Description
Title: Authorize an amendment to a contract for continued long-term disability insurance for Austin Human Resources with Life Insurance Company of North America, to increase the amount by $2,700,000 for a revised total contract amount not to exceed $16,068,000. Funding: $900,000 is available in the Employees Benefit Fund. Funding for the remaining contract term is contingent upon available funding in future budgets.
Summary
The City of Austin is considering an amendment to its contract for long-term disability (LTD) insurance with Life Insurance Company of North America, proposing an increase of $2,700,000. This would raise the total contract amount to $16,068,000, funded primarily through the Employees Benefit Fund, which has $900,000 available for the fiscal year 2025-2026. The LTD insurance, crucial for city employees, covers disabilities from illness, injury, or pregnancy and is fully funded by employee premiums. The amendment is necessary due to increased participation, ensuring that the city can continue offering LTD insurance at guaranteed rates through 2027. Failure to authorize this increase may jeopardize these benefits.