SUBJECT:
Title
Request Approval of Long Term Disability (LTD) Insurance renewal with Standard Insurance Co. (Budget Impact - Expenditure of $550,000 as approved in the FY 21/22 budget)
Body
|
INITIATOR: |
DEPARTMENT: |
|
Amanda Tart, Director |
Human Resources |
DESCRIPTION/BACKGROUND:
The FY 2021-2022 proposed renewal from Standard represents a no rate increase with a two (2) year rate guarantee. Marion County pays the LTD premium based on the premium rate per $100 of covered payroll.
The LTD policy provides income replacement coverage at 66 2/3% of salary up to $10,000 maximum to an employee who is unable to perform the essential functions of their own job for up to 24 months following a 120 day waiting period. Coverage may continue past 24 months only if employee is approved by Social Security as totally disabled and unable to perform the essential functions of any job.
Standard has been the County’s Long Term Disability (LTD) insurance company for many years and has provided excellent coverage and service to Marion County and their employees.
COVERAGE CURRENT RATE RENEWAL RATE
66 2/3% of Salary .389 per $100 covered payroll .389 per $100 covered payroll
BUDGET/IMPACT:
Expenditure of $550,000. Total LTD premiums are estimated at $550,000 which is included in the FY 21/22 budget.
RECOMMENDED ACTION:
Recommended action
Motion to approve the Long Term Disability (LTD) renewal with Standard Insurance Company to be effective October 1, 2021.
end