The Empire Plan is a unique health insurance plan designed especially for public employees in New York State. Empire Plan benefits include inpatient and outpatient hospital coverage, medical/surgical coverage, Centers of Excellence for transplants, infertility and cancer, home care services, equipment and supplies, mental health and substance abuse coverage and prescription drug coverage.
NY15-18
PE15-13
TO: Agency Health Benefits Administrators
FROM: Employee Benefits Division
SUBJECT: Management/Confidential Group Life Insurance Plan Annual Update
DATE: August 6, 2015
EBD is preparing for the 2015 Annual Update of the Management/Confidential (M/C) Group Life Insurance Plan enrollment records.
Post the attached notice to inform your M/C enrollees of the 2015 M/C Group Life Insurance Plan Annual Update.
RATE SCHEDULE
Personal life premium rates will decrease 4.9% for the plan year September 1, 2015 through August 31, 2016. Additionally, the administrative charge rate for the plan will increase slightly resulting in a 0.1% increase in the dependent and spouse rates. Accidental Death and Dismemberment and Accident and Sickness rates will remain at zero.
CHANGES IN PREMIUM FOR ENROLLEES
The annual update will automatically produce a change in payroll deductions for NYS employees. Participating Employers will see changes to their enrolled employees’ premium in their monthly bill with the Statement Date of August 7, 2015.
In addition to the premium change resulting from the change in the rate schedule, changes to an enrollee’s premium occur when:
- Any enrollee has reached a higher five-year premium age bracket as of September 1, 2015;
- Any enrollee whose age as of September 1, 2015, requires a reduction in coverage; or
- Any enrollee covered at a multiple of annual salary who experiences a change in their salary which affects their total amount of coverage, including reaching the maximum benefit amount of $500,000.
SALARY/COMPENSATION USED IN CALCULATIONS
Updated life insurance coverage for NYS enrollees who have chosen a multiple of salary option for their coverage amount is based upon the annual salaries as reported by the Office of the State Comptroller (OSC) for the following payrolls:
Institution Payroll checks dated July 23, 2015
Administration Payroll checks dated July 29, 2015
Updated life insurance coverage for PE enrollees or NYS enrollees whose salary is not reported by OSC is based upon the annual salaries reported by the agency Benefits Administrators.
Enrollees whose salaries change between the dates above and September 1, 2015, should submit a request for an adjustment in their coverage to reflect the salary change. Benefits Administrators should review their agency listing run from the NYBEAS Query explained in memo NY15-19 / PE15-15 and report any incorrect salaries to the Employee Benefits Division, ATTN: M/C Life Insurance Unit, no later than October 31, 2015.
Additional compensation paid on a permanent basis, such as location pay, geographic differential, or special allowance, will be included in the annual salary. However, items such as shift differential, overtime pay and maintenance adjustments are not considered salary for life insurance purposes.
Enrollees requesting to increase or decrease their multiple of salary option must fill out a PS-934, M/C Life Insurance Transaction Form, check the “Change in Coverage” box in item 14 and select one of the options in item 15, that is either greater or less than their current option choice. Enrollees may increase their multiple of salary option up to five times their annual salary, however the maximum benefit allowed under this policy is $500,000. Increases in coverage requests require enrollees to mail a completed Statement of Health form to MetLife.
AGE-RELATED REDUCTIONS IN COVERAGE FOR ACTIVE EMPLOYEES
Active employees age 65 and over whose Life Insurance coverage exceeds $15,000 will have a reduction in their benefit if they reach age 65, 70, 75, or 80 on or before September 1, 2015. The reduced coverage amount will take effect September 10 for Institution payroll employees and September 17 for Administration payroll employees and September 1 for employees of Participating Employers. The following chart shows the reduced percentage based on age.
| Enrollee's Age | Percentage Reduction |
| 65 through 69 | 35% |
| 70 through 74 | 55% |
| 75 through 79 | 70% |
| 80 and older |
80% |
The employee’s premium will be based on the reduced amount of coverage. In no case will an employee’s coverage be reduced below $15,000. If after the reduction the enrollee’s coverage is not a multiple of $1,000, it will be increased to the next higher $1,000.
When an actively working enrollee reaches age 65, 70, 75, or 80 and their Life Insurance is reduced, their spouse’s coverage may also be reduced. At no time can spousal Life Insurance benefits be more than 50% of an enrollee’s Life Insurance benefit, with a maximum benefit of $20,000.
AGE-RELATED REDUCTIONS IN COVERAGE FOR RETIREES
Retirees age 65 and over whose Life Insurance coverage exceeds $15,000 will have a reduction in their benefit if they reach age 65 or 70 on or before September 1, 2015. The reduced coverage will take effect on September 1.
| Enrollee's Age | Percentage Reduction |
| 65 through 69 | 35% |
| 70 and older |
Reduced to $15,000 |
Spouse coverage may be reduced when the enrollee’s Life Insurance benefit is reduced. Spouse coverage will equal 50 percent of the enrollee’s coverage or $20,000, whichever is less.
ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGE
All active employees, regardless of age, as well as retirees under age 70 will be covered for Accidental Death and Dismemberment (AD&D) benefits equal to their life insurance coverage up to $250,000. Retired enrollees, age 70 and over, are not eligible for AD&D.
SMOKER/NON-SMOKER CHANGES
Individuals previously enrolled as “smokers” who have not smoked since September 1, 2014, may now apply for the special non-smoker premium discount. To apply for non-smoker status, enrollees must complete a PS-934 “Management/Confidential Group Life Insurance Transaction” form, including checking “Other” in block 14 and then submitting the completed form to their agency Benefits Administrator. These forms must be returned to their agency Benefits Administrator by September 30, 2015, and forwarded to and received by the M/C Life Insurance Unit by October 31, 2015.
EFFECTVE DATES OF PREMIUM CHANGES/COVERAGE AMOUNTS
Effective dates of new payroll deductions and changes in the amount of life insurance coverage for NYS employees on the OSC payroll system will change automatically on the Institution and Administration paychecks dated as follows:
| Payroll | First Paycheck with New Deduction | Effective Date of Changes in Life Insurance Coverage |
| Institution Current | 8/20/2015 | 9/3/2015 |
| Administration Current | 8/26/2015 | 9/10/2015 |
| Institution Lag | 9/3/2015 | 9/3/2015 |
| Administration Lag | 9/9/2015 | 9/10/2015 |
Effective dates of new payroll deductions and changes in the amount of life insurance coverage for PE enrollees will be September 1, 2015.
AGENCY AND INDIVIDUAL UPDATE NOTICES
In mid-August 2015, agencies will be able to run a report in NYBEAS showing the updated status for their enrollees. HBA memo NY15-19 / PE15-15 will be issued by mid-August providing detailed instructions on how to run this report. If you have any questions please call the M/C Life Insurance Unit at (518) 473-3496 and select the life insurance option.