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R-2016-137 2016-08-08RESOLUTION NO. R2016-137 A Resolution of the City Council for the City of Pearland, approving employee ancillary benefits for Employee Life Insurance, Accidental Death and Dismemberment, and Long Term Disability to Symetra, in the estimated amount of $84,109, for fiscal year 2016-2017. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City of Pearland has received bids for employee ancillary benefits, attached hereto as Exhibit "A", and such rates have been evaluated. Section 2. That the City Council hereby adopts the ancillary employee benefit package offered by Symetra in the amount described in exhibit "A", attached hereto and incorporated for all purposes. PASSED, APPROVED and ADOPTED this the 8thday of August, A.D., 2016. ATTEST: APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY _�. TOM REID MAYOR Where Experience and Independence Matter Resolution No. R2016-137 Exhibit "A" Corporate Benefits Consulting Insurance Planning Services Retirement Plan Consulting 111 II C( ADVISORS City of Pearland Life and Disability RFP Analysis Brent A. Weegar, MBA Brian Wilson Principal Account Manager July 8, 2016 www.ipsadvisors.com 10000 North Central Expressway, Suite 1100 • Dallas, Texas 75231-2313 • (214) 443-2400 Toll -Free: (800) 366-4779 Table of Contents I. RFP Vendor Response 11. Life and Disability RFP Results III. Vendor Selection Criteria IV. Recommended Finalist ips i RFP Vendor Response Basic Life/AD&D/Vol. Life/Disability Lincoln Financial Group — Presented Dearborn National — Presented Municipal Pool — Presented MetLife — Presented Symetra — Presented UNUM— Presented ips 11. Life and Disability RFP Results dir ir`92 _ riellatta T E X A 5 1111111itie.." CITY OF PEARLAND EMPLOYER PAID BASIC LTD COMBINED FINANICALS 6 Lincoln Current Lincoln RcneN%al Municipal Pool Symetra Dearborn National Metlife UNUM Basic $43,642 $54,461 $34,988 $41,479 $45,806. $60,712 $73,934 LTD $41,596 $51,195 $55,994 $57,594 $62,393 $54,714 $51,195 Total $85,238 $105,655 $90,982 $99,073 $108,199 $115,426 $125,128 S Change SO $20,417 $5,744 $13,835 $22,961 $30,188 S39,890 Change 0.00% 23.95% 6.74% 16.23% 26.94% 35.42% 46.80% 6 CITY OF PEARLAND Basic Life/ADD RFP Analysis I155I( 1111 0161)11. lu,. •.lu 1011.6( ova.rc • a.. amuafy (16111: All aha fmPlorw Es.105ilag City Mapper (tans li.'ripl ion PIos.111 An Fr (miry/Amgen Iun..1 H.1,....( .. m - 001.rc .l a ca annually C11.11: Moh, FmpMya»EadJrg City Mnpgel (101 III: A0 FT Cay M..,egus ♦I,,,..I,.J 1....! 1'n,p...vl n ,ycer utma - ). a 1,a ca. annually 11» 11 Allolh kumlowvalttIWmx Puy1.1nmaa 124x. III. All FI ('.ay Mammas ., ,.,.n. 11..,,....4 ( ., • n, nom annrc M, x . “.. uuaafy 11su11.1JI01tv Fmpby.asEaclal.a Ciy Manager (:40111: Al FT OW 611111Mt. U.. J..mn\+1,.....1 Pm..,....+1 1 ... . a ....amrc • . rl a m annually (fur 11. Allot= Fenp6.).aFx.61o( Cly Manager ('461 III: All FI City 65501». 51.(11 I''••,.,....1 Clam I. •SOkN...{'Oy Mdn ('ba II llry Mgr. Ctrs 1Il:• 506521,..(\y Alan. 1.111 Pt, ,,,,, n y.... mrmng _ .11 1,1 ...i annually (1....11 01.1)01 Hoplo ..(-..)0,4.1,0 (ry Mama.. CIa.. III All IT 1.ly Managers Dalinili,n of Emma. .rr 116111. la RAF. b 5175000 Ib.: If le Scltande Plass III: 2x NM to $100000 ..:a�,yn ('10111 Ix NAF. a 5175.000 Class 111: 2x RAM lo 5400000 tarn Class 11 -Ix NAF: n $175.000 010111: 2. RAF. to 3(00000 as (101II: 2a HMk Clea 111. 650.006 a,•. 04011: 1x IMF. 105175000 (lass III: 2RAF.lo3100000 •. . '1. -n Cba II: Ix NAF. ser 5175.000 Class III: 21 NAP to 5400.000 nnai . . Vi,arm (las 11-5175000 Maximum Iblxfil (1a1II:5(0000) + r Claw!: 550.700 C10.611: Ix BAE to 5175000 (ituranl s 1.x52 Amount CIan11I:2a HAF.lo 5400.000 Cos I: 550.000 Casa: la RAE lo $175.000 Ow W:3x RAE10100.00) Owl: 550.000 Clam R: Ix NAE to 5175.000 Clan III: U IIA1,106400000 C1ns 1: S50,000 11011. 1. HAP 106175.000 (101III: 2x PAM to 5400.000 Cas I: $50.000 ('Iva II. Ix BM an 5175.00 Cos Mr 2. BAE 105100000 C4a 1: 517500 (Lull: 1100.000 CU. H1: 550.000 Clan I, 650.000 Cos 11: Ix NAF; n 5175000 amain: 22. 251A9400000 Ac R.x11aMt S. -Malik 11.1110101515 al 14.100111011 - T^I r 55 Waix.r ofPnmiun I Aaa.5alM11A:Ith Ilomalit ('.n,Cr,i.n IManahbl' Spot. I1fa• Ananan Child(r61)1 ifc A»..on 14 dos 10 sac 25 61.1010 BARIC AD&D 51665 Ill . 011 .nos.ams im di of anally (lassll. .All other Fnapky.e F'xak.ng Cay Mkusaa (las. Ilaxripl ion ('la.111 All FT Cin. Mmaam ....' -no,: t • un MxI I...a' a a,:60, 6 nano IP. 02.0,.65 14 dara..Ma _251_2.00 • ,amy n ,. ,a ...my ('1.,11 .0111,1)0.F 54.'Ir.s F..kJna Puy Mandl a. Clam 641 :51100 Piry Mapgos Ira 'lm x19.y..:on y. . 57 p.. a, .g. fa). f. month l' V. 10.Agc 66Ill 55.000 1.0. bulb to as. 165_2.000 51 m, 500 calm, 1. „l 1.15.5x annually ('IasO Allah limplou+Fulwua Cay Mariam (las II1: All FT ('iy Manager. ager. lillidERii .m r 75%105500,000 IMIZZIMMIIIE (44Os 10 age 25 62.00) 011'52.. ulmag a 01 annually /'4011 011 M. Fmp6yv. F.26.2.29 (miry Mamma Cla..111 0111T 40' Maw.. h.ldol-) 01' 11. F1' to mac 65 MMERESEEIM2 524x1 n ya.aamla . 115' 1,1 -1 annually C1a»NAll ah+ Fnplyw%Fx0Mnula Cly Manama (Ian III. All FT (try Manager. Whaled. 66656 ma MO%b 5501.000 $5000 52000 I last '50k N'nd'ny Mlal. ('Ina 11 ('iy Mgt lino III. • 50k Nun{'ry Mat a ' .m, '15. nag. - �`• paab �age60.'9 nu001t. 1•. 10 Age 65 ' 6,0016 lo 26 so.. 52.00 • 11 .y.vamla a .a ..pally Cba 11. .All masa Emplyvz 006nlma C.y Mama.. 11a0III: All 14 ('ay 81000,00 Della in of I...num, .. ,. a � a (ball: 1x 145F. to 6175.1100 C1m 1I1 2 x IAAF. to 5100000 a. aux CaaI1: 1x 561105175.00 CIaa 011. 2. RAE 60000 ..main Omit 1x BAE a. 5175.000 (L0HI: 2x HAM 1054001M jl'1 I1'� 1 .. , n r1 (los II: l a 11AE lo 61751X0 Clan III:2a NAE n 1100.000 • m 115011 I x MAE 105175.000 lbw Al).C11 5110L11e (1a,111 2a NAF o06400.000 ( a .l 7 Class II. Ix MAF: to 6175000 Cam III 21 RAE io S400000 Claw IL S175.003 Maximum Bandit Pox, 641: 5400.01U In Age R01010t 4)064.4 F, 65'. at 65.us501: al 70 1,65%.165450%070 b 65% al 65,10 501 s 70 465%r65:10S0%r70 1065%5165:50%570 Rol.. by 75% at age 65: 501 at age 70 65% al age 65. 50% at we 70 I:20alion Not In1a11 Ha Waded rl d 3.5%1002.00 1%1053.000 no 614 ofA1M41115..00 W %.000 4a1h11 I...ofl0'. oflknlil or 510000 Lam dlP:Wlkaagilor 610000 Lama of 2(1% or 620.000 10%10510000 10%10S25000 10%0625000 10%.4 full amour. a.m.] Fn,('& , AIMR11 I.tel(l to a tax Fonda 0(625.0(1, of 55 of Iknfa t 510.000 Au lag 0.40 0 i1 5100 10%llada .0 I.aa1.d a ma 00 Io of l0% 5100 55.05000 5, 5%1055,00 5%0 .o1 In am , 0: 0 MAI) AI)�xu max Ia 11'1 of S51100 ' a Ikto`.sxmCm Co0,oInai VlN0 6 IMI Vo14011 416.061.100 F.F: mule (M+51.1001. 1 if. .•.• 556061.100 90.100 50020 .. .• •.. 5.14061.100 10.070 10.020 .' '... MINiZEIEIEMINI 556061.100 50.037 r.lrEINIIIIIIM 50.030 556.061.100 50.105 30029 50.000 E1: 50m. (N+50.00())• 65)1(11 00.020 Deprad.nl I i1. 12111 l nil.( 50.020 61.01. 5'n.' Annual Pr. ium S ('hmal. 10,0, Corm. % (bm.ge from Curren( Mont r of I:mplmy.» 10108( (CoInitlion - Panwiryhm Rpryirtman Acli.ely al Work FI(..lise (fall RaIc Ihs.rn0., AM Ik'o Ronny 100)7016 6,0 16:, ,. a 1010 wmmnoy axl a.r .321...10.1 6, I. a..tu>5 7 000.50 arida mwaa 0110010.1100. Lincoln Financial Corrent All Full Time Employees enrolled n Basic Life working 411. hours per week 1.$nelo 1inaoci.11 Ice tors a1 All Full Time Employees enrolled in Basic Life working 40+ hours per week 1 N1 51 Proposed All Full Time Employees enrolled m Basic Life working 41+ hours per week Dearborn National Proposed All Full Time Employees enrolled m Basic Life world 40+ hours week Ss Indira Proposed All Full Time Employees enrolled in Basic per w Life working 4U+ hours eek Steilile Proposed All Full Time Employees enrolled in Basic ng pc Life work, 40+ hours r week sl it nuc 1 pail Pool Proposed All Full Time Employees enrolled in Basic Life working 40+ ghours per week BAE BAE BAE BAE BAE BAE BAE Increments of 000X1 Increments 01510,000 Increments of 510,000 Increments of $10,010) Increments of 010.000 Increments of S10.000 Increments of 510,(100 1x BAE to 0101,0)0) 3x BAE to 0300,000 3x BAE to S30),00) 3x BAE 105300,00 3x BAE to $300.000 1x AAE to 0300,000 Lesser of 5 x annual salary or S50,001 5170.00 to age 69 0`91,000 age 70+ 5175,00 to age 69 $50,001 age 70+ 0175,000 0175,1100 0175,000 N1110,(100 S150,000 65% at 65; 50% at 70 65% at 65; 50% at 70 65% at 65; 50% at 70 65% at 65; 50% at 70 650 m 65; 50%0 70 None None Included Included Included Included Included Included- 60/65 6 mos Inchded 75% to 0501,010 7530 to5500.000 75% to 5500,000 7530100250,000 75301055(I0,00 00/. to S500,000 (00%1001,001,001 Included Included Included Included Included Int luded Included Included Included Inchded Included Included Included Included Included Included Included Included Include) Include( Include,( 00.070 00.07(1 00.0700 00.070 00.070 0(1.110 50.060 50.110 00.110 00.1100 00.110 00.110 00.11)) 50.090 00.130 00.130 50.1300 00.130 00,130 00.110 00.12)1 50.140 00.140 00.1400 00.140 50.140 50.140 50.1311 00.20) 50.200 00.2000 00.200 00.201 50.201 00.100 S0.310 00.310 50.3100 00.310 50.310 00.310 50.280 S0.620 50.620 50.6200 00.620 00.620 00.6211 50.560 51.0211 51.020 01.0200 01.020 51.020 01.020 SU.920 01.430 01.430 S1.4300 51.430 01.4311 01.430 01.29U 02.540 52.540 52.5400 52.540 52.5411 52.540 52.290 04.20) 04.200 54.211101 54.200 04.200 04.200 53.7140 07.1311 57.130 57.1300 07.130 07.1311 04.200 06.420 511.730 511.730 57.1300 011.730 07.13)) 04.200 06.420 511.730 011.730 57.1300 511.730 57.130 54.200 56.420 511.730 011.730 57.1300 011.730 57.130 54.200 56.420 011.730 011.73)1 57.1300 011.7311 07.140 54.200 06.420 50.045 Vlmmum of111 Live, 50.045 Mmumum of l 0 l.lor< 50.045 50.045 50.450 511.020 00.025 Greater of 20%eligible or 10 enrolled Basad on current 45% Based on turret 45% 25.00% 0101% Not Included Not Included Included up to G1 Not Included Not Included Takeover Bast; Takeover Basis Included Included Included Up to 5260,001 Included Included Included Included Included Up to GI 510,00 One Ups Not Included Not Included Nor Included Not Waived Not Waived Not Waived Not Waived Not Waived Not Waived Not Waived I 0: 1 2011 1041/2016 10/1/2016 10/1/2016 10/1/2016 10r1/2016 10/12016 5 Year 2 Year 3 Years 2 Year 3 Years 2 Years 3 Years A• A+ A A+ A A+ A+ CITY OF PEARLAND Voluntary Life RFP Analysis VOLUNTARY LIFE BENEFITS Class Description Definition of Earwigs Employee Life Schedule Employee Maximum Benefit Employee Guarantee Issue Amine Age Reduction Schedule Waiver of Premium Aaelermed Death Benefit Conversion Ponabih y Suicide Clause FINANCIALS (per 51,000) Age of Employer Upto24 25 -29 30-34 35-39 40 - 44 45 - 49 511-54 55.- 59 60-64 65-69 70-74 75-79 011-04 KS - 09 90-94 95-99 Employee AD & D Rate (per S1,000) Paniccipation Requind True Open Enrollment Grandfather Current Amounts Annual Coverage Increase Actively At Work Effective Dale Rate Guarantee AM Best Rating 8 CITY OF PEARLAND Long Term Disability RFP Analysis LTD BENEFITS Lincoln Financial 1 niodn 3 m nci:d 1 \l \I \luni<ip:tl Peel \bunt. S:mrtra Dearhorn \:pinnal Current Itcnc•• a I Proposed Prupowil l'ropo.ed Proposed 1'ropo.cd Class 1: Ml FT City Managers Class IL All Other FTE working Class Description 40+ hours • - week Class 1: All FT City Managers Class II: All Other FTE waking 40+ hours per week Class 1: All FT City Manager Class II: All Other FTE working 40+ hours per week Class 1: All FT City Managers Class ll: All Other FTE working 40+ hours per week Class I: All others Class II: City Managers Class 111: Fire Police Class 1: All FT City Managers Class 11: All Other FTE working 40+ hours per week Class I: All FT City Managers Class II: All Other FTE working 40+ hours per week Definition of Earnings Monthly Percentage u Class 1: $8.000 Monthly Maximum Class II: 56,000 Class!: S5.000 Class 11: 56,000 u' Class I: 58,000 Class 11: 56000 u Class I: 58,000 Class 11: 56,000 t' Class 1: $6,000 Class I11: $8.000 Class III: $6.000 u' Class I: $8.000 Class 111:6,000 Class 1: S8.000 Class 111: S6.000 Guarantee Issue 10% or SI00 :IEMEIMIII0%a Minimum Benefit t t Elimination Period 90 Da SI00 t o 9013 90 Days 90 Days Class I: 180 days Class II: 90 days Class III: 180 days 9013 . 90 Da Maximum Benefit Duration Definition of Own Occ/Any Oct 11111113=1 SSNRA to RBD • • Zero Day Residual 2 Year Own Oa SSNRA to RBD 2 Year Own Oa 2 Year Own Oa 2 Year Own Oce 2 Year Own Occ ResidualPanial Zero Day Residual Zero Day Residual Zero Day Residual Zero Day Residual Zero Day Residual Zero Day Residual Social Security Intepation Loss of Duties Only 'No earnings test during the EP' I% Loss - Own OCC 15% Loss - Any Gainful Occ Loss of Earning AND Loss of Duties 20% Loss - Own Dec 40% Loss - Any Gainful Oa 1•/. Loss - Own Oa 15% Loss - Any Oa 20°/. Loss of Material Duties Loss of Duties Only •No earnings test during the EP• Eamina Tat 1% Loss - Own OCC 15% Loss - Any Gainful Oa 1% Loss - Own OCC 15% Loss - Any Oa Loss of Earning AND Duties 20Y. Loss -Own Occ Loss 20% -Arty Oce Survivor Benefit 3 Month Lump Sum 3 Month Lump Sum MIIEL=2 3 Month Lump Sum 3 Month Lump Sum 3 Month Lump Sum 3 Month Lump Sum Pmexisting Limitations Mental. Nervous Limits 24 Months per Disability Drug & Alcohol 1.1,1116 24 Months • - Disabili Self-reported Limitation, 24 Months per Disability Mandatory Rehab Included 24 Months pa Disability 24 Months per Disability 24 Months per Disability 24 Mondor pa Disability 24 Months per Disability 24 Months ... Disability 24 Months • - Disabili 24 Months • - Disabili 24 Months • - Disabili 24 Months per Disability 24 Months per Disability 25 Months pa Disability 24 Months per Disability 24 Months per Disability 111MMICE Included- VoluntaryIncluded- •u Voluntary Family Care Benefit t Work Incentive EAP Program Taxable Benelit FICA Maud) Included W2 Preparation Included FINANCIALS Covered Payroll S2.666,386 Rate !per SI00) 50.130 Monthly Premium Annual Premium u t Included u t Included 12 Months Telephonic Work -Life Balance 3 face to face - Not Included 52,666,386 52,666386 S2.666.386 52,666386 52.666,386 50.160 50.160111IIIIIMIOWIEII`DIEllIZ:1321 54,666 • t S Change from Current IIIMEMIZZIME Change from Current Number of Employees t Actively at Work EtToctiveDate 11.111.33 t Rate Guarantee AM 13cs1 Rating $9,599 59.599 514,398 Mr.M=1111= u u l t t , t - 10/1/2016 10/1/2016 10/1/2016 10/1/2016 10/1/2016 111.111111121l Note: This is a brief summary and not intended to be a contract. 9 Vendor Selection Matrix —Life & Disability Finalist Finalist Lincoln Municipal Finalist Dearborn Financial Pool Symetra National MetLife Unum Cost (25%) 20 25 22 19 16 13 Financial Stability (20%) 20 20 20 20 20 20 Communication (5%) 5 5 5 5 5 5 Claims Processing (25%) 25 25 25 25 25 25 Claims Management Reports (10%) 10 9 10 9 10 9 Integrated Systems / Technology Initiative (10%) 10 10 10 9 10 10 References(5%) 5 4 4 4 5 5 TOTAL 95 98 96 91 91 87 11 CODE KEY: 60 Below Average 70 Average 80 Average / No Basis for Comparison 90 Above Average 100 Clearly Demonstrable Advantage ips[(l ADV15013 Recommendations • Life & Disability — Finalist Recommendations — Lincoln Financial — Municipal Pool — Symetra • IPS will proceed with requesting best and final offers from these carriers and provide our recommendation to the City by July 15th. 13 ADVISORS Where Experience and Independence Matter Corporate Benefits Consulting Insurance Planning Services Retirement Plan Consulting iosl ADVISORS City of Pearland Life and Disability — Best and Final Offers Brent A. Weegar, MBA Principal Brian Wilson Account Manager July 15, 2016 www.ipsadvisors.com 10000 North Central Expressway, Suite 1100 • Dallas, Texas 75231-2313 • (214) 443-2400 Toll -Free: (800) 366-4779 Table of Contents 1. Finalist List 11. Life and Disability Best and Final Offers 111. Vendor Selection Criteria IV. Recommendations ips RFP — Finalist List Basic Life/AD&D/Vol. Life/Disability Lincoln Financial Group — Presented Symetra — Presented Municipal Pool — Presented 11. Life and Disability RFP Results 4t,,, r FAR TEX A 5 ips AVIOS CITY OF PEARLAND Basic Life/ADD RFP Analysis nmlleelel BASIC LIFE BENEFITS Class Description 1 ,„,„1,, ( tiriciil 1 ��,.,1, i1,..,,,.l „ti., Proio,,d muni,ipal Pool Ft°vo xd Class 1 Employe., earning 550,10X1 or Icy annually Class 11. All oche Employs. Excluding City Manage Class 111 All FT Coy Manage. Class 1: Employees caning 550,010) or las annually Class 11 All 0th.. Employers Excluding Coy Manager Class III: All FT Coy Managers Class 1'. Employees earning 550,000 or I _ mutually Class 11 All Was Employees Excluding City Mannga Class 111, All FT Coy Managers Claw I: Employee, earwig 550.000 or 1 ammany Class II, All other Employe. Excluding Coy Manages Class 111: All FT Coy Managers Deli ninon of EarningsBa Basic 1.11e Schedule Class 1: 550.000 u Class IF. I x BAE to 5175,000 Class III: 2x BAE to 5400,000 Class 1. 550000 Class l). I x BAE to 5175.000 Class III: 2x BAE to 5400,00) Annual st. Anl Earnings Class 1'. 550,00) Class 11: Ix BAE to 5175.000 Class IIs 2x BAE 10540).000 Class I. 550.00) Class II: I x BAE to 5175.000 Clan 11I: 2 x BAE to $400,001 Maximum Benefit Class 1: 550,001 Class B. 5175.001 Class 111. 5410),000 Class 1: 550.001 Class 11'. 5175000 Class III: 5400,000 Class 1. 550,000 Class It. 5175,00) Class I11. 5400,000 Class 1: 550,000 Class 0: 5175000 Class Ill:5400.000 Guarantee Issue Amount Age Reduction Schedule Terminates at Retirement V:siver of Premium Aceelemlod Death Benefit Conversion Portability. Spouse Life Amount ChlkOrcnI life Amount BASIC AD&D BENEFITS Class Description Class 1: 550.000 Class ll: Ix BAE to 5175,000 Class III: 2x BAE to 5400,00) Class I: 550.000 Class II: I x BAE to 5175,000 Class III: 2x BAE to 5401.000 Class 1'. 550.00) Class ll. Ix BAE to 5175,001 Class111: 2r BAE 10 5400.000 Class 11 550,000 Class O: Ix BAE to 5175,000 Class III: 2x BAE to 5400,000 to 65%at 65: 5054 at 70 to 655. at 65; 50•. a170 11.11111111.15: Include! Enipoyee only; d0Md prig 10 age 60:6 nx,nlh EP; to Agc 65 112:11=111=1111 0clued Ernlnyec only; disabled prior l0 age 6(1.6 namlh EP; to Aga 65 Included Employes only; yuhlul poor 6, age 60; 6 month EP, t0 age 65 included' Empoyee only. disa0al F.., 1. age 00.6 month EP. are Age (.1. 75%lo $500001 1005:0, 51000,000 Included Inclukd Live Minh to age 165;000 O.,. 1 Employe. earning 550,000 or lass simony' Cl.n. II'. All other Employee. Excluding City Manage Class III: All FT City Mammas Class I: Employes earning 550,100 or leo: 011ually Class I1. All aha Employe. Excluding City Manages Class 111 All FT City Manages Class L Employe. earning 550000 or less arawally Claes II. All 0150 Employe., Excluding City Manage Class 111: All FT City Managers Class I: Employe.. taming $50.00 or to annually Class 11' All 0tha Enployeei Excluding City Manages Class III: All FT Coy Maiugas Detinonon of Earnings Basic AD& D Schedule Maximum Benefit Basic Annual Earnings Class I: 550,000 CIass Il: Ix BAE to 5175.000 Class 111: 2z BAE to $400,000 Class 1, $50.000 Class ll. lx BAE I0S17A0(X) Class 111: 2.x BAE to 540).000 Class 1' 550,00 Class Il. I x BAE 10 5175.000 Class 111' 25 BAE to 5400,00) Class 1. 550.00 CB. 11: Ix BAE to 5175.000 Class III: 2 x BAE to 5400,000 Clans 1: 550000 Class 11: 5175010 Class 10:5400,001 CIass 1: 550.000 Class II: 5175,000 Claes 10:5400,000 Class 1: 550,100) Class I1: 5175000 Cass Ili: 5400,00 Class 1: 550,000 Class 0: 5175000 Class III: 5403000 Age Reduction Schedule Education 1065% at 65: to 5054 at 71 111=22 to 6$%at 65: to 50% at 70 to 65%0165: to 005at 70 Nod Winded Na Included 2.0'41o$22,500 Lusa of actual owl, 5% tx 55,001 for row Mrs= Sealbeit Air Bag Bereavement Counseling FINANCIALS Volume EE Rale (per 51.000) - Life EE Rale leer 51.0001- AD&D Dependent I.Ifc (201 Units) Monthly Premium Annual I'rei tum $ C.han�c from Curren' •1. C'hanet from Curren) Number of Employees Employer Contribution Participation Requirement Effnvive Date Rate Guamnlec AMI Bet Rating laser of I0 of Benefit 0r 510.001 Lava of 107: of Benin or 510,100 MilMar Las.. of 20% or 520000 1,..." IVie of Balefil 0. 510000 Included with lifd(eys 1 Lem.. of 10%or 510.000 536061,100 536061,100 50.075 50.100 50050 50.050 50.020 1 1 50.020 ,. T 1 . 1 . i 1 1 11 1011121313 None This as a hncf sumnwry and not amondd to hes contract CITY OF PEARLAND Voluntary Life RFP Analysis Recommended vol I \ r \RN 1.11 1. III l.I• 11 S Lincoln Financial Lincoln Financial Sy mom NIunicipal Pool Current Renewal Proposed Proposed Class Description All Full Timc Employees enrolled in Basic Life working 40+ hours per week All Full Time Employees enrolled in Basic Life working 40+ hours per week All Full Time Employees enrolled in Basic Life working 40+ hours per week All Full lime Employees enrolled in Basic Life working 40+ hours per week Definition of Earnings Employee Life Schedule Employee Maximum Benefit Employee Guarantee Issue Amount BAE BAE BAE Increments of $10,000 3x BAE to $300,000 BAE Increments of $10,000 3x BAE to 5300,000 5175,00 to age 69 550,000 age 70+ Increments of $10,000 Increments of $10,000 IlliiilliiiM 5175,000 3x BAE to 5300,000 $175,00 to age 69 550,000 agc 70+ 5175,000 Age Reduction Schedule Waiver of Premium Accelerated Death Benefit Conversion 65% at 65; 50% at 70 Included 75% to 5500,000 Included 65% at 65; 50% at 70 65% at 65; 50% at 70 Included 75% to 5500,000 Included 65% at 65; 50% at 70 Included Included 75% to 5500,000 100% to 51,000,000 Included Included Portability Suicide Clause FINANCIALS (per 51,000) Age of Employee included Included Included Included Included Included Included Included Up to 24 25 -29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70 - 74 75 - 79 80 - 84 85 - 89 90 - 94 95 - 99 Employee AD&D Rate (per SI010) 50.070 50.070 50.070 50.060 50.090 50.110 50.110 50.130 50.140 50.110 50.130 50.130 50.120 50.130 50.180 50.280 50.140 50.140 50.200 50.310 50.200 50.310 50.620 51.020 $1.430 $2.540 54.200 57.130 S11.730 511.730 511.730 $11.730 50.045 $0.200 50.310 50.620 50.620 51.020 50.560 $0.920 51.020 S I A30 S2.540 51.430 51.290 52.540 $4.200 57.130 $2.290 54.200 53.780 $6.420 57.130 $11.730 $7.130 57.130 $7.130 $7.140 $0.450 $6.420 511.730 56.420 56.420 511.730 511.730 56.420 50.045 50.025 Grandfather Current Amounts Annual Coverage Increase Included Included Lesser of $10,000 Increase or to GI for Employees Included Included Included Included Not Included Effective Date 10/1/2013 10/1/2016 10/1/2016 10/1/2016 Rate Guarantee AM Best Rating 3 Year A+ 2 Year 3 Years A 3 Years A+ A- CITY OF PEARLAND Long Term Disability RFP Analysis Recommended 1;rl) BENEFITS Lincoln Financial Current I.incoln Financial Renewal f••: metra Proposed Municipal Pool Prop,,ed Class 1: All FT City Managers Class 11: All Other FTE working 40+ hours per week Class Description Definition of Earnings Monthly Percentage Monthly Maximum Class 1: All FT Cay Managers Class 1I: All Other FTE working 40+ hours per week Class I: All Ft City Managers Class 1I: All Other FTE working 40+ hours per week Class 1: All FT City Managers Class IL All Other FTE working 40+ hours per week BAE BAE BAE c24.. Class 1: 58,000 Class 11: 56,000 {12= Class 1: 58,000 Class II: 56,000 50% 50% Class I: 58.000 Class 11:6,000 Class 1: S8,000 Class II: $6,000 Guarantee Issue Minimum Benefit Elimination Period Maximwn Benefit Duration Definition of Own Occ/Any Occ Residual/Partial Social Security Integration Earnings Test Survivor Benefit All GI All GI All GI All GI IIII.':ZlIll=11.1lEIEI 5100 5100 90 Day 90 Day SSNRA 90 Days 90 Days SSNRA SSNRA 2 Year Own Occ 2 Year Own Oce 2 Year Own Occ 2 Year Own Occ Zero Day Residual Zero Day Residual Zero Day Residual Zero Day Residual Full Family Full Family Full Family Loss of Earning AND Duties 1% Loss - Own OCC 15% Loss - Any Occ Loss of Earning AND Duties 1% Loss - Own OCC 15% Loss - Any Occ Loss of Earning AND Duties I% Loss - OKm OCC 15% Loss - Any Occ Loss of Earnings AND Duties 1% Loss - Own Occ 15% Loss - Any Occ 3 Month Lump Sum 3 Month Lump Sum 3 Month Lump Sum Pre-existing Limitations Mental/Nervous Limits Drug & Alcohol Limits Self-reported Limitations Mandatory Rehab Family Care Benefit Work Incentive EAP Program Taxable Benefit FICA Match IIMIIMICHIMEMIMI 3/12 3/12 24 Months per Disability 24 Months per Disability 24 Months per Disability 24 Months per Disability 24 Months per Disability 24 Months per Disability 24 Months per Disability 24 Months per Disability 24 Months per Disability 24 Months per Disability ME=011MOBB= Not Limited Included Included 3iZIIMEMOKI Included 5250 5250 Included Included Included IIEIM ilESIE 5 face to face Telephonic Yes Included Included Included W2 Preparation FINANCIALS Covered Payroll Rate (per 5100) Monthly Premium Annual Premium S Change from Current % Change from Current Number of Employees Effective Date Rate Guarantee AM Best Rating Included Included Included Included $2,666,386 52,666,386 52,666,386 52,666,386 I I 50.160 $0.160 50.166 54,266 1232 54,426 MaiNgl $51,195 551.195 553,114 N/A S9,599 59,599 511,519 N/A 23.1% 23.1% 27.7% 540 540 540 540 MIIIIIIIMEIBIMIll. 10/1/2016 10/1/2016 10/12016 11111EMMMIM 2 Years 3 Years 3 Years iall A+ A A+ Note: phis is a brief summary and not intended to be a contract. CITY OF PEARLAND EMPLOYER PAID BASIC LTD COMBINED FINANICALS Recommended Lincoln Current Lincoln Renewal Municipal Symetra Pool Basic $43,642 $54,461 $32,824 $32,824 LTD S41,596 $51,195 $51,195 $53,114 Total $85,238 $105,655 $84,019 $85,938 $ Change SO $20,417 ($1,219) $700 Change 0.00% 23.95% -1.43% 0.82% Vendor Selection Matrix —Life & Disability Lincoln Recommended Municipal Financial Symetra Pool Cost (25%) 20 25 24 Financial Stability (20%) 20 20 20 Communication (5%) 5 5 5 Claims Processing (25%) 25 25 25 Claims Management Reports (10%) 10 10 9 Integrated Systems / Technology Initiative 10 10 10 (10%) References(5%) 5 4 4 TOTAL 95 99 97 CODE KEY: 60 Below Average 70 Average 80 Average / No Basis for Comparison 90 Above Average 100 Clearly Demonstrable Advantage ipsi ADV�SO�f Recommendations • A carrier change from Lincoln Financial to Symetra for Basic Life, Optional Life and Long Term Disability is recommended for the 2016 — 2017 plan year. • Symetra has substantially matched the current plan of benefits. • Symetra's combined employer paid life and long term disability costs are -1.3% below Lincoln Financials current costs and -25.4% below renewal costs. Rates will be guaranteed for 3 years. • Optional employee paid life rates will remain at current costs with Symetra and all current employee elections will be grandfathered. Rates will be guaranteed for 3 years. • Symetra's financial rating is A by AM Best rating agency. iosi ADVISORS SYMETRA RETIREMENT BENEFITS LIFE Application for Group Insurance Name of Applicant: City of Pearland Resolution No. R2016-137 Symetra Life Insurance Company 777 108th Avenue NE, Suite 1200 Bellevue, Washington 98004-5135 Address: 3519 Liberty Drive (Street) Pearland TX 77581 (City) (State) (Zip) applies to Symetra Life Insurance Company, for: ❑ Group Short Term Disability Insurance • Group Long Term Disability Insurance Ell Group Term Life Insurance If Symetra Life Insurance Company (Symetra) approves this application, the policy(ies) indicated above will be issued. The applicant agrees that by signing this application it accepts the policy issued pursuant to the proposal dated June 10. 2016 This application supersedes any previous application. Any person who, with intent to defraud or knowing he/she is facilitating a fraud against an insurer, submits an application or files a claim containing a false or deceptive statement may be guilty of insurance fraud. Signed at (City) Date signed: at. Da.11e C� "t . (State) *OA) City of Pearland By Title Agent/Producer Name (printed) Brent Weegar Agent/Producer Signature Resident Licensed Agent/Producer where required by law Instructions: (1) Sign and return to Symetra. (2) Retain copy with your policy. Symetra"' is a registered service mark of Symetra Life Insurance Company LGC-10033 04/12 SYM ETRA RE7IREMENT I BENEFITS' LIFE Electronic Certificate Use Agreement between Symetra Life Insurance Company ("Symetra") and Policyholder name: City of Pearland Policy number: Policy Effective Date: 10/1/2016 IMPORTANT NOTICE REGARDING YOUR REQUEST TO RECEIVE ELECTRONIC CERTIFICATES: • The Policyholder has the right to request paper copies of current certificates at any time. • Symetra will continue to send electronic certificates until the contract terminates or the Policyholder cancels the request to receive electronic certificates. • The Policyholder has the right to cancel the request to receive electronic certificates at any time. • Electronic certificates will be sgnt to the Policyholder as email attachments. They will be in the form of PDF documents: so the Policyholder will need- the ability 'to access and retain this type of document. Symetra agrees to the Policyholder's request to provide certificates in electronic form. The Policyholder agrees to the following: • The Policyholder will in no way modify the electronic certificate provided by Symetra. • Symetra will send the Policyholder a new electronic certificate when contract amendments require the certificate to change. It is the Policyholder's responsibility to make the correct electronic certificate available to insureds. Symetra is not responsible if the Policyholder makes an incorrect electronic certificate available to insureds. • It is the Policyholder's responsibility to inform all insureds when their certificates are modified due to contract amendments. • It is the Policyholder's responsibility to request paper certificates from Symetra and provide them to insured individuals who request them. The Policyholder must also maintain records of the insured individuals who request paper certificates. Symetra will provide paper certificate updates upon request. Symetra Life Insurance Company, 777 108`" Avenue NE, Suite 1200, Bellevue WA 98004-5135 Symetra® is a registered service mark of Symetra Life Insurance Company. LG 1344 12/12 Page 1 of 2 • All claims will be paid based on the most recent contract and amendments Symetra provides. In the event a certificate and the contract do not agree, the contract will prevail. • The Policyholder agrees that the electronic certificate provided to it by Symetra will be disseminated by the Policyholder only to the insured individuals entitled thereto. • The Policyholder agrees to defend and hold Symetra harmless from any liability resulting from the Policyholder's use of the electronic certificate. This agreement must be signed, dated and returned to Symetra in order for the Policyholder to receive electronic certificates. Agreed: 9C -Z--) David G• dste. Secretary, Symetra Life Insurance Company Agreed: O8 . 08 . L 0Q (A. orize', signature for the Policyholder) Date signed Printed name and title of signer: C,I ay tom,a&sbAl CAI f•11adz rc (1) Sign and return to your Symetra Life Insurance Company representative. (2) Retain copy with your policy. Symetra Life Insurance Company, 777 108th Avenue NE,Suite 1200, Bellevue WA 98004-5135 Symetra®is a registered service mark of Symetra Life Insurance Company. LG 1344 12/12 SYMETRA zE -'. REN,E,T BENI,ITS L FE Symetra Life Insurance Company 777 108th Avenue NE. Suite 1200. Bellevue. WA 98004 Claims Department Mailing Address: PO Box 12301 Enfield, CT 06083 Phone 1-877-377-67731 Fax 1-877-737-36501 TTYITDD 1-800-833-6388 Symetra Life Insurance Company Tax Services Agreement Policyholder: City of Pearland Policy(ies): Effective Date Policy Number Group Short Term Disability Income Insurance: VI Group Long Term Disability Income Insurance: 10/1/2016 Tax Services Effective Date: 10/1/2016 Policyholder Tax Identification Number (TIN): 74-6028909 This Tax Services Agreement (the "Agreement") is between Symetra Life Insurance Company (herein "Symetra.' "We." "Us," or "Our") which has issued and insures the group insurance policy(ies) named above (the -Policy-) and the Policyholder (herein "You or `Your"). IN CONSIDERATION OF the mutual promises contained herein and in the Policy(ies). You and We agree as follows. A. STANDARD TAX SERVICES You authorize Us to. and We will. withhold and deposit applicable and properly elected United States federal income taxes and state income taxes as well as applicable employee FICA taxes from disability benefits/sick pay. We will make timely filings with the appropriate United States federal and state agencies. 2. We will deposit the taxes using Our tax identification number and will timely notify You of these payments. We will provide this notification to You on Sick Pay Reports. 3. We assume no responsibility for Your share of FICA taxes. except to the extent that You elect Our STD FICA Match Service or LTD FICA Match Service pursuant to this Agreement. We assume no responsibility for any other payroll or employment related tax. fee. premium or the like including Federal Unemployment Insurance (FUTA) and State Unemployment Insurance (SUTA). State Disability Insurance, State or Local Occupational Taxes, other jurisdictional taxes such as municipal, city or county taxes. or any Workers' Compensation Tax which may be applicable to the disability benefits We are paying. 5. We will prepare and deliver to You the annual summary reports of benefits paid. 6. The territory of service is limited to the United States of America. B. SUPPLEMENTAL TAX SERVICES You authorize Us to. and We will provide. the Supplemental STD Tax Services and Supplemental LTD Tax Services, as applicable. selected in Appendix A (if any). If you decline all Supplemental STD Tax Services and Supplemental LTD Tax Services, We will provide only the Standard Tax Services set forth above. Symetra3 is a registered service mark of Symetra Life Insurance Company, 777 108th Avenue NE. Suite 1200. Bellevue WA 98004. Symetra Lite Insurance Company. which does not solicit business in the state of New York and is not authorized to do so. is the parent company of First Symetra National Life Insurance Company of New York, 260 Madison Avenue 8th Floor, New York, NY 10016. Syrnetra Life Insurance Company and First Symetra National Life Insurance Company of New York are subsidiaries of Symetra Financial Corporation. Both subsidiaries are separately responsible for their own financial obligations. LG -12163 08/14 C. HOW TAX SERVICES APPLY TO YOUR LOCATIONS, DIVISIONS, OR EMPLOYEE CLASSES Our tax services under this Agreement will apply to all locations, divisions and/or classes of the Policy(ies). Yes ❑ No If no, complete Appendix B, listing all locations, divisions and/or classes that will have tax services that differ from the selections in the Supplemental STD Tax Services form and Supplemental LTD Tax Services form, as applicable. D. GENERAL PROVISIONS 1. Term This Agreement will be effective until the conclusion of all tax reporting periods associated with the Policy(ies), unless this Agreement is terminated earlier by mutual agreement of the parties. 2. Changing Selected Tax Services You agree that any service change regarding Forms W-2 must be requested in writing on or before November 15th of the current tax year. Any change in W-2 Services after November 15th may result in employees receiving Forms W-2 after January 31st or possible duplicate forms issued from both Us and You. You agree that any service change regarding STD FICA Match Service or LTD FICA Match Service will be effective on January 1st following the date on which a new Supplemental STD Tax Services form or Supplemental LTD Tax Services form has been signed and submitted to Us. 3. Accurate and Timely Information You agree to provide Us with accurate and timely information to provide selected tax services, including information to determine the taxable portion of the benefits. Submission of incorrect taxable portion of benefits by You which later requires Us to retroactively correct claimant net benefits may result in fees payable to Us to cover reasonable processing. 4. Reporting We make available to you an online Portal (the"Portal") that will enable You to generate or obtain certain reports, which may include the Sick Pay Reports. Unless otherwise noted by You in writing to Us, You agree to utilize the Portal to generate or obtain reports that are available via the Portal, including Sick Pay Reports (as applicable), and will not look to Us to provide such reports via any other delivery method. You agree to give Us prompt written notice of (i) any suspected error or omission or (ii) Your inability to generate or obtain reports via the Portal. From time to time, You may request that We provide ad-hoc reports and analysis. Prices for such reports will be mutually agreed to by the parties. 5. Hold Harmless You agree to indemnify and hold Us harmless from any and all liability, including but not limited to fines or penalties that may result from erroneous, incomplete, or untimely information provided by You to Us in connection with the selected tax services and Our performance of the services under this Agreement. 2 LG-12163 08/14 Symetra Life Insurance Company 777 108th Avenue NE,Suite 1200,Bellevue,WA 98004 SYMETRA RETIREMENT BENEFITS LIFE Claims Department Mailing Address: PO Box 1230 I Enfield,CT 06083 Phone 1-877-377-6773 I Fax 1-877-737-3650 I TTY/TDD 1-800-833-6388 Appendix A to Tax Services Agreement Supplemental STD Services W-2 SERVICES (select one) ❑ You authorize Us to, and We will, prepare Forms W-2 for payees and file such forms with the appropriate United States federal and state agencies. • We will postmark by January 31st of each year, or such other date required by law, Forms W-2 containing sick pay information to payees and make information return filings in accordance with Federal and State requirements regarding income tax, Social Security, and Medicare tax. • We will issue Forms W-2 using Our tax identification number. • If the Policy is terminated, We will continue to provide Forms W-2 andamake information return filings for disability benefits/sick pay payments on all claims incurred prior to termination of the Agreement. ❑ You decline Our service to prepare Forms W-2 for payees or file Federal and State information returns reporting disability benefits/sick pay. We will provide You by January 15th of each year the information required by Federal law to enable You to prepare Forms W-2 for its active and terminated employees. If You decline W-2 services, STD FICA Match Service may not be selected below. STD FICA MATCH SERVICE (select one) ❑ You authorize Us to, and We will, pay Your share of FICA taxes. You agree that adding STD FICA Match Service will require underwriter review. If selection of this service results in a change in monthly premium or fees, We will promptly notify You. If You request a monthly invoice itemizing the FICA taxes paid on Your behalf, You agree to remit payment to Us upon receipt of the invoice. When invoicing is requested, You must remit payment to Us within three business days of receipt of Our monthly invoice. W-2 Services must be selected above if You authorize STD FICA Match Services. ❑ You decline Our FICA Match Service and will report and deposit Your share of any FICA tax withheld from benefits paid, if applicable. Signed fort P. / �•I Signed for Symetra Life Insurance Company: Signatu i; • Auth• i ed Representative Signature of Authorized Representative Clay P?a&so�v LAI t.kaNaastc Name d Title of Authorized Signer Name and Title of Authorized Signer e . d8• t4 Date Date Symetra®is a registered service mark of Symetra Life Insurance Company,777 108th Avenue NE,Suite 1200,Bellevue,WA 98004. Symetra Life Insurance Company,which does not solicit business in the state of New York and is not authorized to do so,is the parent company of First Symetra National Life Insurance Company of New York,260 Madison Avenue 8th Floor,New York,NY 10016. Symetra Life Insurance Company and First Symetra National Life Insurance Company of New York are subsidiaries of Symetra Financial Corporation.Both subsidiaries are separately responsible for their own financial obligations. LG-12163 08/14 6. Pricing for Selected Tax Services You agree that the STD FICA Match Service and LTD FICA Match Service will require underwriter review. If selection of this service results in a change in premium, We will promptly notify You. 7. Entire Agreement This Agreement and any attached Appendices embody the entire agreement between Us and You concerning Our provision of tax services in conjunction with the Policy(ies). There are no promises. terms, conditions. or obligations other than those contained herein, and this Agreement will supersede all previous communications, prior business relationships, representations or agreements, either verbal or written. between the parties. This Agreement may be modified only by agreement of the parties in writing. Signed f der: Sign Lk re of A h.ri ed Representative 4 t.r Signed for Symetra Life Insurance Company: Signature of Authorized Representative Name and ale of Authorized S gner Name and Title of Authorized Signer Dg. Dg. /L Date Date 3 LG -12163 08/14 Symetra Life Insurance Company 777 108th Avenue NE,Suite 1200, Bellevue,WA 98004 SYM E TRA RETIREMENT BENEFITS LIFE Claims Department Mailing Address: PO Box 1230 I Enfield,CT 06083 Phone 1-877-377-6773 I Fax 1-877-737-3650 I TTY/TDD 1-800-833-6388 Appendix A to Tax Services Agreement Supplemental LTD Services W-2 SERVICES (select one) ® You authorize Us to, and We will, prepare Forms W-2 for payees and file such forms with the appropriate United States federal and state agencies. • We will postmark by January 31st of each year, or such other date required by law, Forms W-2 containing sick pay information to payees and make information return filings in accordance with Federal and State requirements regarding income tax, Social Security, and Medicare tax. • We will issue Forms W-2 using Our tax identification number. • If the Policy is terminated, We will continue to provide Forms W-2 and make information return filings for disability benefits/sick pay payments on all claims incurred prior to termination of the Agreement. ❑ You decline Our service to prepare Forms W-2 for payees or file Federal and State information returns reporting disability benefits/sick pay. We will provide You by January 15th of each year the information required by Federal law to enable You to prepare Forms W-2 for its active and terminated employees. If You decline W-2 services, LTD FICA Match Service may not be selected below. LTD FICA MATCH SERVICE(select one) ✓ You authorize Us to, and We will, pay Your share of FICA taxes. You agree that adding LTD FICA Match Service will require underwriter review. If selection of this service results in a change in monthly premium or fees, We will promptly notify You. If You request a monthly invoice itemizing the FICA taxes paid on Your behalf, You agree to remit payment to Us upon receipt of the invoice. When invoicing is requested, You must remit payment to Us within three business days of receipt of Our monthly invoice. W-2 Services must be selected above if You authorize LTD FICA Match Services. ❑ You decline Our FICA Match Service and will report and deposit Your share of any FICA tax withheld from benefits paid, if applicable. Signed or P yholder: Signed for Symetra Life Insurance Company: Signature of uthorized Representative Signature of Authorized Representative C1aq PiagE04 Aaj a(iuu. Name and Title of Authorized Sjgner Name and Title of Authorized Signer 025. o$• l(P Date Date Symetra®is a registered service mark of Symetra Life Insurance Company,777 108th Avenue NE,Suite 1200,Bellevue,WA 98004. Symetra Life Insurance Company,which does not solicit business in the state of New York and is not authorized to do so,is the parent company of First Symetra National Life Insurance Company of New York,260 Madison Avenue 8th Floor, New York,NY 10016. Symetra Life Insurance Company and First Symetra National Life Insurance Company of New York are subsidiaries of Symetra Financial Corporation.Both subsidiaries are separately responsible for their own financial obligations. LG-12163 08/14 Symetra Life Insurance Company 777 108th Avenue NE,Suite 1200,Bellevue,WA 98004 SYMETRA RETIREMENT I BENEFITS LIFE Claims Department Mailing Address: PO Box 1230 I Enfield,CT 06083 Phone 1-877-377-6773 I Fax 1-877-737-3650 I TTY/TDD 1-800-833-6388 Appendix B to Tax Services Agreement Listing of all Locations, Divisions and/or Classes that will have Different Tax Services Symetra®is a registered service mark of Symetra Life Insurance Company,777 108th Avenue NE,Suite 1200,Bellevue,WA 98004. Symetra Life Insurance Company,which does not solicit business in the state of New York and is not authorized to do so,is the parent company of First Symetra National Life Insurance Company of New York,260 Madison Avenue 8th Floor, New York,NY 10016. Symetra Life Insurance Company and First Symetra National Life Insurance Company of New York are subsidiaries of Symetra Financial Corporation.Both subsidiaries are separately responsible for their own financial obligations. LG-12163 08/14 Symetra Life Insurance Company 777 108th Avenue NE,Suite 1200 Bellevue,WA 98004-5135 S Y M E T R A Local Office:Benefits Division Mail Stop KC-17 RETIREMENT I BENEFITS I LIFE 777 108th Avenue NE Suite 1200 Bellevue,WA 98004-5135 Phone:1-800-426-7784 Fax:1-866-532-1362 www.symetra.com SERVICE AGREEMENT Policyholder/Contract Holder: City of Pearland Policy No/ASO Contract No: TBD Policy Period/Contract Period: 10/1/2016 through 9/30/2019 Service Agreement Effective Period: 10/1/2016 through 9/30/2017 Amount at Risk: 2%of Annualized Premium Subject to a Maximum of $25,000 Payment Terms: Any payment due to the Policyholder under the terms of this agreement will be paid via check within 60 days of end of the Service Agreement Effective Period or as otherwise agreed upon by both parties. Symetra Life Insurance Company("Symetra")hereby agrees with the policyholder or contract holder identified above(the "Policyholder")that Symetra will meet or exceed the Service Standards set forth in this Service Agreement in implementing, servicing account and managing claims under the policy or contract identified above(the"Contract")during the Service Agreement Effective Period set forth above. If Symetra fails to meet one or more of the Service Standards set forth herein,then for each Service Standard that the Company fails to meet,Symetra will pay to the Policyholder an amount equal to(i)the Amount at Risk(as set forth above)multiplied by(ii)the Weighted Percentage with respect to such Service Standard(as set forth in Appendix A hereto). The terms of payment shall be as set forth above. 1 Implementation Service Standard Symetra's implementation service may be evalulated according to any or all of the four criteria listed below, as selected by the Policyholder on Appendix A. Upon Symetra's receipt of the sold case information form,Symetra will review the materials and determine whether additional information is needed or if the sold case information shall be deemed "complete." For list bill cases, sold case information shall not be deemed complete until it includes a complete and accurate census. Symetra will notify the policyholder in writing when the sold case information is deemed "complete." 1. First Billing Statement: Within twenty(20) business days after the sold case information is deemed complete,Symetra will send the first bill to the Policyholder. 2.Online Access: Within twenty(20) business days after the sold case information is deemed complete,the policy information be available for online viewing and,for list bill cases only, updating. 3.Specimen Contract: Within twenty(20) business days after the sold case information is deemed complete,Symetra will send a specimen contract to the Policyholder. 4. Final Contract: Within five(5) business days after Symetra's receipt of written approval of the specimen contract, Symetra will send the final Contract and certificates to the Policyholder. Symetra will process revisions to the specimen contract within ten (10) business days. Within the later of ninety(90) days following the policy effective date or thirty(30) days from the date the final contract is sent to the Policyholder, Symetra will provide the Policyholder a written summary of its performance under the Implementation Service Standard, including whether or not Symetra met or exceeded the selected service standards. 2 Claims Service Standard Symetra's claim service may be evaluated according to any or all of the five criteria listed below, as selected by the Policyholder on Appendix A. 1.Call Abandonment Rate:Symetra's average call abandonment rate shall be 3%or less. 2. Response Time: Symetra's average queue time shall be 30 seconds or less. 3.Claim Acknowledgement:The average time for acknowledgement letter will be within 2 business days of initial receipt of each claim. 4.Claim Decision:The average time for claim decisions shall not exceed the following: - LTD: by the later to occur of(i)the end of the elimination period or(ii)30 business days of receipt of complete information required to adjudicate the claim - Life:within 5 business days of receipt of complete information required to adjudicate the claim 5. Financial Accuracy: Symetra shall achieve a minimum of 98%financial accuracy in total claim dollars paid. The following methodology will be used in order to determine whether Symetra met the claim service standards: * For all claims service standards, Symetra's performance will be measured on an aggregate basis over the course of the Service Agreement Effective Period. * For groups with less than 5,000 covered lives, Symetra's performance for the entire claims office, and not for the Policyholder specifically,will be measured against the service standards. * For the Call Abandonment Rate and Response Time service standards, Symetra's performance for the entire claims office, and not for the Policyholder specifically,will be measured against the service standards. Within thirty(30) days following the end of the Service Agreement Effective Period, Symetra will provide the Policyholder a written summary of its performance under the Claim Service Standard, including whether or not Symetra met or exceeded the selected service standards. 4 Account Management Service Standard Symetra's account management service shall be evaluated based upon the Policyholder's responses to the five questions set forth on Appendix B hereto. Symetra will provide the Policyholder with the questionnaire on or around the end of the Service Agreement Effective Period. The individual at the Policyholder who worked most closely with the Symetra Account Manager shall promptly complete the questionnaire and return it to Symetra. In order to meet the acount management service standard, Symetra must receive a passing rating on at least four of the five questions. 3 Appendix A to Service Agreement between Symetra Life Insurance Company and City of Pearland Weighted Service Service Standard Measurement Percentage Service Category:Implementation Business days after the sold case information is 1st Billing Statement 20 business days deemed complete Online Policy Access 20 business days Business days after the sold case information is deemed complete Business days after the sold case information is Specimen Contract 20 business days deemed complete Business days after receipt of approved specimen 5 business days contract Final Contract Business days after receipt of revisions to 10 business days specimen contract Service Category:Account Management Account Management Achieve passing Service rating Passing rating on a minimum of 4 of 5 questions Service Category:Claims Average abandonment rate for entire claims Abandonment Rate 3%or less office Response Time 30 seconds Average speed to answer for entire claims office Claim Average time to send acknowledgement letter 2 business days Acknowledgement from initial receipt of claim On average, not beyond the later to occur of(i) the end of elimination period or(ii)30 business Initial Decision LTD days of receipt of complete information required to adjudicate the claim Average business days after receipt of all Initial Decision Life 5 business days information necessary for adjudication Financial Accuracy 98% Dollars in sample paid correctly divided by aggregate dollars in sample Total: 100% Policyholder may allocate 100%weighting to any one Service Category,or a combination of two or three Service Categories.Within the Implementation and Claims Service Categories,more than one Service must be weighted. 6 IN WITNESS WHEREOF, duly authorized representatives of the parties have executed this Service Agreement to be effective as of the beginning of the Service Agreement Effective Period. Agreed: Agreed: (Date) Symetra Life Insurance Company City of Pearland Appendix B to Service Agreement between Symetra Life Insurance Company and City of Pearland Account Management Questionnaire 1. Please rate the overall experience delivered by your Symetra Account Management Team. A rating of 3 or higher is a passing rating. Detailed examples are required for a rating of 1 or 2. Four point rating scale 1. Does not meet expectations 2. Partially meets expectations 3. Meets expectations 4. Exceeds expectations 2. Did you feel that your Symetra Account Manager acted in your best interest when he/she worked on your behalf? A rating of 3 or higher is a passing rating. Detailed examples are required for a rating of 1 or 2. Four point rating scale 1. Does not meet expectations 2. Partially meets expectations 3. Meets expectations 4. Exceeds expectations 3. Did your Symetra Account Manager deliver accurate information, documents, advice, reports, etc? A rating of 3 or higher is a passing rating. Detailed examples are required for a rating of 1 or 2. Four point rating scale 1. Does not meet expectations 2. Partially meets expectations 3. Meets expectations 4. Exceeds expectations 4. Did your Account Manager respond to inquiries you sent before 2pm EST that same day and/or if after 2pm EST, by the next day? A "yes" answer is a passing rating. Detailed examples are required for a "no" answer. Yes 1 1 No 5. Did your Account Manager meet with you for an annual meeting and/or make a reasonable effort to schedule a meeting with you? A "yes" answer is a passing rating. Detailed examples are required for a "no" answer. Yes 1 1 No 7 SYM ETR.4 ITtl TfMI NI; 11 NWIS 11 If Symetra Life Insurance Company 717 108th Avenue NE, Suite 1200, tletlevue, WA 98004 Claims Department Mailing Address: PO Box 12301 Enfield, CT 06083 Phare 1877.3/1.67731 Fax 1.877.737-36501 TTYROD 1.800-833-6388 Symetret Life Insurance Company Tax Services Agreement Policyholder: City of Pearland Policy(ies): Effective Date ❑Group Short Term Disability Income Insurance: E Group Long Term Disability Income Insurance: 10/1/2018 Tax Services Effective Date: 10/1/2016 Policyholder Tax Identification Number (TIN): 74-6028909 Policy Number 01-017081-00 This Tax Services Agreement (the 'Agreement') is between Symetra Life Insurance Company (herein "Symetra,' 'We,' "Us,' or 'Our) which has issued and insures the group insurance policy(ies) named above (the 'Policy) and the Policyholder (herein "You" or "Your"). IN CONSIDERATION OF the mutual promises contained herein and in the Policy(ies), You and We agree as follows. A. STANDARD TAX SERVICES You authorize Us to, and We will, withhold and deposit applicable and properly elected United States federal income taxes and state income taxes as well as applicable employee FICA taxes from disability benefits/sick pay. We will make timely flings with the appropriate United States federal and state agencies. 2. We will deposit the taxes using Our tax identification number and will timely notify You of these payments. We will provide this notification to You on Sick Pay Reports 3. We assume no responsibility for Your share of FICA taxes, except to the extent that You elect Our STD FICA Match Service or LTD FICA Match Service pursuant to this Agreement. 4. We assume no responsibility for any other payroll or employment related tax, fee, premium or the like including Federal Unemployment Insurance (FUTA) and State Unemployment Insurance (SUTA), State Disability Insurance, State or Local Occupational Taxes, other jurisdictional taxes such as municipal, city or county taxes, or any Workers' Compensation Tax which may be applicable to the disability benefits We are paying. 5. We will prepare and deliver to You the annual summary reports of benefits paid. 6. The territory of service is limited to the United States of America. B. SUPPLEMENTAL TAX SERVICES You authorize Us to, and We will provide, the Supplemental STD Tax Services and Supplemental LTD Tax Services, as applicable, selected in Appendix A (rf any). If you decline all Supplemental STD Tax Services and Supplemental LTD Tax Services, We will provide only the Standard Tax Services set forth above. SymetraN is a registered service mark of Symetra Life Insurance Company, 777 1081h Avenue NE, Suite 1200, Bellevue, WA 98004. Symetra Life Insurance Company, which does not solicit business in the slate of New York and Is not authorized to do so, is the parent company of First Symetra National Life Insurance Company of New York, 260 Madison Avenue 8th Floor. New York, NY 10016 Symetra Life Insurance Company and First Symelre National Life Insurance Company of New York are subsidiaries of Symelra Finandal Corporation. Both subsidiaries are separately responsible for their own financial obligations. LG -12163 08/14 C. HOW TAX SERVICES APPLY TO YOUR LOCATIONS, DIVISIONS, OR EMPLOYEE CLASSES Our tax services under this Agreement wiil apply to all locations, divisions and/or classes of the Pollcy(tes). Yes ❑ No If no, complete Appendix B, listing all locations, divislons and/or classes that will have tax services that differ from the selections in the Supplemental STD Tax Services form and Supplemental LTD Tax Services form, as applicable. D. GENERAL PROVISIONS 1. Term This Agreement will be effective until the conclusion of all tax reporting periods associated with the Policy(ies), unless this Agreement Is terminated earlier by mutual agreement of the parties. 2. Changing Selected Tax Services You agree that any service change regarding Forms W-2 must be requested In writing on or before November 15th of the current tax year. Any change in W-2 Services after November 15th may result in employees receiving Forms W-2 after January 31st or possible duplicate forms issued from both Us and You. You agree that any service change regarding STD FICA Match Service or LTD FICA Match Service will be effective on January 1st following the date on which a new Supplemental STD Tax Services form or Supplemental LTD Tax Services form has been signed and submitted to Us, 3. Accurate and Timely Information You agree to provide Us with accurate and timely information to provide selected tax services, including information to determine the taxable portion of the benefits. Submission of incorrect taxable portion of benefits by You which later requires Us to retroactively correct claimant net benefits may result fn fees payable to Us to cover reasonable processing. 4. Reporting We make available to you an online Portal (the 'Porter) that will enable You to generate or obtain certain reports, which may include the Sick Pay Reports. Unless otherwise noted by You in writing to Us, You agree to utilize the Portal to generate or obtaln reports that are available via the Portal, including Sick Pay Reports (as applicable), and will not look to Us to provide such reports via any other delivery method. You agree to give Us prompt written notice of (i) any suspected error or omission or (ii) Your inability to generate or obtain reports via the Portal. From time to time, You may request that We provide ad-hoc reports and analysis. Prices for such reports will be mutually agreed to by the parties. 5. Hold Harmless You agree to indemnify and hold Us harmless from any and all liability Including but not limited to fines or penalties that may result from erroneous, incomplete, or untimely information provided by You to Us in connection with the selected tax services and Our performance of the services under this Agreement. 2 LG -12163 08114 6. Prfcing for Selected Tax Services You agree that the STD FICA Match Service and LTD FICA Match Service will require underwriter review. If selection of this service results In a change In premium, We will promptly notify You. 7. Entire Agreement This Agreement and any attached Appendices embody the entire agreement between Us and You conceming Our provision of tax services in conjunction with the Policy(ies). There are no promises, terms, conditions, or obligations other than those contained herein, and this Agreement will supersede all previous communications, prior business relationships, representations or agreements, either verbal or written, between the parties. This Agreement may be modified only by agreement of the parties in writing. Signed for t. P�, 4Ider Signed for S,ymetra Life Insurance Company: ✓— Sign l of A iorized Representative Signature of uthoriz Repress tative GIrPEaASoA Gies Marye�atE�. Name and Title of Authorized igner o?) .DB. Ili Date 3 1G-12183 08/14 Ae ey ,err 1414"14(4774 41/ Name and Title of Authorized Signer - Date 7/6. • SYMETRA 1{1111Nrhli 1,Mr 11111181 W-2 SERVICES (select one) Symetra Life Insurance Company 777 108th Avenue NE, Suite 1200. Bellevue, WA 98004 Claims Department Mailing Address: PO Box 12301 Enfold, CT 06083 Phone 1.877-377-67731 Far 1-87/-07-3650 1 TT MOD 1.600 833.6388 Appendix A to Tax Services Agreement Supplemental LTD Services ® You authorize Us to, and We will, prepare Forms W-2 for payees and file such forms with the appropriate United States federal and state agencies. • We will postmark by January 31st of each year, or such other date required by law, Forms W-2 containing sick pay information to payees and make information return filings in accordance with Federal and State requirements regarding income tax, Social Security, and Medicare tax. • We will issue Forms W-2 using Our tax identification number. • If the Policy is terminated, We will continuo to provide Forms W-2 and make information return filings for disability benefits/sick pay payments on all claims incurred prior to termination of the Agreement. ▪ You decline Our service to prepare Forms W-2 for payees or file Federal and State information returns reporting disability benefits/sick pay. We will provide You by January 15th of each year the Information required by Federal law to enable You to prepare Forms W-2 for its active and terminated employees. If You decline W-2 services, LTD FICA Match Service may not be selected below. LTD FICA MATCH SERVICE (select one) (7J You authorize Us to, and We will, pay Your share of FICA taxes. You agree that adding LTD FICA Match Service will require underwriter review. If selection of this service results In a change in monthly premium or fees, We will promptly notify You. If You request a monthly invoice itemizing the FICA taxes paid on Your behalf, You agree to remit payment to Us upon receipt of the Invoice. When invoicing is requested, You must remit payment to Us within three business days of receipt of Our monthly invoice. W-2 Services must be selected above If You authorize LTD FICA Match Services. j You decline Our FICA Match Service and will report and deposit Your share of any FICA tax withheld from benefits paid, if applicable. Signed for SyRfetra Life Insurancf Company: ----~7 Signature of ulhorized Representative Signature of Adthoriz� epresen ative Clay ? .a P604 CAI AaN aGER. Name and Title of Authorized Signer b$. QR. l(' Date Aar eivit OV/‘.e/77.4e Name and Title f Auttlorized Signer ef 2� Date /b Symetra9Is a regis'ered service mark of Symetra Life Insurance Company, 777 108th Avenue NE, Suite 1200, Bellevue, WA 98004. Symelre Life Insurance Company, vfilch does not solicit business In the state of New York and Is not authorized to do so, Is the parent company of First Symetra Netona' Life Insurance Company of New York, 260 Madison Avenue 8th Floor, New York, NY 10016. Symetra Life Insurance Company and Flrsl Symetra National life Insurance Company of New York aro subsidiaries of Symetra Financial Corporation. Both subsidiaries are separately responsible for their own financial obligations. LG -12163 08/14