1.14 The Standard Amendment 3.pdf

BOE For Board Use Only

Date: _______________

CONTRACT SUMMARY

(This form must accompany all contracts submitted to the Board of Examiners (BOE) for review and approval)

I. DESCRIPTION OF CONTRACT

1. Contract Number: 14276 Amendment

Number:

Legal Entity Name:

STANDARD INSURANCE COMPANY

Agency Name: PUBLIC EMPLOYEES BENEFITS Contractor Name: STANDARD INSURANCE COMPANY Agency Code: 950 Address: 1100 SW 6TH AVE Appropriation Unit: 1338 - All Categories Is budget authority available?:

Yes City/State/Zip PORTLAND, OR 97204-1010

If "No" please explain: Not Applicable Contact/Phone: 971/321-3601 Vendor No.: T29000017 NV Business ID: NV19971294431

To what State Fiscal Year(s) will the contract be charged? 2014-2022 What is the source of funds that will be used to pay the contractor? Indicate the percentage of each funding source if the contractor will be paid by multiple funding sources.

General Funds 0.00 % Fees 0.00 % Federal Funds 0.00 % Bonds 0.00 % Highway Funds 0.00 % X Other funding 100.00 % 67% State Subsidy/ 33% participant contributions

2. Contract start date:

a. Effective upon Board of

Examiner's approval?

No or b. other effective date 07/01/2013

Anticipated BOE meeting date 06/2021

Retroactive? No If "Yes", please explain Not Applicable

3. Previously Approved Termination Date:

06/30/2022

Contract term: 9 years and 1 day

4. Type of contract: Contract Contract description: Group Basic Life

5. Purpose of contract:

This is the third amendment to the original contract for Life Insurance services. This amendment updates Attachment DD, Updated Fee Schedule to reflect benefit and cost changes effective July 1, 2021.

6. CONTRACT AMENDMENT

Trans $ Info Accum $ Action Accum $ Agenda

1. The max amount of the original contract:

$30,957,000.00 $30,957,000.00 $30,957,000.00 Yes - Action

a. Amendment 1: $15,237,505.00 $15,237,505.00 $15,237,505.00 Yes - Action

b. Amendment 2: $48,805,495.00 $48,805,495.00 $48,805,495.00 Yes - Action

2. Amount of current amendment (#3):

-$14,412,909.00 -$14,412,909.00 -$14,412,909.00 Yes - Action

3. New maximum contract amount:

$80,587,091.00

II. JUSTIFICATION

7. What conditions require that this work be done?

Basic life insurance for active and retired PEBP participants and long term disability for active employees are a part of the state's core benefit package.

8. Explain why State employees in your agency or other State agencies are not able to do this work:

Page 1 of 2Contract #: 14276

The state of Nevada is not licensed as a life insurance provider.

9. Were quotes or proposals solicited? Yes Was the solicitation (RFP) done by the Purchasing Division?

Yes

a. List the names of vendors that were solicited to submit proposals (include at least three):

b. Soliciation Waiver: Not Applicable

c. Why was this contractor chosen in preference to other?

This vendor received the highest score from the evaluation committee. Some of the criteria used to score were:

demonstrated competance, conformance with the terms of the RFP and experience in comporable engagements.

d. Last bid date: 01/01/2008 Anticipated re-bid date: 01/01/2018

10. Does the contract contain any IT components? No

III. OTHER INFORMATION

11. Is there an Indirect Cost Rate or Percentage Paid to the Contractor?

No If "Yes", please provide the Indirect Cost Rate or Percentage Paid to the Contractor

Not Applicable

12. a. Is the contractor a current employee of the State of Nevada or will the contracted services be performed by a current employee of the State of Nevada?

No

b. Was the contractor formerly employed by the State of Nevada within the last 24 months or will the contracted services be performed by someone formerly employed by the State of Nevada within the last 24 months?

No

c. Is the contractor employed by any of Nevada's political subdivisions or by any other government?

No If "Yes", please explain

Not Applicable

13. Has the contractor ever been engaged under contract by any State agency?

Yes If "Yes", specify when and for which agency and indicate if the quality of service provided to the identified agency has been verified as satisfactory:

Standard is currently under contract to provide basic life insurance and long term disability to the state of Nevada. PEBP is satisified with the services provided by the Standard.

14. Is the contractor currently involved in litigation with the State of Nevada?

No If "Yes", please provide details of the litigation and facts supporting approval of the contract:

Not Applicable

15. The contractor is registered with the Nevada Secretary of State's Office as a:

Foreign Corporation

16. a. Is the Contractor Name the same as the legal Entity Name?

Yes

17. a. Does the contractor have a current Nevada State Business License (SBL)?

Yes

18. a. Is the legal entity active and in good standing with the Nevada Secretary of State's Office?

Yes

19. Agency Field Contract Monitor:

20. Contract Status:

Contract Approvals:

Approval Level User Signature Date Budget Account Approval ceaton 04/22/2021 11:21:40 AM Division Approval ceaton 04/22/2021 11:21:43 AM Department Approval ceaton 04/22/2021 11:21:47 AM Contract Manager Approval ceaton 04/22/2021 11:23:38 AM

Page 2 of 2Contract #: 14276

The Standard 14276

Amendment #3

5.2021

Revised: 07/04 Page 1 of 3

AMENDMENT # 3

Between the State of Nevada

Acting by and Through Its

Public Employees’ Benefits Program

901 S. Stewart Street, Suite 1001

Carson City, NV, 89701

Contact: Michelle Weyland

Phone: (775) 684-7020 Fax: (775) 684-7028

Email: mweyland@peb.nv.gov and

The Standard Insurance Company HealthSCOPE Benefits 900 SW Fifth Ave 27 Corporate Hill Drive

Portland, OR 97204 Little Rock, AR 72015

Contact: Kurt Kemp Contact: Mary Catherine Person

Phone: (971) 321-7864 Fax (971) 321-5735 Phone: (775) 982-3100

Email: Kurt.Kemp@standard.com

Email: mary.person@healthscopebenefits.com

1. AMENDMENTS. For and in consideration of mutual promises and/or their valuable considerations, all provisions of the original contract and all amendments resulting from Request for Proposal #3020 and dated

March 14, 2013, attached hereto as Exhibit A, remain in full force and effect with the exception of the following:

A. This is the third amendment to the original contract for Life Insurance services. This amendment updates Attachment DD, Updated Fee Schedule to reflect benefit and cost changes effective July

1, 2021.

Current Contract Language:

5. INCORPORATED DOCUMENTS. The parties agree that this contract, inclusive of the following attachments, specifically describes the scope of work. This Contract incorporates the following attachments in descending order of constructive precedence:

ATTACHMENT AA: NEGOTIATION POINTS

ATTACHMENT BB: STATE SOLICITATION OR RFP # 3020 and AMENDMENT(S) #1

ATTACHMENT CC: INSURANCE SCHEDULE

ATTACHMENT DD:

CONTRACTOR’S RESPONSE and UPDATED FEE SCHEDULE / EXTENSION LETTER dated 7/21/17

For Purchasing Use Only:

RFP/CONTRACT # 3020 / 14276

mailto:mweyland@peb.nv.

mailto:Kurt.Kemp@standard.com mailto:joe.murad@extendhealth.com mailto:TWindfeldt@hometownhealth.com

5.2021

Revised: 07/04 Page 2 of 3

Amended Contract Language:

5. INCORPORATED DOCUMENTS. The parties agree that this contract, inclusive of the following attachments, specifically describes the scope of work. This Contract incorporates the following attachments in descending order of constructive precedence:

ATTACHMENT AA: NEGOTIATION POINTS

ATTACHMENT BB: STATE SOLICITATION OR RFP # 3020 and AMENDMENT(S) #1

ATTACHMENT CC: INSURANCE SCHEDULE

ATTACHMENT DD: CONTRACTOR’S RESPONSE and UPDATED FEE SCHEDULE dated 7/1/21

Current Contract Language:

6. CONSIDERATION. The parties agree that Contractor will provide the services specified in Attachment DD, Section

5, Incorporated Documents at a cost as noted below:

$0.566 Per $1000 unit of benefit for all years for active and retired participants guaranteed from July 1, 2013 through June 30, 2018

$0.539 Per $1000 unit of benefit for all years for active and retired participants guaranteed from July 1, 2018 through July 1, 2022

$12.56 Per Per Employee Per Month for LTD benefits from July 1, 2013 through June 30, 2014

$14.06 Per Per Employee Per Month for LTD benefits from July 1, 2014 through June 30, 2015

$15.08 Per Per Employee Per Month for LTD benefits guaranteed from July 1, 2015 through June 30, 2018

$14.30 Per Per Employee Per Month for LTD benefits guaranteed from July 1, 2018 through July 1, 2022

Total Contract or installments payable at: As invoiced monthly

Total Contract Not to Exceed: $95,000,000

Amended Contract Language:

6. CONSIDERATION. The parties agree that Contractor will provide the services specified in Attachment DD, Section

5, Incorporated Documents at a cost as noted below:

$0.561 Per $1000 unit of benefit for all years for active and retired participants guaranteed from July 1, 2021 through June 30, 2022

Total Contract or installments payable at: As invoiced monthly

Total Contract Not to Exceed: $80,587,091

5.2021

Revised: 07/04 Page 3 of 3

2. INCORPORATED DOCUMENTS. Exhibit A (Original Contract), Amendment #1, and Amendment #2 are attached hereto, incorporated by reference herein and made a part of this amended contract.

3. REQUIRED APPROVAL. This amendment to the original contract shall not become effective until and unless approved by the Nevada State Board of Examiners or Clerk of the Board of Examiners.

IN WITNESS WHEREOF, the parties hereto have caused this amendment to the original contract to be signed and intend to be legally bound thereby.

Independent Contractors Signature Date Title

PEBP Executive Officer

Laura Rich Date Title

APPROVED BY BOARD OF EXAMINERS

Signature – Board of Examiners

On:

Date

Approved as to form by:

On:

Andrea Nichols Deputy Attorney General for Attorney

General

Date

Your Employee

Benefits Proposal Prepared for: State of Nevada Public Employees' Benefits Program

Presented by: EMPOWER BENEFITS GROUP

Proposal Prepared on:

April 9, 2021

Proposed Effective Date:

July 1, 2021

Standard Insurance Company

Basic Life Insurance

Proposed Effective Date

July 01, 2021 Prepared for:

State of Nevada Public Employees' Benefits Program

1Plan 3- 2250555;

Basic

Active Members Retirees

Benefit Schedule Flat $15,000 Flat $7,500

Guarantee Issue Full Benefit Full Benefit

Age Reduction Schedule None None

Employer Contribution 100% 100%

Minimum Participation 100% 100%

Life Highlights ab c d

Class 1 Class 2

Waiver of Premium

Eligible to age 60 Waived for life

Age reductions apply Tied to LTD benefits

Not Included

Conversion Included Included

Portability Included Included

Repatriation Benefit Included Included

Travel Assistance Included Included

Life Services Toolkit Included Included

Handling a Life insurance claim takes a special touch. All of our Life benefits employees complete annual grief training helping them to empathize with beneficiaries and recognize when they need special attention. And we're focused on settling claims quickly: Our median calculation turnaround time in 2018 was 5 days for clean claims and 6 days for all claims (internal company data as of January 2019).

Life Insurance

Prepared for:

2Plan 3- 2250555;

• For Active Members: An Accelerated Benefit is included. Terminally ill members may withdraw up to 75% of their Life benefit to a maximum of

$500,000 (when Basic Life and any Additional Life are combined).

• For Retirees: An Accelerated Benefit is not included.

• When Life is sold with Standard's LTD, then the LTD claim will initiate a claim for Standard's Life Waiver of Premium.

• Travel Assistance is included and provides assistance with pre-trip planning, medical assistance services, emergency transportation services, travel and technical assistance services and legal referral.

• The Life Services Toolkit is included and helps beneficiaries cope with grief and loss, get answers to legal questions, plan a memorial or a funeral, and address financial concerns. Additionally, all covered employees will have access to online will preparation and other estate planning documents as well as articles to help deal with identity theft, improve wellness and more.

• All other provisions of the existing plan remain unchanged.

Additional Plan Design

Prepared for:

3Plan 3- 2250555;

Cost

Life

Members 42,327

Volume $522,075,000

Rate: Per $1,000 .561

Monthly Premium $292,884

Rate Guarantee Until July 1, 2023

More Information

For additional information on the available features and benefits of Life Insurance from The Standard, click here:

http://www.standard.com/group-life-add

Assumptions

• Rates include electronic documents. Printed certificates are available for an additional cost.

Prepared for:

Plan 3- 2250555;

Producer Compensation Disclosure

We recognize the valuable role of insurance advisors, consultants and brokers ("producers") in helping their clients design an employee benefits program, and we support reasonable and fair compensation for these services. Producers may be eligible to receive compensation from The Standard.

The commission quoted in this proposal are noted below. Additionally, fees for administrative, marketing or consulting services may apply.

If applicable, fees are noted below.

No commissions included for Basic Life.

Unless participation is declined by the producer or client, contingent compensation is additional compensation that may also be paid and is dependent on the satisfaction of one or more minimum requirements, such as a specified amount of new premium volume or persistency in connection with the producer's block of business. For information about our customary producer rewards program visit www.standard.com/financial-professional/insurance-benefits/compensation. Some producers may have a contingent compensation arrangement that differs from our customary program. Please consult with your producer for additional details.

About This Employee Benefits Proposal

We appreciate the opportunity to provide you with this benefit and cost summary proposal from The Standard. This document outlines certain important features of the group insurance coverages available. This is not a contract or an offer to contract for such coverages. Detailed information about other important features of the coverage proposed is available on request. Just ask your broker/consultant or your representative at The Standard.

A completed application must be submitted before a group can be considered for coverage. Insurance will be effective after the application is accepted by The Standard. If approved, we will issue a contract containing our customary language. It will not duplicate policy language from another carrier. The group contract will contain provisions and defined terms not described in this Employee Benefits Proposal. The group contract will control if there are discrepancies between it and this proposal.

This benefit and cost summary proposal expires on July 01, 2022, unless replaced or withdrawn by The Standard.

The proposed premium rate and plan design for each coverage are based on the underwriting data received by The Standard. Final premium rates and plan provisions will be determined by The Standard on the basis of: applicable state laws, policyholder contributions, confirmation of occupations, the actual composition of the group of persons who will become insured and our current underwriting rules and practices.

Financial Strength Ratings

For information about our Financial strengths ratings visit www.standard.com/about

Proposal Prepared on:

March 4, 2021

Proposed Effective Date:

January 1, 2022

Standard Insurance Company

Your Employee Benefits Proposal Presented by:

Prepared for: State of Nevada Public Employees' Benefits Program

Long Term Disability Insurance

Plan 5- 2397550; Plan 6- 2397551;

January 01, 2022

Prepared for:

State of Nevada Public Employees' Benefits Program

Long Term Disability Insurance

Protect your employees' income and your company's bottom line. This insurance comes with innovative resources designed to help you build a more productive workplace. Our Workplace Possibilities(SM) program, included at no extra cost, helps employees stay on the job and return to work sooner. While not all claims can be shortened, our customers are currently experiencing anywhere from a 10% to a 25% reduction in disability days who participate in the Workplace Possibilities Program. That's just one example of how we add real value as your partner.

Covered Members

A Full Time member covered under Medical Plan and working 80 or more hours a month.

Voluntary LTD Plan A Voluntary LTD Plan B

Benefit Schedule 60% 50%

Insured Predisability Earnings (1) $12,500 $10,000

Maximum Monthly Benefit $7,500 $5,000

Minimum Monthly Benefit $100 or 10% $100 or 10%

Benefit Waiting Period 180 Days 180 Days

Maximum Benefit Period To age 65 To age 65

Guarantee Issue Benefit Amount Full Benefit Full Benefit

Employer Contribution 0% 0%

Minimum Participation 25% 25%

Taxability of Benefits Non-Taxable Non-Taxable

Own Occupation Period 24 Months 24 Months

Partial/Residual Disability Included Included

Preexisting Condition Period 3/12 3/12

Mental & Nervous Limitation 24 months 24 months

Substance Abuse Limitation 24 months 24 months

Other Limited Conditions 24 months 24 months

Return to Work Incentive 24 months 24 months

January 01, 2022

Prepared for:

State of Nevada Public Employees' Benefits Program

Additional Plan Design Details

• The Standard pays the employer's matching FICA and Medicare taxes and prepares W-2s for members receiving LTD benefits.

• This coverage includes a $25,000 Reasonable Accommodation Expense Benefit, which reimburses employers for workplace modifications that enable employees to return to or remain at work. The Reasonable Accommodation Expense Benefit is separate from the LTD claim payment.

• Conversion is included.

• A Rehabilitation Plan Benefit is included, which increases the LTD benefit amount by 10% of predisability earnings, not to exceed the maximum benefit, when member is participating in an approved rehabilitation plan. This benefit will also assist in paying for approved expenses incurred by a disabled member a part of an approved rehabilitation plan.

• Survivors Benefit pays a lump sum equal to 3 times the non-integrated LTD benefit.

• Continuity of Coverage.

• The limitations included in the policy are combined lifetime limitations.

January 01, 2022

Prepared for:

State of Nevada Public Employees' Benefits Program ab c d

Cost

Members

Voluntary LTD Plan A

To Be Determined

Volume To Be Determined

Rate: Percent of earnings Lives Age Rate: Volume Premium

TBD 0-24

25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69

70-999

.082

.122

.189

.347

.436

.582

.582

.582

.582

.642

.661

TBD TBD

Monthly Premium TBD

Rate Guarantee Until July 1-2024

Members

Voluntary LTD Plan B

To Be Determined

Volume To Be Determined

Rate: Percent of earnings Lives Age Rate: Volume Premium

TBD 0-24

25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69

70-999

.065

.095

.149

.273

.329

.435

.435

.435

.435

.507

.524

TBD TBD

Monthly Premium TBD

Rate Guarantee Until July 1-2024

• Rates will be guaranteed until 7/1/2024.

Assumptions

• Sick leave pay will not be used as deductible income unless the LTD benefit plus the sick leave pay exceeds 100% of indexed predisability earnings. Only the excess above 100% will be used as deductible income.

• Workers' compensation benefits will be considered deductible income.

• Benefits received from individual disability plans will not be used as deductible income.

• Primary and dependents Social Security benefits will be used as deductible income.

January 01, 2022

Prepared for:

State of Nevada Public Employees' Benefits Program

Assumptions (continued)

• Rates assume members participate in Social Security and Public Employee Retirement System.

• Credit for time served under pre-ex under the current Non-Contributory LTD plan will be provided on 1/1/2022. There will be a new pre-ex on 7/1/2022 for any member who does not enroll in the Voluntary LTD plan as of 1/1/2022.

Conditions

• We require evidence of insurability for:

– Members who enroll more than 31 days after they are first eligible for coverage.

More Information

For additional information on the available features and benefits of Long Term Disability Insurance from The Standard:

Click here for California: http://www.standard.com/ca-group-long-term-disability Click here for all other states: http://www.standard.com/group-long-term-disability http://www.standard.com/ca-group-long-term-disability http://www.standard.com/group-long-term-disability

January 01, 2022

Prepared for:

State of Nevada Public Employees' Benefits Program

Producer Compensation Disclosure

We recognize the valuable role of insurance advisors, consultants and brokers ("producers") in helping their clients design an employee benefits program, and we support reasonable and fair compensation for these services. Producers may be eligible to receive compensation from The Standard.

The commission quoted in this proposal are noted below. Additionally, fees for administrative, marketing or consulting services may apply.

If applicable, fees are noted below.

Normal commission scale (www.standard.com/financial-professional/insurance-benefits/compensation) included for LTD.

Unless participation is declined by the producer or client, contingent compensation is additional compensation that may also be paid and is dependent on the satisfaction of one or more minimum requirements, such as a specified amount of new premium volume or persistency in connection with the producer's block of business. For information about our customary producer rewards program visit www.standard.com/financial-professional/insurance-benefits/compensation. Some producers may have a contingent compensation arrangement that differs from our customary program. Please consult with your producer for additional details.

About This Employee Benefits Proposal

We appreciate the opportunity to provide you with this benefit and cost summary proposal from The Standard. This document outlines certain important features of the group insurance coverages available. This is not a contract or an offer to contract for such coverages. Detailed information about other important features of the coverage proposed is available on request. Just ask your broker/consultant or your representative at The Standard.

A completed application must be submitted before a group can be considered for coverage. Insurance will be effective after the application is accepted by The Standard. If approved, we will issue a contract containing our customary language. It will not duplicate policy language from another carrier. The group contract will contain provisions and defined terms not described in this Employee Benefits Proposal. The group contract will control if there are discrepancies between it and this proposal.

This benefit and cost summary proposal expires on June 02, 2021, unless replaced or withdrawn by The Standard.

The proposed premium rate and plan design for each coverage are based on the underwriting data received by The Standard. Final premium rates and plan provisions will be determined by The Standard on the basis of: applicable state laws, policyholder contributions, confirmation of occupations, the actual composition of the group of persons who will become insured and our current underwriting rules and practices.

Financial Strength Ratings

For information about our Financial strengths ratings visit www.standard.com/about www.standard.com/financial-professional/insurance-benefits/compensation www.standard.com/financial-professional/insurance-benefits/compensation http://www.standard.com/about

Exhibit A.pdf