Basic Group Life Insurance Program

• Full-time permanent, salaried state employees and part-time permanent, salaried state employees who work at least 20 hours a week.
• Full-time permanent, salaried faculty and part-time permanent, salaried faculty who work at least 20 hours a week.
• Full-time permanent, salaried teachers, school administrators and other eligible school employees.
• Full-time permanent, salaried employees of VRS-participating political subdivisions, such as cities, counties and towns. Not all political subdivisions participate in the Group Life Insurance Program. Contact your human resource office to find out if you are eligible.

Your coverage is in effect while you are employed in a covered position with an employer that participates in the Group Life Insurance Program. Your coverage will continue while you are on leave without pay, including military leave, for up to 24 months, provided you or your employer continues to pay your basic group life insurance premiums.

The benefit amount is equal to your compensation, rounded to the next highest thousand and then doubled.

Example: If your compensation is $41,400, that amount would be rounded to $42,000 and then doubled for a natural death benefit of $84,000.

For the accidental loss of one limb or the sight of one eye, your benefit is equal to your compensation rounded to the next highest thousand. For the accidental loss of two or more limbs, total loss of eyesight or the loss of one limb and one eye, your benefit is equal to your compensation rounded to the next highest thousand and then doubled.

If you die or suffer dismemberment in an accident while driving or riding in a private passenger vehicle, your life insurance will pay an additional amount equal to 10 percent of the accidental death or dismemberment benefit, up to $50,000. You must have been using a safety restraint. This benefit is not payable if you or another person was driving without a license, under the influence of alcohol or drugs or otherwise impaired.

If you die in an accident 75 miles or more from your home, your life insurance will pay for the cost of transportation to return your remains to your home, up to $5,000.

Your basic group life insurance coverage provides additional benefits if you die or are dismembered as a result of a felonious assault while performing your job duties. The incident must have occurred at your employer’s normal place of business or while you were on work-related travel. The assaulter must have used force with intent to cause harm and be charged with a misdemeanor or felony. No benefit is payable if the assaulter is an immediate family member. Felonious assault benefits include:

• $50,000 or 25 percent of your accidental death or dismemberment benefit, whichever is less.
• Virginia Education Savings Trust account for each dependent child if you die as a result of the assault. The amount is approximately equal to tuition and mandatory fees to attend a public college or university in Virginia. Your child may use the account for tuition and mandatory fees at any accredited college or university in the United States that is eligible to participate in federal student financial aid programs.

If you are diagnosed with a terminal condition and have fewer than 12 months to live, you can withdraw some or all of your coverage for natural death to use for any purpose. Your beneficiary or survivor will receive any amount remaining in your coverage upon your death.

Coverage While on Leave without Pay

You can continue your basic group life insurance coverage while on leave without pay for up to 24 months. If you are on active duty military leave, your coverage will continue for as long as you are on military leave. If your employer does not continue your premiums while you are on leave, you must submit them to your employer for your coverage to continue.

Irrevocable Assignment

You may make an irrevocable assignment, also called “absolute assignment,” of your ownership rights in your basic group life insurance coverage to another person. “Irrevocable” means you cannot change the assignment once it is made. The person to whom you assign your ownership rights also has the option to change your beneficiary designation. Before making an irrevocable assignment, contact a legal advisor or Minnesota Life toll free at 1-800-441-2258 for more information..

Loans Prohibited

You may not borrow from or use your group life insurance coverage to secure a loan.

Imputed Income

Imputed income is the value of life insurance 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 is reflected in your W-2 you receive from your employer. When you retire, VRS will deduct FICA and income taxes for as long as your basic group life insurance coverage exceeds $50,000. For more information, see Insurance in Retirement.

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 any outstanding child support obligations at your death.