HomeMy WebLinkAboutResolution - 2009-R0517 - Amendment To ING Employee Benefits: Long Term Disability Insurance - 11/19/2009Resolution No. 2009-RO517
November 19, 2009
Item No. 5.10
RESOLUTION
E IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock, an Amendment to the ING
Employee Benefits: Long Term Disability Insurance, as executed on October 25, 2007,
and all related documents. Said Amendment is attached hereto and incorporated in this
Resolution as if fully set forth herein and shall be included in the minutes of the Council.
Passed by the City Council this 19th day of November , 2009.
a
TOM MARTIN, MAYOR
ATTEST:
APPROVED AS TO CONTENT:
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Leisa Hutcheson, Director of Risk Management
APPROVED AS TO FORM:
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ssis<ity Attorney
;s:/ccdocs/Amend [NG Employee Benefits.res
11.6.04
Resolution No. 2009-80517
ING
EMPLOYEE BENEFITS
Chris Gilbert
Senior Sales Representative
November 11, 2009
Terri Smith
Benefits Coordinator
City of Lubbock
1625 13th Street
Lubbock, TX 79401
Re: Group Long Term Disability Insurance, Policy No. 63062-4
Dear Terri:
We have completed our underwriting for the January 1, 2010 renewal. Based on the
experience as shown below, it is necessary to increase the rates in the age bands of 35-39
through 50-54 for Option 2. Rather than an increase to just these 4 age bands, we are
offering a renewal choice of increasing all of the Option 2 age bands by 10%. An
additional option would be to reduce the benefit to 60% and renew at the current rates.
The current and renewal rates per $100 of Basic Monthly Earnings for all 3 renewal
choices are shown on the following pages. These rates are guaranteed to January 1, 2012.
15455 Dallas Parkway, Suite 1250 Tel.: 972.419.5760 ReliaStar Life Insurance Company
Addison, TX 75001 Fax: 972.419.5781
------------ 3 Year Experience
Period ------------
Totals for
Year 1
Year 2
Year 3
3 Year
6/1/2006
6/1/2007
6/1/2008
Experience
Paid Period
5/31/2007
5/31/2008
5/31/2009
Period
Incurred Claims
$411,917
$236,111
$156,300
$804,328
Premium
$221,741
$233,933
$238,777
$694,451
Doss Ratio
185.8%
100.9%
65.5%
115.8%
Open Claims
2
5
2
9
Total Claims
4
7
2
13
The current and renewal rates per $100 of Basic Monthly Earnings for all 3 renewal
choices are shown on the following pages. These rates are guaranteed to January 1, 2012.
15455 Dallas Parkway, Suite 1250 Tel.: 972.419.5760 ReliaStar Life Insurance Company
Addison, TX 75001 Fax: 972.419.5781
October 28, 2009
Page 2
Renewal Choice #1: 20% increase to aize-banded rates for ages 35-39 through 45-49 and
10% for ages 50-54 on Option 2
Option 1
Option 2
60%
Benefit
$5,000 Monthly
Max. Benefit
180 days
Elimination
662/3%
Benefit
$5,000 Monthly
Max Benefit
90 days
Elimination
Age Bands
Current Rates
Renewal Rates
Age Bands
Current Rates
Renewal Rates
Under 25
$0.21
$0.21
Under 25
$0.24
$0.24
25-29
$0.22
$0.22
25-29
$0.26
$0.26
30-34
$0.24
$0.24
30-34
$0.29
$0.29
35-39
$0.26
$0.26
35-39
$0.31
$0.37
40-44
$0.35
$0.35
40-44
$0.41
$0.49
45-49
$0.45
$0.45
45-49
$0.53
$0.64
50-54
$0.60
$0.60
50-54
$0.71
$0.78
55-59
$0.91
$0.91
55-59
$1.08
$1.08
60-99
$1.13
$1.13
60-99
$1.33
$1.33
ACCEPTANCE:
Renewal Choice #2: 10% increase to all age -banded rates on Option 2
Option 1
Option 2
60%
Benefit
$5,000 Monthly 180 days
Max Benefit Elimination
662/3%
Benefit
$5,000 Monthly
Max Benefit
90 days
Elimination
Age Bands
Current Rates Renewal Rates
Age Bands
Current Rates
Renewal Rates
Under 25
$0.21 $0.21
Under 25
$0.24
$0.26
25-29
$0.22 $0.22
25-29
$0.26
$0.29
30-34
$0.24 $0.24
30-34
$0.29
$0.32
35-39
$0.26 $0.26
35-39
$0.31
$0.34
40-44
$0.35 $0.35
40-44
$0.41
$0.45
45-49
$0.45 $0.45
45-49
$0.53
$0.58
50-54
$0.60 $0.60
50-54
$0.71
$0.78
55-59
$0.91 $0.91
55-59
$1.08
$1.19
60-99
$1.13 $1.13
60-99
$1.33
$1.46
ACCEPTANCE:
October 28, 2009
Page 3
Renewal Choice #3: Change Benefit % on Option 2 to 60% and continue In Force age -
banded rates
Option I
Option 2
60%
Benefit
$5,000 Monthly
Max Benefit
180 days
Elimination
60%
Benefit
$5,000 Monthly
Max Benefit
90 days
Elimination
Age Bands
Current Rates
Renewal Rates
Age Bands_
Current Rates
Renewal Rates
Under 25
$0.21
$0.21
Under 25
$0.24
$0.24
25-29
$0.22
$0.22
25-29
$0.26
$0.26
30-34
$0.24
$0.24
30-34
$0.29
$0.29
35-39
$0.26
$0.26
35-39
$0.31
$0.31
40-44
$0.35
$0.35
40-44
$0.41
$0.41
45-49
$0.45
$0.45
45-49
$0.53
$0.53
50-54
$0.60
$0.60
50-54
$0.71
$0.71
55-59
$0.91
$0.91
55-59
$1.08
$1.08
60-99
$1.13
$1.13
60-99
$1.33
$1.33
ACCEPTANCE: 0
In order to process the renewal in a timely manner, please check one of the Acceptance
boxes above and return this Ietter to me. If you would like to consider any other options
or plan changes, please let me know and we will provide the rates for such.
ING Employee Benefits is dedicated to providing innovative products, competitive
pricing and exceptional customer service. Our broad portfolio is designed to meet
employer needs through our employer paid products and employee needs through our
voluntary worksite products. If we can assist you with any additional products, please
contact me.
I welcome the opportunity to renew this coverage with The City of Lubbock. Thank you
for your continued business with ING Employee Benefits.
Sincerely,
Chris Gilbert
Senior Sales Representative