Policies, Union Contracts, Handbooks > Support Staff Policies and Procedures

Basic Employer-Paid Life Insurance Plan

(Revised 07/08)

Policy

Applies to: Regular 50% time or more faculty and academic staff, and regular full-time University support staff and flexible appointees

The University provides a Basic Employer-Paid Life Insurance benefit for eligible employees.

Summary of benefits:

The benefit is payable in the event of the employee's death.

The benefit is an amount of insurance equal to the employee's base annual salary. For hourly-rated employees, the amount shall be equal to the base hourly rate multiplied by 2,080. Accrued sick leave, vacation, personal leave and longevity pay are included in the Basic Employer-Paid Life Insurance benefit payment, not in addition to it.

The maximum benefit is $50,000.

Premium contribution: The University pays the entire cost of the benefit.

Application for enrollment:

No application is necessary. Coverage is automatic.

Designation of a beneficiary is optional. If not specified, the benefit proceeds are paid to the beneficiary indicated by the employee for their Optional Employee-Paid Life Insurance policy, if any.

If no beneficiary is designated, payment is made to the survivors in the first surviving class of those that follow:

• spouse,
• children (divided equally, if more than one exists),
• parents (divided equally if more than one exists),
• brothers/sisters (divided equally if more than one exists), or
• if none survives, then payment is made to the employee's estate.

Effective date of benefit: Coverage is effective immediately the first active work day.

Termination date of benefit:

1. The Basic Employer-Paid Life Insurance benefit terminates on the employee's last day of active employment or transfer to an ineligible status (VARIES: CTU employees who gain eligibility for coverage as a full-time employee, and change to part-time status of 50% or more, will remain covered on a proportional basis).
2. The benefit terminates 180 days from the last day paid for employees on leave of absence (including layoff) for any reason. It is reinstated automatically upon return to eligible active employment (for flex appointees, see Policy and Procedure for flexible appointments).

Procedure

Enrollment in benefit plan:

Employee:

1. No action required; enrollment is automatic.
2. Beneficiaries may be designated or changed by using the Beneficiary Designation form available at MSU Human Resources Benefits. If beneficiaries are not specified, they will automatically be the same as the Optional Employee-Paid Life Insurance Plan if enrolled. If not, payment is made to the survivors in the first surviving class of those that follow:
   • spouse,
   • children,
   • parents,
   • brothers/sisters or
   • if none survives, then payment is made to the employee's estate.

Changes in coverage or personal information:

Employee:

1. No action required except to change beneficiary at MSU Human Resources Benefits.
2. Amount of coverage changes automatically as base wage/salary changes. If absent on the day the change in base wage/salary is effective, the change in the amount of coverage is postponed until return to active work as defined in the brochure, available at MSU Human Resources Benefits.

Notification of death:

Department:

1. Notify MSU Human Resources Benefits immediately upon the death of an employee.
2. Refer questions concerning benefits of deceased employee to MSU Human Resources Benefits.

1. Coordinates notification to appropriate University offices.
2. Notifies carrier.