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Staff Report
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Report To: General Government Committee
Date of Meeting: November 28, 2022
Submitted By: Rob Maciver, Deputy CAO/Solicitor
Reviewed By: Mary -Anne Dempster, CAO
File Number:
Report Number: LGS-015-22
Resolution#: GG-264-22
By-law Number:
Report Subject: Health Benefit Program 2022 Renewal to November 1, 2023
Recommendations:
1. That Report LGS-015-22 and any related communication items, be received;
2. That the Health Benefit Program be renewed with Sun Life to November 1, 2023, at
an overall increase of 7%; and
3. That the Library be advised of the renewal program, and that they continue to be
invoiced for their portion of the benefit program as applicable.
Municipality of Clarington
Report LGS-015-22
Report Overview
Page 2
The annual renewal of the Health Benefit Program is presented for approval for the period of
November 1, 2022, to November 1, 2023.
1. Background
Existing Program for Health Benefits
1.1 The Extended Health (EHC) and Dental Benefits program with Sun Life remains under
an Administrative Services Only (ASO) funding formula. The non-ASO benefits which
include Life Insurance, Long Term Disability (LTD) and Accidental Death &
Dismemberment (AD&D) continue under the traditional funding formula.
1.2 The Stop Loss and Out of Country Pooling level is currently at $20,000 per person. This
protects the EHC plan against claims in excess of $20,000 and such claims are
removed from the claims experience.
Mosey and Mosey — Benefit Consultant
1.3 Mosey and Mosey is a leading benefit consultant in the municipal sector. In 2009 they
partnered with Local Authority Services (LAS), a multi -employer consortium to allow
individual municipalities to achieve reduced benefit costs through the increased
purchasing power of the overall group. There are currently over 34 municipalities
participating in this program.
1.4 Since 2019, the Municipality of Clarington has partnered with Mosey and Mosey in the
Local Authority Services (LAS).
2. The 2023 Program Renewal
2023 Rates and Overall Impact
2.1 Mosey and Mosey has undertaken negotiations with Sun Life to reduce the proposed
benefit program rate increase from 13.2% to 7.0%
2.2 The overall rate increase is also impacted by increases to LTD, Life and Dependent Life
benefit premiums, based on claims experience in these benefits.
Municipality of Clarington
Report LGS-015-22
3. Financial Considerations
Page 3
3.1 The Municipality has established the ASO Benefits Reserve Fund which can be used to
fund fluctuations in actual benefits and stabilize the tax impacts of health benefits.
3.2 At January 1, 2022 the opening balance in the ASO Benefits Reserve Fund is
approximately $1.2 million. This balance came from the initial $500,000 contribution
and the unspent surplus from the 2020 fiscal year (where we saw a surplus due to
benefit usage).
3.3 The Deputy CAO/Treasurer will consider the appropriateness of using the Reserve
Fund to offset increases as part of the 2023 Draft Budget preparation.
4. Concurrence
This report has been reviewed and contributed to, by the Deputy CAO/Treasurer who
concurs with the recommendations.
5. Conclusion
It is respectfully recommended that the renewal of the Health Benefit Program be
renewed with an overall 7.0% increase.
Staff Contact:
Lisa Wheller, Human Resources Manager, 905-623-3379 ext 2205 or Iwheller(a)_clarington.net
Kerri McMullen, Compensation and & Benefits Supervisor, 905-623-3379 ext 2206 or
kmcmullen(a)_clarington.net
Attachments:
Attachment 1 — Mosey and Mosey Monthly Renewal Rates and Cost Summary
Interested Parties:
The following interested parties will be notified of Council's decision:
The Clarington Library
Attachment 1 to Report LGS-015-22
The Corporation of the Group Benefits Program
Municipality of Clarington 2022 Renewal Report
Monthly Renewal Rates and Cost Summary
The following illustrations summarize the negotiated renewal rate adjustment factors discussed throughout this
report.
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
All Divisions Combined
November 1, 2022 Renewal
Benefit
Current
Renewal
Sun Life Proposed
Cost
Mosey & Mosey
Negotiated
Cost
Effective
November 1, 2022
Renewal
Cost Effective
November 1, 2022
Monthly
Monthly
%
Monthly
%
Volume
Premium
Premium
Adj•
Premium
Adj.
Basic Life Insurance
92,080,000
$
21,190.91
$
25,631.67
21.0%
$
24,378.13
15.0%
Supplemental Life Insurance
14,966,000
1,496.60
1,810.89
21.0%
1,721.09
15.0%
Dependent Life
352
2,406.13
2,647.46
10.0%
2,647.46
10.0%
AD&D
92,080,000
1,749.52
1,749.52
0.0%
1,749.52
0.0%
Long Term Disability
1,714,018
69,632.77
79,382.58
14.0%
75,206.18
8.0%
Extended Health Care
Single
57
7,952.25
8,588.57
8,318.08
Couple
128
37,334.65
40,321.88
39,052.03
Family
233
87,234.11
94,212.91
8.0%
91,246.55
4.6%
Dental
Single
57
3,831.77
4,59803
4,130.74
Couple
128
17,244.31
20,693.16
18,589.19
Family
233
49,200.37
59,040.22
20.0%
53,038.50
7.8%
TOTAL MONTHLY PREMIUM
$
299,273.39
$
338,676.89
$
320,077.47
TOTAL MONTHLY COST INCLUDING
PST
$
323,215.26
$
365,771 04
$
345,683.67
TOTAL ANNUAL COST - ALL BENEFITS
$
3,878,583.12
$
4,389,252.48
$
4,148,204 04
Variance To Current Cost
$
510,669.36
13.2%
$
269,620.92
7.0%
17