Title
a. Approve and Authorize the Contracts and Purchasing Officer to sign an Agreement with Metropolitan Life Insurance Company (MetLife) for Administration of the County employees' life and accidental death and dismemberment insurance program with the initial agreement term commencing with the signing of the agreement through December 31, 2016 including the option to extend the Agreement for up to two (2) additional one (1) year periods (see Attachment A). The rate of $0.163 per $1,000 of coverage (unit) will be guaranteed for 36 months with conditional rate guarantees for the 1st and 2nd renewals; and,
b. Authorize the Contracts and Purchasing Officer to sign future Amendments to the Agreement where the Amendments do not significantly change the scope of work or cause an increase in the Agreement rates amounting to a total of more than ten percent (10%) of the aggregate total of the contract.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and Authorize the Contracts and Purchasing Officer to sign an Agreement with Metropolitan Life Insurance Company (MetLife) for Administration of the County employees' life and accidental death and dismemberment insurance program with the initial agreement term commencing with the signing of the agreement through December 31, 2016 including the option to extend the Agreement for up to two (2) additional one (1) year periods (see Attachment A). The rate of $0.163 per $1,000 of coverage (unit) will be guaranteed for 36 months with conditional rate guarantees for the 1st and 2nd renewals; and,
b. Authorize the Contracts and Purchasing Officer to sign future Amendments to the Agreement where the Amendments do not significantly change the scope of work or cause an increase in the Agreement rates amounting to a total of more than ten percent (10%) of the aggregate total of the contract.
SUMMARY/DISCUSSION:
MetLife is the current provider of life and accidental death and dismemberment insurance products and services. Subject to RFP #10265, MetLife was competitively awarded the contract to continue to provide these services without interruption or lag time for processing of current death claims. Approval of the recommended actions will enable the Human Resources Department (HRD) to continue to provide these services to eligible County employees and Departments as a valuable tool for recruitment and retention.
OTHER AGENCY INVOLVEMENT:
Contracts/Purchasing and the Auditor's office were involved in the RFP process and have reviewed and approved the contract. Risk Management has reviewed and approved except for Risk Management's admonition that Met Life does not have insurance for Professional Liability and self- assumes this risk.
FINANCING:
The costs associated with this action are borne by departments as charge-backs based on the number of eligible employees within the department and their level of coverage. Charges have been included in the FY14/15 budget.
Prepared by: Konstanze Assaad, Human Resources Program Manager, 5119
Approved by: James May, Human Resources Director, 5129
Attachments:
Attachment A: Metlife Agreement