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TO: Mayor John Laesch
FROM: Michele Clark, Chief Human Resource Officer
DATE: August 27, 2026
SUBJECT:
A Resolution Authorizing Sun Life Insurance to provide life insurance services for January 1, 2027, through December 31, 2027
PURPOSE:
To authorize and continue an agreement between Sun Life Insurance and the City of Aurora.
BACKGROUND:
Sun Life Insurance has been our benefits provider since 2019 and offers additional voluntary plans for accident and critical illness coverage. The 2027 Basic Life and Accidental Death and Dismemberment (AD&D) renewal rates are $0.06 for Basic Life & $0.02 for AD&D equaling a combined rate of $0.08 per $1,000 of coverage, which represents a decrease of more than 16% from the 2026 rates.
The City chose not to make plan changes this year in order to minimize disruption for members.
Below is a summary of historical Life Insurance rates.
|
Sunlife |
Basic Life |
Retiree Basic Life Insurance |
|
2020 |
$ 0.050 |
$ 0.050 |
Per 1000 |
|
2021 |
$ 0.070 |
$ 0.050 |
Per 1000 |
|
2022 |
$ 0.070 |
$ 0.050 |
Per 1000 |
|
2023 |
$ 0.096 |
$ 0.050 |
Per 1000 |
|
2024 |
$ 0.096 |
$ 0.050 |
Per 1000 |
|
2025 |
$ 0.096 |
$ 0.076 |
Per 1000 |
|
2026 |
$ 0.096 |
$ 0.076 |
Per 1000 |
|
2027 |
$ 0.080 |
$ 0.060 |
Per 1000 |
DISCUSSION:
There will be a decrease to the Basic Life and Accidental Death & Dismemberment (AD&D) rates. The rates are guaranteed through 2027. The City proposes to stay with Sun Life for 2027 and revisit the market in 2027 for 2028 bids.
IMPACT STATEMENT:
NA.
RECOMMENDATIONS:
Place on finance committee agenda for approval to City Council.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution authorizing Sun Life Insurance to provide life insurance services for January 1, 2027, through December 31, 2027).
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City offers basic life insurance and accidental death and dismemberment coverage options as a part of its employee benefits packages; and
WHEREAS, the City has received proposals for group insurance and has determined it is in the best interests of the City and its employees to renew its contract with Sun Life Insurance to provide employee life insurance and other additional voluntary plans for accident and critical illness coverage for the 2027 plan year. The 2027 Basic Life and Accidental Death and Dismemberment (AD&D) renewal rates with Sun Life Insurance are $0.06 for Basic Life & $0.02 for AD&D equaling a combined rate of $0.08 per $1,000 of coverage; and
WHEREAS, the 2027 City budget will provide funding for this item in account number 602-0000-40.28-26.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Mayor and/or the City's Chief Human Resource Officer is hereby authorized to enter into a renewal contract with Sun Life Insurance for employee Basic Life and Accidental Death and Dismemberment (AD&D), at the rates described herein, for the period of January 1, 2027, through December 31, 2027, subject to the review and approval of the City's Corporation Counsel as to form.