KATHY HOCHUL
Governor
TIMOTHY R. HOGUES
Commissioner
NY26-14
PE26-12
TO: Health Benefits Administrators of New York State (NYS) Agencies and Participating Employers (PEs)
FROM: Employee Benefits Division
SUBJECT: Management/Confidential Life Insurance Plan Annual Update
DATE: August 7, 2026
The Employee Benefits Division is conducting its annual Management/Confidential Life Insurance Plan (M/C Life) update. Please post or distribute the attached notice to inform your M/C Life enrollees.
Further information for HBAs appears below.
AUTOMATED CHANGES IN PREMIUM
Changes to an enrollee’s premium will occur if any of the following take place:
- They reach a higher five-year premium age bracket as of September 1.
- They reach an age that requires a reduction in coverage.
- They elect coverage based on a multiple of their annual salary and have experienced a change in their salary since the last update.
For NYS employees, the annual update process will produce changes in payroll deductions. For PEs, changes will be reflected in the monthly bill for September coverage.
SALARY/COMPENSATION USED IN CALCULATIONS
Coverage as a multiple of salary is based on annual salary plus permanent additional compensation such as location pay, geographic differential or special allowance. Shift differential, overtime and maintenance adjustments are not included.
Salary for NYS employees is reported by the Office of the State Comptroller using Administration payroll checks dated July 15 and Institution payroll checks dated July 23. Salary for PE enrollees and the Legislature is provided by HBAs.
Access the annual salary used for premium calculation and benefit purposes by running the BEA_LIFE_ANN_SAL_LIST report. Refer to memo NY15-23/PE15-19 for more.
MULTIPLE OF SALARY CHANGES
Enrollees wishing to change their multiple-of-salary option must complete the M/C Life Insurance Transaction Form (PS-934). They must check “Change in Coverage” in Box 12, provide the reason for the change and select an option in 13A. Coverage may be increased up to five times an employee’s annual salary (up to $500,000). Any increase requires submission of a completed Statement of Health directly to MetLife.
AGE-RELATED REDUCTIONS IN COVERAGE FOR ACTIVE EMPLOYEES
If coverage exceeds $15,000, coverage for active employees is reduced when the enrollee reaches age 65, 70, 75 or 80. Reductions become effective the first day of the payroll period beginning or following September 1.
|
Enrollee Age |
Percentage of Coverage Retained |
|
65 and older, but less than 70 |
65% |
|
70 and older, but less than 75 |
45% |
|
75 and older, but less than 80 |
30% |
|
80 and older |
20% |
The employee’s premium is based on the reduced amount of coverage. Coverage cannot be reduced below $15,000. If the reduced amount is not an exact multiple of $1,000, it is rounded up to the nearest $1,000.
This reduction may also reduce spousal coverage. Spousal benefits equal 50% of the enrollee’s coverage or $20,000, whichever is less.
AGE-RELATED REDUCTIONS IN COVERAGE FOR RETIREES
Retirees who elected the multiple-of-salary option and continue coverage will have their life insurance reduced on the September 1 coincident with or next following their 65th or 70th birthday.
|
Enrollee Age |
Percentage of Coverage Retained |
|
65 and older, but less than 70 |
65% |
|
70 and older |
Reduced to $15,000 |
Spousal coverage may also be reduced. Spousal benefits equal 50% of the enrollee’s coverage or $20,000, whichever is less.
ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGE
All active employees, regardless of age, and retirees under age 70 are covered for accidental death and dismemberment (AD&D) benefits equal to their life insurance coverage, up to $250,000. Retired enrollees age 70 and older are not eligible for AD&D coverage.
SMOKER/NON-SMOKER CHANGES
Enrollees previously classified as “smokers” who have not smoked since September 1, 2025, can apply for a special non-smoker premium discount. To update smoker status, enrollees must complete the M/C Life Insurance Transaction Form (PS-934), check “Non-Smoker” in Box 6, check “Other” in Box 12, write in “change in smoker status” and submit the signed form to their HBA. Forms must be returned to HBAs by September 30, 2026, and received by the M/C Life Insurance Unit by October 31, 2026.
EFFECTIVE DATES OF AUTOMATED PREMIUM CHANGES AND
COVERAGE AMOUNTS
|
OSC Payroll |
First Paycheck With New Deduction |
Effective Date of Changes in Life Insurance Coverage |
|
Administration Current |
August 26 |
September 10 |
|
Institution Current |
August 20 |
September 3 |
|
Administration Lag |
September 9 |
September 10 |
|
Institution Lag |
September 3 |
September 3 |
For PE enrollees, premium and coverage changes become effective September 1.