8. Employee benefits CITYOF
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I -, , 4 CHANHASSEN
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690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
I (612) 937-1900 ' FAX (612) 937-5739
1 MEMORANDUM
IITO: Don Ashworth, City Manager
FROM: Todd Gerhardt, Assistant City Manage
IIDATE: December 6, 1990
SUBJ: Approval of Employee Benefits
II
The City of Chanhassen has an obligation under Minnesota statutes
II to bid out employee benefits if premium rates exceed 20% or more
annually. Currently the city has not incurred rate increases of
this level; however, it has been several years since the city has
II requested proposals for Health Insurance, Life Insurance/Accidental
Death and Dismemberment (AD & D) and Long Term Disability
insurance. Also, as a part of our 1989 audit, the city's auditors
(Deloitte-Touche) recommended that the city consider requesting
I proposals in these areas to update each of the programs and the
possibility of lower premiums.
II Last summer staff asked Deloitte-Touche to assist staff in
developing a Request for Proposals (RFP) for the city's health,
life, and long term disability insurance, and adding a flexible
spending account. Attached for your review and consideration are
I the results of our RFP. Joe Harten from Deloitte-Touche and I will
be available on Monday evening to answer any questions regarding
the following recommendation.
IIRECOMMENDATION
1 Staff recommends the City Council consider accepting proposals from
the following carriers:
Health Insurance Monthly Premium Rate
1 PHP Single: $150.91
Family: $404.71
1 Life/AD & D
Minnesota Mutual Life .20/$1, 000 worth of
life insurance
II
II
i
Mr. Don Ashworth
December 6, 1990
Page 2
LTD Monthly Premium Rate
UNUM .48/$100 worth of LTD
insurance
Flexible Spending Account
Approve the flexible spending account; however, direct staff
to administer the program internally.
Attachments I
1. Employee Benefits Proposal Analysis
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