TO: LINDA REICH, CITY MANAGER
FROM: TERRY DOYLE, DIRECTOR OF HUMAN RESOURCES/RISK MANAGEMENT
SUBJECT
title
Contract Amendment - The Lincoln National Life Insurance Company.
end
RECOMMENDATION
1) Approve a contract amendment with The Lincoln National Life Insurance Company to continue providing employee disability benefits through June 30, 2028, in the amount of $220,000 for a revised contract amount of $440,000, and; 2) authorize the City Manager to execute all necessary documents on behalf of the City.
body
FISCAL IMPACT
Sufficient funds were included in the FY 2026-27 Adopted Budget in the Risk Management program and will be included in the FY 2027-28 if approved.
.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Superior Customer Service
• Financial Responsibility
• Responsible Long-Range Planning
• Public Service Excellence through Internal and External Partnerships
|
Revenue: Click or tap here to enter text. |
Expenditure: 6305010-43535 |
|
Transfer In: Click or tap here to enter text. |
Transfer Out: Click or tap here to enter text. |
BACKGROUND
The City of Chino has contracted with The Lincoln National Life Insurance Company (Lincoln) since Fiscal Year 2023-24 to provide disability benefits and leave management services to employees. This partnership has benefited the City greatly by providing a dedicated point of contact for all disability benefits and leave management services.
Previously, City staff would manage the disability leave process, including numerous, varied interactions with employees and employees’ physicians to obtain information and updates to qualify for an employee’s leave. Lincoln handles the entire process from start to finish, including issuing disability leave payments directly to employees. This has standardized the approval procedures for the City, resulting in an overall more efficient and improved leave management process.
ISSUES/ANALYSIS
Extending the agreement will allow the City to maintain continuity in the administration of employee disability benefits and leave management services. These services involve sensitive employee information, regulatory compliance requirements, and ongoing claim and leave case management that require consistent administration and support. Maintaining the current service provider minimizes operational disruption and ensures uninterrupted service to employees.
Staff recommends the City Council approve a contract amendment with Lincoln to increase compensation by $220,000, for a revised total contract amount of $440,000, and extending the agreement term through June 30, 2028.
Attachments: Lincoln Contract Amendment 3