A Resolution of the City of Sunrise, Florida, approving a Renewal of the Employee Group Long-Term Disability Insurance Plan through Hartford Life and Accident Insurance Company for the Two-Year period of January 1, 2026 through December 31, 2027; authorizing the Risk Manager to execute necessary forms, documents, and extensions and to amend or extend plan renewals subject to maximum renewal periods and premium changes; and providing an effective date. City Manager Mark Lubelski.  Susan Nabors, Director of Finance and Administrative Services.

Approximate City Cost $4,589.52

Not to exceed FY2025/2026 budgeted funds.

 Subsequent years expenditures subject to budget approval.

The City, through its benefits consultant, Acentria Public Risk, negotiated a renewal with incumbent carrier, Hartford Life and Accident Insurance Company, for the City’s employee group Long Term Disability (LTD) insurance plan. The Consultant determined the renewal was reasonable and competitive based on loss experience, unique level of plan benefits, volunteer participation option, rate history, and financial analysis of premiums. Hartford’s renewal (see Exhibit #1) includes a two year rate guarantee of $0.353 per $100 of eligible salary. This renewal rate is $0.063 higher than current rate of $0.290 per $100 of eligible salary - which has been the same since October 1, 2015. Hartford’s renewal does not include any changes to terms or level of benefits and is deemed competitive in the marketplace.

Of the 45 management employees enrolled, the City provides coverage for 26 employees pursuant to City ordinance and 19 additional management employees voluntarily pay for coverage through payroll deductions. The current annual cost of LTD is approximately $6,525.00 for both City paid and employee paid plans. This amount will increase at renewal to approximately $7,942.00, or an approximate $1,417.00 increase, with a $821.00 increase in the City's portion to $4,590.00. The reason the City’s LTD plan is unique is that the benefits are provided on a guaranteed issue basis, and total disability is provided based on employee’s own occupation to age 65. Due to the City's positive experience, unique coverage terms, two-year rate guarantee, and same level of benefits offered by Hartford, the City's competitive bid requirements are hereby waived for good cause.

Staff recommends the City Commission approve the renewal of the employee group LTD insurance plan with Hartford at the new rate of $0.353 per $100 of eligible salary and same level of benefits guaranteed for two years for the contract period January 1, 2026 through December 31, 2027; and authorize the City’s Risk Manager, or designee, to execute a renewal not exceeding a two-year coverage period and not exceeding a $2,500.00 increase in City’s annual premiums above the prior period.