Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute A Three-Year Agreement With MetLife For Basic Life, AD&D, Supplemental Life, And Long-Term Disability Insurance In An Annual Amount Up To $581,751.50 From January 1, 2026, Through December 31, 2028.
Strategic Plan Focus
Employee Development & Empowerment
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The City desires to continue providing Basic Life, AD&D, Supplemental, Dependent and Retiree Life and Long-Term Disability insurance coverage. The existing insurance with Symetra is running at a loss ratio of 111% after paying $2,054,476 in premiums and receiving $2,283,135 in claims over the past five years. Symetra proposed significant increases of 32.7% for Active Employee Basic Life and 41.5% for Retiree Life insurance, totaling an annual increase of about $78,000. Gehring Group, the City’s Benefits Consultants, analyzed the RFP and recommended obtaining Best and Final Offers (“BAFO”) from the most competitive alternative carriers, MetLife and Ochs, along with a request for a revised quote from Symetra. The BAFO yielded lower rates from MetLife (7.7% increase) and Ochs (10.4% increase), compared to Symetra's 15.9% increase. The Office of Human Resources, in consultation with the Gehring Group, recommends consolidating all coverage under MetLife for three years as the most cost-effective solution while maintaining existing benefits.
City Commission approval is requested to execute an agreement with MetLife to provide Basic Life, AD&D, Supplemental, Dependent and Retiree Life and Long-Term Disability insurance coverage for a three-year term in an annual amount of $581,751.50, which includes a ten percent buffer to allow for fluctuations in cost for Life Insurance and Long-Term Disability coverages.
Fiscal Impact:
A portion of the funding for this service will be available in the FY 2026 Operating Budget in account number 558.112006.51900.591950.000000.000.000 and will be budgeted in subsequent fiscal years’ operating budgets subject to approval and adoption by the City Commission.
Recommended for inclusion on the agenda by:
Tammie L. Hechler, Director, Human Resources
Adam Reichbach, Assistant City Manager