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Human Resources Department <br />https://www.santa-ana.org/human-resources <br />Item # 17 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />August 1, 2023 <br />TOPIC: Approve Changes to 2024 Employee Benefits <br />TITLE <br />Authorize the City to retain life, accidental death & dismemberment (AD&D), and long- <br />term disability (LTD) insurance with The Standard Insurance Company, and approve <br />Agreement with REACH Employee Assistance, Inc. for employee assistance program <br />services effective January 1, 2024 through December 31, 2026. <br />RECOMMENDED ACTION <br />(1) Authorize the City to retain life, AD&D, and LTD disability group and voluntary life <br />and AD&D insurances through The Standard Insurance Company, subject to <br />annual competitive rate evaluation seeking the best service for the best price and <br />non-substantive changes approved by the City Manager and City Attorney. <br />(2) Authorize the City Manager to execute an Agreement with REACH Employee <br />Assistance, Inc. (“REACH”) to continue employee assistance program (“EAP”) <br />services effective January 1, 2024 through December 31, 2026, subject to annual <br />competitive rate evaluation seeking the best service for the best price and non- <br />substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />Along with competitive salaries, the City enhances employees’ total compensation <br />package with City-sponsored and voluntary benefit programs. Each year staff initiates <br />an evaluation of the City’s existing benefit plans in order to ensure that the City is <br />receiving the best value as well as discover and evaluate other types of benefits that <br />may be worth bringing into the City’s benefit package. Keenan, the City’s Benefits <br />Broker, assisted in a market study to compare services to ensure that rates and <br />coverages are competitive. City staff evaluated the options along with the employee <br />demographics and needs and selected a mix of benefits for the next calendar year. <br />The Standard has offered a proposal to maintain existing coverage obligations with an <br />estimated 46.72% combined savings compared to the existing agreement, with fee <br />reductions of 50.98% for group life, 25.00% for group AD&D, and 26.83% for LTD <br />coverages, with a rate guarantee of three (3) years. The Standard will also provide a <br />one-time implementation credit of up $15,000 to assist with transition communications