Submitted By: Devan Kikendall
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Presentation By: Devan Kikendall
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Department: Human Resources and Risk Management
STAFF RECOMMENDATION (Motion Ready):
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Approve the implementation of an employer-paid long-term disability insurance benefit for all eligible City of Ocala employees with an estimated annual cost of $279,000.
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OCALA'S RELEVANT STRATEGIC GOALS:
Engaged Workforce
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Currently, the City of Ocala does not provide an employer-paid long-term disability (LTD) benefit to employees. LTD insurance is designed to provide financial stability to employees who cannot work for extended periods due to severe illness or injury. It replaces a portion of the employee's income, ensuring they can meet essential living expenses while focusing on recovery.
FINDINGS AND CONCLUSIONS:
Employee Security and Morale: Providing LTD coverage offers employees peace of mind, knowing they have financial protection in an unexpected health crisis. This fosters loyalty, trust, and morale across the workforce.
Enhanced Recruitment and Retention: Competitive benefits are a significant factor in attracting and retaining top talent. Adding LTD coverage makes the City of Ocala more appealing to prospective employees and supports long-term employment commitments from current staff.
Alignment with Regional Practices: A recent analysis shows that 17 of 23 municipalities of similar size and personnel in the region offer employer-paid LTD benefits to employees. Adding this benefit ensures that the City of Ocala remains competitive in the regional labor market.
Cost-Effective Solution: Group LTD insurance plans offer affordable coverage for employers due to their risk-sharing structure, making this a cost-efficient way to provide meaningful support to employees.
Workforce Stability: Employees without LTD coverage may face significant financial hardship during extended periods of illness or injury, potentially impacting work...
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