|55 ELM STREET
TELEPHONE: (860) 702-3480
|MEDICAL EXAMINING BOARD
for DISABILITY RETIREMENT
|HEALTH CARE COST
|STATE OF CONNECTICUT
RETIREMENT AND BENEFIT SERVICES DIVISION
OFFICE OF THE STATE COMPTROLLER
Retirement & Benefit Services Division Memorandum
March 27, 2003
TO THE HEADS OF ALL STATE AGENCIES
|ATTENTION:||Personnel and Payroll Officers, Chief Administrative and Fiscal Officers and Business Managers|
|SUBJECT:||2003 Early Retirement Incentive Program for Employees Participating in the State of Connecticut Group Life Insurance Policy|
As announced in the Retirement & Benefit Services Division (Division) Memorandum dated March 7, 2003, the State of Connecticut enacted an Early Retirement Incentive Program (ERIP) for certain members of the State Employee Retirement System (SERS). The purpose of this memorandum is to discuss the effect on employees covered under the State of Connecticut Group Life Insurance Policy (Policy) who retire under the provisions of the ERIP.
Each insured employee, who retires in accordance with any retirement plan for state employees, will be insured on a reduced basis in accordance with Section 5-257(d) of the Connecticut General Statutes (CGS). The amount of basic life insurance of an insured employee who retires will be reduced at retirement depending on the number of years of state service, as defined in Section 5-196(25) of the CGS. This reduction, known as a paid-up policy, will become effective at retirement; monthly premiums for the paid-up policy are paid entirely by the state. The paid-up policy has no cash value and is payable only upon the retirees death. Retirees may convert to an individual policy any amount up to the full amount of the reduction at their own expense in accordance with the "Conversion Privilege" provision of the Policy.
III. ELIGIBILITY REQUIREMENTS
To be eligible for a paid-up Policy, insured employees must make a direct transition into retirement from active service that is, such employees must retire the first of the month following termination. Only actual state service is applied when calculating the amount of the paid-up Policy; incentive years are not considered.
Please do not direct employees with inquiries concerning the Policy to the Division's Employee Benefits Unit (EBU). Agencies that have general questions may contact the EBU between 8:30 a.m. and 4:30 p.m. at (860) 702-3543.
Very truly yours,
NANCY WYMAN, STATE COMPTROLLER
Steven Weinberger, Director
Retirement & Benefit Services Division
Return to Index of 2003 Retirement Division
Return to Index of Comptroller's Memoranda
Return to Comptroller's Home Page