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 twice your annual compensation at retirement payable to your beneficiary upon your death. 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.

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) 42kb 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