State of Connecticut Payroll Manual - Policy Section - SECTION II -

State of Connecticut Payroll Manual - Policy Section - SECTION II - - GROUP LIFE INSURANCE

GROUP LIFE INSURANCE

ELIGIBILITY
1. Section 5-257(a) of the Connecticut General Statutes provides that Group Life Insurance is to be available to eligible employees who have completed six months continuous state service. Coverage shall begin on the day following the date on which continuous service is completed.
2. Employees shall be given all details of the group life insurance program at their initial interview at the time of employment. The employee must make a decision on whether or not the group life insurance benefit offered by the state will be taken.
SUBMISSION OF APPLICATION CARDS
1. The Group Life Insurance application card prepared by the employee must be submitted to their agency personnel/payroll officer who in turn submits it to the Office of the State Comptroller, Special Services Division prior to the date such employee becomes eligible for coverage. Prior to submission to the Comptroller, check the card for completeness and accuracy of the data and indicate on the card the amount of coverage for which the employee is eligible. For those employees who do not want the insurance, a waiver card must be signed and submitted to the Office of the Comptroller, Special Services Division, just prior to completion of the employee's required six months continuous service.

AMOUNT OF COVERAGE

The amount of life insurance is determined by an established schedule based on the employee's regular yearly gross compensation. Increases in the amount of life insurance arising from an increase in compensation shall take effect on the first day of April, or the first day of October, whichever date first occurs following the day preceding the date on which the increase in compensation shall become effective; e.g.

EXAMPLE	(1) EFFECTIVE DATE OF PAY INCREASE	(2) DAY PRECEDING EFFECTIVE DATE OF PAY INCREASE	(3) EFFECTIVE DATE OF INCREASED INSURANCE COVERAGE
(A)	07/01/92	06/30/92	10/01/92
(B)	10/01/92	09/30/92	10/01/92
(C)	10/02/92	10/01/92	04/01/93

Thus, increases in compensation effective on the dates shown in Col., (1) above, will result in increases in the amount of life insurance which shall take effect on the dates shown in Col., (3). The increased deduction shall be taken on the payroll which is payable next after April 1, or October 1 and which pays for the respective pay period preceding that in which April 1, or October 1 occurs or which ends on April 1, or October 1.

Yearly gross compensation shall consist only of payments made on the basis of allocation of positions to the compensation schedule, or scheduled required work hours in the case of hourly workers, and shall not include overtime payments, longevity payments, or lump sum payments of a non-recurring nature; e.g., bonuses, meritorious service awards, etc.

PREMIUMS
1. The group life insurance premiums are paid monthly on the 1st day of each month to pay for that month's coverage. In order to pay these premiums, we must have on hand funds from two sources on the date of payments:
  1. The state's portion is funded through the state's appropriation for group life insurance.
  2. The employee's portion comes from employee contributions equal to twenty cents bi-weekly for each thousand dollars of life insurance. This is generally collected through payroll deductions made in the preceding month, on either two or three payrolls, depending on the number of pay days in the preceding month.
  The agency should check the employee's group life deduction for accuracy against its source data. If incorrect, make the necessary correction on the payroll.
NEW EMPLOYEES
The following are examples reflecting effective dates of insurance coverage and of payroll deductions for the employee's portion of insurance premiums:

Example 1:
1. Employee hired May 18, 1992.
2. Employee completes six months continuous service on November 17, 1992, at the close of business.
3. Employee's insurance coverage starts November 18, 1992, if present and working on that date.
4. The Comptroller will make the first monthly payment for this employee's coverage with the December 1, 1992 payment for coverage for the month of December, 1992.
5. In order to have the funds available to pay this bill, the employee's portion must be deducted from all payrolls paid in the preceding month, i.e., November 13, 1992.
  Pay Period October 16-29, 1992, payable November 13, 1992.
  
  Pay Period October 30 - November 12, 1992, payable November 27, 1992.
Example 2:
1. Employee hired March 1, 1992.
2. Employee completes six months continuous service on August 31, 1992.
3. Employee's group life insurance coverage begins September 1, 1992, if present and working on that date.
4. Employee included in payment made September 1, 1992 for coverage for the month of September, 1992.
5. In order to provide funds to make employee's share of this payment, deductions must have been taken as follows in the preceding month:
  Pay Period July 10-23, 1992, payable August 7, 1992.
  
  Pay Period July 24 - August 6, 1992, payable August 21, 1992.
Example 3:
1. Employee starts working July 27, 1992.
2. During the initial six months, employee is out on leave of absence for fifteen (15) calendar days.
3. Employee completes six months in position on January 26, 1993, close of business.
4. Adding 15 days for LAW postpones completion date for group life insurance to February 10, 1993, close of business.
5. Employee group life insurance coverage begins February 11, 1993, if present and working on that date.
6. Employee included in payment made March 1, 1993 for coverage or the month of March, 1993.
7. In order to provide funds to make employee's share of this payment, deductions must have been taken as follows in the preceding month's payrolls as shown below.
  Pay Period January 8 - 21, 1993, payable February 19, 1993.
  
  Pay Period February 22 - February 4, 1993, payable February 4, 1993.
TERMINATION OF EMPLOYMENT
The insurance of any employee insured under this section shall cease on termination of employment, subject to any conversion privilege or adjustment to the amount entitled to at retirement as provided in the group insurance policy. See Section 5-257(d) of the Connecticut General Statutes for conversion privileges at retirement.
DEATH OF INSURED
In the event of the death of the insured employee, payment of life insurance will be made in either a lump sum or installments to the designated beneficiary. The employee may change their designated beneficiary at any time by completing an Aetna "Change of Beneficiary" card which may be obtained from the Group Life Insurance Section of the Comptroller's Special Services Division. It should be noted that a change in beneficiary for Group Life Insurance purposes has no effect on the named beneficiary in the state retirement system. Similarly, making a change in beneficiary for state retirement purposes does not automatically change the beneficiary for Group Life Insurance.
WAIVER OF LIFE INSURANCE
An eligible employee may decide not to participate in the basic life insurance plan or an insured employee may wish to withdraw from participation in the basic insurance plan. In either situation, the employee should be given a waiver card for completion and signature. It should be promptly returned to the agency. In turn, the agency should submit the original card to the Comptroller's Office, Special Services Division.

Once having waived participation, the employee may obtain insurance only after evidence of insurability as determined by Aetna Insurance Company.

OPTIONAL SUPPLEMENTAL GROUP LIFE INSURANCE EMPLOYEES
NOT INCLUDED IN ANY PREVAILING BARGAINING UNIT CONTRACT

Section 5-257(e) of the Connecticut General Statutes provides that in addition to any life insurance coverage pursuant to subsection (b) optional group life insurance coverage up to a maximum of fifty thousand dollars ($50,000) may be purchased by any employee who is not included in any prevailing bargaining unit contract and whose yearly gross compensation (rate) is at least forty-five thousand five hundred dollars ($45,500). The actual cost of such optional coverage shall be fully borne by the employee. The State Comptroller shall deduct the necessary amount from the employee's pay.

Employees whose yearly gross compensation rate is at least $45,5000 and who are not included in any prevailing collective bargaining unit contract and who are currently enrolled in the employees group life insurance program are eligible to enroll in the optional supplemental employees' group life insurance program.
If the eligible employee elects an amount of supplemental life insurance coverage that is less than the maximum amount provided for in Public Act No. 87-403(e)($50,000), the initial amount must be at least $5,000. It may subsequently be increased in multiples of $5,000.
ENROLLMENT
1. NEW EMPLOYEE
  A new employee may enroll in the optional supplemental group life insurance program concurrently with enrollment in the employee's group life insurance program subject to the eligibility requirements as indicated in Section I above.
  
  If a new employee chooses not to enroll in the supplemental group life insurance program when first eligible and at a later date decides to enroll, the supplemental enrollment will be effective on either the next April 1 or the next October 1 in amounts as indicated in Section I above, provided the employee has completed the Evidence of Insurability as determined by Aetna Insurance Company.
2. TRANSFERS FROM COLLECTIVE BARGAINING STATUS
  An employee transferring from the status of inclusion in a collective bargaining unit contract to the status of non-inclusion in any prevailing collective bargaining unit contract may enroll in the supplemental group life insurance program subject to the eligibility requirements as indicated in Section I above.
  
  On the occasion of a transfer, the enrollment will be accepted effective either the next April 1 or the next October 1.
REDUCTION
1. VOLUNTARY
  The supplemental group life insurance coverage may be reduced only on written request from the insured.
2. MANDATORY
  An employee transferring from the status of non-inclusion in a prevailing collective bargaining unit contract to the status of inclusion in a prevailing collective bargaining unit contract must be dis-enrolled in this supplemental group life insurance program. The agency must inform the employee, in writing, of this change in coverage.
  
  If the employee transfer is to a bargaining unit whose contract provides for supplemental group life insurance, then the employee may participate in the programs subject to the provisions of the collective bargaining unit contract.
DISABILITY WAIVER OF PREMIUM
Disability waiver of premium is NOT applicable to supplemental group life insurance. The supplemental coverage may remain in force provided the insured is continued as an employee and continues to pay the premium. If the premium is not paid as required, the coverage will lapse and reinstatement will not be allowed until the insured returns to work. The agency must inform the employee, in writing, of this change of coverage.
WORKERS' COMPENSATION
Supplemental group life insurance may remain in force as long as the insured is receiving workers' compensation benefits provided the insured continues to pay the premium. If the premium is not paid, as required, the insurance coverage will lapse and reinstatement will be allowed only within the continuing consecutive twelve-month period. The agency must inform the employee, in writing, of this change of coverage.
WAIVER OF LIFE INSURANCE
An eligible employee may decide not to participate in the optional supplemental life insurance plan, or an employee may wish to withdraw from participation in the optional supplemental life insurance plan. In either situation, the employee should be given a waiver card for completion and signature. It should be promptly returned to the agency. In turn, the agency should submit the original card to the Comptroller's Office, Special Services Division.

Once having waived participation, the employee may obtain optional supplemental life insurance only after evidence of insurability as determined by Aetna Insurance Company.
TERMINATION OF EMPLOYMENT, RETIREMENT, OR OTHER
On termination of employment, retirement or other, the supplemental group life insurance may be converted subject to the conversion provision of the policy.

Section 5-257(e) of the Connecticut General Statutes provides that such optional coverage shall not be included when calculating the amount of reduced life insurance coverage due retired employees.

For information regarding conversion, contact:

Office of the State Comptroller, Special Services Division Phone: 566-3871
COST
As stated in the opening paragraph of this memorandum, "The actual cost of such optional coverage shall be fully borne by the employee". Check Group Life Insurance booklet for schedule of cost or contact the Special Services Division of the Office of the State Comptroller for a copy. Payroll deductions must be made in accordance with established procedures using D/OE 40, sort code 00237. The deductions for the basic employee's group life insurance must continue to be coded D/OE 66, sort code 00014.
ENROLLMENT FORM
A supply of the forms may be obtained by ordering from the Supervisor, Group Life Insurance Unit.

If you have any questions, contact the Supervisor, Group Life Insurance at 566-4559. DO NOT REFER EMPLOYEES TO THIS NUMBER.

ELIGIBILITY FOR GROUP LIFE INSURANCE AND HEALTH SERVICES
(SECTIONS 5-257 AND 5-259 OF THE CONNECTICUT GENERAL STATUTES)

Group life insurance and health insurance coverage are available to all permanent employees, classified or unclassified, whether full or part time. Refer to Section 5-196 of the Connecticut General Statutes for the definitions of permanent full-time and part-time employees.
1. The eligibility test is the permanent occupancy of a position requiring either 35 hours or more of service per week (full time) or a specified number of hours, but less than 35, per week (part time).
2. The Attorney General has rendered the opinion that, "since seasonal and intermittent employees do not work a specified number of hours in each week of the year, they do not come within the definition of either full-time or part-time employee in the State Personnel Act" (9/22/67). Refer to the Administrative Clerical Unit Contract (NP-3) for special treatment afforded to the Intermittent Claims Interviewers.
3. Provisional Appointees - Appointees in classified service who are hired provisionally in permanent positions and whose service is extended because of delays in the examination process, shall, at the expiration of six months' (full or part-time) employment, be eligible for benefits.
  NOTE: When provisional appointees are to be added to health insurance coverage, the employee hire date should show the actual date hired and the abbreviation, PROV, to show that the late accession was not the appointee's fault.
4. Employees will be offered group life insurance after the completion of the statutory requirement of six months continuous service.
  1. ) Continuous service shall mean being present or out on paid sick leave during the six month period. However, if the employee is out on sick leave (paid or unpaid) on the day they would otherwise become covered, the effective date of coverage will be postponed until the employee returns to work.
  2. ) When an employee goes on leave of absence without pay during the initial six month period of employment, the eligibility date will be affected as follows:
    1. ) 30 calendar days or less the date of eligibility for coverage will be delayed by the number of days on leave (Personnel Regulation 5-248-2e).
    2. ) Over 30 calendar days - the six month service period will recommence on the day the employee returns to work. If an employee goes on Workers' Compensation during the initial six months' employment, the date of eligibility will not be affected.
5. Health insurance coverage will be granted to permanent employees following established procedures. Probationary employees, certified from a list and in the six month working test period are eligible for health insurance coverage.
  Provisional appointees will be eligible for health insurance coverage following the completion of six months continuous service, if service is continued in another status following the completion of a four month appointment without an examination being given. The procedure to effect this coverage should be started early enough so that the appointee concerned will have coverage effective on the first of the month following the completion of six months continuous service.
Ineligible Employees - The following types of employees are not eligible to receive these fringe benefits:
1. Temporary or Emergency positions.
2. Provisional appointments which will not exceed four months.
3. Seasonal.
4. Contractual.
5. Intermittent - Where a permanent position is created for work to be done on an "as needed" basis. The handling of Intermittent Claims Interviewer positions is modified by the provisions of the Administrative Clerical Union Contract (NP-3). Refer to that contract for specific details.
Special Situations - Individuals in a permanent position with a termination date will become eligible to receive these fringe benefits, if hired as a permanent employee. An individual in a temporary position or in a provisional status who become permanent, may then apply for these benefits.
Unusual Situations - When specific instances develop that are not covered by the above, write or call the Comptroller's Special Services Division, to determine the eligibility of the position and/or individual concerned to receive these benefits.
Employees who waived their rights to group life insurance, initially, must file an evidence of insurability form with the agency payroll clerk before they can be considered for coverage.

HEALTH INSURANCE

Leave of Absence
If an employee is on LAW due to illness or injury, then the coverage for such employee and covered dependents will be continued for a period of up to twelve months from the beginning of such absence on the records of the agency where the employee last worked. The state will continue to pay its portion of the cost and the employee must make arrangements with the agency's payroll section to pay their portion. The employee's share must be received at the agency in advance of the due date for the bi-weekly payment in order for coverage to continue. Refer to the current "Schedule of Self-Administered Health Insurance Billing" for payroll deductions and for the mailing of checks to Blue Cross/Blue Shield and various HMO's.
Leave of Absence Other than for Illness or Injury
Employees going on leave of absence, without pay for any reason other than illness or injury may continue the state's health plan under the provisions of COBRA. In order to simplify operations, the following procedure will be followed for those going on leave of absence without pay other than for illness or injury.
1. Under Four Months
  If the duration of the period of LAW will be less than four months, the agency will continue to carry the person on LAW on its Health Plan bills and collect the full amount of the premium from him.
2. Four Months or Over
  If the duration of the period on LAW will be four months or over, the employee must be offered continuation coverage when under COBRA procedures.
Workers' Compensation
Payment of the state's portion will continue as long as the employee remains on compensation. The employee's share of family coverage (if any) must still be paid. Arrangements must be made for either direct payment to the agency by the employee or if leave benefits are used to supplement compensation then payroll deduction of the employee's share may be continued, as long as the supplemental amount is sufficient to cover the deductions.

NOTE: If the employee's family portion is not paid in accordance with the "Schedule", their health insurance must be terminated.
Group Health Insurance Continuation Coverage - COBRA
1. Continuation coverage is provided when a "qualifying event" occurs. Some qualifying events generate a 24-month eligibility period while other generate a 36-month eligibility period.
  Qualifying events with a 24-month eligibility period are:
  1. Voluntary termination;
  2. Involuntary termination (layoff); and/or
  3. Reduction of hours (causing loss of benefits)
  Qualifying events with a 36-month eligibility period are:
  1. Death;
  2. Divorce or legal separation;
  3. Child ceasing to be a dependent;
  4. Medicare entitlement; and/or
  5. Eligible to participate in another health benefit plan
    COBRA continuation coverage for an employee involved in a "qualifying event" shall be eligible for the same group health coverage received immediately before the "qualifying event". Qualified beneficiaries of such employees will have a status similar to an active employee.
2. Because of strict requirements of Federal COBRA laws, the entire notification process is very important. Notice of continuation coverage to a terminated employee with no qualifying beneficiary(ies) during an exit interview would be considered proper notice. Such employee must sign the form whether or not the employee elects such coverage. A copy of the notice properly dated should be placed in the employee's file. If a terminated employee has qualified beneficiary(ies), such beneficiary(ies) must be MAILED COBRA continuation forms. A notification of Cobra continuation benefits to a family should be addressed to the employee and the named beneficiary(ies), i.e., Mr. & Mrs. (name) and (name of child/children). It should be mailed to the last known address on record.
  The agency must generate the qualifying event notice within 14 days of the event. COBRA beneficiary(ies) have 60 days from the date of notice or loss of coverage whichever is later. You should check your record to ascertain the date to which the employee has paid for coverage. Include the date of loss of coverage in your notification letter and on the Office of Comptroller Form CO-887 (New 4/81).
  
  Included with your COBRA notice should be a COBRA enrollment form and a self-addressed envelope. The upper portion of the enrollment form should be completed by the agency. Retain a copy for your files and send a copy to the Special Services Division of the Comptroller's Office. The qualified beneficiary(ies) must mail the completed form to Blue Cross/Blue Shield, using the pre-addressed envelope. They have 45 days from the date they elect COBRA to pay for the retroactive coverage.
  
  A supply of enrollment forms and envelopes may be obtained by calling a Blue Cross/Blue Shield COBRA Administrator at 1-800-433-5436 or (203) 287-6715. If the employee is a participant of the CIGNA Dental Plan, they should be given a CIGNA Dental Plan COBRA form which can be obtained from the Special Services Division of the Comptroller's Office (see Exhibit 28 & 28A).
3. THE FORMER EMPLOYEE OR SURVIVING DEPENDENT MUST PAY THE FULL COST. THE STATE IS NOT OBLIGATED TO PAY ANY PART OF THEIR COST.
4. Employees will be eligible to continue only those coverages with the carrier they had at the time of termination of employment.
5. Changes in Coverage
  Rules for picking up or dropping dependents will be the same as for active employment, except that no coverage will be provided which the employee was not carrying as an active employee.
  
  If there are any questions relative to eligibility or procedures outlined, please contact the Special Services Division at 566-5057.
Disability Resulting from Pregnancy
Health plan coverage shall be continued for employees who are out on approved disability due to pregnancy, while they are being paid for accrued sick leave, vacation time, personal leave or earned time. During this period, employee and state portions of the cost will appear on the payroll.

If such employees are granted a leave of absence without pay, they will be treated as though on leave of absence due to illness, as set forth in Section 1 of this Health Insurance Section.

HEALTH AND DENTAL SERVICES

A group hospitalization, medical and surgical indemnity plan, consisting of Blue Cross, Blue Shield and Major Medical, is procured by the Comptroller for eligible state employees with the approval of the Attorney General and Insurance Commissioner.
The state pays for each employee covered by such plans that portion of the premium charged for individual coverage and seventy percent (70%) of the additional cost of employee family coverage. The balance of any premiums payable for family coverage are deducted from the employee's pay, subject to further reductions under certain collective bargaining agreements.
Alternate health insurance programs are provided for various areas by several HMOs which are available to employees and spouse, in place of our regular health insurance program. The state pays for each employee covered by this plan an amount equal, but not more than that which would have been paid for such employee if they were covered by the indemnity plan. The balance of any premiums payable on individual and family coverage are deducted from the employee's pay.
The various plans currently available to employees are:
1. ) Connecticut Blue Cross (Semi-Private Plan, Blue Shield (Century 96 Plan), and Blue Cross Major Medical Expense insurance. An employee not eligible for Medicare Part A, may continue on the state's Blue Cross coverage in which case they would retain the Semi-Private Plan and would not get Blue Cross 65 (Tailored Package). Employees not eligible to take Medicare Part B may remain on the state's CMS Century Plan. Continuance of coverage in these two cases is not automatic. Employees should see the payroll clerk to effect uninterrupted coverage.
Occasionally, an agency may receive a refund for health services. A check for the state's portion of the health services, made payable to the State Comptroller, must be sent by the agency to the Comptroller's Special Services Division, for deposit. Agencies should not deposit the state's portion themselves. If the entire refund check is for the State's portion, the entire check should be forwarded to the Comptroller. The employee's portion should be returned to the employee by the agency.

Blue Cross/Blue Shield/Major Medical

Connecticut Blue Cross/Blue Shield/Major Medical coverage is available to active employees under 65. For employees with family coverage, Blue Cross will provide coverage for dependents to age 19, generally, with coverage provided in addition for full-time students in accredited institutions from ages 19-22 inclusive. Such coverage will cease for students when they leave school, or upon attaining their 23rd birthday, coverage will cease at the end of the month in which the student's 23rd birthday occurs.
If an employee has individual coverage through the state, the premium is paid by the state. If an employee has family coverage through the state, the individual portion of the premium and 70% of the family portion is paid by the state. The remaining 30% of the premium for the family portion must be paid by the employee, subject to further reductions under certain Collective Bargaining Agreements.
Check the employee Blue Cross deduction for accuracy against agency source data. If correct, leave the item as is; if incorrect, make the necessary correction on the payroll (COP-6 required). This is a "health services" item available to eligible employees.
NOTE: Employees must have all elements of Blue Cross/Blue Shield/ Major Medical equally.

Health Maintenance Organization(s) (HMO(s)

HMO options are available to employees and their dependents in place of our regular Blue Cross/Blue Shield/Major Medical plan. Because of the primary importance of the HMO plans, employees living beyond the towns which comprise their service area, should be advised to check thoroughly with the HMO's rules regarding ambulance service, house calls' service area, and emergency care. All employees should check the HMO's obligations and payments for hospital and medical services outside their service area, if their work or other activities take them or their family away from the service area for extended intervals. It is the sole responsibility of the employee to seek out and determine the relative merits of the HMO's plan as opposed to the regular hospitalization and medical plan offered by the state.
For employees with family coverage, HMOs will provide coverage for an unmarried dependent child generally up to age 19. It will cover the child of an employee from the 19th until the 23rd birthday, if such child remains unmarried, dependent upon the employee parent for support, and a dependent within the meaning of the Internal Revenue Code, and is a full-time student in an accredited institution.
If an employee has individual coverage through the state, the premium is paid by the state to the amount equal to individual coverage of our indemnity plan, with the employee paying any excess by payroll deduction. If an employee has family coverage through the state, the state will again pay the amount equal to that which would have been paid for our indemnity plan, with the employee paying any excess by payroll deduction.
Check the employee's HMO deduction for accuracy against agency source data. If correct, leave the item as is; if incorrect, make the necessary corrections on the payroll.
For questions regarding HMO options, please contact the Special Services Division at 566-5057.

PROCEDURES FOR CONTINUANCE OF INSURANCE BENEFITS
WHILE ON LEAVE OF ABSENCE OR TERMINATION OF EMPLOYMENT.

GROUP LIFE INSURANCE

Leave of Absence
An employee may continue basic and supplemental life insurance during an authorized leave of absence for the reasons listed below, provided the employee continues to make premium payments during such leave:
1. Education purposes, military leave, non-occupational illness or injury, one year;
2. Workers' Compensation (occupational illness or injury), duration of such leave of absence; or
3. Other reasons, two months.
  If an employee is on leave of absence due to illness resulting from pregnancy, the insurance may continue until she is released by her physician to return to work, but such leave will not extend beyond one year. If the employee continues on leave after such release by her physician, the absence will be considered a leave for other reasons and the continuation of the life insurance will be limited to two (2) months.
  
  To insure continuing coverage during a leave of absence, payment of premiums must be made in advance for the periods not covered by payroll deductions. Payments must be made for two months at a time and submitted by the fifteenth (15th) of the month preceding the two month period to the Agency Payroll Officer. NO BILLS WILL BE SENT. FAILURE TO MAKE PREMIUM PAYMENTS WILL CAUSE CANCELLATION OF COVERAGE.
  
  Assuming all required payments are made during the leave of absence, an employee must resume payroll deductions immediately upon return to work in order to maintain continuity of coverage. Failure to do so will require evidence of insurability as approved by Aetna if the employee wishes to rejoin at a later date.
  
  If coverage is cancelled for non-payment during a leave of absence and the employee wishes to participate in the life insurance plan at a later date, evidence of insurability will be required.
  
  Any other medical issue relating to the family leave provision of Section 5-248(a) of the Connecticut General Statutes should be referred to Comptroller's Memo #92-29.
Termination of Employment
An employee who terminates active work for any reason should contact the State Comptroller's Office, Life Insurance Unit to determine what arrangements, if any, can be made to continue the insurance in force or to exercise any rights under the group policy when insurance terminates.

If any employee's life insurance ceases because of termination of employment, termination of membership in the class of employees eligible or State retirement, the amount of life insurance which ceases (or a lesser amount, if desired) may be converted to an individual life insurance policy.

In order to convert, written application must be received by Aetna for an individual policy and the first premium must be paid within thirty-one (31) days after cessation of insurance for any of the above reasons. No evidence of insurability will be required. The individual policy will become effective at the end of the thirty-one (31) day period during which conversion is possible.

AGREEMENT ON GIVEBACKS BY THE COALITION BARGAINING UNITS
"HEALTH INSURANCE PREMIUM CONVERSION PLAN"

AUTHORITY
In accordance with the terms of a recently concluded collective bargaining agreement between the State and the State Employees Bargaining Agent Coalition (SEBAC), employee group health insurance premium deductions were taken on a pre-tax basis commencing with the payroll checks date March 20, 1992. The pre-tax deduction will be automatic for employees who are covered by the SEBAC agreement; employees who are not covered by the SEBAC agreement will be given an opportunity to retain their current post-tax health insurance premium deduction, as discussed below. In order to accomplish the health insurance deduction on a pre-tax basis, the state will "pick-up" the required employee payment for group health insurance and, in turn, will reduce the employee's gross wage by the exact amount of that premium "pick-up" payment. This transaction is advantageous because health insurance payments made by the state are tax exempt; employee payments for health insurance do not enjoy a tax exempt status. Consequently, the "pick-up" allows employees to exclude their health insurance premium payments from state, federal and FICA taxes. The result is an increase in the net pay of participating employees.

Information regarding this program, its establishment, administration, taxability, social security impact, retirement impact, etc., will be provided separately by the Department of Administrative Service (DAS).
ELECTION PROCESS FOR NON-COLLECTIVE BARGAINING EMPLOYEES
The Comptroller's Office has been informed by DAS that this benefit is to be extended to non-collective bargaining employees as provided by Section 5-200(r) of the Connecticut General Statutes.

As is stated in Section I, employees who are not covered by the SEBAC agreement must be given an opportunity to decline participation in the health insurance premium "pick-up" program. In that connection, the Department of Administrative Services, serving as the administrator of the "pick-up" program, will send a copy of a letter to the home address of each employee who is not covered under the SEBAC agreement. Said employee had until March 6, 1992 to waive participation in the "pick-up" program; any such employee who failed to waive participation in the program through proper notification to their payroll or personnel office will be included in the program. Notification should be provided by signing the waiver form that is part of DAS's letter.

The employee's signed negative election form must be kept on file at the employing agency.

Once an employee makes the choice to waive participation in the "pick-up" program for a tax year, they will not be able to participate until the next tax year unless there is a change in an employee's family status. For qualifying changes in family status, please refer to the administrative information supplied by DAS.
PAYROLL PROCEDURES
This benefit is available only for employees on the active payroll. Payments for health insurance premiums made other than by payroll deduction will not receive the favorable tax treatment.

This program was implemented for the pay period February 21 through March 5, 1992 (check date March 20, 1992).
1. Current Employees Covered by the SEBAC Agreement
  A mass change was made centrally changing the employee's insurance premium deduction(s) to the new deduction code(s) (D/OE) that have been established for premiums paid on a pre-tax basis. NO ACTION NEEDS TO BE TAKEN AT THE AGENCY.
ASSISTANCE
Plan Administration:

Department of Administrative Services, Management Relations, 566-2265

Payroll Procedures - Office of the State Comptroller

Forms and On-Line: Central Payroll Division, 566-5428

Remote Job Entry: Computer Services Division, 566-3214

SCHEDULE FOR BLUE CROSS, CMS AND HMO DEDUCTIONS ON PAYROLL

New Employee
1. Connecticut Blue Cross (BC), Connecticut Medical Service (CMS) and HMO coverage is effective in accordance with established schedules used for submitting and processing new applications and commencing payroll deductions.
2. No payroll deductions should be started or state payments made for the new employee until the name of the individual appears on the respective billing.
Transfer In
1. New application forms are not required for individuals transferring from one state agency to another state agency.
2. The payroll clerk should begin any necessary payroll deductions for health insurance immediately upon entering the employee on the payroll. The name of the individual, their membership number and amount must be entered on the appropriate health insurance billing at this time.
Drops from Payroll
1. An employee being dropped from a payroll because of transfer, termination or any other reason, should be removed from the health insurance billings.

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Forms and On-Line:	Central Payroll Division, 566-5428
Remote Job Entry:	Computer Services Division, 566-3214