State of California

M E M O R A N D U M


TO:       PERSONNEL MANAGEMENT LIAISONS           DATE:  November 15, 1993
                                        Reference Code:  93-74

          THIS MEMORANDUM SHOULD BE DISTRIBUTED TO:
               ALL PERSONNEL OFFICERS, PERSONNEL TRANSACTIONS
               STAFF, AND DEPARTMENTAL LTD COORDINATORS

FROM:     Department of Personnel Administration

SUBJECT:  Long Term Disability Insurance for Nonrepresented Employees
          Premium Increase and Annual Recalculation

   Effective January 1, 1994, per the terms of the agreement between the Department of
   Personnel Administration (DPA) and ITT Hartford, premiums for the Long Term
   Disability (LTD) Insurance Program  for Nonrepresented Employees are increasing
   15%.  Premiums for current enrollees will be computed by the State Controller's Office
   and reflected in the December, 1993, payroll warrant.  Premiums will also include
   changes resulting from the annual recalculation of premiums based on enrollees' ages
   and salaries.  The DPA has requested that a global message appear on all excluded
   employees' December pay period warrants notifying them of the changes in the LTD
   premiums.   The new rates are as follows:
                                           AGE FACTORS
   PLAN                                Under          50&
   CODE          BENEFIT LEVEL          40     40-49  Over
   096           50%, No COLA          .0036   .0049  .0063
   097           65%, No COLA          .0058   .0082  .0104
   098           50%, With COLA        .0043   .0056  .0069
   099           65%, With COLA        .0070   .0093  .0115
   
   The LTD Enrollment Authorization Form GR-11513-8 is being revised to reflect the
   change in the premiums and will be renumbered to GR-11513-9.  A supply of the
   revised forms and informational brochures will be mailed to all departmental Personnel
   Transactions Supervisors by early February, 1994.  Employees who become eligible
   during the December and January pay periods and wish to enroll in LTD should be
   provided a copy of this PML to ensure they are aware of the correct premiums.  Until
   the new enrollment forms are received, personnel offices should use GR-11513-8 and
   note the new premiums on that form.
   
   We will hold an LTD open enrollment from March 1, 1994, through March 31, 1994,
   and will send additional information to personnel offices in January.  Questions
   regarding the LTD program should be directed to Terri Yee at (916) 324-0533/Calnet
   454-0533.
   
   
   
   Patricia Pavone, Chief
   Benefits and Training Division