Loading...
207999t �� -'� it File No. 207999 —By Severin A. ORIGINAL TO C.iTY LERK '• ¢+ �C1115on— CITY OF ST. P =ss, In the matter of the group CIL NO ,ante program now established for OFFICE OF THE Cljoyees of the Board of Education' =e City of Saint Paul in the teach -, NCI RESOLUTION — t professions, which emplo;"Pe.^•` ' is insured ',j1.1 ip under polAcy .= M nesota' Mutual 4Vrt,Irf-X �0: PRESENTED BY ,: *,. insurer-, P�lic +u;; o • �te3` COMMISSIONER 1,no ' '.Ibiiud. ir" `hb- 'WHEREAS, in the matter of the group insurance program now established for empbyees of the Board of Education of the City of Saint Paul in the teaching professions, which employees' group is insured under policy with The Minnesota Mutual Life Insurance Company, insurer, Policy No. 1520 -G, in effect prior to March 1, 1962, dividends have accumulated in substantial amounts by reason of favorable mortality experience; and WHEREAS, the Board of Education of the City of Saint Paul, at its regular meeting on Tuesday, June19, 1962, by motion adopted at said meeting, determined to recommend to the Council of the City of Saint Paul that The Minnesota Mutual Life Insurance Company be instructed to reinvest and to distribute accumulated dividends applicable to said group Policy No. 1520 -G in the manner recommended by Mr.` C. H. Stevenson, Insurance Consultant of the City of Saint Paul, in his letter of June 11,..1962 addressed to Mr. John Gran, Assistant Superintendent, Business Affairs, Saint Paul Public Schools, a copy of which letter is attached hereto and made a part hereof by reference as fully `end completely as if set forth herein verbatim, Now, Therefore, be it RESOLVED, that the Council of the City of Saint Paul hereby concurs in the aforesaid recommendation of the Board of Education of the City of Saint Paul and directs that approximately $14,875.00 of such aforementioned accumulated and available dividends effective as of March 1, 1962 be reinvested for coverage of 50 per cent additional paid -up insurance for the period of the policy year March 1, 1962 through February 28, 1965 for those employees who were insured for six months prior to and on February 28, 1962 and continue to be insured on March 1, 1962, and that 50 per cent cash return of premiums paid during the last policy year, March 1, 1961 to February 28, 1962, be distributed to those employees insured for six months prior to and on February 28, 1962 and who continue to be insured on March 1, 1962; be it FURTHER RESOLVED, that the City Clerk be and is hereby directed to prepare a certified copy of this resolution and to deliver the same to The Minnesota Mutual Life Insurance Company forthwith. COUNCILMEN Adopted by the Council AL 10 19609— Yeas Nays Dalglish JUL 10 1962 Holland -prove 19— Loss In Favor Mortinson Peterson Mayor Against Rosen 10111 0-82 109 city Hall 9 C $t. Paul 2 Minnesota jue 111 162 Xr. John K. Gran Assistant superintendent Dusiness Affairs st. Paul Publie Beboels 615 Olt J ball Bt. Paul 2, Minnesota Rat Board of Edu,$atien, 011Y ®f at. pawl. Teaohers' Pay Group Life policy Mo. 1520G underwritten by The Minnesota U11111sl Lift jLsura * ggra n`v Dear Wr. Grant The coup policy mentioned in eaptiong under which teachers* on may Insure by making Voluntary application and authorizing p&yro deduction of required prealums, had its inception January 1, 1953. The experlen©s, by policy periods from the beginning to February 288 1962, inclusive, is dWwa its L; attached table. You have asked for y opiai,$a and reeosaendation regarding the a]lo- oatlon of the present dividend &,$count balance. The Company infomed you by letter dated May 91 1962 that the cost of 50% additional paid - up insurance for a period of one year for those insured on February 28 $14, 1962 and who soatinued to be insured on March It 1962 would be 875 • I asked the Oom;xW how omb It would cost to 50% nd *ash divide to the sane insured and reeeived a reply ry opy at- t&®hsd) that it would cost approx1mately $149T50. It was during the last three poll@y years that substantial divi- dends were earned. That money is owr&*d by the partioipanto in the plan. Any insured resig dng or retiring any year when a elzeable mount is on deposit in the dividend &@count would not resolve a rightful stare. For example, those presently insured who retire or resign this year will relinquish their share of a sizeabla dividend account balance if only 50% additional paid -up insurance is taken. It is my opinion that about 20% of the prenivaa actually paid (exolud- inn�� pre�alums allocated froze dividends for paid -up insurance) is sufficient reserve to learn on deposit with the Company in the dividend account. My recommendation therefore, is thst the Board of education authorize both 50% additional paid -up insurance for a period of one year and 509 oash return of premiums paid during the last policy year (March 1 1961 to February 289 1962) to those lssured on February 281 1662 and who oontlnued to be insured Hnreh 19 ��0•x Mr. John M. Oran -2- Juno 11, 1962 1962. The oosbined coat vould appmxlmte $299625t leaving a belanoe of about $5,500, or approxiaateify1dend 20% of one year's aotual paid prOuluae on depoalt in the a000unt. 8ineerelf, 0. 8. stietreneoa Inauranoe Consultant City of 8t. Paul Ass be *no 9.00, W W W co 1 + N N \1`JI N N O O� 111 its gp � C1 VI � � � •� • -•1 �0 "+ O Aj p,i N p� ON • • • • W O O N N W W /'• • � V1 i N O • a N N N N .0- N ~ N pp �O V1 • ! • • W N 4A; H � co W N ~ r r o $ $ H Poo p c: o ti W M Un W N O ut W • �p N C� �.1 A r 0 P p � N �' cW me r • N s-n