Employee Matters

This column by Employee Compensation and Benefits Services addresses campuswide employment issues. Send your questions to: wisweek@news.wisc.edu.

In January of each year, UW–Madison employees who are enrolled in State Group Life may receive an automatic increase in the employee coverage amount. The coverage increase is based on the prior year’s Wisconsin Retirement System earnings rounded up to the next $1,000, and coverage becomes effective Friday, March 1. Premiums may increase as they are based on the amount of coverage and employee age as of Jan 1.

The State Group Life premium is deducted from payroll two months in advance of coverage. Any deduction changes will take effect on the Feb. 1 payroll for unclassified employees and on Feb. 7 for classified employees.

How is the increase in coverage determined?
The increase is per unit of employee coverage that an employee is enrolled in. Each unit is equal to an employee’s annual salary rounded up to the next $1,000. The maximum number of units available for an employee is five. The increase is not elective. Elective decreases in the coverage per unit may be allowed under certain circumstances. The increase in coverage amount does not apply to any spouse or dependent coverage.

How do I find out about my coverage level?
The 2001 Staff Benefits Statement sent April 2001 reflects the coverage amount for calendar year 2001. Employees will receive a 2002 Staff Benefits Statement this April that will show the new amount. Contact a benefits coordinator or a benefits specialist if information is required before April.

Can I still change my coverage?
If you did not elect all available employee units or spouse and dependent coverage when initially eligible, you may apply through evidence of insurability. Form ET-2305 is available at the Employee Compensation and Benefits Services Web site, or contact a benefits specialist. Instructions are included with the form. Exception: If you did not have a spouse or dependent to insure when initially eligible, you may later obtain coverage for them by filing an application, Form ET-2304, within 30 days of the date you marry or have a dependent child, whichever is earliest. Form ET-2304 is also used for decreasing coverage.

What are the features of this type of insurance?
In addition to providing a benefit for loss of life due to natural causes, the State Group Life Plan includes these features:

• Accidental death, dismemberment and loss of use coverage (employee only).
• Waiver of premium during periods of total disability.
• Living benefits.
• Insurance without further premiums for eligible retirees older than 65.
• Option to continue coverage during layoff or approved leave of absence.
• Conversion coverage for spouse or dependents when eligibility is lost.
• Option to convert post-retirement coverage to pay premiums for state group health or university-sponsored long-term care insurance.

The State Group Life Plan booklet (ET-2101) is available at our Web site. Visit: http://www.bussvc.wisc.edu/ ecbs/forms.html. Or ask your benefits coordinator for a copy.

Who can answer questions?
Contact a benefits specialist, 263-7556, 262-5650, employee@bussvc.wisc.edu.