In brief: The New Orleans Inspector General has released a report stating that the city misspent about $500,000 on employee life benefits over a span of 8 years.
The full story
The inspector general’s office evaluated the city’s policies and practices relating to procuring and managing the group life insurance benefits provided to its employees. The risk management division within the city’s law department had responsibility for policy procurement and administration during the time evaluated.
Around 4250,000 was wasted providing benefits to retirees who were ineligible for them and another $250,000 in commissions were wrongly paid to two unnamed insurance agents handling the Hartford Life and Accident plans the city procured.
On top of this, employees were provided with inadequate benefits information and at least six employees who died in 2009-2010 did not have death benefit claims filed.
Summing up
Other problems included the accidental destruction of records, loss of reports, and other discrepancies in how the city handled its insurance benefits.
Photo credits: New Orleans City Council
