Acceptance of proposal from Mutual of Omaha to allow inactive employees retired on or after July 1, 2014 to pay the full cost for $20,000 life insurance coverage or to obtain a life insurance benefit amount prorated according to age classification.

As a benefit, the City provides $20,000 life insurance coverage for each employee.  When an employee retires, the life insurance coverage is reduced to $1,000.

Some retirees desire to maintain their life insurance coverage at $20,000. The attached proposal from Mutual of Omaha will allow inactive employees retired on or after July 1, 2014, and who are willing to pay the full cost, to keep the $20,000 life insurance coverage. The attached proposal also includes a prorated life insurance benefit amount based on age classification.

Staff recommends the acceptance of the proposal from Mutual of Omaha that allows inactive employees retired on or after July 1, 2014 to pay the full cost to keep the maximum benefit of $20,000 awarded by the life insurance policy.

Continue with the current benefit for retirees of $1,000 life insurance coverage.

Finance Department

Administrative Department