Department of Civil Service

NY96-42
PE96-18

TO: State Agency and Participating Employer Benefits Administrators
FROM: Employee Benefits Division
SUBJECT: Annual Update Statement of Management/Confidential Life Insurance Program
DATE: August 20, 1996

Enclosed is a master list, new biweekly and monthly master rate schedules and individual account information statements which list the updated coverage, premium costs and biweekly payroll deductions for all employees of your agency who are enrolled in the Management/Confidential Life Insurance Program. Please duplicate the rate schedules as needed.

RATE REDUCTION

Due to favorable claims experience we are pleased to announce a premium reduction in the M/C Life Insurance Program. A revised rate schedule which reflects the new premiums effective September 1, 1996, is enclosed. PLEASE USE THE NEW RATE SCHEDULE TO CALCULATE PREMIUMS FOR COVERAGE ON OR AFTER SEPTEMBER 1.

EFFECTIVE DATES OF NEW COVERAGE/DEDUCTIONS

For active employees enrolled in the M/C Life Insurance program the following dates will apply:

* Changes are effective 12:01 a.m.

State agencies and Participating Employers that prepare their own payrolls must initiate the deduction changes for their enrolled employees.

ENROLLEES NOT ACTIVELY AT WORK AS OF SEPTEMBER 1, 1996

Coverage changes due to salary changes for enrollees on leave without pay will not take place until the first day of the payroll period that the enrollee returns to actively-at-work status. Do not distribute the account information statements to these enrollees. Please return the appropriate account information statements to the Management/Confidential Life Insurance Accounting Unit noting that the enrollee is on leave.

ENROLLEES OFF THE PAYROLL OR WITH PAYROLL TRANSACTIONS IN JULY OR AUGUST

Please examine the data on the master list and compare it with your enrollment file and payroll records. Pay particular attention to the data and records of any enrollee who may have been off the payroll for any part of July or August 1996, or for whom a personnel or payroll transaction, including line item change, was processed for that period. Contact the Management/Confidential Life Insurance Accounting Unit for any changes not reflected on the statements. ALL REQUESTS FOR COVERAGE CHANGE, DUE TO A SALARY CHANGE, NOT REFLECTED ON THE MASTER LIST, MUST BE MADE BY THE ENROLLEE BEFORE SEPTEMBER 30, 1996, AND RECEIVED BY THE MANAGEMENT/CONFIDENTIAL LIFE INSURANCE ACCOUNTING UNIT BY OCTOBER 31, 1996. A COPY OF THE PAY STUB MUST BE ENCLOSED WITH THE REQUEST.

CHILD COVERAGE

Each enrollee with dependent child coverage should check the child's continued eligibility. A child is eligible for dependent life coverage only if he or she is a natural, adopted, or step child, is unmarried and under 19 years of age (but at least 15 days old), or a full time dependent student at an accredited school, under age 25, receiving more than one half of their support from the enrollee. (Time spent on military duty up to 4 years may be subtracted from child's age for purposes of determining maximum age for dependent student eligibility.) When the enrollee no longer has any children eligible for dependent life insurance they should cancel this coverage. You must adjust the premium accordingly.

Upon loss of eligibility, a child is entitled to convert to an individual policy with Metropolitan Life without proof of insurability. The enrollee must request a conversion form from you.

DISTRIBUTION OF ACCOUNTING INFORMATION

Please keep the master list for your agency records and distribute the individual account information statements to your enrollees.

If you detect any errors or omissions, or if you require additional information or assistance, please call the Management/Confidential Life Insurance Accounting Unit at (518) 457-5765 or 457-5778.

EMPLOYEE BENEFITS DIVISION

M/C LIFE RATE SCHEDULE

MANAGEMENT/CONFIDENTIAL GROUP LIFE INSURANCE
BIWEEKLY RATE SCHEDULE
Rates Effective September 1, 1996
Employee Life and AD&D

* Life Insurance Only
** Limited to $20,000
*** This $.28 rate covers all your eligible children. It provides $4,000 coverage for each child.

MANAGEMENT/CONFIDENTIAL GROUP ACCIDENT AND SICKNESS INSURANCE
LIMITED TO CURRENT ACCIDENT AND SICKNESS ENROLLEES AS OF JANUARY 1, 1986

EXTRA MONTHLY INCOME BENEFIT

UNDER AGE 40: .07
AGE 40 AND OVER: .08

ADDITIONAL LOSS LIFE AND LIMB

$10,000/.02
$25,000/.04

To determine Total Biweekly Costs, Each Calculation is Rounded Separately, See Sample Calculation.

SAMPLE CALCULATIONS

John Doe, age 48 and a non-smoker, whose annual salary is $68,690 applies for personal life insurance at five times his annual salary, dependent life insurance for his spouse, and also for his three children. He is also eligible for and elects a $400 basic monthly benefit and a $10,000 additional loss of life and limb under the accident and sickness insurance plan.

Five times his annual salary is $58,690 x 5 = $293,450
His insurance amount is $294,000 ($293,450 rounded to the next higher thousand dollars)
His spouse's coverage is the maximum $20,000 (half of the enrollees coverage up to a maximum of $20,000)
Each child has a $4,000 coverage
As a non-smoker he is eligible for the non-smoker rate.

*Round each calculation:for amounts ending between .001 to .004 drop last digit; for amounts between .005 and .009 round to next digit.

(1) Each calculation is rounded up or down according to the above instructions.

EMPLOYEE BENEFITS DIVISION

M/C LIFE RETIREE RATE SCHEDULE

MANAGEMENT/CONFIDENTIAL GROUP LIFE INSURANCE
MONTHLY RATE SCHEDULE
Rates Effective September 1, 1996
For Enrollees who Retired After September 1, 1992
Employee Life and AD&D

* Life Insurance Only
** Limited to $20,000
*** This $.61 rate covers all your eligible children. It provides $4,000 coverage for each child.