Support Staff Policies & Procedures

Support Staff Policy & Procedure for Optional Employee-Paid Life Insurance Plan

(Revised 3/2016)

Policy

Applies to: Regular 50% time or more faculty and academic staff, University support staff, flexible appointees, and official MSU retirees

The University offers an Optional Employee-Paid Life Insurance Plan to eligible employees.

The benefit is payable in the event of death.

Eight levels of life insurance are available. Dependent options are available also. See charts below for life insurance coverage levels and monthly rates:

Optional Employee-Paid Life Insurance Coverage Levels

PLAN COVERAGE LEVELS FOR EMPLOYEE COVERAGE LEVELS FOR SPOUSE COVERAGE LEVELS FOR CHILDREN
Optional Employee-Paid Life Insurance

1 x Base Annual Earnings
2 x Base Annual Earnings
3 x Base Annual Earnings
4 x Base Annual Earnings
5 x Base Annual Earnings
6 x Base Annual Earnings
7 x Base Annual Earnings
8 x Base Annual Earnings

Maximum Benefit:
$2,000,000

$10,000
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
$5,000
$10,000 
$15,000
$20,000
$25,000


Optional Employee-Paid Life Insurance Monthly Rates 
(eff. 1/1/2015)

EMPLOYEE RATES PER $1,000 OF COVERAGE BY AGE SPOUSE RATES PER $1,000 OF COVERAGE BY AGE  (1) RATES FOR CHILDREN PER $1,000 OF COVERAGE

25-29: $0.030
30-34: $0.041
35-39: $0.046
40-44: $0.052
45-49: $0.077
50-54: $0.118
55-59: $0.220
60-64: $0.338
65-69: $0.648
70+: $1.052

 
25-29: $0.045
30-34: $0.063
35-39: $0.072
40-44: $0.081
45-49: $0.127
50-54: $0.190
55-59: $0.353
60-64: $0.543
65-69: $1.050
70+: $1.692
$0.086 per $1,000 of coverage - age is not a factor in rates for children.
 
 
Premium covers all children (e.g., you don't have to multiply it by 4 to cover 4 children.) Through age 23.
(1) Spouse rates are based on the age of the employee, NOT the age of the spouse.

The benefit has no cash or loan value. Age-related benefit reductions will occur for employees. Benefits will be reduced to 65% of your original amount at age 65 and 50% at age 70.

Premium contribution: The program is funded entirely from employee premiums and rates are subject to future group experience. The employee's monthly contributions are described in the chart above.

Application for enrollment: 
Employees should enroll within 30 days of initial employment or appointment to an eligible status. If not previously enrolled in the dependent option, newly acquired dependents may be added within 30 days of their becoming eligible dependents or during an annual open enrollment period. Only one dependent option is required for all dependents current and born thereafter.

Enrollment/Change form and Beneficiary Designation form are available from MSU Human Resources.

Employees who request to increase their life insurance coverage by one level or more, during the annual open enrollment period, will be required to complete an evidence of insurability. The University's annual open enrollment period is in the Fall (usually for the month of October) and coverage changes become effective January 1.

A new hire must elect coverage within 30 days or an evidence of insurability is required. An evidence of insurability is also required, of a new hire, if they elect an amount greater than the lesser of 3 times their base annual earnings or $500,000.

Effective date of benefit: Coverage will be effective on the date of appointment if enrolled within 30 days of appointment or eligible status, except as follows:

Termination date of benefit:

  1. Coverage will terminate on the last day of the month following the last deduction taken for this benefit.
  2. Employees who officially retire will be given the option of maintaining coverage (if under age 70) by making direct payments to MSU Human Resources. If premium payments are not made, coverage will be terminated on the last day of the month for which the premium was paid.
  3. Coverage will terminate on the date an employee becomes an official retiree, if age 70 or older.
  4. Employees on an unpaid leave of absence who wish to maintain coverage will be billed and must forward the full premium payment to MSU Human Resources. Coverage allowed to lapse due to non-payment of premiums will automatically be reinstated to the coverage in effect prior to the leave. (Employee must return to an eligible status.)
  5. Dependent coverage terminates upon the earliest of an employee's:
    • termination,
    • retirement if age 70 or over, or
    • non-payment of dependent option premium.
In addition, certain changes in dependent status will terminate coverage for dependents as stated in the Master Policy.

Portability/Conversion: Coverage may be ported/converted to an individual policy by directly contacting the carrier within 31 days of termination of coverage.

Procedure

Enrollment in benefit plan: 
Employee:

  1. Must enroll at MSU Human Resources within 30 days of initial employment or appointment to an eligible status.
  2. Must add new dependent(s) within 30 days of becoming eligible dependent(s), if dependent option was not previously selected.
  3. Enrollment beyond these periods will require completion of an evidence of insurability during the annual open enrollment period and is subject to the approval of the carrier.

Department: New employees should be encouraged to visit MSU Human Resources.

Changes in coverage or personal information: 
Employee:

  1. Changes in amount of coverage:
    • may increase one level or more at annual open enrollment period by completion of an evidence of insurability which is subject to approval of carrier.
  2. Change of beneficiary: may change beneficiary at any time.

Filing a claim: 
Department:

  1. Notify MSU Human Resources immediately upon the death of an employee/retiree.
  2. Submit Termination Form to MSU Human Resources upon death of an employee.
  3. Refer questions concerning benefits of deceased employee/retiree to MSU Human Resources.

Employee or family: Notify MSU Human Resources in the event of death of a covered dependent or retiree.

MSU Human Resources:

Premium payment (active employees): 
Employee: Authorize payroll deductions for this benefit.

MSU Human Resources: Process payroll deduction from last paycheck received in the month, for coverage the following month.

Premium payment (employees on unpaid leave of absence and retirees):
MSU Human Resources: Automatically bills the employee/retiree for premium amount due.

Reinstatement of coverage (employees returning from unpaid leave of absence): 
MSU Human Resources: Upon return from unpaid leave (to an eligible status) automatically reinstates the coverage in effect prior to the leave, if terminated for non-payment of premiums.

Refer questions to: MSU Human Resources (telephone 517-353-4434, e-mail)

Revision History:

3/18/2016 - Updated to 30 days from 60.

1/18/2016 - Updated enrollment period enrollment to 30 days from 60.

10/28/2014 - updated HR contact info

10/15/2014 - updated rates for 2015

01/03/2014 -  Updated reasons for making changes to plan.

01/18/2014 - updated enrollment period to 30 from 60

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