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Resolution accepting the recommendation of the Chief Procurement Officer authorizing an agreement with 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 two (2) year period, with annual renewals, not to exceed a term of ten (10) years.
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[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 Employee 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.
The Selection Committee recommended that a contract be awarded to AFLAC to administer a Voluntary Employee Benefits Program to eligible City employees through a payroll deduction. In addition, to maintain continuity of existing voluntary benefit program for current City employees and to provide all employees with a choice of voluntary benefit providers it was recommended that a new agreement also be approved with the current provider, Comprehensive Companies. This recommendation was reviewed and unanimously approved by the City’s Insurance Advisory Committee at their September 8, 2009 Meeting.
The Commission at their September 25 meeting requested that staff investigate whether the current voluntary benefits provider could offer AFLAC products to City employees, with the idea of continuing with Comprehensive Companies as the sole voluntary benefits administrator to avoid any potential confusion among employees from having more than one voluntary benefits provider. AFLAC has indicated that Comprehensive Companies will be able enter into a broker agreement to market their products to Coral Gables employees and they are willing to enter into such a relationship.
The attached Resolution authorizes an agreement with Comprehensive Companies to provide a Voluntary Employee Benefits Program for a two (2) year period with annual renewals not to exceed ten (10) years. The next open enrollment for employees in the voluntary benefits program is scheduled for March 1, 2010.