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VRS Opt Out Options

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Comparison of Options

Background VLDP (UNUM) VACORP (Standard) VMLIP (Lincoln Financial)

Compliance with Code Always in compliance

Dependent on carrier to keep up with changes to the code

Dependent on carrier to keep up with changes to the code

Easy for Employees

One vendor for Retirement & Disability

Separate vendor Separate vendor

Long Term Care Included in rates Not included in rates Not included in rates

Cost Highest cost offering Lowest cost offering Middle cost offering

Financial Guarantees

6 month rate - change every biennium 3-year guarantee 2-year guarantee

Qualifying periodOne year wait on benefit

eligibility for non-work related disability for both STD & LTD

Can eliminate the one year wait on STD

Can eliminate the one year wait on STD

Advantages have been shaded in green Disadvantages have no shading

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Comparison of Options

Background VLDP (UNUM) VACORP (Standard) VMLIP (Lincoln Financial)

Contingencies None NoneLTD pricing is contingent on

offering two voluntary benefits

1% Pension Contribution Benefit for disabled members

Included in rates Included in rates Not included in rates

Carrier selection

Good reputation for disability services

Good reputation for disability services

Some perceived drop in service due to local service office

changes.

Control of planState controls pricing and

vendor selection

Can market program at end of rate guarantee. Can change vendors if service should become an issue.

Can market program at end of rate guarantee. Can change

vendors if service should become an issue.

Procurement requirements

NoneCan attach to City of Harrisonburg's RFP

RFP out for Albemarle County. No Award has been made. May

or may not be awarded to VMLIP.

Long Term Stability of Program

Difficult to predict how any given carrier's "pool" will perform, however Standard has an extensive history and book with public entity clients.

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Comparison of Options

Financials

Plan VLDP The StandardVMLIP (Lincoln

Financial)*

STD Rate0.39 percent of Hybrid

Retirement Plan covered payroll-professional, .91 non-professional (covers STD and

LTD and LTC)

0.37 percent of monthly insured earnings

(covers STD and LTD)

$2.49 pepm

Estimated Annual STD Premium $448

LTD Rate$.34/$100 of covered

monthly pay

Estimated Annual LTD Premium $2,550Estimated Annual Total Premium (1st year) $3,705 $2,775 $2,998Estimated Annual $ Difference from VLDP n/a -$930 -$807

Rate Guarantee 6 Months 3 Years 24 months

Assumptions used to calculate estimated premiums:        

o Provided annual cost for first year using 15 new hires.        

o Used average annual salary of $50,000.