Council previously approved the award of contract 2019-0141-C for Ancillary Benefits and Services on August 12, 2019.

The City awarded a three-year contract with two (2) City optional one-year renewals to OneAmerica, starting on January 1, 2020, for its life and disability policies which was approved by Council in FY 2019-20 after a Request for Proposal process.  This process combined the life and disability coverages to the same carrier to better manage the waiver of premium process for individuals who become disabled.  Previously, the life and disability policies were with two different insurance carriers.  The City also added short-term disability as a voluntary line of coverage which was a new benefit introduced in 2020.

Traditional Life and AD&D is funded through the various cost centers which are associated with full-time employees.  Retiree life is funded through the City’s Other Post-Employment Benefits Trust.  Voluntary Life is funded by the employees.  Basic long-term disability is funded through the various cost centers which are associated with full-time employees whereas buy up long-term disability and short term disability are funded by the employees.

In February 2023, the City entered a professional services contract with FMLASource, a company integrated with OneAmerica, for the administration of FMLA benefits to ensure a smooth process for employees navigating the FMLA/ADA process, as well as potentially a disability claim.  It is important to note that the vendors who handle the three respective areas – life insurance, disability, and FMLA outsourcing – should be integrated. 

Failure to award this contract will result in a disruption of the process for employees navigating the FMLA/ADA process as well as the disability claim process; loss of life, accidental death, and dismemberment benefits; and long-term disability salary protection to employees and retirees, as well as an employee assistance program for employees and their families. The amounts to approve beyond the original contract term are estimated as follows:

                                                                              Total               $2,375,058

This item approves a contract extension for the City's life and disability insurance policies with OneAmerica through December 31, 2026. The total estimated cost for the extension in future years is $2,375,058 ($1,781,294 in FY 2025-26 & $593,764 in FY 2026-27). Funding for this contract is spread across all city funds that pay for employee salary and benefits and will be captured in the annual budget appropriation of each future fiscal year.

Approval of this item will support the City's Strategic Plan Critical Success Factor of being an Excellent, Innovative, and Accountable City Government.