Title
Award of Contract for Group Life Insurance to Standard Life Insurance Company as Proposed by Gallagher Benefits Services (B)
This item involves a request for the City Commission to approve the selection of Standard Life Insurance Company as the provider for Group Life Insurance Benefit.
Explanation
The City of Gainesville provides employer paid life insurance to all regular employees who work twenty hours or more per week and all retirees. The benefit varies based on the employee's base salary. Most employees receive two times their annual base salary, up to a maximum benefit of $50,000. For example, if an employee's base salary is equal to, or greater than $25,000 per year, they will receive the maximum benefit of $50,000.
The City issued a Request for Proposal for Group Life Benefits in 2011 for a three year term, but was interested in rate guarantees beyond the initial three year term. As a result of this process, the City received ten responses to the RFP. The proposals were evaluated by staff based on the following criteria:
Cost - (Rate per $1,000 of benefit 60%
Administrative Capabilities and Experience 20%
Financial Stability (AM Best Rating) 20%
Total 100%
Using the above criteria, staff rated the proposal submitted by Standard Life Insurance Company through Gallagher Benefits Services as the lowest qualified proposal. The proposal of 18 cents per thousand was substantially less than any other proposal. The coverage offered is identical to the coverage currently provided, and includes the additional life insurance for Charter Officers. In addition, Standard agreed to cover all employees/retirees that are eligible whether actively at work or not. The Standard Life Insurance Company has guaranteed the rate of 18 cents per thousand for three years and included a carrier option to negot...
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