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d. A lump sum payment shall be made to the beneficiaries of any eligible <br />employee whose death occurs while such employee is an active employee of <br />the City, such payment to be in the amount of two - thirds (2/3) of the total <br />sick leave benefit credited to the employee's account at the time of his or her <br />death, and at the rate of pay effective on the date of the death. <br />2. Conversion to Health Insurance Premium Payments. <br />At his or her option, an employee may convert any lump sum payment provided <br />herein into health insurance premiums, to the extent necessary to provide the <br />employee and his or her designated eligible dependents, if any, with benefits <br />under the health insurance program maintained by the City. <br />a. The City's obligation to pay such premiums shall terminate when the sum of <br />premiums paid equals the amounts as follows: <br />After ten (10) years, but less than 15 years of service, the employee <br />shall be entitled to 50% of the amount of unused sick leave benefits <br />credited to his or her account upon the effective date of termination, <br />not to exceed a maximum limit of 640 hours. This amount represents <br />150% of the amount the employee would have been entitled to had <br />they elected to cash out their sick leave hours. <br />After fifteen (15) years, but less than 25 years of service, the <br />employee shall be entitled to 66.66% of unused sick leave benefits <br />credited to his or her account upon the effective date of termination, <br />not to exceed a maximum limit of 1,067 hours. <br />After twenty -five (25) years of service, the employee shall be entitled <br />to 100% of the amount of unused sick leave benefits credited to his or <br />her account upon the effective date of termination, not to exceed a <br />maximum limit of 1,600 hours. This amount represents 150% of the <br />amount the employee would have been entitled to had they elected to <br />cash out their sick leave hours. <br />Premiums will first be paid out of the lump sum amount contributed by the <br />employee and then out of the amount contributed by the City. If the retired <br />former employee dies before exhausting the full amount of his or her lump <br />sum contribution, the unused portion of such contribution shall be converted <br />to cash as defined in Section 11.1K1 above and distributed to the retiree's <br />designated beneficiary. <br />28 <br />