Home
Basic Group Life Insurance
Benefits
After you retire with an unreduced or reduced retirement benefit, you receive Basic Group Life Insurance coverage at no cost to you provided you meet the eligibility requirements under your retirement plan.
Your coverage includes
- Death benefit equal to your compensation at retirement, rounded to the next highest thousand and then doubled. The provision that allows for payment of double the death benefit for accidental death ceases upon retirement. Dismemberment insurance also ceases upon retirement.
- If you have 20 or more years of service, your death benefit is equal to twice your highest annual compensation in your history of VRS-covered employment, even if your compensation at retirement was lower.
- Accelerated death benefit. If you are diagnosed with a terminal condition and have fewer than 12 months to live, you can withdraw part or all of your Basic Group Life Insurance coverage for any purpose. Any amount remaining in your plan is paid to your beneficiary.
Coverage
Your coverage begins to reduce on the January 1 following one calendar year of retirement. The reduction rate is 25 percent each January 1 until it reaches 25 percent of its value at retirement.
| When... | Then... | Example |
|---|---|---|
You retire; |
Your life insurance benefit is equal to your compensation at retirement, rounded to the next highest thousand and then doubled; |
You retired on March 1, 2013. Your compensation at retirement was $49,780; for your life insurance coverage, that amount is rounded to $50,000 then doubled to equal $100,000 at retirement; |
On January 1 after you complete one calendar year of retirement (January through December); |
Your life insurance coverage reduces 25 percent; |
Your first 25 percent reduction will be on January 1, 2015 with remaining coverage of $75,000; |
On January 1 after you complete two calendar years (January through December) of retirement; |
Your life insurance coverage reduces another 25 percent; |
Your next 25 percent reduction will be on January 1, 2016 with remaining coverage of $50,000; |
On January 1 after you complete three calendar years (January through December) of retirement. |
Your life insurance coverage reduces a final 25 percent and remains at that value for the rest of your retirement. |
Your final reduction will be on January 1, 2017 and your coverage will remain at $25,000 for the rest of your retirement. |
Imputed Income Taxes
Imputed income is the value of life insurance coverage in excess of $50,000 as determined by the Internal Revenue Service. The amount over $50,000 is subject to FICA tax and federal and state income taxes and will be reflected on your W-2.
Keep Your Beneficiary Up to Date
If your beneficiary changes, complete the Designation of Beneficiary (VRS-2) 
51kb and mail it to Minnesota Life.
Payment of Child Support Liens
The Department of Social Services may file child support liens against proceeds payable under the Group Life Insurance Program. VRS is required to pay life insurance proceeds to the Department of Social Services to satisfy outstanding child support obligations at your death.
Questions about Life Insurance Coverage
Joseph Chang, Manager, Richmond Office
Minnesota Life
P.O. Box 1193
Richmond, VA 23218-1193
1-800-441-2258
