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COUNTY OF SAN MATEOInter-Departmental Correspondence |
Employee and Public Services |
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DATE: |
September 4, 2003 |
BOARD MEETING DATE: |
September 23, 2003 |
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TO: |
Honorable Board of Supervisors |
FROM: |
Mary Welch, EPS Director Paul Hackleman, Benefits Manager |
SUBJECT: |
Amendment for Accidental Death and Dismemberment Benefits |
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Recommendation |
Adopt a resolution: 1. Accepting a recommendation to amend a contract with AIG for accidental death and dismemberment benefits for the period from October 1, 2003 through September 30, 2006 and 2. Authorizing the Employee and Public Services Director to sign the amendment after approval by County Counsel.
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Background |
The County currently offers a $100,000 Accidental Death and Dismemberment (A, D & D) benefit to Elected, Management, County Counsel, Deputy District Attorney and Confidential employees. Additionally, the County offers a $10,000 A, D & D benefit for all employees.
The County last conducted a competitive bid in August, 2000 which resulted in the selection of AIG for a three year contract. AIG offered the lowest aggregate proposal for these benefits. |
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Discussion |
The County conducted a competitive process again this year to determine if the ongoing good claims experience during the past three years could generate additional premium savings. Proposals were sent to 15 companies. Four responses were received. Of the 11 companies who did not submit a proposal, four declined because they could not compete with the County's current rates. Two others declined because they were unwilling to match the current benefit design.
Attachment 1 is a summary of the selection process. AIG is being recommended to continue to provide A, D & D benefits because its proposal: 1. Offers the lowest competitive aggregate premium for continuation of both benefits with an estimated savings of $1,000 per year below the current amount and 2. Minimizes disruption by avoiding the need to produce new certificates, policies and summary plan descriptions.
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Vision Alignment |
The amendment with AIG represents Vision Statement #20 which focuses on careful consideration of future impact and #21 incorporating the County's vision and goals into delivery of service. |
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Fiscal Impact |
The amendment with AIG provides A, D & D coverage for the period from October 1, 2003 through September 30, 2006 at a reduced cost of $1,000 per year compared to the current agreement for a total annual estimated County cost of $28,000. |
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Exhibit A |
1. |
General Description of RFP |
The RFP requested continuation of current coverage amounts for eligible County employees at comparable or reduced cost. |
2. |
List key evaluation criteria |
Responses were primarily evaluated on cost since the requested coverage levels (e.g. $100,000 and $10,000) and other contract conditions replicate the County's current benefit. |
3. |
Where advertised |
No advertising was conducted. A, D & D providers are broadly known in the benefits industry and obtained through the 2003 Sourcebook which lists major nationwide providers. |
4. |
In addition to any advertisement, list others to whom RFP was sent |
The RFP was sent to 15 companies (AIG, Blue Shield, CIGNA, Guardian, Hartford, ING, MetLife, Nippon Life, Pacifica Life and Annuity Company, Principal Financial Group, Prudential, Reliance Standard Life, Standard Life, Sun Life and United) |
5. |
Total number sent to prospective proposers |
15 |
6. |
Number of proposals received |
4 |
7. |
Who evaluated the proposals |
Benefits Manager |
8. |
In alphabetical order, names of proposers (or finalists, if applicable) and location |
AIG, San Francisco CIGNA, San Francisco MetLife, San Francisco Sun Life, Walnut Creek |