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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Director of Human Resources
DATE: August 21, 2019
SUBJECT:
A Resolution Authorizing Sun Life Insurance to Provide Life Insurance Services for January 1, 2020 through December 31, 2020.
PURPOSE:
To affirm an agreement with Sun Life insurance.
BACKGROUND:
The City contracted with Unum four years ago saving the City $256,000 over that time period. The contract with Unum will expire at the end of 2019. The renewal rate for Unum will be a 10% increase.
DISCUSSION:
To further reduce overall cost to the City, the City is proposing to replace Unum with Sun Life Insurance. The company is a highly rated and equal to the incumbent. The agreement covers three (3) years and will save the City $60,000 over that time period. Sun Life will also provide $64,000 in additional benefit administration credits. Sun Life will provide the same coverage and benefits as our previous carrier. Lastly, Sun Life will also provide additional plans for accident and critical illness that employees can purchase for additional coverage.
IMPACT STATEMENT:
No impact
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, 2020 through December 31, 2020.
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, Sun Life will provide life insurance coverage equivalent to the City's needs; and
WHEREAS, the 2020 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 coverage and rates as outlined in the attached summary shall be in effect as of January 1, 2020 through December 31, 2020.