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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

Coverage

Your coverage begins to reduce on January 1 following one calendar year of retirement. The reduction rate is 25 percent each January 1 until it reaches 25 percent of the total life insurance benefit 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) pdf icon 52kb 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

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