State Group Life Insurance Annual Update
April 5, 2012
An employee's State Group Life Insurance coverage level and premium have historically been based on the employee's highest calendar year of Wisconsin Retirement System (WRS) earnings (typically the prior year's earnings) and the employee's age as of April 1st. Due to issues surrounding the changes in the WRS contribution rates during the summer of 2011, the annual process to update an employee's WRS earnings for State Group Life Insurance will not occur in 2012. This means that an employee's coverage level will be the same for 2012 as it was in 2011. However, premiums will be updated if an employee moves to a different premium category due to age or if there is a premium change associated with the employee's age (premiums for some age brackets are decreasing). Any premium changes will be effective with premiums paid for May coverage (paid April 26th for classified employees and paid May 1st for unclassified employees).
If a covered employee (or retiree) dies in 2012, Minnesota Life, the underwriter of the State Group Life Insurance plan, will confirm the employee's 2011 WRS earnings with the UW, and the death benefit will be based on the employee's highest year of WRS earnings (even if the highest year of earnings occurred in 2011).
The next earnings update will occur in 2013 when both 2011 and 2012 WRS earnings will be loaded to Minnesota Life's system, and coverage will be based on the highest year. No retroactive premiums will be due.
The 2012 premiums are available online at: http://uwservice.wisc.edu/premiums/#life.
If you have any questions, please contact your institution's payroll and benefits office.
Source: UW System Administration
Categories: Insurance