Department of Civil Service

NY22-16
PE22-11

TO: Agency Health Benefits Administrators
FROM: Employee Benefits Division
SUBJECT: Management Confidential (M/C) Group Life Insurance Plan Annual Update
DATE: August 5, 2022

The Employee Benefits Division is preparing for the 2022 Annual Update of the Management/Confidential (M/C) Group Life Insurance Plan enrollment records.

The attached notice should be posted to inform your M/C enrollees of the 2022 M/C Group Life Insurance Plan Annual Update.

CHANGES IN PREMIUM
Changes to an enrollee’s premium occur when they:

• Have reached a higher five-year premium age bracket as of September 1,
• Reach an age as of September 1 that requires a reduction in coverage, or
• Elect coverage at a multiple of their annual salary and have a change in the salary

The annual update process will:

• Produce a change in payroll deductions for NYS employees.
• Reflect a change in the August 5, 2022 monthly bill for September coverage for Participating Employers.
  
  

SALARY/COMPENSATION USED IN CALCULATIONS
Enrollees who have chosen a multiple of salary option for their coverage amount is based upon their annual salary. Including any additional compensation paid on a permanent basis such as location pay, geographic differential, or special allowance, is included in the annual salary. Shift differential, overtime pay, and maintenance adjustments are not included in the annual salary for Life Insurance purposes.

Updated salary information is received as follows:

• For NYS as reported by Office of the State Comptroller (OSC) for the following payrolls:

Administration Payroll checks dated 08/02/2022

Institution Payroll checks dated 08/09/2022

• For PE enrollees or NYS Legislature Members, is based upon the annual salaries provided by the agency Benefits Administrators.

The annual salary used for premium calculation and benefit purposes can be accessed by running the BEA_LIFE_ANN_SAL_LIST Report. Please refer to NY 15-23/PE 15-19 regardless of how the salary update gets reported.

You should review your employee’s salary information using the query above. If an employee’s reported salary changes prior to September 1st, or the salary on the query report is incorrect, you must notify the Employee Benefits Division’s M/C Life Insurance unit no later than September 30, 2022. PE Benefit Administrators may update the salaries themselves no later than September 30, 2022 by following the Salary Update Procedure mailing that was sent to your agencies in June.

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” in box 12, provide the reason for the change and select one of the options in 13A. 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
If an enrollee continues to work beyond age 65 and the enrollee’s Life Insurance is more than $15,000, the amount of the enrollee’s coverage will be reduced effective the first day of the payroll period after the September 1 coincident with or after the day he or she reaches age 65, 70, 75, and 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 an even $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
If the enrollee selected the multiple of salary option, retired, and continues coverage under the Plan, the amount of the enrollee’s Life Insurance coverage will be reduced effective on the September 1 coincident with, or next following, the day the enrollee reaches age 65 or 70.

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 but not above $250,000.  Retired enrollees, age 70 and over, are not eligible for AD&D coverage.

SMOKER/NON-SMOKER CHANGES
Individuals previously enrolled as “smokers” who have not smoked since September 1, 2020, 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, elect “nonsmoker” in box 6, checking “Other” in box 12 and then submitting the completed form with a signature to their agency Benefits Administrator.  These forms must be returned to you by September 30, 2022 and forwarded to and received by the M/C Life Insurance Unit by October 31, 2022.

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:

Effective dates of new payroll deductions and changes in the amount of Life Insurance coverage for PE enrollees will be September 1, 2022.

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