HomeMy WebLinkAboutCOD-023-12 ClafiflgtOfi REPORT
CORPORATE SERVICES DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: October 15, 2012 Resolution#: - By-law#:
Report#: COD-023-12 File#:
Subject: GREAT WEST LIFE RENEWAL NOVEMBER 1, 2012 AND FUTURE
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report COD-023-12 be received;
2. THAT the Great West Life Benefit program renewal at 0.9% premium increase
for the period of November 1, 2012 to October 31, 2013 be approved; and
3. THAT the Director of Corporate Services be authorized to approve administrative
agreements as required for the current and future renewals, subject to
satisfactory service and acceptable terms.
,o
Submitted by: Reviewed by:
M4a4rie Marano Franklin Wu,
Director of Corporate Chief Administrative Officer
Services/H.R.
MAM/gj
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379
REPORT NO.: COD-23-12 PAGE 2
1. Great West Life — Zero Percent: June 1, 2011 to November 2012
The Group Benefits program was renewed with Great West Life at zero percent from
June 1St, 2011 to November 1St 2012. The service level from Great West Life during
the current provision period has been excellent.
The benefit program went to market in 2008 under report COD-064-08, and was in
place for a minimum four year term, with the Director of Corporate Services
authorized to approve the renewal of a further term pending satisfactory service and
acceptable terms, which would have taken the program to 2016. The renewal is
being brought forward now primarily for information and confirmation of the program
with Great West Life.
Going to Market is a significant undertaking with a cost for consultants to develop
the specifications and evaluate the bid submissions. In addition the Administrative
time to participate in the program development, and the approximately 6 month
commitment required to change to another carrier is a huge drain on a very lean
Payroll Division. Going to market within a few year period, generally does not result
in the best price because it is a huge bid submission by the benefit carriers, and they
are not interested in committing to parties who price-test the market frequently.
With Great West Life's commitment to zero percent for 17 months to November
2012 it was considered reasonable to await the 2012 to 2013 renewal proposal, prior
to consideration of any change to the current program. The cost and time to change
providers at this time is not considered in the Municipality's best interest.
2. 2012 — November 2013 Renewal
Great West Life has confirmed a renewal increase of 0.9 percent for the period of
November 1 2012 to October 31, 2013. Throughout the negotiations during the
recent months, evaluation of the claims history supports an increase from 4% to 8%
due to the increased claims and impact from Fire Negotiations beginning September
2011 (there were no increases for C.U.P.E. or Management benefits negotiated in
February 2012). Although GWL has paid higher amounts in claims than expected
they are willing to go with the less than 1% renewal based on the trending pattern
indicating that the claims should stabilize during the upcoming period. The monthly
premium cost goes from the current $214,890 to $216,729.
3. FUTURE RENEWALS
As in the past, it is recommended that future renewals be subject to satisfactory
service and terms negotiated and authorized by staff. The intention would be to go
to market when it appears to be in the Municipality's best interest.
REPORT NO.: COD-23-12 PAGE 3
4. CONCURRENCE - Not applicable
CONFORMITY WITH STRATEGIC PLAN:
The recommendations contained in this report conform to the general intent of the
following priorities of the Strategic Plan:
Promoting economic development
x Maintaining financial stability
Connecting Clarington
Promoting green initiatives
Investing in infrastructure
Showcasing our community
Not in conformity with Strategic Plan
Staff Contact: Marie Marano, Director of Corporate Services/Human Resources
List of interested parties: None