HomeMy WebLinkAbout1972-09-05; City Council; 865; Employee Disability Insurance• •\r • + • Pam\ • r� , •//�-� / �^� ' Y
" T !i k C I T Y O F C A R L S B A D, C Ti L i F' O R N I A
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Agenda BiI1 No.Date:
September 5, 1972
-Referred To: '
Subject: Submitted By:
EMPLOYEE DISABILITY INSURANCE
William C. Baldwin
Personnel Director.
. Statement of the :;a tter
With Council approval of all 1972-73 Memorandums of Understanding
regarding employee negociations and approving the bidding for
long term disability insurance, seven (7) companies or indilidual
insurance brokers were mailed specifications with a request for
bid. Only one (1) bid was received•from Standard Insurance
Company of Portland,Oregon.
Vice Mayor -McComas who assisted with the drafting of the specifica-
lions' reports this firm to be specialists in this field and that
major companies prefer not to underwrite this type of insurance..
Standard Insurance Company's bid with a two year guaranteed'premium
is $12,530.00 annually.
Approval •will require an appropriation transfer from the General Fund
to Insurance and Bonds (103).
Exhibit
Bid specifications
List of bidders
Speciman policy -.-:� #jar o � FIt-t
Staff Recommendations
I have discussed this policy with Vice Mayor McComas and we believe it
to be an excellent -policy. My knowledge of this type of insurance is
limited but that of Air. McComas!broaa. Staff approves the need for
.this'type of insurance and defers to the recommendations of
Ccuncilman•McComas. ,
• ' „r,� tI•L\i
`M AB 'T10. Da to : August 28, 1972
CJ1 manaaer_7s Recommendation
Concur.
•Counci2'Action
9-5-72 The bid from Standard. Insurance Company was accepted with a two
year guaranteed premium i•n the'amount of $12,530.00 annually,
and authorization given for an apprbpriation transfer from the
General Fund to Insurance and Bonds Account #103.
CITY OF CARLSBAD
August 1972
SPECIFICATIONS: SICKNrSS-ACCIDENT-DISABILITY INSURANCE
Classification: All full-time eligible employees under age 65
(All employees must be actively at work 30 hours per week minimum).
Elimination Period: 90 day elimination period, benefits payable
from and including 91st day of disability.
Maximum Benefit Period: Benefit payable to age 65 for both accident
and,'sickness.
Monthly Benefit: Plan to pay 66 2/3% of gross income, not to ex-
ceed $900.00 per month to any individual disabled employee, less all
or any of the following benefits:
a. Social Security disability payments if covered and receivedl
b. Disability income recrived from any Public Employees
Retirement System (P.E.R.S.)
c. State Disability Income (S.D.I.) if covered and receivedl
d. Wor';mans' Compensation
e. Accrued leave payments, including accumulated sick leave
Insuring company to participate to a maximum coverage of $1200.00
per month.
1Forty7six (46) safety employees dnot have Social Security coverage
. 2The City of Carlsbad is not enrolled for S.D.I. protecti6r.
- 2 -
Conditional Information and Reauirements:
1. Full-time employees number 145,(normal yearly increase
not to effect rate)
2. Contribution to be 100% by the employer
3. 2 year rate guarantee
4. All deductible benefits will be deducted whether applied
for or not
5. 24-hour coverage ... World -Wide Coverage
6. No evidence of insurability required for currently enrolled
or future eligibles
7. No pre-existing condition limitation
8. Superior Rehabilitation provision included
9. Social Security Freeze included
10. Survivor Benefit included
11. Special Dismemberment Benefit included
•12. Premium Waiver included
13. Six month recurrent disability provision included
14. Total Disability will be defined: For the first 24
monthly income payments, total disability means complete
inability of the member to engage in his regular occupation.
Thereafter, total disability means complete inability of
the member to engage in any gainful occupation for which
he is reasonably fitted by education, training or experience.
•15. Twelve (12) days sick leave per year (unlimited accumulation)
8/72
W
f' Companys Contacted for LTD
a
Cal-"1e d*tcrn 291-8771
° Pdcifi c Lutual
Trav !lags
Conn/General
Union i u•Lual
� ? Mav6ual Life of . J.
-= y Me•troaolitan.
C.i;.:.
sue' Standard of Oregon
i"ort?icrestern Life ins/Co.
Westfield Life ins, Co.
riremans Fund
Continental Casualty
General American
Inquired with above companys about other companys they
night razors that could quote on Long Term Disability. They
gave me names of other companys but they are already listed
above. All companys mentioned above said that they kner: of
no --one in the insurance business that would under bid Stanch'
of Oregon as they specialize in this market.
G