Citi Benefits Handbook
Basic Life Insurance
Citi provides Basic Life insurance through MetLife at no cost to you if your benefits eligible pay is less than $200,000. If your annual benefits eligible pay is equal to or above $200,000, you are not eligible for company-paid Basic Life insurance.
The benefit is equal to your benefits eligible pay, rounded up to the nearest $1,000, to a maximum of $200,000. Benefits eligible pay is recalculated each year (June 30), and the new coverage amount is effective the following January 1.
Since Citi pays the full cost of Basic Life insurance, you must pay taxes on the value of the coverage above $50,000 as required by the Internal Revenue Code (the "Code"). The Basic Life insurance benefit that exceeds $50,000 for tax purposes is treated as income to you and is called "imputed income." This imputed income is taxable income to you and is shown on your pay statement and Form W-2 Wage and Tax Statement for the year in which coverage was effective. Imputed income is taxable pay based on your age and the amount of Basic Life insurance coverage above $50,000.
If your benefits eligible pay is more than $50,000, you may elect to limit your Basic Life insurance to $50,000. You will not have imputed income or be subject to the related tax; however, you will also forego the additional benefit. You will not have the opportunity to enroll in Basic Life equal to your benefits eligible pay or to reduce coverage until the next annual enrollment period.