Employee Matters

This column is prepared by staff from the Office of Human Resources. E-mail questions to benefits@ohr.wisc.edu or call 262-5650. For more information, visit Payroll and Benefits Services.

Individual and family group term life insurance annual increase option

Each spring, employees who carry individual and family life insurance have the right to increase existing coverage on themselves, their spouse/domestic partner and their children.

The option is open to active employees who have coverage in effect on or before Jan. 1, 2009.

Insured employees on an approved leave of absence or in layoff status whose coverage has not lapsed due to nonpayment of premiums are eligible for the AIO and will receive a notice. However, the AIO is not available while premiums are waived during periods of total disability, if an accelerated death benefit has been taken or if participants have reached the plan’s maximum coverage limits.

How much coverage is available?

The maximum amount of coverage available is: Employee = $200,000; spouse/domestic partner = $100,000; and children = $10,000. However, spouse/domestic partner or child coverage may not exceed that of the employee.

During this annual increase option period, coverage can be increased by the following amount (subject to coverage maximums): Employee = $5,000, $10,000 or $20,000; spouse/domestic partner = $5,000 or $10,000; and children = $2,500. Again, please note that the amount of spouse/domestic partner or child coverage may not exceed that of the employee.

When is the 2009 annual increase option period?

The period runs March 2–20.

What is the process to increase coverage?

UW System, the plan administrator, will mail the annual increase option notice to employees’ home addresses on or about Feb. 27. Address information is taken from January 2009 payroll records.

If you wish to increase coverage, you must send the completed notice to UW System HR by mail at 780 Regent St., Suite 305, Madison, WI 53715, or by fax at 608–265–5307. Forms are due by Friday, March 20.

What if I carry individual and family life insurance but I do not receive a notice?

E-mail benefits@ohr.wisc.edu.

By how much will my premiums increase?

The premium will be listed in your notice.

When will the coverage increase be effective?

The coverage increase will be effective May 1.

When will the new premium be taken from my paycheck?

Premiums are deducted one month in advance of coverage. Therefore, the new premium will be deducted from your April payroll (classified pay date April 23; unclassified pay date May 1).

What do I need to do if I do not want to increase coverage?

No action is needed. You do not need to return the notice.

Can my premium increase even if I do not increase my coverage?

Yes, the notice will indicate if your premium will increase due to a change in age category.

What are my options if I do not currently carry individual and family life insurance?

This is not an open enrollment period. If you don’t carry the coverage, you are not eligible to enroll during this period. Instead, you must request coverage through Evidence of Insurability. See “Enrollment Alternatives” on the OHR Web site.