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HomeMy WebLinkAboutAGENDA REPORT 1997 0820 CC REG ITEM 10RCity of Moorpark Agenda Report TO: The Honorable City Council FROM: Richard Hare, Deputy City Man ge DATE: August 61 1997 (CC Mtg. 8/20/97) t� V ITEM CITY OF MOORPARY, CALIFORNIA City Cou it Meeting of �2C� 1997 ACTION: SUBJECT: Consider Employee Dental and Life Insurance Cove ar qe Provided by The Guardian Insurance Company The City was informed by our dental carrier Prudential Insurance, that coverage would cease effective June 30, 1997. Staff, with the assistance of the City's commercial insurance broker Tolman & Wiker, requested proposals from several insurance companies. The carriers were asked to match the current benefit plan provided by Prudential Insurance as closely as possible per the Memorandum of Agreement. Staff reviewed proposals provided by The Guardian, Delta Dental, Foundation Health and PacifiCare. The Guardian Insurance Company provided the only proposal which matched or exceeded the benefits of Prudential Insurance. With the conversion of our medical insurance from Principal Mutual to the Public Employers Retirement System (PERS), the City's life insurance coverage was canceled effective June 30, 1997. Since PERS does not offer life insurance, Tolman and Wiker was asked to provide the City with life insurance proposals with the intent to match or exceed the benefits provided by Principal Mutual. In addition to dental insurance, The Guardian also offers life insurance coverage. The City was able to obtain life insurance coverage as a rider to our dental plan with The Guardian. The attached table indicates a monthly increase of 9.5 percent for both the dental and life premiums combined. Adequate funds are available in this year's budget to cover the increase because of health insurance premium savings. Coverage was maintained for employees by transferring to The Guardian effective July 1, 1997. This coverage can be terminated with 30 -days notice. Staff recommends authorizing the City Manager to continue dental and life insurance coverage with The Guardian Insurance Company. Attachment: "A" Dental /Life Insurance Comparison Chart 000439 ATTACHMENT "A" Prudential Dental Principal Mutual Life The Guardian Dental /Life Percent Increase Dental $2,218.74 Dental: $2,492.05 Life $ 249.74 Life: $ 210.00 Monthly Total: $2,468.48 Monthly Total: $2,702.05 9.5% C: \WPDOCS \CC.REP \dental insurance t