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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Employee and Public Services
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DATE:
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November 9, 2005
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BOARD MEETING DATE:
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December 6, 2005
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Mary Welch, EPS Director
Paul Hackleman, Benefits Manager
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SUBJECT:
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Renewal of Agreement with ING Reliastar
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RECOMMENDATION:
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Approve a resolution waiving the Request for Proposal process and authorizing the President of the Board to sign an amendment with ING Reliastar for provision of life insurance, supplemental life insurance and short term disability benefits for County employees for the period from January 1, 2006 through December 31, 2007.
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VISION ALIGNMENT:
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Commitment: Responsive, effective and collaborative government
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Goal(s) 20 and 21: Government decisions are based on careful consideration of future impact rather than temporary relief or immediate gain; and County employees understand, support and integrate the County vision and goals into their delivery of services.
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Performance Measure(s):
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Measure
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FY 2004-05
Actual
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FY 2005-06
Projected
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Percentage of employees enrolled in a life insurance program within 30 days of employment
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N/A
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98%
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Total percentage of enrolled employees in County life insurance
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N/A
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100%
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BACKGROUND:
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The County pays for group term life insurance benefits for County employees based on negotiated agreements. The County also offers supplemental life insurance and short-term disability benefit coverage to employees on an employee-paid basis.
The County initiated a Request for Proposal (RFP) process in September, 2002 to provide all life insurance and short term disability benefits with no change in coverage. Six companies provided proposals. ING Reliastar was selected because they offered the lowest rates for basic and supplemental coverage and comparable rates for short-term disability coverage. They agreed to provide a three-year agreement without increase with the option to offer two additional years provided that utilization supported an extension of the agreement without cost. ING Reliastar communicated to the County in September their willingness to continue the rates and coverage without change.
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DISCUSSION:
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ING Reliastar is being recommended for a two-year extension of the current coverage and rates because their initial proposal represented the most competitive response received by the County.
The proposed amendment continues the current rates for the period from January 1, 2006 through December 31, 2007
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FISCAL IMPACT:
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There is no additional net County cost increase for 2006 and the estimated cost has already been included in the FY 05-06 budget.
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