Page 56 - Employee Handbook 1-2015 rev9

 Accidental Death and Personal Loss: Amount equal to life insurance amount (up to a
maximum of $150,000.)
 The City pays for your basic life and accidental death and personal loss; therefore,
any coverage of more than $50,000 is considered “taxable income” by the IRS.
These earnings are called “imputed income”.

The insurance remains in force as long as you are an employee of the City. If you are
still employed by the City at age 70, the coverage is automatically reduced by 25% and at age 75
by 50% and at age 80 by 75%. The reduced amount will be rounded to the highest $1,000. An
Accelerated Benefit Option (ABO) is also a part of the group life benefits. Under this option, if
you are diagnosed as having a terminal illness, you may be eligible to receive a portion of your
group life benefits.

Upon termination of employment, any employee may convert their policy to a whole life
policy without a medical examination for up to 100 percent of life insurance coverage so long as
the retiree agrees to pay the full amount of the monthly premium. Rates will be based on age and
amount of coverage. Premium information is available in the Human Resources Department.

At retirement, if you have 15 years of full-time employment with the City of Winston-
Salem, or retire on disability retirement, $2,000 of life insurance is provided by the City free of
cost to you.

It is important to notify the Human Resources Department when you wish to make
a change in your beneficiary.

P. Supplemental Life Insurance

Additional life insurance may be purchased by full-time employees at group rates at their
Benefits Enrollment. It would become effective on the first day of the month following one
month of continuous service.

The amount of Supplemental Life Insurance you may purchase will be equivalent to
either one (1), two (2) or three (3) times your annual base salary up to a maximum of $300,000
(or $400,000 upon completion of the Evidence of Insurability Form) rounded to the highest
$1,000. As your salary increases, your supplemental life insurance coverage automatically
increases. If you are still actively working at age70 the coverage is automatically reduced by
25%, at age 75 reduced by 50% and at age 80 reduced by 75% and premiums are reduced
accordingly.

The Supplemental Life Insurance remains in force as long as you are an employee of the
City. At separation or retirement, it may be transferred without medical examination provided
you pay your premiums on an individual basis. If under age 65, you may continue your
insurance on a term basis with rates based on age. Premium information is available in the
Human Resources Department.

City of Winston-Salem Employee Handbook November 2014 Revision 47