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HomeMy WebLinkAboutHR17-045 - Other - AFSCME - MOA: Section 24.5 Life Insurance - 01/18/2018 Recor ', /� , KENT Document i/o/, ,,,,,, ,;,;;a /,,,, CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to the City Clerk's Office. All portions are to be completed. If you have questions, please contact the City Clerk's Office at 253-856-5725. Vendor Name: AFSCME (Washington State Council of County and City Employees) Vendor Number: JD Edwards Number Contract Number: HR 18-015 This is assigned by City Clerk's Office Project Name: Update Section 24.5 Life Insurance Description. ❑ Interlocal Agreement ❑ Change Order ❑ Amendment ❑ Contract ® Other: Memorandum of Agreement Contract Effective Date: 1/18/18 Termination Date: 12/31/19 Contract Renewal Notice (Days): Number of days required notice for termination or renewal or amendment Contract Manager: Leialani Jensen Department: HR Contract Amount: Approval Authority: ❑ Director ❑ Mayor ® City Council 12/17 Meeting Date Detail: (i.e. address, location, parcel number, tax id, etc.): Memorandum of Agreement with AFSCME Union regarding an update to section 24.5 Life Insurance. This update reflects recent changes adopted by the City to change the life insurance vendor from Standard Life to Cigna. MEMORANDUM OF AGREEMENT By and between the CITY OF KENT And WASHINGTON STATE COUNCIL OF COUNTY AND CITY EMPLOYEES AFSCME, AFL-CIO, LOCAL 2617 Regarding Section 24.5 Life Insurance This Memorandum of Agreement (MOA) is entered into between the City of Kent ("City") and the Washington State Council of County and City Employees, AFSCME, AFL-CIO, Local #2617 (Union) regarding a change in life insurance coverage provided to Union members by the City. Background The City and the Union are parties to a collective bargaining agreement ("CBA") effective January 1, 2017, through December 31, 2019. During open enrollment, the City was able to secure a new contract with Cigna Life Insurance Company of North America to provide coverage for basic life, basic accidental death and dismemberment, voluntary life and long-term disability insurance, which allows for an increase in benefits available. To allow for this increase, the parties' CBA requires amendment. AA ar4�ent The City and Union agree as follows: 1. Section 24.5 of the CBA, entitled "Life Insurance," is amended as follows: Section 24.5— Life Insurance The City shall pay the entire premium of double indemnity life insurance coverage for each eligible employee in the bargaining unit. The City will determine the manner in which insurance coverage is secured. Through March 31, 2018, the amount of life insurance shall be equal to one times the employee's annual base salary to a maximum of $50,000 and a minimum of $25,000. Effective April 1, 2018, the amount of life insurance shall be equal to one times the employee's annual base salary to a maximum of $150,000 and a minimum of$25,000. 2, All other language of the CBA shall remain in full force an effect, and shall not be altered by this MOA. 3. This MOA was prepared and/or reviewed by both parties. In the event of an ambiguity in any term of this MOA, it shall be interpreted evenly, and not against the drafter of the MOA. The principle of contra proferentem shall not apply. 4. By signature below, the parties agree that the above represents the parties' full and entire agreement with respect to the subject matter of this MOA. 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