Employee, Spouse, Child Life Insurance
If you want life insurance protection or you want to supplement the protection you already have, you may choose group term life coverage under the Flexible Benefits Program.
You may choose coverage equal to:
- one times your pay (maximum coverage is $300,000)
- two times your pay (coverage maximum is $500,000)
- three times your pay (coverage maximum is $500,000)
- four times your pay (coverage maximum is $500,000)
- five times your pay (coverage maximum is $500,000)
- six times your pay (coverage maximum is $500,000)
- seven times your pay (coverage maximum is $500,000)
- eight times your pay (coverage maximum is $500,000)
- nine times your pay (coverage maximum is $500,000)
The life insurance amount you choose will be based on your Benefit Salary as of October 1, or your date of hire, whichever is later. This amount is rounded up to the next higher $1,000, after you multiply your coverage and the premium has been adjusted for your October 1 pay and age. If you are age 65 or older, the value of your life coverage is reduced.
The premium cost for life insurance is based on your age, salary, and on the amount of coverage you choose. You may pay your premiums with pre-tax or after-tax dollars if you choose coverage over $50,000. If you have over $50,000 of life insurance coverage, it's worth knowing that:
- the extra "value" of your coverage will be shown as "imputed income" on your W2 statement, and you will also pay FICA taxes as well on "imputed income."
- the extra taxes you may owe will be minimal… and the tax savings using pre-tax premiums will be greater than any "imputed income" tax withheld, unless you earn over $100,000 and are over age 65.
In any case, if you elect over $50,000 of coverage you have the option to pay for life insurance with after-tax premiums and avoid imputed income. If you wish to elect after-tax premiums, indicate your choice on the web or on your Option Statement.
HOW EMPLOYEE LIFE INSURANCE WORKS
The life insurance amount you choose is paid to your beneficiaries if you die while this coverage is in effect. Your beneficiaries are the persons you name to receive your life insurance benefits. If you participate in life insurance and AD&D, your beneficiary designation will be the same for both.
Whenever you enroll or change your life insurance coverage, be sure to check the Life Medical Underwriting process so you will know what will be expected. These processes are described on the Current Employees Chart and New Employees Chart.
For more information regarding conversion and portability of your Employee Life, Spouse Life, and Child Life insurance, contact Minnesota Life Insurance toll free at 1-800-660-2519.
ENROLLING FOR COVERAGE
If your coverage selection requires medical underwriting, an approval by Minnesota Life, the insurance carrier, must be made before coverage can be in effect.
If you are a newly eligible employee, you may elect $30,000 or less of spouse life coverage and/or any coverage of child life without completing the medical underwriting process.
ATTENTION ERS PENSION PLAN MEMBERS
The Employee's Retirement System of Georgia will be implementing a new retirement plan for state employees hired on or after January 1, 2009. This new plan, the Georgia State Employees' Pension & Savings Plan (GSEPS), will be a combination pension and 401(k) plan with an employer match. Employees covered under the current ERS retirement plan will have the option to transfer their membership to this plan beginning in January. One change with GSEPS is that Life Insurance through the retirement system will not be included in GSEPS retirement membership, as it is now with ERS membership. Therefore, if you are considering transferring your retirement membership to GSEPS, you should also consider obtaining or increasing Life Insurance through Flexible Benefits during this Annual Enrollment period. For more information about GSEPS, visit the Employees' Retirement System of Georgia web site at www.ersga.org or call 1-800-805-4609.