05-10-2016 Regular School Board Meeting
Agenda Item #38

Contractual service contract for Employee Short Term Disability and Long Term Disability Insurance


The district's contract for employee Short Term and Long Term Disability (STD/LTD) insurance with Voya - ReliaStar expires on December 31, 2016.  The district's broker and consultant for employee benefits Willis, Towers, Watson was tasked to issue a solicitation in the marketplace for these services in order for the district to continue these services for our employees without disruption starting January 1, 2017.   Willis, Towers, Watson performed this process in early February 2016 and twelve (12)service providers responded to the solicitation.  Three (3)providers declined to offer a competitive response and the remaining nine (9) submitted quotes for these services.  The three top proposers were:
• Reliance Standard - with overall rate of $2,036,610 with a 2-year price guarantee for STD and a 3-year price guarantee for LTD, and a $40,000 implementation fund. 
• Cigna - with an overall rate of $2,047,003, with a 3-year price guarantee for both STD and LTD, a $30,000 implementation fund, a $1 Per Employee per Month fee reduction to the district's ASO fees (approximately $80,000 per year), and assistance with complex FMLA and ADA at no cost.
• Liberty Mutual – with an overall rate of $2,057,395, with a 3-year price guarantee for STD and LTD, and a $30,000 implementation fund. 
Cigna was selected due to their proposed 3-year price guarantee for both products along with the additional benefit offerings provided to the district in ASO fees and assistance in FMLA/ADA cases.  Cigna's STD rates are 8.3% lower than Voya's current rates. Cigna's LTD rates remain unchanged from Voya's current rates. The proposed rates and other offerings proposed by each of the top vendors can be found in the attached analysis as compiled by Willis, Towers, Watson. 

Approve a three-year contract with Cigna beginning January 1, 2017 to provide the district with Employee Short Term and Long Term Disability Insurance services.     

Meeting Date(s)
Information - 5/10/2016
Consent after Information5/24/2016

Authority for Action
Board Policy 6320, Florida Administrative Code 6A.012(11)(12)(15)

Involves Expenditure of Funds Directly in the Classroom

Source of Funding
Operating - Other

Cost Center

Mark Langdorf, Director, Office of Employee Benefits and Risk Management, ext. 620
Dr. Carol Kindt, Deputy Superintendent/Chief Human Resources Officer, ext. 200

Attachment:  2017-19 Short Term and Long Term Disability Insurance Analysis by Willis Towers Watson - 4-11-2016.pdf