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276573 WHITE - CITY CLERK �� CANARY - D PARTMENT—J.Devlin COUIICII BLUE - MAYOR G I T Y O F S A I N T PA U L File � N O. ouncil Resolution - Presented By � , Referred To Committee: Date Out of Committee By Date WHEREAS, The Minnesota Mutual Life Insurance Company i.nsures the lives of employees and the dependents of employees of the City of Saint Paul under their Policy Nos. 2881-G anct 365379-G, and WHII�EAS, The Minnesota Mutual Life Insurance Company by letters dated Februaxy 27, 1981, copies of which axe attached hereto and incorporated herein by reference, indicates that the experience under the afore-mentioned group life insurance policies has resulted in a dividend account balance in the amounts of �58,058.12 and $66,066.08 respectively, and WHEREAS, The Minnesota Mutual Life Insurance Compa,ny in said letter makes a recommendation that the City Council authorize by resolution that this amount be paid proportionately to these persons under said group who were premium paying insureds on December 31, 1980 and who had been continuously insured for six months prior to December 31, 1980, said proportion to be approxima.tely 40°fo of the annual premium paid by said eligible employee; now, therefore BE IT RESOLVID, The P�Iinnesota Mutual Life Insurance Company is hereby author- ized. to distribute to such eligible er.rployees a dividend representing approximately �+0� of the premium paid; and BE IT FII`TALLY RESOLVID, That the City Clerk be directed to prepaxe a certified copy of this resolution and deliver the same to the Minnesota Mutual Life Insurance Company as soon as conveniently possible. COUNCILMEN Yeas Nays Requestgd by Department of: Hunt Levine In Favor Maddox �y nncMano� Against BY Sas.�dlte►"' - , Tedesco w 1 MAR 2 4 �� Form A rov d by U:' Attorney Adopt by Cou . Date C tified Y• sed by Co cil Secretary BY v � I Appr v d b : ayor: Dat �AR 7��1�Dt,r_ App d by Mayor i or Sub ss' t�s Council _.' By B PUB�isHEO qPR 4 198t i �� '��'�3 � �. �' . . � �w �l �L �.� THE MINNESOTA MUTUAL LIFE iNSURANCE COMPANY 345 fedur Street, Sar�rt Pa«l, :Lfinnesota .5510! • Teleph��re 198-3i00 Areu 6!Z February 27, 1981 Mr. John Devlin City of St. Paul � 265 City Hall St. Paul, Minnesota 55102 CITY OF ST. PAUL DEPENDENTS GROUP LIFE INSURANCE PLAN POLICY N0. 2881-G Deax Mr. Devlin: The dividend on this plan for the January 1, 1980 to January 1, 1981 policy . yeax is $57,436. The premium p aid for the policy yeax was $138,346. Incurred claims were $64,000, and a listing of those claims is enclosed. A conversion charge of $60 per $I,000 of insurance is charged for dependents who convert their insurance to individual policies issued by Minnesota Mutual. In the policy year, six dependents converted a total of $16,000 of insurance, and the conversion charge is $960. A list of those conversions is enclosed.. The following table shows the total dividends available for distribution on January 1, 1981. Balance at Interest January Z, 1980 $ 576.04 Interest to January 1, 1981 at 80 46.08 Dividend Earned January 1, 1981 57,436.00 Total Dividend January 1, 1981 $58,058.12 We recommend that these dividends be paid in cash to those employees who were insured on December 31, 1980 and who were also insured on July 1, 1980. The dividend will be a percentage of each eligible employee's annual premium. Distribution of the dividend checks can begin just as soon as we receive your authorization. If you have any questions about any of these numbers, please let me know. Sincerely, �� Robert Olafson Assistant Actuary Enc. .�� :J�c:� � `?'r:� � e • � �� ` THE MiNNESOTA MUTUAL LIFE INSURANCE COMPANY 345 Cedar Street, .Sarnt Paul, �Lfi�:?resota SSIU! • Telephonr ?9�-3i00 Area 612 February 27, 1981 Mr. Thomas Gleason Director of Personnel City of St. Paul 265 City Hall St. Paul, MN 55102 CITY OF ST. PAUL OPTIONAL PARTICIPATING GROUP LIFE INSURANCE PLAN POLICY NUNiBER: 365379-G Dear h1r. Gleason: The experience calculation for the January 1, 1980 to January 1, 1981 policy year has been completed. The premiums paid by City of St. Paul employees for this group life insurance plan were $154,164.70; of that total, $14,495.76 was for non-participating AD � D coverage, and $139,668.94 was for participating life insurance coverage. C2aims incurred were $76,782; this includes $4,000 of non-participating AD � D claims. A listing of the claims is enclosed. A conversion charge covers excess mortality on employees who conver� their insurance to individual policies issued by Minnesota Mutual. This conversion charge is $60 per $1000 of insurance converted. In the policy year, 4 employees converted a total of $18,000 of insuranee, and the conversion charge is $i,080. A list of the converting employees is also enclosed. The plan earned a dividend of $53,398 for the policy year. There are also additional dividend funds available which have been left at interest from previous policy years. The following table shows the total dividends available for distribution as of January 1, 1981: Balance at interest January 1, 1980 � 11,729.70 Interest to January 1, 1981 at 80 938.38 Dividends earned January 1, 1981 53,398.00 Total Dividends Available $ 66,066.08 , , . � �� Mr. Thomas Gleason February 27, 1981 Page 2 We recommend that these dividends be paid in cash t4 those employees who were insured on December 31, 1980 and who were also insured on July 1, 1980. The dividend would be a percentage of each eligible employee's annual premium. tVe can prepare the dividend checks for distribution as soon as we receive your authorization. A status of the stabilization reserve is summarized below. This reserve was established to stabilize experience and to provide for a more consistent pattern of probable dividend returns. Each year, a portion of the gro�s dividend available, not exceeding l00 of the premium received that year, is allocated to this reserve until the reserve reaches a level equal to 50% of the current annual premium. Minnesota Mutual currently credits 8% annual interest to the stabilization reserve. Stabilization Reserve Balance January 1, 1980 $ 8,714 Interest to January 1, 1981 at 80 697 Addition from Policy Year Experience 13,270 Stabilization Reserve Balance January 1, 1981 $ 22,681 Also enclosed with this letter is disclosure information required by the ' State of Minnesota. In 1973, Minnesota Legislature established disclosure requirements for insurance plans of governmental units. As indicated on that disclosure form, the total retention charges for the plan were minus $1;325. The State of Minnesota was paid $1,725 as premium taxes. Another $7,708 was paid to the O�h� Agency for its enrollment and servicing of the plan. Other retention includes $2,793 for premium billing and collection and $4,526 for other insurance company expenses. These expense charges were reduced by an interest credit of $18,077, which is the sum of credits on the disability claim reserves which existed on January 1, 1980 and on the net cash flow result of the policy year. We appreciate the opportunity to be of service to the City on this insurance program. If you have any questions about this 2etter, please let me know. Sincerely, � Robert Ulafson Assistant Actuary RO:cg �r;.. ...� Cz�Y o:� �A�iv-r �.�.u�. $., t, � ,i:. �'f :�', �` �," �:':H�ICE OF T�IE CITY GOUNGIL �'� ° �`� 6 `��' s.:` -�y��.� ;:a.� i. ' �, .':�3„•:j..�. ki. <" .illll�+)as=:�•� � 'n;Y. 11�tiMd(+{'.' �.. V:1'• s�� Da t e March 19, 1981 .:,,, . .�.; � __. CC� �� i� #T�` � � � � � � �°� TO : Sain� Pac�l Ci�t� Coanci ( FRO � � CQITIl�E��'£�: at� FINANCE, MAPIaGEP1ENT & PERSONNEL , George McMahon , chairman, mqkes fhe fiollowing report on G.F. ,� Ordinance (8) [�X Resolution �� Other TIT�.� : � At its meeting of March 19, 1981 , the Finance Committee recommended approval of the following: , � __ . __ 1 . Resolution approving budget amendments in CD Years III , IV, V, and VI for CD Year III Selective Clearance and CD Year IV Rehab Grants projects, CD Year V Tree Removal and CD Year VI Tree Planting Project. � 2. Resolution approving budget amendments in CD Year VI to provide additional $20,000 for Handicapped Accessibility for city buildings and services prQgram. 3. Resolution approving transfer of funds to fund new positions of Electrica] Inspector and Plumbing Inspector to work in National Housing Service areas. 4. Resolution approving mortgages pledged by Guaranty State Bank of St. Pau1 as collateral to protect city funds held in said bank. (11699-GM) 5. Resolution revising minimum qualifications for Buildinq Maintenance Supervisor--Fire Department. (11755-GP1) � 6. Resolution authorizing Minnesota Mutual Life Insurance Campany to pay diVidends on premiums paid by employees. (118�7-GM) 7. Resolution approving issuance of approximately $2,500,000 of revenue bonds by the Port Authority to finance construction of facility for Hartzell Corporation. (11798-GM) 8. Resolution approving issuance of approximately $1 ,345,OO�J of revenue bonds by the Port Authority ta finance acquisition of site on South LJabasha Avenue for construction of industrial facility by GJilliam C. Plorris. (118�J0-GM� (CONTINUED . . . ) CIiY HALL SEVENTH FLOO� SAItiT PAL'�, 1�IIN�IESOTA 55102 .>, - �; /7t a- f C. �# �/-y�' � � + � � �� EXPLANATION OF ADMINISTRATIVE ORDERS, RESOLUTIONS, AND ORDINANCES Date: March 11, 1981 � ;'�# �"`•�. ;�.� `� � � T0: MAYOR GEORGE LATIMER �i a"' 1 1 �(�$� FR: Personnel Office ��VR�� RE: Resolution for submission to City Council ACTION REQUESTED We recommend your approval and submission of this Resolution to the City Council. PURPOSE AND RATIONALE FOR THIS ACTION: Authorize Minnesota Mutual Life Insurance Company to pay dividends on premiums paid by employees. ATTACHI�IENTS: Proposed. Resolution.