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Directions
| Exhibit Instructions to Vendors |
| When completing the exhibits in the Excel workbook, please follow the directions below: |
| 1. Do not add or delete rows, columns or alter-pre-labeled text in the exhibits |
| 2. Electronic copies of these exhibits must be returned in Excel. Do not provide in a PDF format. |
| 3. Do not extract individual worksheets (exhibits) and submit as separate Excel workbooks in the electronic copy. |
1. Life Cost Proposal
| CITY OF TUCSON |
| LIFE PRICE PROPOSAL |
| EFFECTIVE 7/1/2025 |
| Authorized Signature |
| Vendor Name |
| Date |
| Contact Phone Number |
| 1. | Are the rates below guaranteed for at least three (3) years? If more than three years, please specify the term. | |
| BASIC LIFE INSURANCE | PROPOSED |
| 3. | Basic Employee Life (1 x annual base salary rounded up to next higher $1,000; $50,000 maximum) | $ ___ /$1,000/mo. |
| 4. | Basic Dependent Life - Active employees only: $5,000 for covered dependents age 6 months and older (children/spouse); $100 for covered dependents over 14 days and under 6 months. Rate is a flat rate per employee, not per covered dependent. | $ ____/Dep. Unit |
| 5. | Basic Retiree Coverage | $ ____/Unit |
| $7,500 | |
| SUPPLEMENTAL LIFE INSURANCE | Proposed |
| 6.a. | Supplemental Employee Life (2x, 4x or 6x annual base salary rounded up to next higher $1,000; maximum $300,000; max $100,000 per coverage tier) | Per $1,000 Per Month |
| < 25 | |
| 25-29 | |
| 30-34 | |
| 35-39 | |
| 40-44 | |
| 45-49 | |
| 50-54 | |
| 55-59 | |
| 60-64 | |
| 65-69 | |
| 70-79 | |
| 80+ | |
| 6.b. | Spouse Life (active employees only) | Per Unit |
| $7,500 | |
| $15,000 | |
| $22,500 | |
| 7.a. | Portability Rates for Supplemental Employee Life for those who separated from employment/retired prior to July 1, 2017 (Legacy Portability class) (2x, 4x or 6x annual base salary rounded up to next higher $1,000; maximum $300,000; max $100,000 per coverage tier) | Per $1,000 Per Month |
| < 25 | |
| 25-29 | |
| 30-34 | |
| 35-39 | |
| 40-44 | |
| 45-49 | |
| 50-54 | |
| 55-59 | |
| 60-64 | |
| 65-69 | |
| 70 + | |
| 7.b. | Portability Rates for Spouse Life (Legacy Portability class) | Per Unit |
| $7,500 | |
| $15,000 | |
| $22,500 | |
| 8.a. | Portability Rates for Supplemental Employee Life for those who separate from employment/retire on or after to July 1, 2025 (2x, 4x or 6x annual base salary rounded up to next higher $1,000; maximum $300,000; max $100,000 per coverage tier) | Per $1,000 Per Month |
| < 25 | |
| 25-29 | |
| 30-34 | |
| 35-39 | |
| 40-44 | |
| 45-49 | |
| 50-54 | |
| 55-59 | |
| 60-64 | |
| 65-69 | |
| 70 + | |
| 8.b. | Portability Rates for Spouse Life | Per Unit |
| $7,500 | |
| $15,000 | |
| $22,500 | |
2. Life Plan Design
| CITY OF TUCSON |
| PLAN DESIGN |
| EFFECTIVE 7/1/2025 |
| Authorized Signature |
| Vendor Name |
| Date |
| Contact Phone Number |
| BENEFIT | CURRENT PLAN | PROPOSED PLAN |
| Employee Basic Life: | All benefit-eligible employees-equal to 1x base annual salary to a maximum of:$50,000 | |
Basic Group Term Life benefits reduce by 50% of the original amount at age 70.
| Retiree Basic Life | |
| (not available for individuals hired on or after January 1, 2016) | $7,500 (no age reduction) | |
| Supplemental Life Coverage: | All benefit eligible employees – equal to 3 tiers of 2, 4, or 6 times base annual salary to A maximum of: |
$ 100,000 tier 1 $ 200,000 tier 2 $ 300,000 tier 3 Benefits reduce by 35% of the original amount at age 65, further reduce to 50% of the original amount at age 70, and further reduce to 30% of the original amount at age 75.
Spouse Life Coverage options: 3 tiers $7,500 tier 1 $15,000 tier 2 $22,500 tier 3 (No age reduction) Dependent Basic Life Coverage Includes qualifying children, spouse Children over 14 days but less than 6 months: $100 Children Age 6 months to age 26 & Spouse: $5,000 Guaranteed Issue Amount (initial eligibility period): Basic Employee Life to $50,000 Supplemental Employee Life all 3 tiers to $300,000 Spouse Life all 3 tiers to $22,500 Basic Retiree Life: $7,500 Basic Dependent Life: $5,000 Portability of Insurance:
| (not available for individuals hired on or after January 1, 2016) | Terminating employees and employees going from active service to retirement have the option to continue supplemental employee life and spouse life under the carrier's standard portability pool. Elections must be made within 31 days of terminating active employment. Conversion rights exist. | |
| For all plans, dual coverage is not allowed. | An individual may be covered either as an employee OR retiree, and employees/retirees who are married to/children of other benefits-eligible City employees may not be covered as dependents for Basic Dependent or Supplemental Spouse coverage. |
| Waiver of Life Insurance Premium Disability Benefit: | Eligibility for waiver of premium is available should an employee become totally disabled. The disabled employee has 31 days from the date of termination of coverage to make an application with the insurance vendor. The City's leave policy allows employees to remain on employee benefits for up to one year of approved medical, family medical, or military leave before coverage is terminated. |
| Employee Accelerated Death Benefit (ADB) – BASIC LIFE | Benefit Amount: 75% Basic Term Life Insurance In force |
Minimum Covered Life Insurance Amount: $10,000 Maximum ADB Payment: $250,000 Minimum ADB Payment: $7,500 Employee Accelerated Death Benefit (ADB) – EMPLOYEE SUPPLEMENTAL LIFE Benefit Amount: 75% Basic Term Life Insurance In force Minimum Covered Life Insurance Amount: $20,000 Maximum ADB Payment: $250,000 Minimum ADB Payment: $7,500
| Exclusions: | The life insurance claims are excluded from payment for suicide if within 12 months of the initial insurance effective date and for acts of war |
| No Loss, No Gain: | The City requires the offeror to provide coverage on a no loss no gain basis to all employees and their dependents who have City of Tucson group coverage as of June 30, 2025. Employees enrolled in the supplemental life insurance program shall be able to continue their current level(s) of coverage with no loss/no gain and no carrier approval or proof of insurability. |
3. LTD
| CITY OF TUCSON |
| FULLY INSURED LTD |
| EFFECTIVE 7/1/2025 |
| | CORE LTD | | |
| | | Volume | 7/01/2025 to |
| 6/30/2026 | 7/01/2026 to | | | |
| 6/30/2027 | 7/01/2027 to | | | |
| 6/30/2028 | 7/01/2028 to | | | |
| 6/30/2029 | 7/01/2029 to | | | |
6/30/2030
| Rate per $100 of Monthly Payroll | $0 | $0.000 | $0.000 | $0.000 | $0.000 | $0.000 |
| Annual Premium | | $0 | $0 | $0 | $0 | $0 |
| BUY-UP LTD | |
| Age Bracket | 7/01/2025 to |
| 6/30/2026 | 7/01/2026 to | |
| 6/30/2027 | 7/01/2027 to | |
| 6/30/2028 | 7/01/2028 to | |
| 6/30/2029 | 7/01/2029 to | |
6/30/2030
| Volume | Rate per $100 of Monthly Payroll | Annual Premium | Rate per $100 of Monthly Payroll | Annual Premium | Rate per $100 of Monthly Payroll | Annual Premium | Rate per $100 of Monthly Payroll | Annual Premium | Rate per $100 of Monthly Payroll | Annual Premium |
| <25 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 |
| 25-29 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 |
| 30-34 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 |
| 35-39 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 |
| 40-44 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 |
| 45-49 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 |
| 50-54 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 |
| 55-59 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 |
| 60-64 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 |
| 65 and up | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 | $0.000 | $0 |
| Total | $0 | | $0 | | $0 | | $0 | | $0 | | $0 |
| Confirm your proposed Plan design: | | | | | | |
| CORE | Yes | No | BUY-UP | Yes | No |
| Benefit | 60% of the first $6,667 | | | 60% of the first $10,000 | | |
| Monthly Benefit Max | $4,000 | | | $6,000 | | |
| Elimination Period | 180 Days | | | 90 Days | | |
| Duration Maximum | 5 Years Graded | | | To age 65 / Graded | | |
| Sick, Vacation, Comp Time | Assumes all is exhausted before benefits are payable | | | Assumes all is exhausted before benefits are payable | | |
Please note: Premiums adjust in real time when an employee crosses an age band or has a change in salary.
Comments
| Authorized Signature |
| Vendor Name |
| Date |
| Contact Phone Number |
Instructions: This form must be completed in its entirety and will be used to evaluate cost. Please do not alter, add or delete rows. Failure to complete the requested fields may result in rejection of your offer. Firms who offer rate guarantees will be given higher scoring.
Performance Guarantees
| CITY OF TUCSON |
| LIFE PRICE PROPOSAL |
| EFFECTIVE 7/1/2025 |
| Vendor Name |
| Contact Name |
| Contact Title |
| Contact Number |
| Authorized Signature |
| PERFORMANCE GUARANTEES | VENDOR RESPONSE | |
| (ALL PROPOSERS) | | |
| For the following categories, provide the performance standard you are willing to offer, the financial penalty (maximum dollar amount or % of administrative fees) you will agree to pay if the standard is not met, and the method of measuring the penalty. | Measurement Frequency | Agree to comply with Performance Guarantee? |
| (Y | N) | Dollars at Risk (% or $) | | |
| 1. Vendor attendance at City meetings | Quarterly | |
| Attendance by vendor representatives when requested at meetings scheduled by the Client during the contract period and implementation phase. | | |
| 2. Vendor call (or e-mail) return timeliness | Quarterly | |
| a. The client or designated consultant’s calls (or e-mails) to vendor are returned within 24 business hours. | | |
| b. Within three minutes of submission time, the contractor will generate an acknowledgment of submission that outlines next steps or provides a determination for 99% of EOI submissions received via online portal. | | |
| 3. Processing monthly eligibility updates | Monthly | |
| All updates to eligibility or enrollment records will be made within three business days after the information is received by the vendor. | | |
| 4. Telephone call availability & answering speed | Monthly | |
| 90% of all calls are answered within 30 seconds (based on City specific results), and telephone service is available between 8:00 am and 6:00 pm Arizona Time Zone on business days. | | |
| 5. Telephone call on-hold (in-queue) time | Monthly | |
| An average of less than 2 minute(s) on hold before a human being answers. | | |
| 6. Telephone Abandonment Rate | Monthly | |
| An abandonment rate of less than 3% is maintained during standard business hours (based on City specific results). | | |
| 7. Account Management | Quarterly | |
| a. Arrange and conduct meetings with the City regarding outstanding issues, claims experience, etc. at pre-determined, mutually agreeable time intervals. | | |
| b. Address and identify resolution of all City administrative, plan management, and miscellaneous issues/problems within one week of notification of such issue. | | |
| c. Provide the City with renewal notice 180 days before the end of each rate guarantee period. | | |
| d. 95 % of all claimants who meet referral criteria will be offered assistance with their initial Social Security application within 30 days of their Long Term Disability claim approval. | | |
| e. Provide a complete renewal package justifying the proposed renewal, including details for each plan year showing earned premium, paid claims, beginning IBNR, ending IBNR, beginning Pending Reserves, ending Pending Reserves, beginning Open Claim Reserves, ending Open Claim Reserves, and itemized retention charges. | | |
| 8. Claims Processing Accuracy | Quarterly | |
| a. 98% of all claims will be set-up and assigned within 24 hours | | |
| b. 98% of initial decisions to either pay/pend/deny are made within 3 business days. | | |
| c. Provide a framework for resolution in the event of data discrepancies within 2 business days. | | |
| d. 99% of claims dollars submitted for payment will be accurately processed and paid. Regardless of whether or not these standards of performance are satisfied, the vendor must reimburse the client for all overpayments that are not recovered from the recipient within 60 days after the overpayment is discovered. The Client will assign its right to recover such overpayments to the vendor. | | |
| 9. Turnaround Time on Claims Payments | Quarterly | |
| 95% of all claims received will be completely processed (paid, denied or pended for additional information) within 14 calendar days after they are received. 100% of claims will be processed within 30 calendar days of receipt. | | |
| 10. Timeliness of Claim Reports | Annually | |
| a. All reports will be delivered within the specifications indicated in this RFP. | | |
| b. Each report the vendor will supply the client will be provided within a mutually agreed upon timeframe but no later than the 10th of the month following. | | |
| 11. Claims Coding | Annually | |
| 98% of all claims will be coded with no errors. | | |
| 12. Implementation (if appropriate) | Annually | |
| a. A contract draft will be provided within 60 business days following receipt of employer approval of contract language and all completed application materials and binder check. | | |
| b. Enrollment materials for all eligible participants under the Plan will be delivered in accordance with the agreed upon Implementation Schedule/Calendar. | | |
| c. Policy and certificate delivery to participants will occur prior to the effective date of coverage. | | |
| d. Account specifications required for account management will be entered into the intake and claim administration systems prior to the effective date. | | |
| e. Successful implementation as defined by key milestones. Include measurable milestones in your proposal. | | |
| 13. Data Exchange | Annually | |
| a. 100% of all data transmissions are encrypted to protect sensitive information. | | |
| b. Guarantee system is up 99.9% of the time during a mutually agreed upon timeframe for open enrollment EOI submissions. | | |
| c. Receive and transmit data with vendors based on a frequency defined by the business needs of the client. | | |
| Comments | | |
| Unauthorized replication or use of this financial workbook is prohibited. |
| Copyright © 2024 by Segal. All rights reserved. |
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