ORDINANCE approving and authorizing contract with RELIASTAR LIFE INSURANCE COMPANY to provide Coverage and administer Basic and Voluntary Life Insurance and to provide EAP Services for the Human Resources Department; providing a maximum contract amount - 5 Years - $3,950,000.00 - Health Benefits Fund

Request for Proposals received on September 26, 2024, for P41- DOC10963770 - Approve an ordinance authorizing a contract between the City of Houston and ReliaStar Life Insurance Company in the maximum contract amount of $3,950,000.00 to provide coverage and administer Basic and Voluntary Life Insurance and provide EAP services for the Human Resources Department.

Specific Explanation:

The Director of Human Resources and the Chief Procurement Officer recommend that City Council approve an ordinance authorizing a five (5) year contract term to ReliaStar Life Insurance Company (ReliaStar), in the amount not to exceed $3,950,000.00 to provide all necessary services for administering Basic and Voluntary Life Insurance coverage and provide Employee Assistance Program (EAP) services for the Human Resources Department (HR). 

The City’s Life Insurance program is comprised of two plans: Basic and Voluntary Life. Basic Life Insurance, a non-contributory plan,  provides a one-time benefit of one time (1x) the base annual salary upon the death of an eligible employee, rounded to the nearest $1,000. As of September 2025, there were 19,940 active employees eligible for Basic Life Insurance and 10,194 retirees with various benefit levels. Voluntary Life Insurance, a contributory plan, offers coverage options ranging from one time (1x) to four times (4x) the annual salary for active employees and their eligible dependents. Retirees are not eligible for this coverage.

The scope of work requires the Contractor provide Basic Life Insurance for eligible active employees and their dependents, eligible retirees, and deferred retirees under a non-contributory plan and Voluntary Life Insurance coverage in $10,000 increments ranging from $10,000 - $500,000 for active employees and their eligible dependents under a contributory plan funded by the employee. Retirees are not eligible to elect Voluntary Life coverage. Contractor must also deliver external Employee Assistance Program (EAP) services to eligible employees and their eligible dependents and retirees. The 5-year contract will commence January 1, 2026, and continue through December 31,2030.  

The Request for Proposals (RFP) was advertised in accordance with the State of Texas bid laws, and as a result, proposals were received from the following firms: Capstone House, Dearborn Life Insurance Company, Global Life Liberty National Division, Metropolitan Life Insurance Company, ReliaStar Life Insurance Company, and Securian Financial Group.  The Evaluation Committee (EC) was composed of three (3) City of Houston voting members from HR. The proposals were evaluated based on the following criteria:    

·       Responsiveness of Proposal

·       Technical Competence

·       Cost Proposal

ReliaStar was deemed qualified to meet the requirements outlined in the RFP.

M/WBE Participation:

This RFP was advertised with a 2% M/WBE participation goal. Below is a breakdown of ReliaStar Life Insurance Company’s participation plan

Pay or Play:

The proposed contract requires compliance with the City’s “Pay or Play” Ordinance regarding health benefits for employees of City Contractors. In this case, ReliaStar  will provide health benefits to eligible employees in compliance with City policy.  

Hire Houston First:

The proposed contract requires compliance with the City’s “Hire Houston First’ ordinance that promotes economic opportunity for Houston businesses and supports job creation. In this case, ReliaStar   is not a designated company, therefore, the HHF preference was not applied.

Fiscal Note:

Funding for this item is included in the FY2026 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.

Amount and Source of Funding:

$ 3,950,000 - Health Benefits Fund (9000)