Plan Eligibility and Premiums

Who Is Eligible

You are eligible to participate in Basic Group Term Life Insurance, Accidental Death and Dismemberment Insurance and Optional Group Term Life Insurance if you are an active full-time employee, an active School Crossing Guard, or a seasonal employee who has completed 365 days of service.

You are not eligible to participate in these plans if you are:

a seasonal employee scheduled to work less than 180 days in a calendar year

a seasonal employee who has not completed 365 days of service,

hired for a temporary program,

an emergency appointment employee,

paid by voucher,

a Library Page, or

a part-time employee regularly scheduled to work less than 84 hours a month.

When Coverage Begins

Enrolling in the Plan

When you begin your employment with the City you will receive a City of Chicago, Group Term Life Insurance Enrollment Form. This form is used to designate your beneficiary for your Basic Group Term Life Insurance and Accidental Death and Dismemberment Insurance. (If you don't designate a beneficiary, see the Section Your Beneficiary on page TL-5.) This form is also used to enroll in the Optional Group Term Life Insurance program. If you are enrolling in the Optional Group Term Life Insurance program, the enrollment form must be returned to Bankers Life and Casualty or the Benefits Division within 31 days of the date that you begin active employment with the City.

Basic Group Term Life and Accidental Death
and Dismemberment Insurance

Your Basic Group Term Life and Accidental Death and Dismemberment (AD&D) Insurance coverage automatically begins on the first day of the month following your first day
of active employment.

If you are a seasonal employee and your 365 working day requirement was met prior to July 1, 2000, your life insurance coverage began July 1, 2000. If your 365 working day requirement was met on or after July 1, 2000, your life insurance coverage begins on the first day of the following month. Upon enrollment, Bankers Life and Casualty Company will mail you a Certificate for your Basic Life Insurance and your Accidental Death and Dismemberment Insurance.

Optional Group Term Life Insurance

If your completed enrollment form is received by Bankers Life and Casualty or the Benefits Division within 31 days of the date that you began active employment with the City, your Optional Group Term Life Insurance will become effective on the first day of the pay period for which a payroll deduction can be made. Your Certificate for Optional Group Term Life Insurance is included in your Certificate for Basic Group Term Life and Accidental Death and Dismemberment Insurance.

Optional Term Life Insurance (the Old Plan)

Prior to implementation of the current Optional Group Term Life Insurance, the City of Chicago offered the Optional Term Life Insurance plan (the Old Plan). At that time, employees were given the option of staying with the Old Plan or enrolling in the new plan. The Old Plan is not open for new enrollments. If you to wish to switch to the new plan, you must contact Bankers Life and Casualty. You must select more coverage under the new plan than you have under the Old Plan. You will be required to provide evidence of insurability (proof of good health). Coverage will begin on the first day of the pay period for which a deduction can be made after your application has been approved by Bankers Life and Casualty.

Premiums

Basic Group Term Life Insurance and
Accidental Death and Dismemberment Insurance

The City pays the entire premium for your Basic Group Term Life and Accidental Death and Dismemberment (AD&D) Insurance coverage.

Optional Group Term Life Insurance

If you elect Optional Group Term Life Insurance coverage, you pay the premium at group rates. The cost of your optional coverage is based on your age and Annual Salary (defined below) as of the date coverage becomes effective. Your payroll deduction will be based on the amount of insurance you select and your age. See the Section Optional Group Term Life Insurance on page TL-9 for the cost of coverage.

Optional Term Life Insurance (the Old Plan)

The cost of coverage under the Old Plan is $.34 per pay period for each $1,000 of coverage, regardless of age. Your payroll deduction is based upon the amount of insurance
you selected.

Your Annual Salary

Your Annual Salary is the amount shown as the annual rate in the City Position Control Master File. It does not include any overtime pay.

If you are an eligible physician paid at an hourly rate, your Annual Salary is the amount shown as the budget rate in the City Position Control Master File. It does not include any overtime pay.

If you are an eligible School Crossing Guard, your Annual Salary is considered to be equal to 780 times your hourly rate.

Imputed Income

If your group insurance is provided directly or indirectly by your employer, the "cost" of providing coverage may be considered taxable income. This is calledimputed income. To determine whether or not the cost of your insurance is taxable, you should consult your tax advisor. If it is determined that your Term Life Insurance is a taxable benefit, in addition to federal income tax, your imputed income may also be subject to withholding for state income tax, Medicare tax and Social Security tax, if applicable.

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