STATE OF CONNECTICUT
COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
DEPUTY COMPTROLLER
|
||
STATE OF CONNECTICUT |
||
| NANCY WYMAN COMPTROLLER |
OFFICE OF
THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775 |
MARK OJAKIAN DEPUTY COMPTROLLER |
COMPTROLLER'S MEMORANDUM NO. 2002-23
June 24, 2002
TO THE HEADS OF ALL STATE AGENCIES
| ATTENTION: | Personnel and Payroll Officers, Chief Administrative and Fiscal Officers and Business Managers |
| SUBJECT: | Group Life Insurance Plan for State Employees Supplemental Life Insurance Premium Increase |
I. INTRODUCTION
The purpose of this memorandum is to advise of an increase to the premium rate for optional group life insurance, commonly known as Supplemental Life Insurance, effective July 1, 2002.
II. BACKGROUND
Connecticut General Statutes (CGS), Section 5-257(e) provides that any non-bargaining unit employee whose yearly gross compensation is at least forty-five thousand, five hundred dollars may purchase Supplemental Life Insurance up to a maximum of fifty thousand dollars, in addition to any basic life insurance coverage available pursuant to CGS Section 5-257(b). Additionally, for certain collective bargaining employees, this Supplemental Life Insurance will become effective as of the date this schedule is accepted by the prevailing collective bargaining agreement. An employee must be a participant in the Basic Life Insurance Plan in order to purchase Supplemental Life Insurance. The actual cost of the Supplemental Life Insurance coverage is fully borne by the employee.
III. DISCUSSION
During the last four years the Supplemental Life Insurance Program has experienced a loss ratio in excess of 153%; therefore, Medical Life Insurance Company has increased the cost of the insurance coverage to $.73 per $1,000 effective July 1, 2002. This new rate will remain in effect through June 30, 2003. Medical Life Insurance Company notified participating employees directly of the new cost for their coverage.
IV. ADMINISTRATION
State payroll deductions will automatically reflect the rate increase in the July 12, 2002 biweekly paycheck (July 15, 2002 semi-monthly). However, the supplemental premium schedule in the Group Life Insurance Summary Plan Description (SPD) dated July 1997 is no longer valid; therefore, until a new SPD is issued the following supplemental premium schedule must be adhered to:
GROUP LIFE INSURANCE PLAN
SUPPLEMENTAL PREMIUM SCHEDULE
EFFECTIVE JULY 1, 2002
| Amount of Insurance | Bi-Weekly Rate | Semi-Monthly Rate | Amount of Insurance | Bi-Weekly Rate | Semi-Monthly Rate |
|---|---|---|---|---|---|
| $5,000 | $1.68 | $1.83 | $28,000 | $9.43 | $10.22 |
| $6,000 | $2.02 | $2.19 | $29,000 | $9.77 | $10.59 |
| $7,000 | $2.36 | $2.56 | $30,000 | $10.11 | $10.95 |
| $8,000 | $2.70 | $2.92 | $31,000 | $10.44 | $11.32 |
| $9,000 | $3.03 | $3.29 | $32,000 | $10.78 | $11.68 |
| $10,000 | $3.37 | $3.65 | $33,000 | $11.12 | $12.05 |
| $11,000 | $3.71 | $4.02 | $34,000 | $11.46 | $12.41 |
| $12,000 | $4.04 | $4.38 | $35,000 | $11.79 | $12.78 |
| $13,000 | $4.38 | $4.75 | $36,000 | $12.13 | $13.14 |
| $14,000 | $4.72 | $5.11 | $37,000 | $12.47 | $13.51 |
| $15,000 | $5.05 | $5.48 | $38,000 | $12.80 | $13.87 |
| $16,000 | $5.39 | $5.84 | $39,000 | $13.14 | $14.24 |
| $17,000 | $5.73 | $6.21 | $40,000 | $13.48 | $14.60 |
| $18,000 | $6.06 | $6.57 | $41,000 | $13.81 | $14.97 |
| $19,000 | $6.40 | $6.94 | $42,000 | $14.15 | $15.33 |
| $20,000 | $6.74 | $7.30 | $43,000 | $14.49 | $15.70 |
| $21,000 | $7.08 | $7.67 | $44,000 | $14.82 | $16.06 |
| $22,000 | $7.41 | $8.03 | $45,000 | $15.16 | $16.43 |
| $23,000 | $7.75 | $8.40 | $46,000 | $15.50 | $16.79 |
| $24,000 | $8.09 | $8.76 | $47,000 | $15.84 | $17.16 |
| $25,000 | $8.42 | $9.13 | $48,000 | $16.17 | $17.52 |
| $26,000 | $8.76 | $9.49 | $49,000 | $16.51 | $17.89 |
| $27,000 | $9.10 | $9.86 | $50,000 | $16.85 | $18.25 |
IV. CONCLUSION
Employees may contact a Medical Life Insurance Company representative at 1-800-624-7872 with any questions concerning the rate increase.
Questions concerning payroll procedures may be directed to the Payroll Services Division at (860) 702-3463. Questions concerning the administration of Group Life Insurance benefits may be directed to the Retirement & Benefit Services Division, Employee Benefits Unit at (860) 702-3543.
Very truly yours,
Nancy Wyman
State Comptroller
NW/SW/sa
Return to Index of 2002 Comptroller's Memoranda
Return to Index of Comptroller's Memoranda
Return to Comptroller's Home Page