Group Life Insurance After You Terminate Employment

ET-4104, Rev. 01/2003

GENERAL INFORMATION

The Wisconsin Public Employers Group Life Insurance program provides continuation of your group life insurance when you retire if you meet the eligibility requirements.

A few Wisconsin municipalities participating in the life insurance program have their own private pension system instead of the Wisconsin Retirement System (WRS). The requirement of an immediate annuity must also be satisfied through such a private pension plan.

ELIGIBILITY

You qualify to continue the group life insurance if you were in a WRS covered position prior to January 1, 1990, or you were covered by the group life insurance program in at least five calendar years after 1989, and meet one of the following conditions:

1. You are eligible to receive an immediate annuity* regardless of whether you have applied for your annuity, OR
2. Your creditable service as of January 1, 1990, plus the number of calendar years after that date during which you were covered under the group life insurance plan equals 20 years, OR
3. You were employed by your last employer for at least 20 years.

If you are eligible to continue life insurance coverage at termination and:

• You apply for an immediate annuity, your coverage will automatically be continued.
• You are under age 65 and delay applying for an annuity, you must file a Continuation Notice form (ET-2154) with the Department of Employee Trust Funds no later than 31 days after the date your coverage terminates. If you do not file the Continuation Notice within the 31 day period, your coverage will lapse and cannot be reinstated.
• You are age 65 or older, your basic coverage will be continued automatically at the reduced amount (see Amount of Coverage) regardless of when you apply for your annuity.

TERMINATION

You should consider what effect your termination date may have upon meeting the eligibility requirements for continuing your life insurance. It is possible that an earlier termination date could reduce your years of service to less than 20, or could make you ineligible for an immediate annuity.

Your life insurance coverage is based on your highest salary in a completed calendar year. If you terminate on December 31 or before, the previous high year is used to determine value. For example, if you terminate December 31, 2000, your coverage when you retire will not be based on your salary in the year 2000 because you did not complete the full calendar year.

PREMIUMS

Until age 65, your life insurance premiums will automatically be deducted from your monthly WRS annuity payments. If you are not receiving a monthly annuity, you will be billed directly by the insurance carrier.

After age 65 (if retired) or age 70 (if actively employed under the WRS), your basic coverage continues at a reduced level with no further premiums required. (See table on next page.)

DISABILITY WAIVER OF PREMIUM

If you become unable to work due to a long-lasting and serious disability while you are still actively employed, you may qualify to continue your life insurance without payment of
premiums, regardless of your age or years of service. Your employer must submit a Request for Waiver of Premiums form (ET-5306) to the Department of Employee Trust Funds. If approved, premiums are waived during the period of disability. You must continue to pay premiums until you are notified that they are no longer due.

Premiums are also waived for any supplemental, additional or spouse and dependent coverage you may have until you reach age 65 or are no longer disabled.

AMOUNT OF COVERAGE

The amount of basic coverage continuing without premiums due is based on your coverage immediately before you retire, and adjusted according to the table shown below.

CONTINUING COVERAGE TABLE

* Public employers may elect a post-age 65 option for their employees which continues insurance at 50% of basic coverage after age 66. Coverage at 50% is standard for state employees and the reduction to 25% does not apply.

The supplemental and additional life insurance coverage, available to state employees (and to local employees at their employer's option), may continue until age 65 if you terminate employment before age 65. If you retire between ages 65 and 70, that coverage terminates immediately upon your retirement. Additional life insurance coverage may continue beyond age 70 if you are actively employed and apply for Age 70 and Over Additional coverage. Supplemental coverage will end at age 70 even if you continue to work.

Spouse and dependent coverage ends when you terminate employment, or at age 70 if you continue to work. (If you are disabled and have a waiver of premiums, coverage ends the month you reach age 65.)

PAYMENT OF BENEFITS

Your coverage includes additional benefits for accidental death or dismemberment until age 65 (or age 70, if you continue to work after age 65).

If you are terminally ill or permanently confined to a nursing home, you may qualify to receive all or part of your insurance as a Living Benefit. Contact this Department if you need more information on either of these special provisions.

Upon your death, payment will be made to the beneficiary(ies) you name in the last valid beneficiary designation received by this Department prior to your death. If you do not file a valid designation, the benefit will be paid according to the standard sequence established by law. A Beneficiary Designation form is available from this office or on our internet site.

CONVERTING LIFE INSURANCE TO PAY HEALTH OR LONG-TERM INSURANCE PREMIUMS

It may be possible for you to convert the value of your life insurance to pay health or long-term care insurance premiums. To be eligible, you must have reached at least age 66 (age 67 for retirees of most local units of government, and age 70 for active employees), and must have both life insurance and health or long-term care insurance coverage through programs offered by this Department. If you are a retiree from the State of Wisconsin and have accumulated sick leave credits, you must exhaust those credits before you are eligible to convert your life insurance to pay health insurance premiums. For detailed information regarding conversion of your life insurance, please request a brochure entitled Converting Your Group Life Insurance to Pay Health or Long-Term Care Insurance Premiums (ET-2325) from the Department.

CANCELLATION OF COVERAGE

If you wish to cancel your Group Life Insurance coverage, you must file a Life Insurance Application/Cancellation form (ET-2304). Your coverage will end on the last day of the calendar month following the month in which the Department receives your cancellation form. Premiums will be due until the cancellation form becomes effective.

You may cancel all of your life insurance, or supplemental, additional, and/or spouse and dependent coverage individually.

If you cancel your life insurance coverage, you will not be able to reapply at a later date.

CONVERSION PRIVILEGES

If you do not meet the eligibility requirements to continue your Group Life Insurance coverage, you may convert to an individual policy issued by the Minnesota Life Insurance Company. An application for a conversion policy form (ET-2306) and the first premium must be received by Minnesota Life at the address shown below within 31 days after the date your coverage ends.

Minnesota Life Insurance Company
P.O. Box 259708
Madison, WI 53725-9708
Telephone: (608) 277-8690

Spouse and dependent coverage may also be converted to an individual policy(ies) after termination of employment.

Great effort has been made to ensure that the information in this brochure is accurate. However, if there is any conflict between the information and the provisions of the law or the life insurance contract, the law or contract must be followed.

The Department of Employee Trust Funds does not discriminate on the basis of disability in the provisions of programs, services or employment. If you are speech, hearing or visually impaired and need assistance, call toll free 1-877-533-5020 or (608) 266-3285 (local Madison) or TTY (608) 267-0676. We will try to find another way to get the information to you in a usable form.