Title
Amendment No. 1 to Existing General Services, Agreement No. AGR20-06 with Unum Life Insurance Company of America, in an amount not to exceed $540,000.00, plus Applicable Gross Receipts Tax, for the initial term plus this first renewal term, for the Purpose of providing Long Term Disability (LTD) insurance benefits to eligible Los Alamos County employees.
Recommended Action
I move that Council approve the Amendment No. 1 to Existing General Services, Agreement No. AGR20-06 with Unum Life Insurance Company of America, in an amount not to exceed $540,000.00, plus Applicable Gross Receipts Tax, for the initial term plus this first renewal term, for the Purpose of providing Long Term Disability (LTD) insurance benefits to eligible Los Alamos County employees.
County Manager's Recommendation
The County Manager recommends that Council approve the motion as presented.
Body
The County's group insurance benefits plans, including Long Term Disability insurance, are renewed at the beginning of the calendar year. Currently, the County pays 50% of the premiums for all regular employees.
The County is requesting the approval of Amendment No. 1 to existing Services Agreement No. AGR20-06. If approved, this Amendment No. 1, renews the initial Agreement for two (2) additional one (1) year periods, at the same premium rate.
On June 9, 2019, the County issued Request for Proposal ("RFP") 20-06 for Long Term Disability Insurance Benefits for Los Alamos County employees. The County received seven (7) responses to the RFP. Using the criteria established in the RFP, the response by Unum Life Insurance Company of America was found to be the most advantageous to the County. The resulting Services Agreement AGR20-06 with UNUM Life Insurance Company of America was subsequently approved by Council on October 29, 2019.The initial term of the Agreement commenced January 1, 2020 and continues through December 31, 2021.
This, Amendment No. 1, renews the Agreement through December 31, 2023, under the existing terms with no alterations to premium or benefit design.
Alternatives
Should Council choose not to approve Amendment No. 1 to General Services Agreement AGR20-06, with Unum Life, for Long Term Disability benefits for Los Alamos County employees, possible alternatives would include issuing an RFP for the same services, modifying the services and issuing an RFP for those modified services or discontinuing Long Term Disability coverage for Los Alamos County employees
Fiscal and Staff Impact/Planned Item
Employee benefits are included in the County's biennial budget. The estimated total annual cost for Long Term Disability Insurance benefits, based on current enrollment, will be approximately $140,000.00. County employees will pay approximately 50% of these costs and the County will pay approximately 50%. Provided that the County does not experience an extraordinary increase in enrollments, the current/anticipated budgets for fiscal years 2022 and 2023 are adequate to pay for the County's portion of Long Term Disability insurance benefits included in this contract
Attachments
A - AGR20-06-A1
B - AGR20-06 Unum Life Insurance Company of America