Title
Resolution accepting the recommendation of the Chief Procurement Officer authorizing agreements with AFLAC, Inc. and the Comprehensive Companies to administer a Voluntary Employee Benefits Program (Section 125 Cafeteria Plan) pursuant to Section 2-828 of the Procurement Code and Request For Quotes (RFQT) 2009.04.14 for an initial three (3) year period, with annual renewals, not to exceed a term of ten (10) years.
Brief History
The City has provided a Voluntary Employee Benefits Program to its employees since July 1, 1990. This voluntary benefits program consists of several insurance programs that are offered through payroll deductions at the employee’s expense as follows: short term disability, universal life insurance, cancer policy and critical life. The Voluntary Employee Benefits Program also provides eligible employees these insurance programs on a before tax basis through a Section 125 Cafeteria Plan under the Internal Revenue Code.
On April 14, 2009, the Procurement Division of Finance formally advertised, issued and distributed the Voluntary Benefits Program Request for Quotes (RFQT) 2009.04.14. Those firms responding to the RFQT were the following: Comprehensive Companies, AFLAC, Colonial Life, Humana, All-State, Business Plans Inc. and the Hartford Life Insurance Company. Two (2) firms, All-State and Business Plans Inc., were eliminated from further consideration for submitting nonresponsive quotes. The Hartford Life Insurance Company submitted a no bid response. The four (4) remaining firms were invited to make presentations to a Selection Committee.
The Selection Committee recommended that an agreement be awarded to AFLAC to administer a Voluntary Employee Benefits Program to eligible City employees through a payroll deduction. In addition, to maintain the continuity of existing voluntary benefit programs for current City employees and to provide all employees with a choice of voluntary benefit providers it is recommended that a new agreement also be approved with Comprehensive Companies to provide voluntary benefits programs to City employees through a payroll deduction as well. Having two (2) competing voluntary benefit providers should ensure that City employees are being provided with the best variety of voluntary benefit programs that will meet their current and future needs. This recommendation was reviewed and unanimously approved by the City’s Insurance Advisory Committee at their September 8, 2009 Meeting.
AFLAC will be able to provide to eligible employees the following plans: Personal Disability Income Protector, Personal Cancer Indemnity Plan, Specified Health Event Protection and Hospital Protection among other plans that may be offered in the future. Comprehensive Companies will offer existing programs such as Short Term Disability Insurance, Universal Life Insurance, a Cancer Policy and Critical Life (Disease Specific Policy) and be able to also offer new voluntary insurance programs to City employees.