RE: Employee Benefit Plan Renewals

Transcription

1 HALDIMAND COUNTY Report CS-HR of the General Manager of Corporate Services For Consideration By RE: Employee Benefit Plan Renewals OBJECTIVE: To approve Extended Health Care, Dental, Long Term Disability, Life Insurance and Accidental Death and Dismemberment benefit plan renewals covering eligible Haldimand County employees, Volunteer Firefighters, Members of Council and retired employees, including former Regional employees and Transition retirees. RECOMMENDATIONS: 1. THAT Report CS-HR Re: Employee Benefit Plan Renewals dated April 24, 2014 be received; 2. AND THAT Sun Life s final monthly renewal rates, plus applicable taxes, be approved effective July 1, 2014, for Extended Health Care, Dental, Long Term Disability and Life Insurance benefit coverage for eligible Haldimand County current and retired employees, current Members of Council and current Volunteer Firefighters, as detailed in Attachment #1; 3. AND THAT Sun Life s final monthly renewal rates, plus applicable taxes, be approved effective July 1, 2014, for Extended Health Care and Dental benefit coverage for eligible retirees of the former Regional Municipality of Haldimand-Norfolk and Transition retirees, as detailed in Attachment #2; 4. AND THAT Accidental Death and Dismemberment Insurance coverage continue with Industrial Alliance, Special Markets, for Haldimand County current employees and current Members of Council, retroactive to March 1, 2014, at no change to the current premium rate; 5. AND THAT the renewal of insurance with American Home/VFIS to provide Accidental Death and Dismemberment On Duty and Optional 24 Hour Coverage for Volunteer Firefighters be approved effective July 1, 2014, at no change to the current premium rates; 6. AND THAT $135,000 of the current funds held in the Deposit Fund at Sun Life, for Extended Health Care and Dental benefit coverage for eligible Haldimand County current employees and Members of Council, be refunded to the County and transferred to the Employee Benefits Reserve Fund; Date of Meeting: May 13, 2014 Page 1 of 16

2 7. AND THAT $42,000 be transferred from the Employee Benefits Reserve Fund to offset the projected 2014 operating deficit resulting from the renewal of the employee benefits. 8. AND THAT, subject to Council s review and approval of the 2015/2016 renewal rates, the current employee benefit carrier contracts be extended for one additional year, from July 1, 2015 to June 30, 2016, based on the timing requirements for the Request for Proposal processes as outlined in Report CS-HR Prepared by: Reviewed by: Heather Scott Coordinator, HRMS/Benefits Date: April 24, 2014 Respectfully submitted: Jim Dover Manager, Human Resources Approved: Karen General General Manager Corporate Services Department Donald G. Boyle Chief Administrative Officer Date of Meeting: May 13, 2014 Page 2 of 16

3 BACKGROUND: Benefit Coverage through Sun Life Financial and Industrial Alliance, Special Markets: Haldimand County employees are provided with a number of benefits through Sun Life Financial, including extended health, dental, life insurance, and long term disability insurance. The agreement for Extended Health and Dental Care coverage was signed in 2009 with a proviso that renewals would be negotiated with Sun Life on an annual basis. The Procurement Policy, at the time, allowed for a maximum of six years business to be awarded to this company before staff are required to again seek competitive bids. The types of benefit coverage and premium payment responsibilities are outlined in four different collective agreements, as well as the Employment Conditions for Non-Union Employees Policy. These benefits cover approximately 350 permanent full-time employees and retirees. Accidental Death and Dismemberment (AD&D) insurance is provided to the same group of employees through the carrier Industrial Alliance, Special Markets. In addition, a life insurance benefit is provided to Volunteer Firefighters (VFFs) in the amount of $35,000 each. This coverage has been in place with Sun Life since Lastly, Haldimand County has the responsibility of administering the post-employment benefits for all severance and early retirement packages negotiated by the Transition Board (the Transition Group ). Haldimand and Norfolk Counties jointly fund these benefits, with only two individuals currently remaining in this group. Coverage is provided under the Sun Life Financial contract. Benefit Coverage through American Home / VFIS Accidental Death and Dismemberment (AD&D) and Sickness Policy: The AD&D and sickness benefits are available to VFFs through American Home/VFIS. The County provides Accidental and Sickness insurance in the amount of $100,000 for On Duty Coverage. Also available is optional AD&D insurance in the amount of $100,000 for 24 Hour Coverage. The County pays 100% of the premium for On Duty Coverage for the approved complement of VFFs (currently 283), whereas the optional 24 Hour Coverage is paid for by those individual VFFs who elect to enrol. Currently, 272 VFFs have opted for the 24 Hour Coverage. ANALYSIS: The employee benefit insurance renewals outlined in this report pertain to existing plan coverage resulting from approved changes through collective bargaining or Non-Union policy review. Historical increases or decreases arising from renewals for previous years, as well as the proposed 2014 premium changes negotiated by the County s benefits consultant, Buffett Taylor & Associates, are summarized in the following table. The proposed 2014 premium rates are for the policy coverage in effect as of July 1, 2014, with the exception of AD&D which is effective March 1, Date of Meeting: May 13, 2014 Page 3 of 16

4 GROUP BENEFIT CARRIER Eligible Employees, Council and Retirees Eligible Employees, Council and Retirees Eligible Employees, Council, Retirees and Volunteer Firefighters Extended Health Care Impact on Renewal Premium Proposed 2014 Sun Life +18.5% No change -10.0% +3.0% No change Dental Care Sun Life +25.6% No change +13.8% -5.0% 1.6% increase Life Insurance Sun Life No change +4.0% +7.7% +8.4% No change Eligible Employees Long Term Disability Sun Life No change -8.0% No change +8.3% +22.0% increase Eligible Employees and Council Accidental Death and Dismemberment Industrial Alliance, Special Markets No change No change No change No change No change Transition Group & Region Retirees Extended Health and Dental Care Sun Life +7.1% +40.0% +4.4% +13.2% +24.7% increase In addition to the benefits noted in the chart above, the American Home/VFIS AD&D and sickness policy for VFFs is renewing without change on July 1, There has only been one increase, in 2003, to the basic On Duty insurance premium rates since the inception of the benefit in March 2002, and one increase to the optional member paid, 24 Hour Coverage in July Coverage renews, on an annual basis, at July 1 st of each year. Relevant portions of the Group Benefits Renewal Report, effective July 1, 2014, prepared by Buffett Taylor & Associates, are attached for reference in Attachments #1 and #2. A complete copy of the report is available by contacting the Manager, Human Resources. The costs identified in the attachments are based on the monthly premium rates for employees currently covered by the respective groups and exclude the applicable 8% retail sales tax. The total benefits cost will vary from these numbers depending on the actual number of employees in each group who are eligible for benefits on a monthly basis, as well as whether the individuals elect family or single coverage. The following paragraphs will provide explanation on the specifics of each particular benefit plan, including explanations for premium rate changes. Extended Health and Dental: For Haldimand County employees, including Council Members and County retirees, Sun Life s proposed renewal rates for extended health and dental coverage remain unchanged in 2014, with the exception of an increase due to an enhanced benefit plan for one employee group. The claims experience on the health and dental benefits has improved considerably over the previous year. The noted exception is a result of a 2013 negotiated improvement to the UFCW Grandview Service Workers dental coverage. This change to the coverage requires a 17% increase, effective July 1, 2014, in order to provide for major restorative dental benefits. When factoring in no change to the dental rates for the other employee groups, plus the 17% dental rate increase for the UFCW Service Workers group, the overall adjustment to the dental rates as of July 1, 2014 will be a +1.6% increase. Date of Meeting: May 13, 2014 Page 4 of 16

5 Claims Fluctuation Reserve and Deposit Fund A Claims Fluctuation Reserve (CFR) is a fund required under an insured, refund accounting policy which must be maintained at 15% of annual premiums. The reserve is set aside to fund any shortfalls that may occur during the policy year. Based on the retention accounting statement for the period ending December 31, 2013, the County s current CFR is fully funded at approximately $217,000. Any surplus funds generated in any given plan year, in excess of the CFR requirements, are automatically transferred to the Deposit Fund held by Sun Life. These surplus funds are available to the County for refund. As of December 31, 2013, the surplus balance was approximately $270,000, the equivalent of two months premiums. Money in the Deposit Fund earns interest at Sun Life s cash flow rate set at the 90 day Treasury Bill rate less 0.5%. The County s practice has been to keep some of the surplus in the Deposit Fund to be used, if necessary, to offset an increase in premium rates or to fund any required CFR if there was a change in insurance carrier. As well, it is important to keep in mind that Sun Life does not hold any Incurred But Not Reported (IBNR) claims reserves for Haldimand, as a result of the hold harmless agreement in place. This means that, should the health and dental coverage with Sun Life terminate, the County would be responsible for the payment of all claims submitted after the termination date regardless of the date the claim was actually incurred. Buffett Taylor s analysis indicates that the current premium rates should provide sufficient funding to the health and dental benefits for the upcoming plan year without having to utilize any excess funds out of the County s CFR or Deposit Fund. However, in case claims experience increases, Buffett Taylor recommends that the County maintain the equivalent of one month of Extended Health and Dental Care premium in the Deposit Fund for these purposes. Accordingly, staff recommend that Sun Life issue a refund of half the balance in the deposit fund, equating to $135,000. The County s investment rates are higher than what Sun Life applies to the Deposit Fund so transferring these funds back to the County will realize greater interest income. Upon receipt, these monies will be held in the Employee Benefits Reserve Fund and can be withdrawn at any time to offset similar unexpected or excessive costs as noted above. Plan Administration Costs The benefit carrier s plan administration costs are incorporated into the premium rates and are expressed as a percentage of the premiums necessary to adequately fund the program throughout the ensuing policy year. The current administration rate is set at 7.55 % of premiums for health and dental benefits and 8.25 % for the health care spending account. Plan administration costs include items such as general plan administration charges, claims administration charges, risk and profit charges, provincial premiums taxes and broker/consultant commission. Sun Life proposed no change to the plan administration fee. Extended Health Care Stop Loss / Pooling Insurance Extended Health Care Stop Loss Insurance coverage provides added protection to the County s plan in case of excessive claim increases. The current provision provides for $20,000 pooling level per member (or dependent unit combined) for all in Canada health claims and first dollar for out of Canada /emergency claims. Any member (or dependent unit) claiming above $20,000 would have these excess claims pooled with Sun Life s entire block of business and removed from the claims experience rate calculation. In exchange for this pooling, Sun Life charges a fee, expressed as a percentage of paid premiums, which is currently at 7.93% of premiums paid. Sun Life proposed no change to the stop loss/pooling insurance cost. Date of Meeting: May 13, 2014 Page 5 of 16

6 HISTORY OF EXTENDED HEALTH CARE STOP LOSS POOLING CHARGES PERCENTAGE OF EXTENDED HEALTH CARE PREMIUM PREMIUM PAID (excl. taxes) Claim Costs Avoided Under Stop Loss Insurance Jan 1 Dec 31, % $77,000 unknown (Proposed) Jan 1 Dec 31, % $76,825 $11,600 Jan 1 Dec 31, % $84,620 $54,570 Jan 1 Dec 31, % $87,084 $8,134 Jan 1 Dec 31, % $74,431 $2,186 Feb 1 Dec 31, % $34,601 $24,808 (transferred to Sun Life Feb. 1, 2009) Jan 1 Dec 31, 2008 (with Green Shield) 1.18% $29,352 $1,346 It is important to keep in mind that the claims costs avoided under the stop loss insurance are not charged to the claims experience of the County. These claims costs are removed from the claims data used to determine the renewal rates. This represents additional savings to those identified in the table above. Buffett Taylor confirms that a significant majority of municipalities have Stop Loss Insurance coverage at similar levels as Haldimand County. The cost of biologic drugs can be significant. In 2014, 5 of the top 10 drugs, by cost, utilized by County employees were biologic drugs. Although the costs were low in these cases, the increased usage of these drugs is evident. Measures such as pre-authorization by a physician that the drug is medically necessary have been implemented. However, the potential significant cost impact warrants continued monitoring before adjusting or terminating this insurance coverage and assuming the risk. The 7.93 % premium is a preferred rate offered by Sun Life. Should the pooling insurance coverage be changed to a higher level (such as increasing from $20,000 to $30,000), the carrier will not allow a subsequent reduction. Consequently, it is better to be cautious for another year to see if the drug claims will be ongoing and what impact this will have to the County s risk management strategy before making such an irreversible decision. For these reasons, Buffett Taylor recommends that the County retain this insurance coverage and that Stop Loss Insurance options be sought when the benefit plans are marketed in Summary Based on the above analysis, it is recommended that the Extended Health and Dental benefit coverage for Haldimand County employees, including Mayor, Councillors and retirees, be renewed with Sun Life as proposed. Date of Meeting: May 13, 2014 Page 6 of 16

7 Long Term Disability and Life Insurance Life insurance coverage is for current eligible active employees, Council Members, VFFs and retirees. Only eligible active employees have long term disability coverage. County employees Basic Life and Long Term Disability (LTD) coverage is underwritten on a prospectively rated, non-refund basis. With this underwriting approach, the County does not participate in risk sharing of these benefits. Annual financial gains or losses are fully assumed by the carrier. The County s actual claims experience for these benefits would not typically have a great influence on the corresponding premium rates. Rather, these premium rates are determined on the basis of the demographic composition of the County s covered employees, which is applied to the insurer s standard Basic Life and LTD base rate tables. Over time, the carrier will apply some credibility to the County s own claims experience, but the credibility is nominal given the size of our group. The present method of underwriting these benefits is the most appropriate for the County in light of the number of employees insured under the plan (350 members plus 283 VFFs for life insurance) and the annual premiums generated. Premiums for this coverage are relatively low, in contrast to the potentially large claims that can occur. The Life Insurance benefit is renewed using a 60 month analysis period from February 1, 2009 to January 31, The paid loss ratio for the period under review is 83.0%. The target loss ratio for the life benefit is 87.6%. During the 12 month period ending January 31, 2014, there were two life insurance claims totaling $138,000. However, Sun Life was agreeable to no change to the life rates upon renewal in With regards to the LTD benefit for permanent full time employees, Sun Life requires a +22.0% increase. The LTD benefit is renewed in a similar manner to the life benefit, using a 60 month analysis period from February 1, 2009 to January 31, The paid loss ratio for the period under review is 12.1%. The target loss ratio for the LTD benefit is 84.1%. Although the paid loss ratio is quite good compared to the target loss ratio, the recent addition of almost $700,000 in IBNR and disabled life reserves (related to 2 new LTD claims that were approved in 2013, which now brings the total to 3 open LTD claims) has resulted in a significant cost increase to the LTD benefit. Summary Based on the above analysis, it is recommended that the Basic Life and LTD coverage be renewed with Sun Life as outlined above. Accidental Death and Dismemberment (AD&D) AD&D coverage is traditionally fully pooled. Not only is there no sharing of risk, the actual premiums and claims experience would typically not be considered in establishing and/or renewing these premium rates. AD&D rates are established for an employee group, as well as current members of Council, in a similar fashion to the life and LTD rates; however, once established, AD&D rates are rarely subject to recalculation. Rate adjustments are provided with 60 days notice prior to the rate effective date. The AD&D rate was renewed without change effective March 1, 2014 with Industrial Alliance. Formal Council approval of continuation of this coverage is required, retroactive to this date. Date of Meeting: May 13, 2014 Page 7 of 16

8 Transition Group Extended Health and Dental As a result of the 2001 municipal restructuring, the County assumed the administration of the benefits for approximately 50 retired employees of the former Regional Municipality of Haldimand-Norfolk, retired Regional Police and Transition retirees/severances. Benefits are frozen at the pre-restructuring coverage level and are not eligible for any future benefit enhancements. The County holds a reserve fund in trust to pay for the premium costs of this closed group of employees. Any shortfall in this reserve fund will be cost shared between Haldimand and Norfolk. This group currently consists of 2 members and is considered a closed group as no further members will be added. It decreases in size as members reach the termination age of 65 years. This policy will be terminated in 2016 when the last member turns 65. For the 2014 renewal, Sun Life has had to utilize a 2 year weighted claims analysis due to the small size of the group, as the experience can be more volatile from year to year. As a result of Sun Life s analysis, the health rates will increase by +24% and the dental rates will increase by +32%. The overall net adjustment for the Transition Group is an increase of 24.7%. This increase is equivalent to approximately $4,100, including taxes, bringing the total cost of premiums for these 2 retirees to $20,700 annually. Any surplus funds generated in any given plan year, in excess of the CFR requirements, are automatically transferred to the Deposit Fund held by Sun Life. These surplus funds are available to the County for refund. As of December 31, 2013, the balance in the Deposit Fund was $7,760. The current (2013) operating results indicated a shortfall of approximately $216 for the period. Given that there are only 2 members covered, and there is no stability on the claims experience to effectively predict how much should be held in the Deposit Fund to offset potential claims increases, staff do not recommend removal of any funds from this account. When the plan is closed in 2016, the contract will be terminated and any surplus from the Deposit Fund will be refunded, whereas any deficit will need to be funded by the two Counties. Volunteer Firefighter Accidental Death and Dismemberment and Sickness After reviewing the details of the current plan members, American Home/VFIS has quoted the following with respect to the VFF s AD&D coverage: Coverage Renewal Date Proposed Premium Change Annual Premium to June 30, 2015 On Duty Coverage July 1, 2014 No change. $14,456 plus tax for 283 plan members 24 Hour Coverage July 1, 2014 No change $62 plus tax per participating member Date of Meeting: May 13, 2014 Page 8 of 16

9 Benefits Consulting Services The fee for the benefits consulting services provided by Buffett Taylor is incorporated into the insurer s premium rates. This consulting fee is based on 1.25% of annual group health, dental, life insurance and LTD benefit premiums, as outlined in the County s five year agreement with Buffett Taylor. This agreement expires June 30, 2014, with an optional one year extension, which has been exercised and now expires June 30, In 2013, Haldimand County paid approximately $24,600 to Buffett Taylor for consulting services related to all the benefit plans. Buffett Taylor was successful in achieving savings for the County during the renewal negotiations with Sun Life. As part of their services, Buffett Taylor also provided extensive research and recommendations on amendments to the employee benefit plans during the recent collective agreement negotiations. The County does not have the staff resources to provide this type of oversight and research service in-house. Timing of Future Contract Renewals Competitive Bid Processes The contract for Benefits Consulting Services was awarded to Buffett Taylor on July 1, 2009 and expires June 30, Staff plan to go to market for these services in early 2015 with a target to award the new consulting contract, effective July 1, The employee benefits insurance program was last marketed in 2008, which resulted in a change of health and dental providers from Green Shield to Sun Life in February Council approved a five year contract with allowance for a one year extension. This report covers the extension period July 1, 2014 to June 30, Staff recommend that Council provide a further one year contract extension, from July 1, 2015 to June 30, 2016, for these reasons: The benefits consulting services are being retendered, as noted above, effective July 1, This consultant plays an integral role in the development and evaluation of the Request for Proposals (RFP) for the benefits insurance program. If a new consultant is selected, this would provide the required time for the new provider to become familiar with the County s benefit plans. New insurers of employee group benefits have started to enter the Canadian market. The one year extension will provide time for other municipalities to gain experience with the level and quality of services being provided and may open up more bidders for the Haldimand County plans. More competition should result in better pricing. The 2014 Municipal Election creates timing challenges for this process. The RFP for the benefits insurance requires approximately 6 to 9 months of lead time. Timing of the procurement stages potentially conflicts with Council s mandate. If a further one year extension to the employee benefits insurance carriers is approved, staff would focus efforts this Fall/Winter on the RFP for the Benefits Consulting Services and negotiating the renewal of the current contracts with Sun Life, effective July 1, The renewal report, similar to today s report, will be presented to the new Council in the Spring of 2015 containing a recommendation on the renewal premium rates as well as the selected Benefits consultant. Staff and the consultant would then commence the employee benefits market survey and RFP process for the insurance carriers in the summer of 2015, with a target to award the contract in the spring of 2016, to be effective July 1st. Date of Meeting: May 13, 2014 Page 9 of 16

10 BUDGET/LEGAL IMPLICATIONS: The negotiated renewal rates for eligible County employees, Council members, retirees and VFF s benefit coverage, as outlined in this report, will result in an overall increase in premiums of approximately 3.3% or $65,600 annually for Extended Health, Dental, Long Term Disability, Life Insurance and Accidental Death and Dismemberment. This will equate to a total annualized expense of $2,075,400 including taxes, based on the current enrolment and current plan coverage. In addition, the renewal of benefits for the Transition group will result in increased premiums of $4,100. Haldimand County administers these benefits on a cost shared basis on behalf of both Norfolk and Haldimand. The revised annual Health and Dental premiums total approximately $20,700, including taxes, with payments funded from a reserve fund held in trust by Haldimand. Any shortfall in the reserve is an obligation of both Counties. The 2014 Tax Supported and Rate Supported Operating Budgets were prepared prior to the 2014 benefit renewal rates being finalized. Accordingly, they reflected an estimate of cost increases for the last six months of the year, based on the renewal effective date of July 1st. The budgeted increase was estimated using the carrier s projections from last fall and prior to negotiation with Buffet Taylor. Budgeted renewal rates, as compared to the final renewal rates are shown below. Benefit Type Budgeted Renewal Rates effective July 1, 2014 ( ) ind. Decrease % Final Renewal Rates, effective July 1, 2014 % Estimated Surplus/ (Deficit) $ Extended Health (7.0) 0 (36,000) Dental (3.0) +1.6 (21,000) Long Term Disability $0 Life Insurance ,000 AD&D Total (42,000) Overall, the recommended renewal premiums rates are not as favourable, in comparison to what was budgeted. While the above chart shows a net savings in life insurance premiums, additional expenses to cover Extended Health and Dental premiums more than offset any savings. It should also be noted that the annualized impact of this shortfall in the base budget for employee benefits will have a negative impact on the 2015 budget, before accounting for any potential rate increases next year. Staff will consider recommending that Council utilize some of the funds available within the Employee Benefits Reserve Fund to mitigate some of the impact on the 2015 base budget due to this shortfall. In total, the proposed renewal will result in a 2014 deficit of approximately $42,000 (2.1%) based on the July 1st renewal date. This projected deficit is based on the budgeted staff complement included in the 2014 operating budgets and will fluctuate due to changes in actual complement, such as staff vacancies or council approved staffing initiatives. Any further anticipated expenses or savings will be reported to Council through normal budget variance reporting methods. Date of Meeting: May 13, 2014 Page 10 of 16

11 The County has an Employee Benefits Reserve Fund to assist in offsetting annual fluctuations in benefit costs. In 2013, $174,000 was transferred from the Deposit Fund with Sun Life to this Reserve Fund. The reserve has an unaudited balance of approximately $988,000, as at December 31, Given the excess funds currently held by Sun Life and the balance of the Employee Benefits Reserve Fund, the County is in a good position to offset the anticipated deficit in 2014, as well as future benefit cost increases. Consequently, staff recommend using $42,000 held in the Employee Benefits Reserve Fund to offset the 2014 deficit related to renewal of the employee benefits. Upon receipt of the December 31, 2013 financial statements from Sun Life, staff analyzed the Post Employment Benefits Reserve Fund (held for Haldimand County, former Town of Dunnville and Town of Haldimand retirees) and the Post Employment Benefits Trust Reserve Fund (held for Transition retirees funded jointly with Norfolk County). This review confirmed that sufficient funds have been accrued and held in these reserve funds to cover the ongoing and future benefit premiums for the existing retirees, including the proposed 2014 increase of 24.7% for the transition retiree Health and Dental Care premiums. Council previously approved funds to undertake an actuarial review of the post employment benefits liabilities. Such a study is anticipated to include an analysis as to the required level of funding to be held in the related reserve funds. A further report will be presented to Council when the study is completed with appropriate recommendations at that time. INTERDEPARTMENTAL IMPACTS:. LINKS TO STRATEGIC PLANS: To conduct a review of compensation issues and make recommendations to resolve them including staff retention, harmonization, job review and rating, etc CONCLUSION: The cost of employee group benefits, for Haldimand County staff and retirees, totals approximately $2,000,000 annually. The proposed renewal rate adjustments for current employee benefit plan coverage will result in an overall premium increase of +3.3% or approximately $65,600, on an annualized basis, for Extended Health, Dental, Long Term Disability, Life Insurance and Accidental Death and Dismemberment benefit premiums for eligible Haldimand County employees, Council Members and County retirees and Volunteer Firefighters. This increase is approximately $42,000 higher than what was anticipated in the 2014 tax supported operating budget and, accordingly, is recommended to be offset by the Employee Benefits Reserve Fund. The benefit renewal rate adjustment proposed for the two employees remaining in the Transition Group will result in an increased cost of $4,100 for the upcoming plan year. As of December 31, 2013, the Extended Health and Dental plans for Haldimand County employees have accumulated a surplus balance of approximately $270,000 in the Deposit Fund with Sun Life. Staff recommend that half of this amount be returned to the County and held in the Employee Benefits Reserve Fund. The employee benefits program, including the consulting services and all life, LTD, AD&D, health and dental benefits, will be marketed in In order to align timing of these procurement efforts, it is recommended that Council allow for a further one year extension of the benefits coverage with the current carriers. Date of Meeting: May 13, 2014 Page 11 of 16

12 ATTACHMENTS: Renewal Report, Employee Group Benefits Haldimand County effective July 1, 2014, as prepared by Buffett Taylor & Associates Ltd Renewal Report, Employee Group Benefits Transition Group effective July 1, 2014 as prepared by Buffett Taylor & Associates Ltd. REQUIRED AND RECEIVED COMMENTS FROM: Yes or Clerk s Community Services Department Finance Health & Social Services Department Human Resources Information Systems Legal Public Works Department Planning & Economic Development Department Support Services Other Yes Yes CLERK S DIVISION REVIEW Employee Benefit Plan Renewals COUNCIL IN COMMITTEE: RECOMMENDATION NO Approved Approved with Amendments Defeated Deferred Other COUNCIL: RESOLUTION NO: Approved Approved with Amendments (Noted below) Defeated Deferred Other Amended Recommendation(s): Council Direction: Clerk s Division Action Taken: Date of Meeting: May 13, 2014 Page 12 of 16

13 , Attachment 1 Date of Meeting: May 13, 2014 Page 13 of 16

14 Date of Meeting: May 13, 2014 Page 14 of 16

15 Date of Meeting: May 13, 2014 Page 15 of 16

16 , Attachment 2 Haldimand County Transition Group Sun Life Policy #5985 Renewal Cost Illustration - Effective July 1, 2014 Benef Div. Description Volume / Lives Sun Life Pre-Renewal Proposed July 1, 2014 Renewal Rates FINAL July 1, 2014 Renewal Rates Rate Premium Rates Premium % Change Rates Premium % Change Extended Health Care 202 Transition Retirees 1 S $ $327 $ $406 $ $406 1 F $ $831 $1, $1,031 $1, $1,031 Subtotal EHC 2 $1,159 $1, % $1, % Dental Care 202 Transition Retirees 1 S $33.85 $34 $44.68 $45 $44.68 $45 1 F $85.66 $86 $ $113 $ $113 Subtotal Dental 2 $120 $ % $ % Monthly Combined Premium $1,278 $1,594 $1,594 Difference from Pre-Renewal $ % $ % Annual Refund Premium (EHC, Travel & Dental) $15,337 $19,133 $19,133 Difference from Current $3, % $3, % Notes: 1. Rates and premiums exclude applicable RST. 2. Lives & volumes confirmed by Haldimand County - April Date of Meeting: May 13, 2014 Page 16 of 16