Management Employee~
0tIpt:
0..: 4/27/89
Synopsis of PrtJvious Council ection:
Adopted resolution no. 87-155 implementing an LTD plan for
Management/Confidential employees in May' 1987. '
Recommended motion:
Adopt Resolution.
/J~t~
. , ,j"gnature ,
Phone:
X5161
, Contact person:
Gordon Johnson
SUpportillll dm attached:
FUNDING REQUIREMENTS:
Yes
Ward: n/ a
88/89; $5040 for FY 89/90
Amount: $420 for FY
Sourca: (Acct. No.!
784-000-20227
(Acct. DescriDtionl
Long Term Disability
Financa:_(~ t)~
Council Notas:
'10"
~ OF IAN .ERNARDIN'o - RI!QUII~ FOR COUNCIL ACTii>>N
STAFF REPORT
The City contracted with standard Insurance Company in
May 1987, to provide long term disability insurance for
Management and Confidential employees at a cost of $20.85/mo.
per employee. On January 1, 1988, the Middle-Management group
was added at a cost of $19.10/mo. per employee and the
Management/Confidential cost was reduced to $16.30/mo. per
employee. This rate reduction and the low rate for the
Middle-Management group was made on the assumption the
general unit employees would be included as well, therefore
allowing for a far greater volume discount than warranted.
The general unit rejected coverage, citing premium rates were
too high. .
standard Insurance has requested that these rates be
increased to $21.15/mo. for Management/Confidential and
$21.70/mo. for Middle Management employees. This represents a
29% rate increase for Management/Confidential and a 14%
increase for Middle Management, an increase in the premium of
approximately $420.00 monthly or $5040.00 annually for the
Management/Confidential group and $215.00 monthly or $2580.00
annually for the Middle-Management group. The city is
responsible for the costs associated with the
Management/Confidential employees in accordance with the
Management/Confidential Salary Resolution. Middle-management
employees pay the costs for this benefit in accordance with
their MOD. This increase is based on the approximately 15%
increase in the average monthly insured (covered) payroll for
the Management/Confidential members combined with an aging
trend as well as manual rate adjustments and the far greater
volume discount given during the start of the agreement in
1987.
The implementation date of the renewal rates is June 1,
1989. In your. packets is a letter from Standard Insurance
dated March 29, 1989, with an experience report, plus a
resolution for you to adopt.
GRJ : j r
4/27/89
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RESOLUTION NO.
2
3 RESOLUTION OF THE CITY OF SAN BERNARDINO ADJUSTING THE
RATES FOR LONG TERM DISABILITY INSURANCE FOR MIDDLE-MANAGEMENT,
4 MANAGEMENT AND CONFIDENTIAL EMPLOYEES.
S
WHEREAS, the agreement with Standard Insurance Company
6 provides for periodic changes in LTD premium rates,
7
WHEREAS, the increase in the covered payroll plus the
experience of employees covered by the LTD plan justifies an
8
9
10
11
12
adjustment in premium rates,
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND COMMON-
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. Premium rates for long term disability in sur-
13
ance for
Middle-Management,
Management
and Confidential
employees, shall be set as follows effective June 1, 1989;
Monthlv Rate
Management/Confidential
Middle-Management
$21. 15/member
$21. 70/member
18
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:
27
GRJ: j r
Page 1
04/27/89
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RESOLUTION OF
FOR LONG TERM
PAGE 2
THE crTY OF SAN BE~DINO
DISABILITY INSURANCE
ADJUSTING THE RATES
City Clerk
The foregoing resolution is hereby approved this
day of
Approved as to form
and legal content:
,~P"')
GRJ : j r
4/27/89
, 1989.
EVLYN WILCOX
city of San Bernardino
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\TANDARD INSURANCE COMPANY
March 29. 1989
City of San Bernardino'
Attn: Georgia Chamberlain
Finance Office
300 North D Street
San Bernardino, CA 92418
Group Policy 602422
fI"""".'.
.."
.
"'1 _1
"
#tomp. o!1ice: Portland. Oregon 9720i
P,O,Bo.711
(50l) 248-2700
May 1, 1989 is the renewal date for this insurance pelicy which may be
continued for one year using the monthly rates shown below:
Insurance Covera~e
Long Term Disability
Suffix 01
Management/Confidential
Suffix 02
Mid-Management
Through
Mav 31. 1989
$16.30
$19.10
Premium Rates
Beginning
June 1. 1989
$21.15 Per Member
$21.70 Per Member
These renewal rates have been calculated using the data provided and reflect
changes in the average insurance age, occupation, sex, and salary composition
of your insured Members at this time.
We are ~.""',aI" '"0"0"' '"..,"' ,owe '"'"' to,",..,. ......
, ~ ~J;JJ::
uise Gregory
Group Underwriting nd
Policy .Issue Department
LG: j Is
DEDICATED TO EXCELLENCE FOR POLlCYOWNERS
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\TANDARD INSURANCE COMPANY
C I TV OF SAN BERNARDI NO
GROUP POLICY 602422
EXPERIENCE REPORT
LONG TERM DISABILITY
EARNED PREMIUMS
PAID CLAIMS
ACTIVE CLAIM RESERVES
IBNR RESERVES
TOTAL INCURRED CLAIMS
LESS PREMIUM TAX
OTHER EXPENSE AND RISK CHARGES
INVESTMENT CREDITS
24-10
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IlDmp oUice: Portland. Oregon 9i20i
P.O. Bo1ll711
(501) 248.2700
05/01/88
THROUGH
01/31/89
$27,410
16,702
19,033
1,596
37,331
644
6,303
DEDICATED TO EXCELLENCE FOR POUCYOWNERS
05/01/87
THROUGH
01/31/89
$52,438
20,264
19,033
8,368
47,665
1,232
13,338
1,827-