final version std & ltd renewal and marketingeagendatoc.brevardschools.org/05-10-2016 regular...

Presentation Date: 04/6/2016Ana Cobar Mike Meredith Placement Consultant

Sue Cugno & Chris Woertz Karen MitchellV.P. and Account Executives Senior Client Manager

Final Version STD & LTD Renewal and Marketing

Brevard Public Schools Effective: 01/01/2017

Disclaimer

Disclaimer

• Enclosed is a Renewal Analysis of the renewal terms and conditions for your current renewal policies and/or service contracts. • We looked at a number of carrier(s)/vendor(s) for the coverages and/or services you require and are attaching a Marketing Analysis to assist you with reviewing your

options based on these quotes • We believe that the terms and conditions of the attached Renewal / Marketing Analysis reflect the coverages and/or services that you directed us to obtain. • We will furnish you a copy of the original renewal/recommended quotes upon your request. • Please be advised that the renewal/quotes attached may differ from your current policy. We recommend that you read the renewal/quotes specifications from the

carrier in their entirety and compare them to your current policy. We have highlighted certain key areas in the attached analysis. Also, please examine the renewal/proposals from the carrier(s) and make note of any expiration dates indicated.

• We are not contractually obligated to provide quotes from only these carriers. The choice of carriers is based on our knowledge and experience of the market sector

and your situation. • Proposals/the renewal are based on the information that you provided to us and have been relied upon by Willis and (re)insurer and/or service provider. If the

information you provided is inaccurate or incomplete, it may allow (re)insurers and/or service providers to avoid liability on a particular claim or to void a policy entirely. Therefore, if you discover that previously submitted information is inaccurate or incomplete, please advise us immediately so that we can attempt to revalidate terms with (re)insurers and/or service providers.

• All premium payment terms must be met on time or the insurance carriers and/or service providers will have the right to effect notice of cancellation for non-payment of

premium. We will not be responsible for any consequences that may arise from any delay or failure by you to pay the amount payable by the indicated date. • The purpose of this communication is to summarize the proposal/renewal terms and the coverage available and should not be construed as providing any final

commitment by the insurer or any confirmation of actual coverage. Please provide us with your specific written instructions of the coverage selection you make. • Please review this proposal and its attachments carefully and provide us with your specific written instructions of the coverage selection you make. If you have any

questions or you feel the coverage recommended is not in accordance with your instructions, please contact us. • If you have questions or concerns regarding our compensation, please contact your Client Advocate or you may also call 1-866-704-5115. • In our search for your insurance coverage we have used the (Intermediary/ sub-broker) referenced in the summary of quotes which has provided the recommended

quote(s). If the (Sub-broker) is an affiliate of the Willis group of companies, any compensation it receives is included in the total compensation disclosed in the summary of quotes.

• This proposal is presented in conjunction with the Standard Terms and Conditions for Human Capital Accounts which is enclosed.

4211 W Boy Scout Blvd. Suite 1000 Tampa, Florida 33607

(813) 281-2095

Executive Summary

Brevard Public School District asked Willis Towers Watson to obtain quotes for Voluntary Disability coverage in lieu of the Voya-Reliastar renewal.

Willis Towers Watson approached 11 carriers in addition to Voya-Reliastar.

Voya's original renewal included a pass on Short Term Disability and a 20% cost increase for the Long Term Disability, which was not running well.The original renewal averaged out to +11.19 across all plans but due to the marketing results, Voya reduced their renewal to a +8.95% increase overall.The overall annual premium increase across all voluntary participants would be approximately $193,396.

Cigna, Liberty Mutual and Reliance Standard, all produced rates less than the Voya revised renewal with some additional incentives.

Please see the Disability Cost Summary in this presentation to see the alternatives that were priced along with the carrier ranking based upon theirofferings.

From a benefit's perspective, Cigna most closely mirrored the existing benefits and there was little variation overall from any of the carriers.

In addition to premium and benefit considerations, all 3 carriers offered 1X implementation funds to offset carrier transition and communication costs.Cigna has offered a discount off of the medical ASO fees of $1.00 PEPM, which equates to approximately $80,000 annually based upon current enrollment.

Cigna also has offered to assist Brevard with ADA support as a carve-out service. This model requires an annual fee of $1,000 for onelicense (additional can be purchased if multiple employees at Brevard are handling ADA) and a case-specific referral fee of $300. Cigna willallow these fees to be offset with either the 1X disability implementation fee of $30,000 for placing disability coverage with them 1.1.17 and/orthe ASO credit of $1.00 PEPM for placing disability with Cigna.

STD & LTD Market Summary 4

Market Summary - Brevard Public Schools

Carrier Name Line of Business Response Compensation Additional Compensation Market Security

Cigna STD & LTD Quoted Net None Approved

Liberty Mutual STD & LTD Quoted Net None Approved

Lincoln STD & LTD Declined, not competitive NA None Approved

MetLife STD & LTD Quoted Net 1.8% (if commission is paid) Approved

Mutual of Omaha STD & LTD Declined, not competitive NA None Approved

Prudential STD & LTD Quoted, not competitive Net None Approved

Reliance Standard STD & LTD Quoted Net None Approved

Standard STD & LTD Declined, not competitive NA 1% (if commission is paid) Approved

Sun Life STD & LTD Quoted, not competitive Net None Approved

United Healthcare STD & LTD Quoted Net None Approved

Unum STD & LTD Quoted, not competitive Net 2.5% (if commission is paid) Approved

Carrier Name Line of Business Response Compensation Additional Compensation Market Security

Voya - Reliastar STD & LTD Quoted Net None Approved

Additional Compensation contracts are continually under negotiation and may differ from what appears above at the time of the plan effective date.

We have listed for you the carrier(s)/vendor(s) that we sought and their responses, our compensation and Sub-Brokers (if any) in the following Summary Table:

We have listed for you the name of the carrier/vendor that submitted the renewal including our compensation and Sub-Brokers (if any) in the following Summary Table:

Disability Cost Summary 5

Brevard Public Schools Market Analysis Cost Summary

STD LTDNO STD

LTDWITH STD Total

Voya $1,247,110 $95,966 $818,246 $2,161,321

Difference

STD LTDNO STD

LTDWITH STD Total Dollar Percent Premium

RankIntegration

Rank

Additional Fund

offering*Guarantee

Voya - Revised Renewal $1,247,110 $103,351 $1,004,256 $2,354,717 $193,396 8.95% 6 NA NA 2 years

Cigna - includes Implementation Fund ($30k) $1,143,184 $95,966 $818,246 $2,057,395 -$103,926 -4.81% 4 1 1 3 years

Cigna - excludes Implementation Fund $1,132,791 $95,966 $818,246 $2,047,003 -$114,318 -5.29% 2 1 1 3 years

Liberty Mutual - includes Implementation Fund ($30k) $1,143,184 $95,966 $818,246 $2,057,395 -$103,926 -4.81% 4 NA 3 3 years

Liberty Mutual - excludes Implementation Fund $1,142,976 $95,966 $818,246 $2,057,187 -$104,134 -4.82% 3 NA NA 3 years

Reliance Standard - includes Implementation Fund ($40k) $1,163,969 $95,966 $818,246 $2,078,180 -$83,141 -3.85% 5 NA 2 2 years STD3 years LTD

Reliance Standard - excludes Implementation Fund $1,122,399 $95,966 $818,246 $2,036,610 -$124,711 -5.77% 1 NA NA 2 years STD3 years LTD

THIS SUMMARY IS FOR ILLUSTRATION PURPOSES ONLY.Actual rates will be based on final underwriting/enrollment

This proposal is not to be construed as an exact or complete analysis of the policies nor as legal evidence of insurance.The provisions of the actual policy will prevail.

THIS INFORMATION IS PROPRIETARY AND SHOULD NOT BE DISTRIBUTED.

CURRENT

PROPOSED

*Cigna offers an annual ASO discount of $1.00 PEPM or @ $80,000 annually. Reliance Standard will offer an annual enrollment fund of $40,000. Liberty Mutual will offer a 1X $30,000 implementation fund. All other offerings are 1X.

Short Term with Imp. Fund

Brevard Public Schools 2017 Short Term Disability Marketing Analysis - Implementation / Enrollment fund included in rates

Reliastar (Voya) Reliastar (Voya) Cigna Liberty Mutual Reliance Standard

CURRENT RENEWAL PROPOSED PROPOSED PROPOSED

Eligibility Active full time Active full time Active full time, 25 hrs/wk Active full time, 25 hrs/wk Active full time, 25 hrs/wk, $15,000 minimum earnings

Waive Actively at Work No No No No No

Weekly Benefit Percent 60% 60% 60% 60% 60%

Maximum $2,500 Superintendent; $1,500 All others

$2,500 Superintendent; $1,500 All others

$2,500 Superintendent$1,500 All others



Minimum $25 $25 $0 but can match current $25 $25

Benefit Duration 24 weeks 24 weeks 24 weeks 24 weeks 24 weeks

Definition of EarningsBasic earnings, excludes

commissions, bonuses and overtime

Basic earnings, excludes commissions, bonuses and

overtime


overtime


overtime


overtime

Definition of Disability Own occ Own occ Own job Own job Own job

Earnings Test % And 80% And 80% And 80% And 80% NoneElimination Period

Accident 14 days 14 days 14 days 14 days 14 days

Illness 14 days 14 days 14 days 14 days 14 days

Benefit Provisions

Offset for Sick Pay Not included Included Not included Not included Not included

Temporary Recovery Days 10 working days 10 working days No limit 14 days 14 daysWork Incentive Benefit Included Included Included Included Included Limitations

Pre-existing Conditions 6/12 6/12 6/12 6/12 Waived

STD PREMIUM ANALYSIS Benefit Vol Current

Rate per $100 of CMP $17,320,968 $0.600 $0.600 $0.550 $0.550 $0.560

$103,926 $103,926 $95,265 $95,265 $96,997

Annual Premium $1,247,110 $1,247,110 $1,143,184 $1,143,184 $1,163,969

$ Variance in Current $0 ($103,926) ($103,926) ($83,141)

% Variance in Current 0.0% -8.3% -8.3% -6.7%

Rate Guarantee NA 2 years 3 years 3 years 2 years

Contribution Requirement 100% Employee paid 100% Employee paid 100% Employee paid 100% Employee paid 100% Employee paid

Participation Requirement NA 50% 30% 25% 10%

Notes

$1.00 PEPM discount to medical ASO fee will apply

annually if awarded the disability (@ $79,560) 1X

$30,000* Implementation Credit. Cigna website will be integrated for both medical

and disability. If Cigna handles ADA assisted

administration, Cigna STD will integrate with STD

participants. STD participants can receive up to $1,000

Cigna paid ADA accomodation

1X $30,000* implementation / communications credit. Performance Guarantee

included ($50k for implementation and 2% of

premium per product).

Annual implementation/enrollment credit of $40,000* to BPS. Performance Guarantee

included (2% of premium per product).

THIS BENEFIT SUMMARY IS FOR ILLUSTRATION PURPOSES ONLY.This proposal is not to be construed as an exact or complete analysis of the policies nor as legal evidence of insurance.

The provisions of the actual policy will prevail.THIS INFORMATION IS PROPRIETARY AND SHOULD NOT BE DISTRIBUTED.

Monthly Premium

Brevard Public Schools 2017 Short Term Disability Marketing Analysis - No Implementation or Enrollment fund

Reliastar (Voya) Reliastar (Voya) Cigna Liberty Mutual Reliance Standard

CURRENT RENEWAL PROPOSED PROPOSED PROPOSED

Eligibility Active full time Active full time Active full time, 25 hrs/wk Active full time, 25 hrs/wk Active full time, 25 hrs/wk, $15,000 minimum earnings

Waive Actively at Work No No No No No

Weekly Benefit Percent 60% 60% 60% 60% 60%

Maximum $2,500 Superintendent; $1,500 All others





Minimum $25 $25 $0 but can match current $25 $25

Benefit Duration 24 weeks 24 weeks 24 weeks 24 weeks 24 weeks

Definition of EarningsBasic earnings, excludes

commissions, bonuses and overtime


overtime


overtime


overtime


overtime

Definition of Disability Own occ Own occ Own job Own job Own job

Earnings Test % And 80% And 80% And 80% And 80% NoneElimination Period

Accident 14 days 14 days 14 days 14 days 14 days

Illness 14 days 14 days 14 days 14 days 14 days

Benefit Provisions

Offset for Sick Pay Not included Included Not included Not included Not included

Temporary Recovery Days 10 working days 10 working days No limit 14 days 14 daysWork Incentive Benefit Included Included Included Included Included Limitations

Pre-existing Conditions 6/12 6/12 6/12 6/12 Waived

STD PREMIUM ANALYSIS Benefit Vol Current

Rate per $100 of CMP $17,320,968 $0.600 $0.600 $0.545 $0.5499 $0.540

$103,926 $103,926 $94,399 $95,248 $93,533

Annual Premium $1,247,110 $1,247,110 $1,132,791 $1,142,976 $1,122,399

$ Variance in Current $0 ($114,318) ($104,134) ($124,711)

% Variance in Current 0.0% -9.2% -8.4% -10.0%

Rate Guarantee NA 2 years 3 years 3 years 2 years

Contribution Requirement 100% Employee paid 100% Employee paid 100% Employee paid 100% Employee paid 100% Employee paid

Participation Requirement NA 50% 30% 25% 10%

*Identity Theft Restoration *Will Prep & Funeral Planning *Healthy

Rewards Discounts *My Secure Advantage Money

Coaching

*Limited telephonic and in person EAP

*Travel Assistance *5 year extended benefit

post SSNRA if inpatient/in hospice criteria met

Notes

$1.00 PEPM discount to medical ASO fee will apply

annually if awarded the disability (@$79,560) 1X $30,000* Implementation

Credit. Cigna website will be integrated for both medical

and disability. If Cigna handles ADA assisted

administration, Cigna STD will integrate with STD

participants. STD participants can receive up to $1,000

Cigna paid ADA d ti

1X $30,000* implementation / communications credit. Performance Guarantee

included ($50k for implementation and 2% of

premium per product).

Annual implementation/enrollment credit of $40,000* to BPS. Performance Guarantee

included (2% of premium per product).

Monthly Premium


The provisions of the actual policy will prevail.THIS INFORMATION IS PROPRIETARY AND SHOULD NOT BE DISTRIBUTED.

Finalist Additional Programs offered with either STD/LTD participation-no charge

Long Term Dis

Brevard Public Schools 2016 Long Term Disability Marketing Analysis

Reliastar (Voya) Reliastar (Voya) Reliastar (Voya)

CURRENT

Eligibility Active full time employees, 25 hrs/wk

Active full time employees, 25 hrs/wk




Active full time employees, 25 hrs/wk, $15,000 minimum earnings

Waive Actively At Work No No No No No

Monthly Benefit Percent 60% 60% 60% 60% 60% 60%

Benefit Duration SSNRA SSNRA SSNRA SSNRA SSNRA SSNRA

Maximum $7,500 Superintendent$6,500 All others






Minimum Greater of $100 or 10% Greater of $100 or 10% Greater of $100 or 10% Greater of $100 or 10% Greater of $100 or 10% $100.00

Definition of Earnings Basic earnings, excludes commissions, bonuses and overtime

Basic earnings, excludes commissions, bonuses and overtime


overtime


overtime


overtime


overtime

Definition of Disability 24 months own occ 24 months own occ 24 months own occ 24 months own occ 24 months own occ. 24 months own occ

Earnings Test (%, And/Or) Or 80% Or 80% / 60% Or 80% / 60% And 80% / 80% None Loss of earnings not required

Elimination PeriodElimination Period 180 days 180 days 180 days 180 days 180 days 180 days

Interruption 3 months 2x elimination period 2x elimination period No limit 90 days 30 days

LimitationsMental Illness Limitation 24 months 24 months 24 months 24 months 24 months combined 24 months

Self Reported Limitation 24 months No limit No limit No limit 24 months combined 24 months

Pre-existing Conditions 12/12 12/12 12/12 12/12 6/12 12/12

Benefit ProvisionsOffset for Sick Pay Included Included Included Included

Partial Formula Proportionate Proportionate Proportionate 50% Offset Proportionate

Residual or Zero Day Residual Zero day residual Zero day residual Zero day residual Zero day residual Zero day residual Zero day residual

Indexed Monthly Earnings Lesser of 10% or CPI Lesser of 10% or CPI Lesser of 10% or CPI Lesser of 10% or CPI Not included. NA, no income loss required

Social Security Integration Family Family Family Family Family Family

Waiver of Premium Included Included Included Included Included Included

Workplace Modification Lesser of 2x benefit or $2,000 Lesser of 2x benefit or $2,000 Lesser of 2x benefit or $2,000 At Cigna's discretion, no limit Up to $2,000

Recurrent Disability 6 months 6 months 6 months 6 months 6 months 6 months

Return to Work Incentive Included Included Included 24 months 12 months 12 months

Rehabilitation Vocational benefit of 5% to $500 per month

Vocational benefit of 5% to $500 per month

Vocational benefit of 5% to $500 per month

Voluntary, up to additional 10% incentive

Included, 10% incentive / 20% disincentive Managed Rehab included

Child Care Expense Not included Not included Not included Not included Not Included To age 14, $250 per month

Spouse or Elder Care Not included Not included Not included Not included Not Included Not Included

Survivor Benefit Included 3x monthly benefit 3x monthly benefit 3x monthly benefit 3x monthly benefit 3x monthly benefit

EAP Not included Not included Not included Not included Embedded for LTD participants. Not Included

FICA Match Included Included Included NA Included NA

PREMIUM ANALYSIS Age CMPNo STD

CMPWith STD

No STD With STD No STD With STD No STD With STD ProposedNo STD

ProposedWith STD

ProposedNo STD

ProposedWith STD

ProposedNo STD

ProposedWith STD

Rate per $100 of payroll <25 $5,134 $60,109 $0.100 $0.090 $0.110 $0.120 $0.100 $0.115 $0.100 $0.090 $0.100 $0.090 $0.100 $0.090

25-29 $62,843 $593,623 $0.120 $0.100 $0.120 $0.140 $0.115 $0.138 $0.120 $0.100 $0.120 $0.100 $0.120 $0.100

30-34 $55,606 $861,262 $0.140 $0.140 $0.170 $0.170 $0.160 $0.160 $0.140 $0.140 $0.140 $0.140 $0.140 $0.140

35-39 $61,438 $1,203,481 $0.180 $0.170 $0.200 $0.220 $0.196 $0.210 $0.180 $0.170 $0.180 $0.170 $0.180 $0.170

40-44 $141,579 $1,594,433 $0.240 $0.220 $0.260 $0.290 $0.250 $0.280 $0.240 $0.220 $0.240 $0.220 $0.240 $0.220

45-49 $280,687 $2,310,331 $0.360 $0.350 $0.420 $0.430 $0.400 $0.410 $0.360 $0.350 $0.360 $0.350 $0.360 $0.350

50-54 $358,843 $2,671,654 $0.560 $0.520 $0.620 $0.670 $0.600 $0.640 $0.560 $0.520 $0.560 $0.520 $0.560 $0.520

55-59 $320,762 $2,909,226 $0.640 $0.600 $0.720 $0.770 $0.690 $0.740 $0.640 $0.600 $0.640 $0.600 $0.640 $0.600

60-64 $212,480 $2,073,444 $0.790 $0.740 $0.890 $0.950 $0.850 $0.910 $0.790 $0.740 $0.790 $0.740 $0.790 $0.740

65+ $79,614 $811,131 $0.800 $0.740 $0.890 $0.960 $0.850 $0.920 $0.800 $0.740 $0.800 $0.740 $0.800 $0.740

Monthly Premium $7,997 $68,187 8,979 87,359 8,613 83,688 7,997 68,187 7,997 68,187 7,997 68,187Annual Premium $95,966 $818,246 107,753 1,048,308 103,351 1,004,256 95,966 818,246 95,966 818,246 95,966 818,246$ Variance in Current 11,787 230,062 7,385 186,011 $0 $0 $0 $0 $0 $0% Variance in Current 12.3% 28.1% 7.7% 22.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Rate Guarantee NA 3 years 3 years 3 years

Contribution Requirement 100% employee paid 100% Employee paid 100% Employee paid 100% Employee paid

Participation Requirement NA 25% 25% 10%

Reliance Standard

REVISED RENEWAL PROPOSED

2 years

100% employee paid

45% minimum required

RENEWAL

Cigna Liberty Mutual

PROPOSED

No

Included Included

PROPOSED

Proportionate

Greater of 2x benefit or $2,000

2 years

100% employee paid

45% minimum required

Long Term Dis

Brevard Public Schools 2016 Long Term Disability Marketing Analysis

Reliastar (Voya) Reliastar (Voya) Reliastar (Voya)

CURRENT

Reliance Standard

REVISED RENEWAL PROPOSEDRENEWAL

Cigna Liberty Mutual

PROPOSEDPROPOSED

Notes

Conversion included

ADL Contribution Benefit: $10% to $5,000

Performance Guarantees included.

Package rates

Extended Disability included with loss of 2+ Addles

Specific Indemnity benefit included

10% Supplemental Disability benefit included

10% Supplemental Disability benefit included

THIS INFORMATION IS PROPRIETARY AND SHOULD NOT BE DISTRIBUTED.

Performance Guarantees included

Package rates


The provisions of the actual policy will prevail.

final version std & ltd renewal and marketingeagendatoc.brevardschools.org/05-10-2016 regular...

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