Sponsor: Human Resources
Title
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Agreement with Minnesota Life Insurance Company for Employee Life Insurance
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Recommendation
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1. Approve the agreement with Minnesota Life Insurance Company, 400 Robert Street North, Saint Paul, MN 55101, for employee life insurance for the period of September 20, 2023 to December 31, 2026 and may be renewed for up to two additional one-year periods.
2. Authorize the Chair and Chief Clerk to execute the agreement.
3. Authorize the County Manager to enter into agreement and execute amendments to the agreement in accordance with the county’s procurement policies and procedures provided the amounts are within the limits of available funding.
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Background and Rationale
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Based on the recommendation of the Evaluation Committee, including Deloitte consulting, the Human Resources department recommends continuing with Minnesota Life Insurance Company who provided an 11% rate decrease for county paid basic life and accidental death and dismemberment (AD&D) for 2024 with a 0% rate cap guarantee for 2025, 2026, 2027 and 2028.
For employee paid optional coverages, 0% rate increases were provided with a 0% rate cap guarantee for 2025, 2026, 2027 and 2028.
Ochs Inc., the administrator for Minnesota Life Insurance Company for the Ramsey County, continues to provide excellent customer service for the county.
2024 Rate Summary
Employer paid - Basic Life and AD&D
2023 Rate 2024 Rate
Ramsey County $0.146/$1000 annual Salary $0.130
Other Participating Entities $0.174/$1000 annual Salary $0.155
Employee Paid 0% increase from 2023
Optional Employee and Spouse Life
Age Rate Per $1000 (0% increase)
29 or less $ 0.040
30-34 $ 0.050
35-39 $ 0.060
40-44 $ 0.100
45-49 $ 0.140
50-54 $ 0.220
55-59 $ 0.380
60-64 $ 0.520
65-69 $ 0.810
70+ $ 0.900
Optional Dependent Life ($20,000) $3.60 per dependent per month (0% increase)
Optional Employee/Spouse Accidental Death & Disability $.025 per $1,000 per month (0% increase)
Proposed plan enhancements include:
• Authorize increasing the optional supplemental employee life maximum from $500,000 to $750,000 with a $100,000 guaranteed issue and increase the optional spouse life maximum from $250,000 to $500,000 with a $50,000 guaranteed issue to help keep pace with increasing insurance needs.
• Authorize an ongoing annual enrollment opportunity whereby participating employees may increase their coverage by $10,000/year and their participating spouse coverage by $5,000/year up to a maximum of $100,000 for employees and $50,000 for spouses without Evidence of Insurability.
• Authorize expanding the Basic AD&D for enrolled Public Safety Officers by offering an additional Line of Duty Benefit at no additional cost whereby eligible public safety officers who experiences a loss of Life or injury while taking action that by rule, regulation, law or condition of employment they are obligated or authorized to perform, may be eligible for a Line of Duty payout in addition to any existing Life and AD&D benefit if it is determined that the loss occurred while taking action to reduce crime, criminal law enforcement or fire suppression, The benefit paid is 100% of their current AD&D amount, not to exceed $100,000. Public Safety Officers are defined as Police Officers, Firefighters, Probation Officers, Corrections Officers, Public Transit Officers, Parole Officers, Judicial Officers, Volunteer Firefighters.
• Authorize a one-time opportunity during open enrollment for 2024 where employees can elect or increase supplemental life coverage without Evidence of Insurability. Employees may elect up to $40,000 (not to exceed $100,000 when combined with current coverage) and Spouses may elect up to $10,000 (not to exceed $50,000 when combined with current coverage).
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County Goals (Check those advanced by Action)
☐ Well-being ☐ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
Once approved, this action will further the county’s efforts at providing a sustainable, long-term benefits strategy that recognizes cultural differences and supports employee well-being. The county’s employee workforce currently reflects a population where 40% are identified as racially and ethnically diverse. Diversity continues as a critical component of a comprehensive and well-balanced benefits program.
Community Participation Level and Impact
This action is strictly operational and internal facing. The residents of Ramsey County do not participate in the evaluation of or decisions regarding the county’s employee benefits program.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
Sufficient funding is included in the proposed 2024-2025 County Manager’s budget to fund this contract.
Last Previous Action
On August 21, 2018, the Ramsey County Board approved an agreement with Minnesota Life Insurance Company for employee life insurance (Resolution B2018-230).
Attachments
1. Professional Services Agreement - Minnesota Life Insurance Company