COMPTROLLER'S SEAL STATE OF CONNECTICUT

STATE OF CONNECTICUT

NANCY WYMAN
COMPTROLLER
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MARK OJAKIAN
DEPUTY COMPTROLLER

COMPTROLLER'S MEMORANDUM NO. 2007 - 14

May 4, 2007

TO THE HEADS OF ALL STATE AGENCIES

ATTENTION: Personnel and Payroll Officers, Chief Administrative and Fiscal Officers,Business Managers
SUBJECT: Supplemental Employee Benefits Program

I. INTRODUCTION

Comptroller's Memorandum No. 97-8 announced the commencement of the Supplemental Employee Benefits Program (Program), an initiative designed to provide employees with access through the central payroll system to offerings that complement those basic benefits the state funds either in whole or in part. All benefits under the Program are paid for in their entirety by voluntary employee payroll deductions.

Pursuant to Connecticut General Statutes, Section 3-123g, the Comptroller is charged with the duty of conducting a Request for Proposal (RFP) every five years in order to review publicly solicited proposals from firms interested in participating in the Program. The Comptroller is responsible for establishing a Vendor Advisory Committee (VAC), consisting of management and labor representatives, to review the RFP responses and taking into consideration price, and each vendor's skill, ability, integrity, and past performance make recommendations regarding program selection. From the submissions received, the VAC identified products which would in its collective judgment be of value to state employees, given the range of basic benefits funded by the employer. The process concluded with the Comptroller's selection of eight firms to participate in the Program.

In that connection, the purpose of this memorandum is to (1) provide a summary of the selected vendors along with a brief description of the benefits offered; (2) restate program eligibility requirements and (3) announce the selection of the State's new Long Term Care provider.

II. DISCUSSION

A. Program Components

The eight vendors that now participate in the Program offer the following seven supplemental benefits: (1) short term disability, (2) long term disability, (3) auto and homeowners insurance, (4) cancer insurance (5) universal life insurance, (6) term life insurance, and (7) long term care.

A brief description of the benefits offered as well as the authorized vendors and their telephone numbers follows. This description should help familiarize agency personnel and payroll officers with information relative to supplemental products currently available.

Short Term Disability Insurance1 Two vendors offer this product

Colonial Supplemental Insurance Company - (800) 884-0689 or (860) 645-8833
 
Available to full-time, active employees working 17.5 or more hours per week, this product protects against the short-term loss of income due to an on the job or off the job covered accident or illness.
 
Fort Dearborn Life Insurance Company - (866) 858-1171
 
Available to full-time, active employees working 20 or more hours per week, this product protects against the short-term loss of income due to an off the job covered accident or illness.

Long Term Disability Insurance1 One vendor offers this product

Hartford Life & Accident Insurance Company - (888) 723-8583
 
Available to full-time, active employees, working at least 30 hours a week, this product protects against the long-term loss of income due to accident or illness. This offering should be of particular interest to members of Tier II and Tier IIA of the State Employee Retirement System as they are not covered by non-service connected disability provisions prior to completing ten years of vesting service.

Auto & Homeowners Insurance Two vendors offer this product

Metropolitan Property & Casualty Insurance Company & Affiliates - (800) 438-6381
 
Liberty Mutual Insurance Company- (800) 225-8281
 
Available to full-time, active employees working 17.5 or more hours per week, retirees, spouses, civil union partners and domestic partners2, this product protects against liability and damage to, or loss of, auto, home and other personal property.

Cancer Insurance One vendor offers this product

AFLAC - (877) 295-9939
 
Available to full-time, active employees working 17.5 or more hours per week, retirees, spouses, civil union partners and domestic partners2, this product pays benefits for certain cancer treatments and screenings. It is designed to supplement existing health insurance coverage.

Universal Life Insurance1 One vendor offers this product

ING Employee Benefits- (800) 842-8444
Available to full-time, active employees working 17.5 or more hours per week, spouses, civil union partners, domestic partners2, children and grandchildren (grandchildren who are residents of New York and under the age of 14 are not eligible) interested in supplementing their life insurance coverage offered on a qualified issue basis.

Term Life Insurance1 One vendor offers this product

Fort Dearborn Life Insurance Company - (866) 858-1171
 
Available to full-time active employees working 20 or more hours per week, retirees, spouses, civil union partners, domestic partners2 and children interested in supplementing their life insurance coverage (employee/retiree must participate in the State's Basic Group Life Insurance Program).

Long Term Care Insurance One vendor offers this product

MetLife - (800) 582-2889
 
MetLife has been selected as the State's new Long Term Care provider. Note that MetLife will be attending all 2007 open enrollment fairs in an effort to provide information regarding the upcoming program enrollment period.
 
Available to full-time, active employees working 17.5 or more hours per week and retirees, spouses, civil union partners, domestic partners2, parents, parents-in-law, grandparents and adult children age 18 or older, this product protects against the cost of long term health care, whether at home or in a nursing home. This multi-life discounted policy is approved by the Connecticut Partnership and, as such, protects a subscriber's assets from depletion due to the cost of long-term care.
 
MetLife will extend simplified underwriting to new employees applying for coverage within 90 days of hire date. Eligible employees will be allowed to enroll during their agency's open enrollment period with simplified underwriting. After the 90 day eligibility period all applicants will be required to answer additional medical questions. MetLife may also require attending physician statements and a phone health interview. For applicants that are age 71 and older, a face to face interview will be required in lieu of a phone health interview. Further information regarding underwriting requirements will be discussed during enrollment sessions.
 
Current UNUM participants will continue to be serviced by MedAmerica. Questions regarding current long term care participation with UNUM may be addressed to MedAmerica at 1-877-202-6043.

1 Open enrollment periods are conducted for these benefits. Eligible employees will be allowed to enroll during their agency's open enrollment period without the need for medical underwriting or a physical examination, subject to certain coverage limitations. This privilege will be extended to new employees hired within 31 days after the open enrollment period concludes.

2 Domestic Partners are defined as: At least 18 years of age, of the same sex, have lived together at least 12 months, are not married to someone else and are jointly responsible for maintaining a common household.

B. Implementation

Subject to operating needs, agencies are encouraged to accommodate the Program's authorized vendors so that they may speak to, meet with, and enroll employees. With the exception of ING, the State's third party administrator for its Defined Contribution Plans, agencies are specifically directed to deny access to any other firms seeking to market products or services to state employees, as they have not received the Comptroller's "official seal of approval".

A reminder that the specific responsibility to administer payroll deductions for employees who elect to participate in the Program has been assigned to the Comptroller's Payroll Services Division (PSD), which will coordinate directly with each vendor for payroll deduction processing. Payroll Services Division will not accept deduction override transactions for the following supplemental benefit program deduction codes:

Supplemental Benefits Program Vendors Deduction Codes: AFLAC, COLLIF, COLSTD, HAILIB, HAIMET, LIFING, LIFMDS, LIFTRM, LTCARE, LTDISB.

III. CONCLUSION

In the event an employee has a deduction for a benefit for which they have not enrolled, the individual vendor must be contacted directly by the employee for assistance.

The general responsibility to administer the Program has been assigned to the Comptroller's Retirement & Benefit Services Division (RBSD); accordingly, administrative and related concerns should be directed to the RBSD at (860) 702-3543. Payroll inquiries should be directed to PSD at (860) 702-3464.

Very truly yours,

NANCY WYMAN
STATE COMPTROLLER

NW/TW/SA/AA

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