STATE EMPLOYEES
RETIREMENT COMMISSION
COMPTROLLER'S SEAL STATE OF CONNECTICUT 55 ELM STREET
HARTFORD, CONNECTICUT
06106-1775
TELEPHONE: (860) 702-3480
TELEFAX:(860) 702-3489
MEDICAL EXAMINING BOARD
for DISABILITY RETIREMENT
HEALTH CARE COST
CONTAINMENT COMMITTEE
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

I. INTRODUCTION

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.

II. BACKGROUND

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.

IV. CONCLUSION

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

BY:

Steven Weinberger, Director
Retirement & Benefit Services Division

SW/NM/sa

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