SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract with Hartford Life and Accident Insurance Company for basic life and AD&D insurance, long-term and short-term disability insurance; and FMLA administration paid by CapMetro, and voluntary life, long term disability buy-up, accident, and critical illness paid by employees in an amount not to exceed $3,363,839, including a 12% contingency.
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FISCAL IMPACT:
Funding for this action is available in the FY2026 Operating Budget.
STRATEGIC PLAN:
Strategic Goal Alignment:
☐ 1. Customer ☐ 2. Community
☒ 3. Workforce ☐ 4. Organizational Effectiveness
EXPLANATION OF STRATEGIC ALIGNMENT: Employee Life and Disability benefits are offered as a part of the total benefit package for Capital Metropolitan Transportation Authority. The Total Compensation Philosophy is to maintain benefits and compensation at the 50th percentile in relation to the external marketplace. This allows Capital Metro the ability to hire and retain employees reassuring their satisfaction with benefits provided as part of their total compensation.
BUSINESS CASE: This contract is to provide basic life, accidental death and dismemberment, long-term and short-term disability insurance (including leave administration services), and other Voluntary benefits (employee paid), which are provided by Capital Metro to our employees. This also allows for employees to purchase additional life and long-term disability buy-up insurance and other voluntary benefits such as Accident and Critical Care. This is a part of the benefit package offered to employees to remain competitive with other local public and private employers.
COMMITTEE RECOMMENDATION: This item will be presented to the full board on August 25, 2025.
EXECUTIVE SUMMARY: The current contract and all option years for Life, AD&D, disability insurance and FMLA Administration for Capital Metro employees expires on December 31, 2025. The proposed insurance contract will provide the following benefits:
• Basic Life and AD&D insurance equal to the employee’s annual base salary ($40,000 minimum)
• Short term disability insurance with a 14-day waiting period with a benefit payment of 60% of weekly earnings up to $1,000 a week.
• Long term disability insurance with a 90 day waiting period with a benefit payment of 50% of monthly earnings up to $5,000 a month.
• Voluntary Long-term Disability Buy-Up benefits
• FMLA Administration
• Voluntary & Additional Life Insurance Products
Other voluntary benefits including employee, spouse and child life insurance and long-term disability buy-up insurance are offered to employees and paid through payroll deductions. FMLA administration is included as part of the contract.
A 12% contingency is included in the contract based on assumed headcount growth and merit-based salary increases.
DBE/SBE PARTICIPATION: A 0% SBE goal was assigned to this procurement, which did not include subcontract opportunities.
PROCUREMENT: On June 20, 2025, a Request for Proposals was issued and formally advertised. By the due date of July 7, 2025, four proposals were received. The proposal from Hartford Life and Accident Insurance Company was determined to be the best value to the Authority, price and other factors considered. The resulting contract will be a fixed price contract. The term of the contract shall be for a one-year base period and two (2) option periods of 12 months each, for a total not-to-exceed amount of $3,363,839 for three (3) years, which includes a contingency of 12%.
RESPONSIBLE DEPARTMENT: People and Culture
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2025-1563
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and Capital Metro management endeavor to continue providing life, accidental death and dismemberment insurance, disability benefits, FMLA administration and other voluntary benefits to employees.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the President & CEO, or her designee, is authorized to finalize and execute a contract with Hartford Life and Accident Insurance Company for basic life and AD&D insurance, long-term and short-term disability insurance; and FMLA administration paid by Capital Metro, and voluntary life, long term disability buy up, accident, whole life and critical illness, paid by employees in an amount not to exceed $3,363,839 which includes contingency of 12% for headcount growth and merit increases.
____________________ Date: ____________________
Secretary of the Board
Becki Ross