Ordinance exempting the Health Service System’s Life and Long-Term Disability Insurance services contract from the requirements of Article 111 (Minimum Compensation) and Article 121 (Health Care Accountability) of the Labor and Employment Code.

Summary

This ordinance (File No. 250981) exempts the San Francisco Health Service System's (SFHSS) life and long-term disability insurance contract with New York Life Group Benefit Solutions from the City's Minimum Compensation (Article 111) and Health Care Accountability (Article 121) Ordinances. This is necessary to secure mandated benefits for tens of thousands of City employees by January 1, 2026, as New York Life (the highest-ranked bidder) cannot comply with the tracking requirements of these articles due to its 23,000+ nationwide workforce. The contract is projected to save the City $1.97 million annually from 2026-2030 with 5-year guaranteed premium rates.

Citizen Impact

This action ensures uninterrupted life and disability insurance benefits for City employees and their families, while also saving the City $1.97 million annually in premium costs.

Confidence

high