|
|
|
2006 Procedures Manual
Member Coverage
| Spouse Coverage
| Child(ren) Coverage
| To Increase
Coverage |
To Decrease or Terminate Coverage | Family
Status Change |
Optional Life Insurance Annual Update
|
Member
Coverage |
back
to top |
-
Waiver of Premiums
- If a member becomes disabled
while actively employed, he/she may be eligible
to continue life insurance coverage without
paying the monthly premium. Eligibility
for a waiver of life insurance premium is
automatically evaluated when the member
files a claim for long-term disability.
If the member qualifies for waiver of premium,
all premiums will be waived, including those
for spouse and/or child(ren) coverage. Waiver
of premiums starting on or after July 1,
2005, will stop when the member is eligible
for normal retirement.
-
Transferring Employees
- Members transferring from another
state agency may keep the same amount of
optional life coverage. If the member would
like to increase life insurance coverage,
the member must provide evidence of insurability.
You may verify the member’s prior
coverage amount on the Employer
section of our website or contact a
benefit counselor.
|
|
Amount
of Coverage: |
Flat amount in $10,000 increments.
Cannot exceed the lesser of six times the member's
annual salary of $800,000. |
|
Cost of Coverage: |
Rate based on member's age. Premiums are due
for the entire period, even if coverage is effective
for only part of the period. |
|
How to Enroll: |
New Hire: complete the New
Employee Record (New Member Packet)
Late Enrollment: member must
complete an Enrollment/Change - Optional Life
Insurance form and a Medical History
Statement. |
|
Eligibility Date: |
The first day the member is actively employed
in a MOSERS covered position. |
|
Effective Date: |
For coverage to become effective, the member
must meet the "actively at work" requirement.
Coverage is effective the day the form is signed,
if the form is signed within 31 days of employment.
If the form is completed after the 31-day eligibility
period, coverage is effective the first of the
next pay period after approval by Standard Insurance
Company. |
|
Coverage at Retirement: |
Up to $60,000, in $500 increments
(provided the member had that amount of coverage
prior to retirement and retires directly from
active employment).
MSEP 2000 Provision - If a member
retires under the “Rule of 80” and
has more than $60,000 of optional life insurance
in effect prior to retirement, the member may
retain all optional life insurance coverage until
the member is eligible for reduced social security
benefits (currently age 62). At that time, the
member’s coverage will automatically reduce
to $60,000. |
|
Annual Update Period: |
Each October, MOSERS offers an opportunity for
eligible members to increase their optional life
insurance coverage, within the established guidelines,
without proving insurability (see Optional
Life Annual Update Period ). |
|
Family
Status Change: |
In the event of a family status change, the
member may be eligible to apply for up to $30,000
of optional life insurance coverage (in $10,000
increments) without proving insurability. The
member must submit an Enrollment/Change -
Optional Life Insurance form and proof of
the event within 31 days of the event. See Family
Status Change for more information. |
|
|
Spouse
Coverage |
back
to top |
-
A spouse is defined as a
person to whom a member is legally married.
-
The member must be enrolled
in the optional life insurance program to
purchase spouse coverage.
-
The member is automatically
the beneficiary of spouse coverage.
-
Full-time members of the
armed forces of any country are not eligible
for coverage.
-
If the member becomes disabled
and qualifies for waiver of premium, all
premiums will be waived, including those
for spouse coverage. Waiver of premium ends
when the member is eligible for normal retirement.
|
| Amount
of Coverage: |
Flat amount in $10,000 increments.
Cannot exceed the lesser of the member's optional
life coverage or $100,000. If the coverage is
over $10,000, the spouse must complete a Medical
History Statement to prove insurability. |
| Cost
of Coverage: |
Rate based on member's age.
Premiums are due for the entire period, even if
coverage is effective for only part of the period. |
| How
to Enroll: |
New Hire: complete the New
Employee Recored (New Member Packet).
Late Enrollment: member must
complete an Enrollment/Change - Optional Life
Insurance form and a Medical History
Statement. |
| Eligibility
Date: |
The first day the member is actively employed
in a MOSERS covered position. |
| Effective
Date: |
For coverage to become effective,
the member must meet the "actively at work"
requirement. Coverage is effective the day the
form is signed, if the form is signed within 31
days of employment. If the form is completed after
the 31-day eligibility period, coverage is effective
the first of the next pay period after approval
by Standard Insurance Company. |
| Coverage
at Retirement: |
Not available through MOSERS. Can convert coverage
to an individual policy through Standard Insurance
Company. Application must be made within 31 days
of member leaving state employment. |
| Annual
Update Period: |
Spouse coverage cannot be increased during the
October update period. |
If Husband and Wife Both Work for the State
If one spouse leaves state employment, the
remaining member may pick up spouse coverage without
proving insurability. The coverage amount is limited
to the lesser of $100,000, the amount the former employee
had as a member, or the amount the remaining member
has. You must let MOSERS know within 31 days of the
termination and coverage must be continuous. Make
a note on the Enrollment/Change
- Optional Life Insurance form that it is
a transfer and include the terminated member’s
name and social security or member number. Forms submitted
after 31 days will require proof of insurability.
|
|
Child(ren)
Coverage |
back
to top |
-
A child is defined as a
member’s unmarried child from live
birth to age 23.
-
For a disabled child to
be eligible for optional life insurance
coverage, the coverage on the child must
be activated prior to the child’s
23rd birthday. In other words, if a new
employee has a disabled child over the age
of 23, the child would not be eligible for
optional life insurance coverage. Proof
of disability will be required.
-
The member must have basic
life insurance coverage to purchase coverage
on eligible child(ren).
-
Eligible children also include
the following dependents, provided the child
is living with the member: stepchildren,
grandchildren, adopted children, or children
for whom the member is the court appointed
legal guardian.
-
The member is automatically
the beneficiary of child coverage.
-
Full-time members of the
armed forces of any country are not eligible
for coverage.
-
If the member becomes disabled
and qualifies for waiver of premium, all
premiums will be waived, including those
for child(ren) coverage. Waiver of premiums
ends when the member is eligible for normal
retirement.
|
Amount
of Coverage: |
$10,000 per child |
Cost of Coverage: |
$2.00 per month (regardless of the number of
children). |
|
How to Enroll: |
New Hire: complete the New
Employee Record (New Member Packet).
Firstborn Child: complete
an Enrollment/Change - Optional Life Insurance
form within 31 days of live birth (can enroll
prior to birth).
Subsequent Children:
automatically enrolled after live birth
(contact MOSERS with date of birth) - if not
previously denied.
Late Enrollment: member
must complete an Enrollment/Change - Optional
Life Insurance form and a Medical History
Statement.
|
|
Eligibility Date: |
The first day the member is actively employed
in a MOSERS covered position or the date the member
becomes a parent. |
|
Effective Date: |
For coverage to become effective, the member
must meet the “actively at work” requirement.
Coverage is effective the day the form is signed,
if the form is signed within 31 days of employment.
If the form is completed after the 31-day eligibility
period, coverage is effective the first of the
next pay period after approval by Standard Insurance
Company. |
|
Coverage at Retirement: |
Not available through MOSERS. Can convert coverage
to an individual policy through Standard Insurance
Company. Application must be made within 31 days
of member leaving state employment. |
|
Annual Update Period: |
Child coverage cannot be increased at any time.
$10,000 is the only amount available. |
If Both Parents Work for the State
Both parents can carry optional life insurance
on eligible child(ren) while working for the state.
If one parent has child(ren) coverage and leaves state
employment, the other parent can pick up child(ren)
coverage. You must let MOSERS know within 31 days
of the termination and coverage must be continuous.
Make a note on the Enrollment/Change - Optional
Life Insurance form that this is a tranfer and
include the terminated member’s name and social
security or member number. Forms submitted after 31
days will require proof of insurability.
|
|
To
Increase Coverage |
back
to top |
The Optional Life Insurance Annual
Enrollment provides an opportunity for eligible
employees to increase their coverage without
proving insurability.
Otherwise, the member must complete and submit
the following forms:
Do not start deducting for the
increase until you are notified of the coverage
approval. The coverage increase will become
effective on the first day of the next pay period
following the date approval is received by MOSERS.
|
|
|
To
Decrease or Terminate Coverage |
back
to top |
| The member must complete &
submit an Enrollment/ Change - Optional Life
Insurance form. Decreased coverage will become
effective the first day of the next pay period
following the date the form was signed (if received
by MOSERS within 31 days). Otherwise, decrease
will be effective the first of the next pay period
following receipt of the form by MOSERS. |
|
|
Family
Status Change |
back
to top |
A family status change is one
of the following life events (subject to the
active work provision):
- Member’s marriage, divorce, or legal
separation.
- Birth of the member’s child.
- Member adopts a child.
- Death of the member’s spouse or child.
In the event of a family status change, the
member may be eligible to apply for up to $30,000
of optional life insurance coverage (in $10,000
increments) without proving insurability. To
be eligible, the member must:
- Not have optional life insurance coverage
and never been denied optional life coverage;
or currently have optional coverage in an
amount less than the maximum allowed.
- Complete an Enrollment/Change - Optional
Life Insurance form and submit to MOSERS
within 31 days of the event (with proof document).
|
|
|
Optional
Life Insurance Annual Update |
back
to top |
On January 1 of each year, optional life
insurance coverage amounts and premiums (if
applicable) will be updated based on the member’s:
-
Age as of January 1 of
that year.
-
Salary as of July of the
previous year.
-
Election during the annual
enrollment period (if applicable).*
MOSERS and the Office of Administration will
do a verification of July salaries reported
to MOSERS and the base salaries listed in
SAM II. If the salary information does not
match, you will receive an error report with
instructions to verify the member’s
salary.
Each salary needs to be verified to ensure
that basic life insurance coverage is updated
and to prevent incorrect deductions for optional
life coverage. It is very important that you
return this information by the requested deadline.
| *Optional
Life Insurance Annual Update Period |
Each October, MOSERS offers an opportunity
for eligible members to increase their
optional life insurance coverage amount,
within the established guidelines, without
proving insurability. MOSERS will mail
eligible members an individualized enrollment
form in September.
To be eligible, the member must have:
- Optional life insurance coverage
on himself/herself.
- Not reached the maximum amount of
coverage (the lesser of 6 times their
annual salary or $800,000).
The annual update period is for member
coverage only. If the member elects
to increase his/her coverage during
the update period (to the next $10,000
threshold), the new amount will become
effective on January 1 (of the following
year) provided the member meets the
“actively at work” provision.
|
Enrollment/Change - Optional Life
Insurance
- Although this form has been incorporated
in the New
Employee Record, it will
still be available as a stand alone
form for future enrollments and changes.
- Optional life insurance coverage
not elected within the eligibility
period, or spouse coverage in excess
of $10,000, will require proof of
insurability.
- If the form is signed after the
31-day eligibility period, coverage
is effective the first of the next
pay period following approval by Standard
Insurance Company.
|
- Premiums are due for the entire
period, even if coverage is effective
for only part of the period.
- More detailed information may be
found in the “Optional Life
Insurance” section of this manual
or your Life
Insurance Handbook.
|
Enrollment/Change - Optional
Life Insurance
- Members complete sections A-D.
- Only complete section C if applying for
spouse/child coverage.
- Member must sign and date at the bottom
of section D.
- HR representative completes section E.
The annual salary must be filled in.
- HR representative must sign and date at
the bottom of section E.
Example of the Enrollment/Change
- Optional Life Insurance form below:
|
Standard Insurance Company's Medical History
Statement
-
A Medical History Statement
must be completed when required to submit “evidence
of insurability.” For example: late enrollment,
spouse coverage over $10,000, or increasing the
coverage amount for member or spouse.
-
Approval of coverage is not automatic.
The applicant must meet the underwriting requirements
of Standard Insurance Company to qualify for coverage.
-
It takes approximately 6 - 8 weeks
for Standard Insurance Company to process the Medical
History Statement.
-
You and the member will be notified
when a decision is made. To check on the status
of an application, call The Standard at (800) 843-7979.
-
If the form is incomplete or the
member has medical problems, Standard may require
more time to make a decision.
-
If the request is approved by Standard,
the coverage will be effective on the first day
of the next pay period following the date MOSERS
receives approval, provided the member meets the
“actively at work” requirements on that
date. Do not start deducting for optional life until
you are notified of the coverage approval.
Below is an example of the Medical
History Statement.
Back
to Procedures Menu
|
|
|
|
