16-P-021 Optional Group Life Insurance Rate Changes, Spousal Life Insurance, and Child Life Insurance Changes (April 22, 2016)

KPERS has approved a new Optional Group Life Insurance provider effective July 1, 2016. The Standard will replace Minnesota Life. Due to this change in provider the Employee Optional Group Life Insurance rates are changing effective July 1, 2016 as follows:

        Age as of                                                 Monthly Premium
        January 1, 2016                                               per $1,000       
           Under 25                                                        $0.037
             25-29                                                           $0.037
             30-34                                                           $0.055
             35-39                                                           $0.064
             40-44                                                           $0.073
             45-49                                                           $0.110
             50-54                                                           $0.156
             55-59                                                           $0.293
             60-64                                                           $0.467
             65-69                                                           $0.869
             70-74                                                           $1.409
           75 and Older                                                  $1.528

An administrative fee of $0.20 per month will continue to be added to the employee premium each month.  Maximum employee coverage available is $300,000.00.  The age calculation will continue to be based on the employee’s attained age as of January 1^st of the current calendar year.

At this time the Spousal Group Life Insurance and Child Life Insurance rates will remain the same. An administrative fee of $0.20 per month will continue to be added to the spousal premium each month. Effective, July 1, 2016, a new $.20 administrative fee will be added to the child premium each month. Maximum coverage is available up to $100,000 for Spousal Group Life Insurance and $20,000 for Child Life Insurance. 

The new rates are effective with coverage for the month of July, 2016.  Therefore, the July 15, 2016 paycheck (paycheck issued for the payroll period ending July 2, 2016) will be the first check issued with the new rates since Optional Group Life Insurance premiums are collected on the second biweekly paycheck of the month for that month’s coverage. 

The Office of the Chief Financial Officer, Payroll Services Team will ensure the updates are made to the SHARP payroll system to effect this change for all employees from whom SHARP calculates pay.  Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to July 1, 2016.

Printable Version of 16-P-021

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