The City of Allen became partially self-funded in January 2000.  Since then, the City has generated a Request for Proposal every three to five years to ensure we maintain the best coverage possible for our employees at the most competitive cost.  In the 2017 bid process, the City elected The Standard to provide Life/Accidental Death and Dismemberment, Short-Term Disability, Long Term Disability and Voluntary Life Insurance.

This year, the City received three competitive quotes from the following: The Standard, Symetra, and Mutual of Omaha. HUB (formerly IPS Administrators) serves as the city's benefits consultant. Among several support services they provide is benefit decision support. HUB assisted in the review and evaluation of the bids, and ultimate recommendation.  The Standard, our current provider, is being recommended for the October 1, 2020 plan year. 

HUB evaluated a number of factors including where cost savings would be realized as well as the administrative costs to change vendors. While one bid offered the lowest overall cost, The Standard offered the most competitive overall package that included the highest cost savings to the employees participating in Voluntary Disability plans. Further, The Standard has offered a package of Employer Paid and Voluntary products with competitive pricing to market alternatives.  The Standard's rates will be guaranteed for three years and the City will receive an annual communications/technology allowance that is approximately 3% of paid premium or $12,500 annually.  The Standard has also performed outstanding as the current vendor. 

Finally, the renegotiated agreement with The Standard results in an average decrease of 8.4% compared to the current plan costs.

The new contract will result in an average decrease of 8.4% from current plan costs.

Staff recommends that the City Council authorize the City Manager to execute a contract with The Standard to provide Life/Accidental Death and Dismemberment, Short-Term Disability, Long Term Disability and Voluntary Life Insurance.

I make a motion to authorize the City Manager to execute a contract with The Standard to provide Life/Accidental Death and Dismemberment, Short-Term Disability, Long Term Disability and Voluntary Life Insurance.