1420 - Basic Group Life Insurance

Category

Benefits and Insurance

Audience List

  • Personnel Officers
  • Personnel Transactions Staff
  • Personnel Transactions Supervisors

Synopsis

This policy

  • Provides information about Basic Group Term Life Insurance.
  • Provides eligibility criteria and level of coverage.
  • Provides benefit amount.
  • Provides information about impact to benefits upon movement to represented status.
  • States information about rolling over state paid insurance into retirement at employee cost.
  • Provides MetLife contact information.
  • States administrative fee.
  • States annual age updates.

Introduction

The Basic Group Term Life Insurance Program is offered at no charge to managers, supervisors, confidential, and other specified excluded employees.  This benefit is provided to excluded employees in the event of an accidental death or dismemberment.

The California Department of Human Resources (CalHR) Benefits Division, maintains responsibility for the program.  The carrier for the Basic Group Term Life Insurance Program is MetLife.

Statement

Benefit Amount and Employer Contribution

Benefit Amount                                            Employer Contribution

Managers
$50,000 Policy                                                          $6.90
$25,000 Policy at age 70                                          $3.68

Supervisor/Confidential
$25,000 Policy                                                          $3.68
$12,500 Policy at age 70                                          $2.06

Age 70

The Basic Group Term Life Insurance policy for excluded employees requires that when the employees reaches age 70, their employer-paid life insurance premiums and benefit will be reduced by 50 percent.  This reduction is effective on January 1, after the year in which the employee turns age 70 and is reflected in the December pay period.

It is the Department’s responsibility to communicate this information to their excluded employees, prior to December.

Administrative Fee

The employing departments pay a monthly administrative fee of 50 cents per enrolled employee.

Retirees

Current state employees who wish to continue their Basic Group Term Life Insurance coverage into retirement at their cost must enroll within 30 days after retirement.

At age 65 the Basic Group Term Life Insurance is reduced by 50 percent, then to a flat amount at age 70.

Under 65:

  • Supervisors: $25,000 coverage, $51.50 monthly premium

  • Managers: $50,000 coverage, $103.00 monthly premium

Ages 65-69:

  • Supervisors: $12,500 coverage, $25.75 monthly premium

  • Managers: $25,000 coverage, $51.50 monthly premium

Age 70 & Over:

  • Supervisors: $5,000 coverage: $10.30 monthly premium

  • Managers: $5,000 coverage, $10.30 monthly premium

Administrative Fee for Retirees

There is an administrative charge of $0.45 cents per month.

Eligibility

Employees must work half time or more with one of the following designations:

Permanent, CEA, Limited Term of 6 months and over, or Temporary Authorization (TAU) appointment in lieu of permanent appointment if CBID is:

  • Managerial
  • Supervisory
  • Confidential
  • E48, E50, E58, E59, E68, E78, E79, E88, E89, E92, E97, E98, E99
  • E90 in class codes 2545, 4189, 4232, 5309, 5316, 5319, and 5695 or
  • E91 in class codes 5987, 5988, 5991 or
  • Employees moved to E01 through E21, E67 or E77 due to middle management reductions or
  • Permanent Intermittent employees who meet the above requirements.

Level of Coverage

The amount of coverage is based on an employee's designation as specified below:

CBID: M, E50, E59, E79, E88, E89, E90*, E91, E92, E99 or E77***

  • Amount of Coverage: $50,000 Basic
  • Plus $50,000 Accidental Death & Dismemberment
  • Deduction Code: 200-003
  • Employer Contribution: $6.90/month

CBID: Managers moved to E01 through E21***

  • Amount of Coverage: $50,000 Basic
  • Plus $50,000 Accidental Death & Dismemberment
  • Deduction Code: 200-004
  • Employer Contribution: $6.90/month

CBID: C, S, E48, E58, E68, E97, E98, E67***, E78** Supervisors moved to E01 through E21***

  • Amount of Coverage: $25,000 Basic
  • Plus $25,000 Accidental Death & Dismemberment
  • Deduction Code: 200-003
  • Employer Contribution: $3.68/month

CBID: Judges and Staff

The Judicial Council is responsible for auditing and determining temporary employee's eligibility before submitting the STD. 698 (Life Insurance Enrollment Authorization) form to the State Controller's Office.

  • Amount of Coverage: $50,000 Basic
  • Plus $50,000 Accidental Death & Dismemberment
  • Deduction Code: 200-005
  • Employer Contribution: $6.90/month

* Only in certain class codes as listed under "Eligibility".

** Employees moved to E58 or E78 due to mid-management reductions retain the $50,000 management coverage; however, future incumbents receive the $25,000 supervisory level.

*** Employees moved to E01 through E21, E67, or E77 due to mid-management reductions retain their level of coverage prior to the re-designation; however, future incumbents are designated represented and are not eligible for this benefit.

Loss of Eligibility

Employees who are designated confidential, supervisory, and managerial under the Ralph C. Dills Act receive certain leave and other benefits that exceed those provided to represented employees.

Movement from excluded to represented status

Voluntary Movement

Employees enrolled in the state-paid Basic Group Term Life Insurance, may convert their coverage to a private life insurance policy without evidence of insurability.  A conversion authorization form must be requested from MetLife with 30 days of appointment to a represented classification.

Adverse Actions

Loss of eligibility due to an adverse action will be handled the same as a voluntary movement.

Involuntary Re-designation to a Represented Position

Involuntary transfer includes certain movements from supervisory to rank and file position and reassignment of confidential employee to non-confidential position and is involuntary (but without fault) on the employees part, and the CBID is changed immediately, to reflect the new position.  Upon the employee’s involuntary change the employing department must pay 12 months of basic life insurance premiums as noted in the employer contribution.  Premiums are to be paid directly to MetLife and must be accompanied by a cover memo with the employee’s name, last four of his/her social security, home address, the employee’s effective date of old CBID and effective date of the new CBID change.

MetLife
425 Market Street, Suite 970
San Francisco, CA 94105
Attn: State of California Policy Administrator
(RE: GP #74503)

At the end of the 12 months the employee may convert the coverage to a private policy without medical review and the new premium will be at the employee’s expense.

Questions

If employees have questions regarding their life insurance or how to continue life insurance into retirement, the employee can contact MetLife at 1-800-252-8524.

Application

Not Applicable.

Authorities

Resources

Forms

PML

  • PML 1994-020: Mid-Management Reduction Program – Red Circle Salary Rates and Benefits - 4/8/1994
  • PML 1995-017: PML 1995-017 - 4/3/1995 - Excluded Employees - Impact to Benefits upon Movement to Represented Status
  • PML 2012-011: PML 2012-011 - 5/7/2012 - Premium Rate Reduction for Basic Group Term Life Insurance Program for Excluded Employees
  • PML 2015-022: PML 2015-022 - 7/29/2015 - Basic Group Term Life Insurance Administrative Fee Increase
  • PML 2015-036: PML 2015-036 - 12/17/2015 - Annual Premium Age Update Review – Basic Group Term Life Insurance, Supplemental Life Insurance, and Long Term Disability Insurance

Web Pages

  • MetLife: Supplemental Life Insurance Enrollment for Excluded Employees

Contact Person

Monica Hernandez
Benefits Program Analyst, Long Term Disability
Phone: 916-324-0533
Fax: 855-238-3276
Email: ltd@calhr.ca.gov

Authorized By

Ralph Cobb
Chief (Acting), Benefits Division

History

View History

Table of Contents

1000 - Equal Employment Opportunity

1100 - Selection

1200 - Appointments

1300 - Exempt Employees

1400 - Benefits and Insurance

1500 - Work Schedules

1600 - Third Party Pre-Tax Parking

1700 - Compensation

1800 - Savings Plus

1900 - Bona Fide Associations

2000 - Collective Bargaining

2100 - Leave

2200 - Travel/Relocation

2300 - State Owned Housing

2400 - Employee Recognition

2500 - Discipline

2600 - Layoffs

2700 - Retirement

2800 - Training

2900 - Workforce Planning

3000 - Examination and Hiring

3100 - Drug-Free Workplace