Department of Civil Service

NY97-18
PE97-16

TO: State Agency and Participating Employer Benefits Administrators
FROM: Employee Benefits Division
SUBJECT: Annual Update Statement of Management/Confidential Life Insurance Program
DATE: August 29, 1997

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 SCHEDULE

The rate for the plan year beginning September 1, 1997, is the same as the existing rate except for two technical corrections relating to the top three quinquennial age brackets and monthly rate schedule. The 70 to 74, 75 to 79 and 80 and over age brackets were combined into a single 70 and over bracket. This age bracket consolidation was done to make the M/C Life's bracket splits the same as those contained in Section 79 of the Internal Revenue Service Code. This will reduce the likelihood of employees realizing imputed income and having to pay income taxes because their life insurance premium is lower than allowed by the Internal Revenue Service Code. The monthly rate table values changed modestly to bring them into mathematical sync with the biweekly rate table values. A revised rate schedule which reflects the updated premiums effective September 1, 1997, 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, 1997

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 1997, 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, 1997, AND RECEIVED BY THE MANAGEMENT/CONFIDENTIAL LIFE INSURANCE ACCOUNTING UNIT BY OCTOBER 31, 1997. 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 or adopted child or stepchild, 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.