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Personnel Policy and Procedures Manual

Death Benefits

PPP # 123-30
Procedure on Death Benefits

PURPOSE

The purpose of this procedure is to define the benefits available to beneficiaries of regular full-time or part-time employees who die while actively employed.

GROUP LIFE INSURANCE

The City provides group life insurance which covers all active regular full-time and regular part-time employees, elected and appointed officials, and may cover contract employees in accordance with the terms of their contracts. It does not provide benefits for temporary and seasonal employees.

Death benefits under this basic group life insurance are payable to the employee's designated beneficiaries and are usually equal to one hundred and fifty percent (150%) of the employee's base annual salary. Accidental death and dismemberment benefits are included in the plan and are payable under some circumstances as defined in the insurance contract.

New employees may purchase additional life insurance equal to their annual base salary without providing evidence of good health. This must be done within 3l days after employment. Thereafter, employees may apply to the carrier for additional life insurance by providing evidence of good health or in accordance with the terms of the current contract. Pre-existing conditions may not be covered after the initial open enrollment.

PENSION

Certain beneficiaries of employees may be entitled to death benefits from the pension plan. These benefits will vary based on the plan to which the employees belong and the length of credited service at the time of their death.

HEALTH AND DENTAL INSURANCE

Eligible covered dependents of employees who were participating in a health or dental plan may elect to continue coverage through one of the City's plans in accordance with health plan continuation laws. Generally, a beneficiary may continue coverage for up to 36 months after the death of an employee by paying the full cost of the plan. This period may be extended in certain circumstances. The Personnel Department will provide eligible dependents with appropriate notifications of the length of coverage and the cost at the time of the employee's death.

APPLICATION FOR DEATH BENEFITS

The Personnel Department, upon receipt of appropriate death certificates (each bearing an official seal to attest to their authenticity), will process for payment any insurance, leave balances, pension, and other monies as may be due to designated beneficiaries and will assure disbursements of such funds in accordance with the laws of the State of Maryland.