A Resolution of the City of Sunrise, Florida, approving the Employee Group Life Insurance Plan for Basic Life, Basic Accidental Death and Dismemberment (AD&D), Voluntary Life, and Voluntary ADd&D Coverage with the Standard Insurance Company for the contract period of January 1, 2027, through December 31, 2027; providing for funding; and providing an effective date. City Manager Mark Lubelski. Susan Nabors, Director of Finance and Administrative Services.

Citywide Departmental Life Insurance Accounts

Approximate Annual City Cost $146,959.00

Subsequent year's expenditures subject to budget approval

The City provides active employees and certain retirees, pursuant to ordinance, with employer-paid Group Term Basic Life Insurance and Basic Accidental Death and Dismemberment (AD&D) Insurance. Employees and retirees may also voluntarily purchase additional Life and AD&D Insurance. The City’s benefits consultant, Foundation Risk Partners (“Consultant”), negotiated the remaining one-year renewal extension with the incumbent carrier, Standard Insurance Company (“Standard”), pursuant to Resolution No. 21-124-24-A.

Under the proposed renewal, there will be no reduction in benefit levels, and premium rates for active employees will remain unchanged with no increase in the cost. Retiree age-banded rates will increase by twenty percent (20%) due to continued adverse claims experience within the retiree class. Pursuant to ordinance, the City pays the premium differential for certain eligible retirees. Accordingly, the proposed renewal will increase the City’s annual premium costs for retirees by approximately $2,871.00. See Exhibit No. 1, Financial Analysis.

Retirees who are responsible for paying their own premiums will continue to have the ability to adjust their coverage levels based on their individual needs and affordability. All affected retirees will receive written notice of the premium changes and available coverage options. The renewal also includes a two-year rate lock, providing stability and protection against additional increases to the retiree age bands during the following renewal period.

Standard has provided excellent service to the City, including timely claims administration, effective handling of complex claims, and collaboration with the City’s Risk Manager to maintain coverage for all eligible groups in a financially sustainable manner. The Consultant has also advised that Standard’s proposed rates are competitive with available marketplace options given the retiree claims experience.

Staff and the Consultant recommend that the City Commission approve the renewal with Standard for the contract period of January 1, 2027, through December 31, 2027, subject to subsequent budget approvals, and waive the City’s competitive bidding requirements for good cause pursuant to Section 5-173(c)(5) of the Code of the City of Sunrise, Florida.