183403 Original to City Clerk
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CITY OF ST. PAUL FILENCIL No
OFFICE OF THE CITY CLERK
0 NCIL RESOLUTION—GENERAL FORM
PRESENTED BY
COMMISSIONER ��- A A t _ . `—'/ DATE
' 1 File No. 1!
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WHEREAS, in the matter of the Group Insurance Program now
established for Saint Paul City Employees Group; insured, under
policies with The Minnesota. Mutual Life Insurance Company, insurer,
dividends have accrued in substantial amounts by reason of favorable
mortality experience during the past several years and additional
insurance coverage has been afforded to such employees from and by
the applicati"in of such accrued dividends; and
WHEREAS, under the direction of the Council of the City of
Saint Paul, its Technical Committee has made a study as to the best
manner in w i ch such accrued and presently available dividends should
be utilized for the benefit of City employees included within said
insured Group and has made due report and recommendation thereon to
this Council; now be it
RESOLVED, that pursuant to said report and recommendation by
said Technical Committee in the premises:
1. That approximately 6,525.99 of such accumulated and
available dividends, effective as of March 1, 1957, be applied to the
purchase and payment of the cost of 20% additional paid-up Group Term
Insurance for the twelve-months period beginning March 1, 1957,
available to and for the benefit of all such insured City employees
and in respect to their several insurance coverages as of said date
and the next preceding date, February 28, 1957.
2. That the City Clerk be and he hereby is directed to
prepare a certified copy of this resolution and deliver the same to
The Minnesota Mutual Life Insurance Company without unnecessary delay.
ZONING APPEAL
Notice is hereby given tha. a public
hearing will be held before the City
Council at 10 A.M. on July 24, 1957, in
the City Council Chambers in the
City Hall and Court House in the
matter of the appeal of Fairmount
Avenue Methodist Church, under Sec.
20 of Ord. No. 5840 (the Zoning Ordin-
ance) for permission to establish a
new building line on property at 1533 JUN 1 9 1957
Fairmount d as L°t COUNCILMEN Blk. 7, Ave., t View Add Adopted by the Council 195
Dated July 9, 1957.
Yeas Nays JOSEPH R. OKONESKI, JIJN 1957
City Clerk.
DeCourcy (July 13, 1957)
}} } Approved — _195-
Marzitelli
._kIn Favor t
Mortinson A�� A /
Peterson Mayor
Rosen Against
Mr. President, Dillon PUBLISHED
5M 2-57 ,,4;: 2
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STAR OF
THE NORTH
THE MINNESOTA MUTUAL LIFE INSURANCE COMPANY
Victory Square Saint Paul 1,Minnesota
May 10, 1957
Mr. John Faricy, Chief Accountant
Controller' s Department
City of St. Paul i 8 4f
City Hall
West Kellogg and Wabasha
St. Paul 2, Minnesota
POLICY NO. 365379-G
CITY OF ST. PAUL GROUP LIFT: PLAN
Dear Mr. Faricy:
Shown below is a summary of the dividend credit available under this policy
at the completion of the policy year ending February 28, 1957:
Dividend credit March 1, 1956 $5,968.67 ✓
Interest to March 1, 1957 149.22 �_-
Total $6,117.89 ✓
Dividend March 1, 1956 to March 1, 1957 408.10
Total $6,525.99
$6,525.99
Attached is a summary of the dividend record and claim experience under this
policy during the past six years that the paid-up insurance program has been
in effect. This summary also indicates the percentage of paid-up insurance
for certain eligible employees that has been provided each year from the earned
dividends.
As has been pointed out in the reports for prior years, the amount of the annual
dividend varies from year to year and depends upon the claim experience for
each year. For the past six years our company has recommended that part of
the dividend be used to purchase additional paid-up insurance and that the re-
mainder of the dividend be held at interest to help maintain the program of
paid-up insurance for future years. The amount of claims during the past
policy year is considerably higher than in previous years. The result, of
course, is a substantial reduction in the amount of dividend earned for the
past policy year. If the City wishes to continue the program of paid-up in-
surance, it would take X5,168.00 of the available reserve to purchase.151
na'd-up insurance. This sou eave a dividend credit of 1r.152420 If the
entire diva. en' credit of `6 525.9 were used, 20% additional paid-up insur-
ance could be purchased. `
. v.
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Mr. John Fanny, Chief Accountant - 2 - May 10, 1957
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It is our recommendation, however, that $5,168.00 of the dividend credit
available March 1, 1957, be used to purchase 15% paid-up insurance for each
employee who is insured on February 28, 1957, and who was insured on March 1,
1957.
...........
In accordance with previous practice, this additional paid up insurance is
to be in force for the period March 1, 1957, to March 1, 1958. If an em-
ployee eligible for additional paid-up insurance increases the amount of
insurance during the policy year, he should not be eligible for more paid-
up insurance on the increased amount during the 1957 policy year. &nployees
initially insured during the 1957 policy year will not be eligible for addi-
tional paid-up insurance during this 'policy year. naployees tirho have the
additional paid-up insurance and who terminate employment should be allowed
to convert the paid.-up portion along with their regular group insurance.
It is understood, of course, that if this recommendation is adopted the re-
mainder of the dividend credit available,, $1,357.99, could, at the discre-
tion of the insurance committee, be distributed to the employees insured
under the group plan. Although available dividends belong to the insured
employees, it is both expensive and administratively undesirable to dis-
tribute a large number of checks issued in small amounts, and, therefore,
we further recommend that the dividend credit in excess of the amount
needed to purchase the 15% additional paid-up insurance be left with our
company at interest to continue into future years the program of additional
paid-up insurance.
We would like to point out that at the beginning of the 1953 policy year,
it was hoped that a level percentage of paid-up insurance could be granted
each year. On the basis of the claim experience up through the 1952 policy
year, it appeared that this amount could be 30%. Since then, however, as
the figures show on the attached sheet, there has been an upward trend of
over 6% in the claim experience which has been higher than anticipated. It
appears now that the percentage of paid-up insurance should probably have
been leveled at 25% the past four years instead of 30%.
If the members of the technical committee are of the opinion that some per-
centage other than 15% or 20% is desirable, we will be glad to discuss the
matter further.
Sin erely yours,
1.14 (
Arthur A. Peterson, .1
Administration Manager
Group Department
AAP:as
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CITY OF ST. PAUL
Dividend Credits
Policy Year
Beginning Debit C reeddit Balance
Oct., 1951 Dividend credit available $ 9,763.14
20% additional insurance $4,005.00 5,758.14
Interest $ 143.95
Dividend 6,421.87 12,323.96
Oct., 1952 25% paid-up insurance 5,279.19 7,044.77
Interest 176.12
Dividend 8,317.31 15,538.20
Oct., 1953 30% paid-up insurance 6,723.87 8,814.33
Interest 220.36
Dividend 2,283.32 11,318.01
Oct., 1954 30% paid-up insurance 6,932.55 4,385.46
Interest 109.63
Dividend 5,281.90 9,776.99
Oct., 1955 30% paid-up insurance 3,956.24
(5 mos. only) Interest (5 mos.) 60.63
Dividend 9,901.58 15,782.96
March, 1956 30% paid-up insurance 9,8711.29 5,968.67
Interest 149.22
Dividend 408.10 6,525.99
Claim Experience
Additional Paid-up Ratio of Claims to Premium
Policy Year Insurance Purchased Current
Beginning nag from Dividend Annual Cumulative
Oct., 1951 20% 55.2% 55.9%
Oct., 1952 25 50.7 55.1
Oct., 1953 30 74.9 58.1
Oct., 1954 3o 68.2 59.7
Oct., 1955 (5 mos. only) 30 54.5* 57.3
March, 1956 30 85.4 61.6
*Five months experience averaged with 1954.
OFFICE OF CITY CLERK JOSEPH R. OKONESKI
City Clerk
BUREAU OF RECORDS HAROLD J. RIORDAN
• Council Recorder
386 City Hall and Court House
St. Paul 2, Minnesota
June 6,1957
Mr. Marshall F. Hurley
Corporation Counsel
Building
Dear Sir:
The City Council requested that you draw a resolution carrying out
the recommendation contained in the attached letter of the Technical
Committee.
Very y yours,
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City1erk
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...It lieu CITY OF SAINT PAUL - MINNESOTA
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June 5, 1957
The Honorable Mayor and Members of the City Council
City of St. Paul, Minnesota
Dear Sirs and Madam:
For the past several years the dividends credited to the employees
of the City of St. Paul under Policy No. 365379-G, a group life in-
surance policy of Minnesota Mutual Life Insurance Company, have been
used to purchase additional paid up insurance for the ensuing year.
The amount of paid up insurance during the past three years has been
30%.
As of March 1, 1957 there was a balance in the dividend fund of
$6,525.99 which is sufficient to purchase paid up insurance in the
amount of 20% for the insured employees in service as of that date.
The Technical Committee recommends that the City Council authorize
the use of this dividend credit for the purchase of 20% additional
paid up insurance for the year starting March 1, 1957.
Respectfully submitted,
TE ICAL COMMITTE
onar• . - --Chairman--
luation 8 A-s-ssment Engineer
Z
Edwin F. J n , Secretary
Utilities En sneer
EFJ:ew
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