News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
Cookeville City Council will consider approving an updated life insurance plan for city employees.
City Finance Director Brenda Imel said that for the last two years the city has been with Lincoln Financial, and the agreement expires this year. She said that McGriff Insurance Services recommended extending the contract another year, even with Lincoln’s premiums increasing by some 30 percent.
“That’s because our claims were 3.5 times in the last year and a half over what we paid them in premiums,” Imel said. “I don’t know how many of them were COVID-related.”
City Manager James Mills said that the city had several deaths of employees under their coverage which added to an increase in premiums. Imel said that the increase in rates is estimated to cost the city some $16,000 annually, and $3,600 for the retiree’s cost. She said that adds up to some extra $3 a month.
Imel said that McGriff had marketed the city’s benefit plan to nine different carriers who all declined to quote. She said this was due to their rates being uncompetitive compared to Lincoln’s renewal.
“There’s really no other option for us in continuing to provide life insurance,” Mills said. “Which, like I said, we had several active employees die in the past year plus retirees.”
Imel said that the city had 13 claims for retirees, 7 claims for employees, and 6 claims for dependents, totaling 26 claims since January of 2020. Mills said that while it’s not a substantial amount of money, it is a substantial percentage increase for claims.
