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Home My WebLink About2015-05-26-Meeting Mintues Administrative Services Committee Meeting Commission Chamber - 5/26/2015 ATTENDANCE: Present: Hons. M. Williams, Chairman; D. Williams, Vice Chairman; Lockett and Davis, members. Absent: Hon. Hardie Davis, Jr., Mayor. ADMINISTRATIVE SERVICES 1. Motion to approve the minutes of the Administrative Services Committee held on May 12, 2015. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 4- 0. Commissioner William Lockett Commissioner Dennis Williams Passes 2. Provide information as relates to ARC retirees' usage of the Wellness Center (WC). Discuss whether active employees receive benefits that are not available to retirees. Explain why retirees that continue their Blue Cross Blue Shield Coverage are ineligible to use the WC. Medical insurance coverage is not available until age 65. Consider whether ARC employees that retire prior to age 65 are placed in a rather precarious position. Provide updated information on retiree use of the WC to include whether or not policy changes are necessitated. (Requested by Commissioner Lockett) Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve receiving this item as information. Commissioner William Lockett Commissioner Mary Davis Passes www.augustaga.gov Motion Passes 4-0. 3. Presentation by Mr. William T. Bass regarding the repeal and removal of a recorded Resolution that was never presented or voted on by the County Commission involving the sale of property at 819 Camellia Road. (Referred from May 12 Administrative Services Committee) Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Delete Motion to delete this item from the agenda. Motion Passes 4-0. Commissioner William Lockett Commissioner Mary Davis Passes 4. Motion to approve award of RFP 15-164 Life/LTD Insurance Services to The Standard subject to final contract negotiations and to authorize the Administrator to execute such finally negotiated contract. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result It was the consensus of the committee that this item be added to the agenda. Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 4- 0. Commissioner William Lockett Commissioner Mary Davis Passes Administrative Services Committee Meeting 5/26/2015 1:20 PM Attendance 5/26/15 Department: Caption: Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 5/26/2015 1:20 PM Minutes Department:Clerk of Commission Caption:Motion to approve the minutes of the Administrative Services Committee held on May 12, 2015. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 5/26/2015 1:20 PM Retirees Usage of Wellness Center Department:Clerk of Commission Caption:Provide information as relates to ARC retirees' usage of the Wellness Center (WC). Discuss whether active employees receive benefits that are not available to retirees. Explain why retirees that continue their Blue Cross Blue Shield Coverage are ineligible to use the WC. Medical insurance coverage is not available until age 65. Consider whether ARC employees that retire prior to age 65 are placed in a rather precarious position. Provide updated information on retiree use of the WC to include whether or not policy changes are necessitated. (Requested by Commissioner Lockett) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 5/26/2015 1:20 PM William T. Bass Department:Clerk of Commission Caption:Presentation by Mr. William T. Bass regarding the repeal and removal of a recorded Resolution that was never presented or voted on by the County Commission involving the sale of property at 819 Camellia Road. (Referred from May 12 Administrative Services Committee) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Analysis of Augusta Richmond County Ancillary RFP 15-164 BCBS Georgia · Includes Travel Assistance in proposal · Accelerated benefit 75% up to $250,000 · Includes Portability and Conversion options · Provided references · Requires 20% participation in Optional/Supplemental coverage · Provided for a $200,000 maximum benefit without Evidence of Insurability · Underwriting must approve current census in order to grandfather employees · Very good claims processing times on the life insurance · Very good claim turn around time on LTD · Will match FICA and Medicare taxes · Resource Advisor included in proposal – Legal and Financial assistance for employees – includes 3 face to face counseling sessions Cigna · Did not entirely confirm that Actively at Work provision would be waived · Provided references as required · 3% COLA included but only for the duration of 5 years · Loss of ADL’s were not included in proposed rates · Includes EAP plan · Child Benefit to 6 months is only $500 · Accelerated death benefit option 75% to $500,000 · Included Survivor benefit of up to 3 months of LTD benefit · Includes FICA matching · Offered 3 year rate guarantee Met Life · Accelerated Death Benefit offered at 80% to $500,000 · Only offered a 2 year rate guarantee · Guarantee Issue level $200,000 but with stipulations regarding being actively at work and not hospitalized within last 90 days · Child benefit is only $500 up to age 6 months · Includes Portability and Conversion option · Grief Counseling and Will preparation included in proposal · Will waive Actively at work provision · EAP included in proposal · Good speed of answer times · Good claims accuracy percentages · Will provide renewal by 8/1 at next renewal date · Did not provide references · Rates can be changed if enrollment changes by +/- 10% · 3% COLA included but did not confirm if there is a maximum time limitation · Survivor benefit included · Will match FICA at a cost of 3% of the amount of the FICA remitted · Did not offer additional benefits tied to ADL’s · Confirmed that renewal would be provided by 8/1 but then listed process for renewal that stated renewal process would begin 5 months prior to renewal date · No substantial performance guarantees offered · Expressed concern about implementation timeline The Standard · Strong Performance Guarantees included · Will provide renewal information 6 months prior to renewal date · Proposed offering a rate guarantee to 1/1/2019 to protect ARC’s calendar year effective date · Travel assistance program offered · Strong Return to Work program · Continuity of Coverage is included · Increased coverage for children under 6 months to full benefit · Provides electronic EOI · Accelerated Death Benefit offered at 75% to a maximum of $500,000 · 5-10% of claims are audited · Large municipality block of business · Portability and Conversion is included in life program · Repatriation Benefit is included · Current members benefits will be automatically rolled over based on census data provided by ARC – no additional forms or EOI’s will be required · No minimum participation requirement · An expanded AD&D package was included · Coma Benefit is included · Dependents life insurance continues automatically for 5 months without premium payment after the death of the insured employee · EAP is included in proposed rates · Family Care Expense Adjustment is included · 3% unlimited duration COLA benefit included · Will match FICA and Medicare taxes and prepare W2’s for members receiving LTD benefits · Partial disability is covered · Survivors benefit is included · Provided references – significant experience with municipalities · $200,000 Guarantee Issue offered The Hartford · Only provided a 2 year rate guarantee · Accelerated death benefit provided for 80% to a $400,000 maximum · Birth to 6 months only has a $500 death benefit · Includes Survivor Benefit Option · COLA set at 3% but only has 5 adjustments available · Is requiring a Concentration Risk Form be completed · Proposal was only valid until 4/30/2015 · Included language to re-quote if minimum enrollment threshold is not met · Requires that all enrollment communication material be reviewed and approved by Underwriting Dearborn · Travel plan included · Placed restrictions on Actively at Work waiver · Confirmed that employees will be grandfathered based on current census data · Provided average Performance Guarantees · Will preparation included · Did not provide renewal rate methodology as requested · Will not match FICA · Confirmed rates are final regardless of actual enrollment · 3% COLA included with 5 year limitation · No ADL’s provided in proposal · EAP plan included · Did not provide references as requested · Did not confirm that renewal would be provided by at least 8/1 UNUM · Submitted proposal through third party vendor. RFP asked that all submissions be provided directly from the carrier · Life Planning resources are included in proposal · Conversion and portability are included · Accelerated Death Benefits – 50% up to $750,000 · Repatriation benefit included · Rates assumed at least 40% participation rate – concerns that ARC will not meet this requirement · Requirement that 25% of employees participate in the supplemental life plan · Rates are not guaranteed if enrollment changes by +/- 25% · Included delayed effective date wording – RFP requested that the actively at work language be removed · Accelerated Survivor benefit included · W2 preparation and FICA support included – will match FICA · Has a 5 year duration cap on COLA · Included travel assistance · Proposal included language that actual costs will be determined based on final enrollment – RFP requested that this not be a stipulation · Will not grandfather employees unless they are actively at work on the day the contract goes into force · Would only confirm commissions were not built in for LTD & Life/AD&D – unclear about Optional and Dependent Life · Did not include any additional benefits for loss of ADL’s 10/30/2014 Customer:Augusta, GA Customer Number 326421 Life Renewal Analysis Incurral Credited Constant Recorded Incurred Incurred Period Premium Premium Claims Claims Claim Ratio 1/1/12 - 12/31/12 $893,172 $893,172 $717,000 $902,601 101.1% 1/1/13 - 12/31/13 $888,677 $888,677 $665,750 $671,783 75.6% 1/1/14 - 9/1/14 $589,965 $589,965 $736,250 $814,078 138.0% Total $2,371,814 $2,371,814 $2,119,000 $2,388,462 100.7% Incurral Period 1/1/12 - 9/1/14 Current Lives 2,356 Experience Claim Rate $0.378 Experience Credibility 100% Final Experience Claim Rate $0.378 Manual Claim Rate $0.284 1 minus Credibility 0% Final Manual Claim Rate $0.000 Blended Claim Rate $0.378 Tolerable Loss Ratio 85% Current Composite Rate $0.380 Current Volume $194,828,000 Current Annual Premium $902,568 Formula Composite Renewal Rate $0.445 Formula Renewal Annual Premium $1,056,244 Formula Renewal Rate Increase 17.03% Current Annual Premium Formula Renewal Premium Delivered Renewal Premium Delivered Premium Change Basic Life $417,177 $488,208 $488,208 17.03%* Retiree Basic Life $61,771 $72,288 $72,288 17.03% Supplemental Life $203,336 $237,957 $237,957 17.03% Dependent Life $220,284 $257,791 $257,791 17.03% Total Premium $902,568 $1,056,244 $1,056,244 17.03% 10/30/2014 Augusta, GA 326421 Life Renewal Glossary Incurred Year The year the claimant became disabled. Payment Period The total benefits paid in that year. Premium Waiver If an employee becomes permanently and totally disabled while insured and prior to a specified age (i.e. age 60), life insurance may be extended without payment of premiums during the continuance of the disability, subject to all required proofs of claims. This liability is taken care of by the establishment of a premium waiver reserve. Death Benefit Only DBO means there is no extended insurance if an employee becomes permanently and totally disabled. A benefit is payable only for death and only while premiums are paid. The policyholder may, at its options, continue insurance by paying premiums when an employee is absent from work due to sickness or injury. The Policyholder determines on a non- discriminatory basis which employees are totally disabled. Incurred Claims The sum of paid claims, change in reserves, PW reserves, interest paid and conversion charges. Paid Premium The actual total premium paid to Aetna. Constant Premium A paid premium adjustment used to bring prior period premium amounts to the level they would have been if the current rate had been in force during those periods. Incurred Loss Ratio The ratio of Incurred Claims / Paid Premium. Constant Loss Ratio The ratio of Incurred Claims / Constant Premium. Experience Credibility The degree to which the plan’s previous claim experience can be relied on to predict future results. Credibility is determined by a combination of employee life years and claim incidence. Manual Credibility The degree to which the manual rate is used to predict future results. Manual Credibility is determined by a the formula of 1 minus the Experience Credibility. Manual Rate The rate calculated based upon a current census and plan design. Experience Rate The rate calculated based upon the actual claim experience of the group. Tolerable Loss Ratio Represents the ratio of incurred claims to earned permium that is assumed in the pricing of the product. Funeral Planning Services Brought to you by Aetna Life Insurance Company Who is Everest? Everest’s services include: Pre-planning services 24/7 Advisor Assistance To discuss funeral planning issues Pricefinder Research Reports  The only nationwide database of funeral home prices  Detailed, local funeral home price comparisonsOnline Planning Tools - Includes:  Personal Profile  10 Key Decisions Planner  “My Wishes” Planning Guide  Reference Guide*Information stored and maintained in a secure data warehouse At-need services Family assistance and plan implementation  Provide 24-hour assistance throughout the funeral process Negotiation assistance  Gather pricing information and present it to the family in an easy-to-read format  Negotiate funeral service pricing with local funeral homes  Help the family compare prices of caskets and other products Cost of Services Basic Life only members get Everest services for their immediate family at no additional cost. Supplemental participants can also have coverage extended to their parents and Parents In Law for an additional fee. Please contact your Aetna representative for further information. We are pleased to inform you of a unique, value-added service available to groups with Life Insurance coverage with Aetna— funeral planning and concierge services from Everest. Everest is an independent consumer advocate who's sole purpose is to provide the information needed to make the most informed decisions about all funeral related issues, and then put those wishes into action. Participating members are never locked into a decision because Everest’s funeral advisory services can be used at any funeral home across North America. Everest is an impartial consumer advocate, not a funeral home. Everest does not sell funeral goods or services, nor do they receive any commissions from funeral homes or other service providers in the funeral industry. With Everest, the member is removed Everest offers both pre-planning and at-need services at or near the time of need. Everest's online planning tools help members prepare for the future. At-need services include family support and negotiation assistance. And, Everest advisors are available  Communicate the Personal Funeral Plan to the funeral home; removing the family from a sales-focused environment 10/30/2014 Customer:Augusta, GA Customer Number:326421 Life Claim Listing Date Date Benefit of Birth Gender Coverage Paid Amount Retiree 10/18/1980 M Basic 06/04/2013 $50,000.00 N 04/26/1962 F Basic 03/14/2012 $50,000.00 N 08/25/1959 M Basic 04/04/2014 $50,000.00 N 10/13/1939 M Basic 02/21/2014 $25,000.00 N 08/26/1940 M Basic 11/20/2013 $24,000.00 Y 08/21/1932 M Basic 10/04/2012 $25,000.00 N 12/28/1952 F Basic 10/22/2013 $50,000.00 N 11/13/1977 M Basic 07/16/2012 $50,000.00 N 03/02/1946 M Basic 08/18/2014 $33,000.00 N 01/10/1934 M Basic 05/29/2012 $25,000.00 N 03/05/1949 M Basic 07/19/2012 $50,000.00 N 09/15/1979 M Basic 03/12/2012 $50,000.00 N 03/06/1965 M Basic 05/16/2012 $50,000.00 N 12/09/1969 M Basic 02/26/2013 $50,000.00 N 03/24/1953 M Basic 09/09/2013 $50,000.00 N 08/09/1961 F Basic 08/22/2014 $50,000.00 N 10/28/1955 M Basic 02/11/2014 $50,000.00 N 07/19/1920 F Basic 08/20/2013 $15,000.00 Y 03/26/1967 M Basic 01/10/2014 $50,000.00 N 03/21/1923 M Basic 01/16/2014 $5,000.00 Y 05/01/1945 M Basic 07/21/2014 $7,500.00 Y 08/09/1953 M Basic 05/22/2013 $25,000.00 Y 10/25/1921 M Basic 07/03/2013 $5,000.00 Y 08/03/1967 F Basic 07/25/2013 $25,000.00 Y 10/16/1937 M Basic 08/16/2013 $22,500.00 Y 01/18/1938 F Basic 06/14/2013 $12,500.00 Y 12/29/1949 M Basic 06/16/2014 $25,000.00 Y 02/25/1942 M Basic 11/08/2012 $12,500.00 Y 03/07/1946 F Basic 01/07/2013 $16,250.00 Y 06/10/1920 M Basic 06/19/2012 $7,500.00 Y 08/26/1944 M Basic 07/10/2013 $16,250.00 Y 11/11/1939 M Basic 01/15/2014 $12,500.00 Y 04/04/1923 F Basic 04/23/2014 $30,000.00 Y 02/05/1950 M Basic 01/09/2014 $25,000.00 Y 10/20/1946 M Basic 07/08/2014 $16,250.00 Y 11/27/1937 M Basic 01/08/2013 $15,000.00 Y 06/11/1935 M Basic 02/12/2013 $12,500.00 Y 01/27/1957 M Basic 09/26/2013 $25,000.00 Y 10/23/1920 M Basic 02/01/2012 $1,000.00 Y 04/16/1947 M Basic 10/31/2012 $16,250.00 Y 02/23/1925 M Basic 12/27/2012 $26,000.00 Y 02/24/1946 M Basic 09/24/2014 $23,500.00 Y 03/04/1934 M Basic 12/26/2012 $37,500.00 Y 09/12/1931 M Basic 02/03/2014 $12,500.00 Y 07/30/1930 F Basic 04/11/2014 $15,000.00 Y 02/13/1938 M Basic 05/28/2014 $25,500.00 Y 10/29/1946 M Basic 09/25/2014 $27,000.00 Y 09/14/1954 M Basic 06/24/2013 $25,000.00 Y 10/23/1967 M Basic 01/13/2014 $25,000.00 Y 10/30/2014 10/12/1948 M Basic 02/11/2014 $16,250.00 Y 01/20/1947 M Basic 03/16/2012 $16,250.00 Y 04/21/1947 M Basic 08/08/2013 $16,250.00 Y 09/25/1940 M Basic 06/17/2013 $15,000.00 Y 10/09/1931 M Basic 06/26/2012 $12,500.00 Y 02/26/1933 M Basic 05/30/2013 $15,000.00 Y 08/13/1921 M Basic 02/28/2013 $8,000.00 Y 12/29/1946 F Basic 08/14/2014 $16,250.00 Y 01/14/1944 M Basic 06/12/2014 $26,000.00 Y 06/10/1937 F Basic 07/05/2012 $12,500.00 Y 08/29/1938 M Basic 03/14/2013 $15,000.00 Y 11/13/1935 M Basic 04/26/2013 $12,500.00 Y 11/09/1953 M Basic 05/22/2013 $25,000.00 Y 04/24/1930 M Basic 04/11/2013 $10,000.00 Y 08/09/1961 F Supp 08/22/2014 $30,000.00 N 08/25/1959 M Supp 04/04/2014 $50,000.00 N 08/21/1932 M Supp 10/16/2012 $35,000.00 N 03/06/1965 M Supp 05/24/2012 $90,000.00 N 03/24/1953 M Supp 09/09/2013 $30,000.00 N 10/28/1955 M Supp 02/11/2014 $80,000.00 N 03/05/1949 M Supp 07/19/2012 $100,000.00 N 12/09/1969 M Supp 02/26/2013 $50,000.00 N 12/10/1946 M Dep 11/07/2012 $10,000.00 N 02/10/1938 M Dep 09/20/2013 $10,000.00 N 01/14/1960 M Dep 07/10/2012 $10,000.00 N 07/09/1944 M Dep 03/12/2012 $10,000.00 N 04/27/1961 M Dep 11/19/2012 $10,000.00 N 08/28/1943 F Dep 08/30/2013 $10,000.00 N 02/15/1951 F Dep 08/02/2013 $10,000.00 N 02/10/1955 M Dep 09/28/2012 $10,000.00 N 08/16/1949 M Dep 06/19/2014 $10,000.00 N 01/14/1960 M Supp AD&D 08/03/2012 $10,000.00 N Total:$2,129,000.00 Premium Waiver Reserve Listing Date Disabled Approved Inforce Reserve of Birth Date Date Coverage Face Amount Amount 08/13/1956 04/17/2013 01/17/2014 Term Supp PW $100,000.00 $48,766.02 08/13/1956 04/17/2013 01/17/2014 Term Basic PW $50,000.00 $24,383.01 10/30/2014 Augusta, GA Long Term Disability Renewal Analysis 326421 Incurral Period Payment Period 1/12 - 12/12 1/13 - 12/13 1/14 - 10/14 Total 1/12 - 12/12 $0 --$0 1/13 - 12/13 $54,363 $23,031 -$77,394 1/14 - 10/14 $20,932 $57,800 $4,209 $82,941 Total Paid Claims $75,295 $80,831 $4,209 $160,335 Claim Reserves $74,349 $140,580 $89,199 $304,127IBNR Reserves $0 $0 $108,290 $108,290 Interest Discount ($10,070)($9,107)($3,137)($22,313) Net Incurred Claims $139,575 $212,304 $198,560 $550,439 Credited Premium $556,407 Current Composite Rate 0.235 Constant Premium $556,407 Incurred Loss Ratio 99% Constant Loss Ratio 99% Experience Claim Rate $0.253Experience Credibility 41% Final Experience Claim Rate $0.103 Manual Claim Rate $0.346 1 minus Credibility 59% Final Manual Claim Rate $0.205 Blended Claim Rate $0.308 Tolerable Loss Ratio 67% Current Composite Rate $0.235 Current Volume $7,521,703 Current Annual Premium $212,112 Formula Renewal Rate $0.459Formula Renewal Annual Premium $414,295Formula Renewal Rate Increase 95% Current Formula Renewal Delivered Renewal Rate per $100 of CMP $0.235 $0.459 $0.353Annual Premium $212,112 $414,295 $318,168Rate Change 95.32%50.00% Total Claims Incurred 14 Current Lives 2,356 Incidence per 1,000 Lives 2.80 10/30/2014 Augusta, GA 326421 Long Term Disability Claim Listing Termination Current SSD Gender DOB DCI Date Benefit Reserve Approved Status M 08/26/69 06/07/12 06/27/13 $0 $0 4 Resolved F 01/21/62 06/27/12 $100 $16,459 1 Open M 12/13/58 01/11/13 $100 $10,760 1 Open M 09/09/56 07/23/13 $100 $9,284 1 Open F 02/11/62 10/04/12 04/15/14 $0 $0 4 Resolved M 04/16/47 01/04/13 $100 $898 5 Open M 08/13/56 04/17/13 $2,154 $41,521 4 Open M 01/08/63 09/08/12 $100 $15,229 1 Open M 02/05/81 01/12/13 $100 $5,225 4 Open M 03/02/77 08/27/12 $1,411 $42,661 4 Open M 12/25/53 02/12/13 05/05/14 $0 $0 4 Noncompliant F 08/09/83 08/20/13 $1,184 $34,512 4 Open M 12/17/55 04/08/14 $2,249 $45,328 4 Pending - In IBNR M 06/14/64 01/14/14 $1,598 $43,870 4 Open M 01/01/53 02/20/13 $1,369 $38,379 4 Open 10/30/2014 Augusta, GA 326421 Long Term Disability Renewal Glossary Incurred Year The year the claimant became disabled. Payment Period The total benefits paid in that year. Reserve Claim reserves are established for all active LTD claims. These reserves represent the present value of future benefits, after taking into account interest, diagnosis, date of disability, age at disability, gender, total remaining time of disability, Social Security Disability Income (pending/approved/denied), other income offsets, mortality and recovery results. IBNR Incurred But Not Reported claim reserves: The anticipated liability for claims that may already exist but have not fulfilled the elimination period or have not yet been submitted for consideration. Interest Discount Time Value Adjustment is a way to credit a case with interest so that claims and reserves are valued as of the year the claim incurred. Incurred Claims The sum of Paid Claims, Reserves, IBNR and Interest Discounts on an incurred basis. Paid Premium The actual total premium paid to Aetna. Constant Premium A paid premium adjustment used to bring prior period premium amounts to the level they would have been if the current rate had been in force during those periods. Incidence Per 1,000 The ratio of incurred claims to total life years. It is expected to be 3 per 1,000. Incurred Loss Ratio The ratio of Incurred Claims / Paid Premium. Constant Loss Ratio The ratio of Incurred Claims / Constant Premium. Experience Credibility The degree to which the plan’s previous claim experience can be relied on to predict future results. Credibility is determined by a combination of employee life years and claim incidence. Manual Credibility The degree to which the manual rate is used to predict future results. Manual Credibility is determined by the formula 1 minus the Experience Credibility. Manual Rate The rate calculated based upon a current census and plan design. Experience Rate The rate calculated based upon the actual claim experience of the group. Per $100 CMP The volume is based on $100 of Covered Monthly Payroll. Tolerable Loss Ratio Represents the ratio of incurred claims to earned premium that is assumed in the pricing of the product. 10/30/2014 Augusta, GA 326421 Renewal Provisions Renewal Effective Date:January 1, 2015 Renewal End Date:December 31, 2015 The renewal is priced as a total package. If Aetna does not retain all coverages then we reserve the right to review our pricing for the remaining coverages. Renewal rates are guaranteed for the rate guarantee period, provided the renewal rates and any recommended plan changes quoted are accepted within 90 days of the date of this renewal offer. After the 90 day period, Aetna may revise our renewal rating using the latest experience available. Renewal Rates assume No Commissions are being paid Not Included - % of Premium Renewal rates are based on 40% Optional Life participation level. While the policy remains in force, and in the absence of any revisions in benefits, change in participation lives, volume changes of more than 10%, or other material change in the conditions under which your plan operates, we anticipate that these rates will remain in effect until the next policy anniversary. Aetna's standard Group Life contract outlines requirements for Evidence of Insurability (EOI).As such, and as part of the renewal process, your Policy's EOI rules will be reviewed with you. The information in this summary is only a partial, general description of actual terms of your Group Policy and is not intended to replace or supersede the terms of the Group Policy. In the event that any conflict exists between this summary and the Group Policy, the terms of the Group Policy shall prevail. 10/30/2014 Augusta, GA 326421 Renewal Billing Rates and Annual Premium *Quoted Life and Disability renewal rates and fees are based on the assumption all Life and Disability coverages will remain with Aetna during the full guarantee period.** Life Renewal Rates are guaranteed from January 1, 2015 through January 1, 2016.** LTD Renewal Rates are guaranteed from January 1, 2015 through January 1, 2016. Rate Existing Annual New Rates Annual % Comparison Volume Rates Premium Effective Premium Change Basic Term Life Employee per $1,000 $115,882,500 $0.300 $417,177 $0.35 $512,293 17.0% Retiree Basic Term Life Employee per $1,000 $12,869,000 $0.400 $61,771 $0.47 $72,291 17.0% Supplemental Term Life Employee per $1,000 Under 30 $5,960,000 $0.098 $7,009 $0.11 $8,203 17.0% 30 - 34 $4,730,000 $0.108 $6,130 $0.13 $7,174 17.0% 35 - 39 $7,680,000 $0.130 $11,981 $0.15 $14,021 17.0% 40 - 44 $12,760,000 $0.206 $31,543 $0.24 $36,914 17.0% 45 - 49 $13,000,000 $0.347 $54,132 $0.41 $63,351 17.0% 50 - 54 $12,430,000 $0.574 $85,618 $0.67 $100,199 17.0% 55 - 59 $11,510,000 $0.888 $122,651 $1.04 $143,538 17.0% 60 - 64 $5,930,000 $1.387 $98,699 $1.62 $115,507 17.0% 65 - 69 $1,210,625 $2.490 $36,173 $2.91 $42,334 17.0% 70 - 74 $5,000 $3.990 $239 $4.67 $280 17.0% 75 and up $0 $0 $0.00 $0 0.0% Total $75,215,625 $454,175 $531,521 17.0% Dependent Term Life Spouse per $1,000 Under 30 $375,000 $0.098 $441 $0.11 $516 17.0% 30 - 34 $425,000 $0.108 $551 $0.13 $645 17.0% 35 - 39 $725,000 $0.130 $1,131 $0.15 $1,324 17.0% 40 - 44 $905,000 $0.206 $2,237 $0.24 $2,618 17.0% 45 - 49 $1,090,000 $0.347 $4,539 $0.41 $5,312 17.0% 50 - 54 $1,050,000 $0.574 $7,232 $0.67 $8,464 17.0% 55 - 59 $825,000 $0.888 $8,791 $1.04 $10,288 17.0% 60 - 64 $415,000 $1.387 $6,907 $1.62 $8,084 17.0% 65 - 69 $87,750 $2.490 $2,622 $2.91 $3,068 17.0% 70 - 74 $25,000 $3.990 $1,197 $4.67 $1,401 17.0% 75 and up $0 $0 $0.00 $0 Total $5,922,750 $35,649 $41,719 17.0% Child per EE per month 690 $2.050 $16,974 $2.40 $19,865 17.0% Supplemental AD&D Employee per $1,000 $106,223,000 $0.045 $57,360 $0.05 $67,129 17.0% Long Term DisabilityEmployee per $100 CMP $7,521,703 $0.235 $212,112 $0.353 $318,168 50.0% Request for Proposal Request for Proposals will be received at this office until Tuesday, April 14, 2015 @ 11:00 a.m. for furnishing: RFP Item #15-164 Life/LTD Insurance Services for Human Resources RFPs will be received by: The Augusta Commission hereinafter referred to as the OWNER at the offices of: Geri A. Sams, Director Augusta Procurement Department 535 Telfair Street - Room 605 Augusta, Georgia 30901 RFP documents may be viewed on the Augusta Georgia web site under the Procurement Department ARCbid. RFP documents may be obtained at the office of the Augusta, GA Procurement Department, 535 Telfair Street – Room 605, Augusta, GA 30901. All questions must be submitted in writing by fax to 706 821-2811 or by email to procbidandcontract@augustaga.gov to the office of the Procurement Department by Friday, April 3, 2015, 2015 @ 5:00 P.M. No bid will be accepted by fax, all must be received by mail or hand delivered. No RFP may be withdrawn for a period of 120 days after time has been called on the date of opening. Request for proposals (RFP) and specifications. An RFP shall be issued by the Procurement Office and shall include specifications prepared in accordance with Article 4 (Product Specifications), and all contractual terms and conditions, applicable to the procurement. All specific requirements contained in the request for proposal including, but not limited to, the number of copies needed, the timing of the submission, the required financial data, and any other requirements designated by the Procurement Department are considered material conditions of the bid which are not waiveable or modifiable by the Procurement Director. All requests to waive or modify any such material condition shall be submitted through the Procurement Director to the appropriate committee of the Augusta, Georgia Commission for approval by the Augusta, Georgia Commission. Please mark RFP number on the outside of the envelope. Proponents are cautioned that acquisition of RFP documents through any source other than the office of the Procurement Department is not advisable. Acquisition of RFP documents from unauthorized sources places the proponent at the risk of receiving incomplete or inaccurate information upon which to base his qualifications. GERI A. SAMS, Procurement Director Publish: Augusta Chronicle March 24, 26, 31, April 2, 2015 Metro Courier April 1, 2015 Revised: 1/12/2015 VENDORS Attachment B Addendum 1 E-Verify # SAVE Form Original 7 Copies Fee Proposal CIGNA Group Insurance Life · Accident · Disability· Critical Illness· Accidental Injury· FMLA 3480 Preston Ridge, Suite 425| Alpharetta, GA 30005 Yes Yes 189294 Yes Yes Yes Yes Hartford Life and Accident Insurance Company (The Hartford) 200 Hopmeadow Street, Simsbury, CT 06089 Yes Yes 73683 Yes Yes Yes Yes Greater Georgia Life Insurance Company (Blue Cross Blue Shield of Georgia) 3350 Peachtree Road Atlanta, GA 30326 Yes Yes 364538 Yes Yes Yes Yes UNUM 1669 King Street, Suite 100 Enfield, CT 06082 Yes Yes 105224 Yes Yes Yes Yes Metropolitan Life Insurance Company (MetLife) 177 S. Commons Drive Aurora, IL 60504 Yes Yes 44740 Yes Yes Yes Yes Standard Insurance Company (The Standard) 2839 Paces Ferry Road, Suite 830 Atlanta, GA 30339 Yes Yes 37851 Yes Yes Yes Yes Dearborn National 200 Ashford Center N, Suite 155 Atlanta, GA 30338 Yes Yes 358305 Yes Yes Yes Yes Proposal Opening RFP Item #15-164 Life/LTD Insurance Services for Augusta, Georgia - Human Resources Department RFP Due: Tuesday, April 21, 2015 @ 11:00 a.m. Total Number Specifications Mailed Out: 59 Total Number Specifications Download (Demandstar): Total Electronic Notifications (Demandstar): Mandatory Pre-proposal/Telephone Conference Attendees: NA Total packages submitted: 7 Total Noncompliant: 0 The following vendors did not respond: Minnesota Life Insurance Company (Securian) / 400 Roberts Street, North / St. Paul, MN 55101 Innovative Crest, Inc. / For Group Insurance Associates / 223 Ronstadt Drive / Martinez, GA 30907 Dearborn National / 1001 East Lookout Drive / Richardson, TX 75082 Resurgens Risk Management, INC. / 1201 Peachtree St., NE Suite #1730 / Atlanta, GA 30361 Group Insurance Associates / 756 Poplar Street / Macon, GA 31201 Trans America / 4571 Suite B Cox Road / Evans, GA 30809 AYB Benefits / 2296 Henderson Mill Rd., Suite 100 Atlanta, GA 30345J. T. Worthy Consultants / 113 S. Monroe Street, 1st Floor Tallahassee, FL 32312 Aon Risk Services / Attn: Christopher Payne / 40 West Broad Street, Suite 210 / Greenville, SC 29601 ACHS Insurance / 1229 Augusta West Parkway / Augusta, GA 30909 Assurant / 3726 Executive Center Dr., Suite C / Martinez, GA 30907 Cigna / 2701 North Rocky Point Dr., Suite 800 / Tampa, FL 33607 Page 1 of 1 Factor Points CIGNA Group - FMLA 3480 Preston Ridge, Suite 425| Alpharetta, GA 30005 The Hartford 200 Hopmeadow Street, Simsbury, CT 06089 Blue Cross Blue Shield of Georgia 3350 Peachtree Road Atlanta, GA 30326 UNUM 1669 King Street, Suite 100 Enfield, CT 06082 MetLife 177 S. Commons Drive Aurora, IL 60504 The Standard 2839 Paces Ferry Road, Suite 830 Atlanta, GA 30339 Dearborn National 200 Ashford Center N, Suite 155 Atlanta, GA 30338 CIGNA Group - FMLA 3480 Preston Ridge, Suite 425| Alpharetta, GA 30005 The Hartford 200 Hopmeadow Street, Simsbury, CT 06089 Blue Cross Blue Shield of Georgia 3350 Peachtree Road Atlanta, GA 30326 UNUM 1669 King Street, Suite 100 Enfield, CT 06082 MetLife 177 S. Commons Drive Aurora, IL 60504 The Standard 2839 Paces Ferry Road, Suite 830 Atlanta, GA 30339 Dearborn National 200 Ashford Center N, Suite 155 Atlanta, GA 30338 10 Plan Design - Current & alternates 4.0 3.7 3.3 3.7 3.7 4.0 2.7 40.0 36.7 33.3 36.7 36.7 40.0 26.7 5 Met Client's Objectives for Value & Cost Containment 4.0 3.2 2.7 3.5 3.3 3.7 3.0 20.0 15.8 13.3 17.5 16.7 18.3 15.0 5 Value Adds 3.7 2.7 2.7 3.7 3.8 4.0 2.3 18.3 13.3 13.3 18.3 19.2 20.0 11.7 Points 20 11.7 9.5 8.7 10.8 10.8 11.7 8.0 78.3 65.8 60.0 72.5 72.5 78.3 53.3 3.75 Quality & Timeliness Stats 3.7 4.0 3.0 3.0 3.3 3.0 3.5 13.8 15.0 11.3 11.3 12.5 11.3 13.1 1.5 Reporting capabilities 4.3 4.0 3.3 4.0 4.0 4.3 4.2 6.5 6.0 5.0 6.0 6.0 6.5 6.3 3 General account administration / Customer Svc 4.0 3.7 3.7 3.7 3.3 4.0 3.5 12.0 11.0 11.0 11.0 10.0 12.0 10.5 1.5 Communication Materials/Booklets/SPDs 3.8 4.0 3.3 4.0 4.2 4.0 3.7 5.8 6.0 5.0 6.0 6.3 6.0 5.5 3.75 Service/Performance guarantees 3.7 4.5 2.5 2.8 3.2 4.0 2.7 13.8 16.9 9.4 10.6 11.9 15.0 10.0 1.5 Technology Capabilities 3.8 3.7 3.3 3.5 4.0 4.0 3.5 5.8 5.5 5.0 5.3 6.0 6.0 5.3 Points 15 23.3 23.8 19.2 21.0 22.0 23.3 21.0 57.5 60.4 46.6 50.1 52.6 56.8 50.6 25 Employer Cost 3.7 4.7 3.0 3.5 4.7 4.3 1.8 91.7 116.7 75.0 87.5 116.7 108.3 45.8 20 Employee Cost 4.7 3.0 3.3 3.4 4.7 3.3 1.8 93.3 60.0 66.7 68.3 93.3 66.7 36.7 5 Rate guarantees 3.2 2.3 5.0 5.0 5.0 5.0 5.0 15.8 11.7 25.0 25.0 25.0 25.0 25.0 Points 50 11.5 10.0 11.3 11.9 14.3 12.7 8.7 200.8 188.3 166.7 180.8 235.0 200.0 107.5 3.75 Experience 4.0 3.7 3.0 3.3 3.5 4.7 2.3 15.0 13.8 11.3 12.5 13.1 17.5 8.8 3.75 Character, Reputation, References 0.0 1.3 1.3 0.0 0.0 4.7 0.0 0.0 5.0 5.0 0.0 0.0 17.5 0.0 3.75 RFP Quality/Timeliness/Completeness 3.2 3.5 3.2 3.2 3.5 4.0 3.0 11.9 13.1 11.9 11.9 13.1 15.0 11.3 3.75 Extent to which RFP objectives, scope of services are met 3.2 3.5 3.2 3.2 3.5 3.7 3.0 11.9 13.1 11.9 11.9 13.1 13.8 11.3 Points 15 10.3 12.0 10.7 9.7 10.5 17.0 8.3 38.8 45.0 40.0 36.3 39.4 63.8 31.3 Grand Total 100 56.8 55.3 49.8 53.4 57.7 64.7 46.0 375.4 359.5 313.3 339.7 399.5 398.8 242.7 RFP 15-164 EVALUATION CRITERIA – Life Insurance Services - Cumulative Evaluation Sheet General Description Rating – Scale of 0 (low) - 5 (high) PLAN DESIGN & PLAN MANAGEMENT FINANCIAL TERMS Weighted Score QUALITY OF ADMINISTRATION AND COMMUNICATIONS CREDENTIALS, QUALITY OF PROPOSAL, AND OVERALL RESPONSIVENESS 1 Factor Points CIGNA Group - FMLA 3480 Preston Ridge, Suite 425| Alpharetta, GA 30005 The Hartford 200 Hopmeadow Street, Simsbury, CT 06089 Blue Cross Blue Shield of Georgia 3350 Peachtree Road Atlanta, GA 30326 UNUM 1669 King Street, Suite 100 Enfield, CT 06082 MetLife 177 S. Commons Drive Aurora, IL 60504 The Standard 2839 Paces Ferry Road, Suite 830 Atlanta, GA 30339 Dearborn National 200 Ashford Center N, Suite 155 Atlanta, GA 30338 CIGNA Group - FMLA 3480 Preston Ridge, Suite 425| Alpharetta, GA 30005 The Hartford 200 Hopmeadow Street, Simsbury, CT 06089 Blue Cross Blue Shield of Georgia 3350 Peachtree Road Atlanta, GA 30326 UNUM 1669 King Street, Suite 100 Enfield, CT 06082 MetLife 177 S. Commons Drive Aurora, IL 60504 The Standard 2839 Paces Ferry Road, Suite 830 Atlanta, GA 30339 Dearborn National 200 Ashford Center N, Suite 155 Atlanta, GA 30338 10 Plan Design - Current & Alternates 4.0 3.7 3.0 3.7 3.7 4.0 2.7 40.0 36.7 30.0 36.7 36.7 40.0 26.7 5 Met Client's Objectives for Value & Cost Containment 3.7 3.0 2.7 3.3 3.3 3.7 3.0 18.3 15.0 13.3 16.7 16.7 18.3 15.0 5 Value Adds 3.8 2.7 2.7 4.2 4.2 4.5 2.7 19.2 13.3 13.3 20.8 20.8 22.5 13.3 Points 20 11.5 9.3 8.3 11.2 11.2 12.2 8.3 77.5 65.0 56.7 74.2 74.2 80.8 55.0 3.75 Quality & Timeliness Stats 3.7 4.0 3.0 3.0 3.7 3.0 3.2 13.8 15.0 11.3 11.3 13.8 11.3 11.9 1.5 Reporting capabilities 4.3 4.0 3.7 4.0 4.0 4.3 4.2 6.5 6.0 5.5 6.0 6.0 6.5 6.3 3 General account administration / Customer Svc 4.0 3.7 3.7 3.7 3.7 4.0 3.5 12.0 11.0 11.0 11.0 11.0 12.0 10.5 1.5 Communication Materials/ Booklets/SPDs 4.0 4.0 3.7 4.0 4.2 4.0 3.5 6.0 6.0 5.5 6.0 6.3 6.0 5.3 3.75 Service/ Performance guarantees 3.7 4.5 2.5 2.7 3.0 3.8 2.7 13.8 16.9 9.4 10.0 11.3 14.4 10.0 1.5 Technology Capabilities 4.0 3.7 3.3 3.5 4.0 4.0 3.3 6.0 5.5 5.0 5.3 6.0 6.0 5.0 Points 15 23.7 23.8 19.8 20.8 22.5 23.2 20.3 58.0 60.4 47.6 49.5 54.3 56.1 48.9 25 Employer Cost 4.7 2.5 2.5 2.8 3.7 3.8 1.2 116.7 62.5 62.5 70.8 91.7 95.8 29.2 20 Employee Cost 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5 Rate guarantees 2.3 2.3 5.0 5.0 5.0 5.0 5.0 11.7 11.7 25.0 25.0 25.0 25.0 25.0 Points 50 7.0 4.8 7.5 7.8 8.7 8.8 6.2 128.3 74.2 87.5 95.8 116.7 120.8 54.2 3.75 Experience 4.0 3.7 3.0 3.3 3.7 4.7 3.3 15.0 13.8 11.3 12.5 13.8 17.5 12.5 3.75 Character, Reputation, References 0.0 1.3 2.3 0.0 0.0 4.7 0.0 0.0 5.0 8.8 0.0 0.0 17.5 0.0 3.75 RFP Quality/Timeliness/ Completeness 3.2 3.5 3.2 3.2 3.2 4.2 3.0 11.9 13.1 11.9 11.9 11.9 15.6 11.3 3.75 Extent to which RFP objectives, scope of services are met 3.2 3.5 3.2 3.2 3.5 3.8 3.0 11.9 13.1 11.9 11.9 13.1 14.4 11.3 Points 15 10.3 12.0 11.7 9.7 10.3 17.3 9.3 38.8 45.0 43.8 36.3 38.8 65.0 35.0 Grand Total 100 52.5 50.0 47.3 49.5 52.7 61.5 44.2 302.6 244.5 235.5 255.8 283.8 322.8 193.0 109.3 105.3 97.2 102.9 110.3 126.2 90.2 678.0 604.1 548.8 595.5 683.3 721.6 435.8Total Cumulative RFP 15-164 EVALUATION CRITERIA – LTD Insurance Services - Cumulative Evaluation Sheet General Description Rating – Scale of 0 (low) - 5 (high)Weighted Score QUALITY OF ADMINISTRATION AND COMMUNICATIONS CREDENTIALS, QUALITY OF PROPSAL, AND OVERALL RESPONSIVENESS PLAN DESIGN & PLAN MANAGEMENT FINANCIAL TERMS 2 Administrative Services Committee Meeting 5/26/2015 1:20 PM Life/LTD Proposed Contract Award Department:Human Resources Caption:Motion to approve award of RFP 15-164 Life/LTD Insurance Services to The Standard subject to final contract negotiations and to authorize the Administrator to execute such finally negotiated contract. Background:ARC conducted an RFP for Life and LTD in 2011 for a 1/1/2012 effective date. Aetna was chosen as the new carrier and given a three (3) year contract. The contract provided for a savings of over $1,000,000 for the three (3) year period. At the end of the three (3) year term, Aetna provided a renewal with increases that were too significant for ARC to absorb (over 17% increase combined LTD and Life) so a new RFP was released. Analysis:Seven (7) responses to the RFP reviewed and scored by HR, Procurement and Finance. The following factors were used in the scoring process: • Plan Design and Plan Management • Quality of Administration and Communications • Financial Terms • Credentials, Quality of Proposal, and Overall Responsiveness Financial Impact:ARC and its employees currently pay approximately $1,114,680 in premium per year for Life and LTD coverage. The Aetna renewal increased the approximate premium to $1,374,412 per year. The recommended carrier will reduce that annual premium to approximately $1,235,455. There will be a three (3) year renewal savings of $426,871. Alternatives:ARC can absorb the 17% increase from Aetna which will also increase the employee’s premium or can move the coverage to the new recommended carrier - The Standard. Recommendation:Enter into a three (3) year contract with The Standard. Funds are Available in the Following Funds 616 Accounts: REVIEWED AND APPROVED BY: