Section 5-3: Life Insurance

The  City  will  provide  at  no  cost  to  unit  employees  off-the-job  and  on-the-job  life  and dismemberment  insurance  with  a  face  value  equivalent  to  the  employee’s  gross  annual salary  rounded  up  to  the  next  one  thousand  dollars  ($1,000)  or  twenty-five  thousand dollars ($25,000), whichever is greater; in addition, the City will also provide death-in-the-line-of-duty insurance with a face value of seventy-five thousand dollars ($75,000).

It  is  understood  between  the  City  and  the  Union  that  any  changes  in  life  insurance benefits  shall  be  effective  on  or  about  August  1.  The  designated  beneficiary  of  a  unit member will be paid for all accumulated sick leave hours that remain on the City’s official file at the time of a line-of-duty death of the unit member and payment will be based upon the unit member’s  base hourly  rate  of pay  at the time of death.  The beneficiary  shall  be that  person  designated  on  the  Employee  Declaration  of Beneficiary  card  for  the  City  of Phoenix Group Life Insurance Program on file in the City Human Resources Department.

Additionally, the City will provide to each unit member a $200,000 death benefit  covering the  unit  members  commutation  to  and  from   his  City  work  location.    This  policy  will  be consistent with the policy negotiated in 1997 with CIGNA Group Insurance, and will cover the  unit  member’s  commute  for up to two hours  before  his  shift  begins,  and two hours after his shift concludes.

In  the event of the death of a unit m ember while commuting to or from his work location, for  a period  of two  hours each way,  the  City  will  continue  to  pay  the full monthly  health insurance  premium  for  the  spouse  and  all  eligible  dependents.  This  policy  will  be consistent with the terms of the 1997 agreement between the City of Phoenix and CIGNA Group Insurance,  for  the  payment  of a  supplementary  commutation life  insurance policy for each unit member.

Effective  January  1, 2009, the City will contribute  six  ($6) dollars per month  per  full-time employee  (based on 3,043 full-time employees) to  the union for establishing  and offering a life/long term care insurance benefit to unit employees.  These funds will be transferred to the union  monthly and  in  a  separate warrant.  The  union shall  oversee  the funds  and administration of the program.

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