Summary Sheet- RFCA SUMMARY

CITY OF TEMPE
Meeting Date: 06/25/2026  
REQUEST FOR COUNCIL ACTION
Agenda Item: 8A7
ACTION:  Approve a one-year contract renewal with Sun Life Assurance to provide stop loss insurance 
for the City’s self-funded medical plan.
FISCAL IMPACT:  The total cost of the contract will not exceed $2,650,000. Sufficient funds have 
been appropriated in the Tempe Health Fund, Cost Centers 4167 (Employees) and 4169 (Cobra 
Participants), for anticipated expenditures during the current fiscal year and next fiscal year, contingent 
upon City Council approval of the City’s annual budget.
RECOMMENDATION:  Approve the contract renewal.
 
BACKGROUND INFORMATION:  (T17-119-01) On April 20, 2017, City Council awarded a one-year 
contract with nine, one year renewal options to Sun Life Assurance to provide stop loss insurance to 
backstop the City’s medical plan.  This renewal request is the final renewal option. Stop loss insurance 
is purchased to mitigate financial risk associated with the City’s self-funded medical plan. Claims for 
more than $325,000 are covered by this policy. Additionally, to mitigate City costs related to the 
increased use of specialty drugs which have a high cost, prescription drug coverage is covered under 
the stop loss policy.
Contractor Performance
City staff evaluated the performance of Sun Life Assurance as follows:
Evaluation Criteria
Meets Contract 
Requirements
Does Not Meet 
Contract 
Requirements 
Contract personnel are responsive and available
X
Quality of products and/or services delivered
X
Timeliness of performance
X
Follow-up skills in resolving complaints or 
problems
X
Accuracy of pricing on submitted invoices
X
Renewal Pricing
Sun Life requested a 19% increase for both Single and Family PEPM.  The City was successful in 
negotiating a 3% reduction to a 16% increase for the final year of this contract.  Renewal rates have not 
increased since June 2024.  Negotiated rates for the monthly premium for single and family coverage 
are noted in the table below.
Monthly Premium
Current
Renewal
Single PEPM
$ 62.65
$ 73.24
Family PEPM
$ 177.20
$ 207.14
(PEPM = per employee per month)

2
STAFF CONTACT(S):  Rebecca Strisko, Human Resources Director, (480) 350-8423
Department Director:  Laura Calder, Financial Services Director  
Legal review by:  Dave Park, Senior Assistant City Attorney
Prepared by:  Eric Kraenzle, Senior Procurement Officer