State of California
   
   M E M O R A N D U M
   
   REFERENCE CODE:
   PML 96-063
   
   DATE:
   December 18, 1996
   
   TO:
   Personnel Officers
   Personnel Transactions Staff
   Personnel Transactions Supervisors
   Accounting Officers
   
   FROM:
   Department of Personnel Administration
   Benefits Division
   
   SUBJECT:
   Group Term Life Insurance and Long Term Disability (Non-
   Represented Employees)
   
   CONTACT:
   Desi Rodrigues, Personnel Management Technician
   (916) 324-0533 or CALNET 454-0533
   Office Vision: DPA(DXRodrigues)
   INTERNET: DXRODRIGUES@SMTP.DPA.CA.GOV 
   
   
   Basic Life Insurance
   
   The Department of Personnel Administration recently
   awarded a multi-year contract to Metropolitan Life
   Insurance Company(MetLife) to provide the State's Group
   Term Life Insurance Plan.
   
   As a result of this new contract, effective January 1,
   1997, there will be a change (decrease) in the employer's
   contribution for the Basic Group Term Life Insurance as
   follows:
   
   Benefit
   Supervisory/Confidential
   $25,000 Policy
   
   Old Rate
   $6.70 per month
   
   New Rate
   $6.48 
   
   
   Managers
   $50,000 Policy
   
   Old Rate
   $12.95 per month
   
   New Rate
   $12.50
   
   An administration fee is included in the premium.  The
   current .45 cents per month administration fee will not
   change. 
   
   Supplemental Life Insurance
   
   The Supplemental Life Insurance premiums paid by
   individual employees will also be reduced due to this new
   contract.  The employees enrolled in the Supplemental Life
   Insurance Plan will be sent correspondence from MetLife to
   their home addresses regarding these changes.
   
   The new schedule of Supplemental Insurance premiums for
   monthly rates per $10,000 are as follows:
   
   Attained Age
   
   Under 30
   30 but less than 40  
   40 but less than 45  
   45 but less than 50  
   50 but less than 55  
   55 but less than 60  
   60 but less than 65 
   65 but less than 70 
   70 but less than 75 
   75 but less than 80
   
   Old Premium
   
   $1.00
   1.20
   2.25
   4.50
   6.10
   8.30
   10.50
   20.50
   31.00
   46.20
   
   New Premium
   
   $.94
   1.13
   2.16
   4.37
   5.93
   8.09
   10.25
   20.05
   30.35
   45.25
   
   The administration fee will not change.  The current fees
   are .20 cents per month for the supplemental plan.
   
   Employees should be aware that the monthly premiums for
   supplemental insurance are based on their actual age. 
   These premiums are adjusted by the State Controller's
   Office each year on January 1st.  Beginning January 1,
   1997 (December pay period) some employee enrolled in
   supplemental life insurance will experience a premium
   increase because they moved to a higher rate band during
   calendar year 1996.  For example, an employee whose age
   changed from 49 to 50 during 1996, will now pay a premium
   of $5.93 per $10,000 of coverage, whereas the previous
   premium was $4.50 per $10,000 of coverage.
   
   The premiums for the $7,500 policy for eligible dependents
   will not change.  The premiums per family are as follows: 
   
   
   Employee under age 65 $1.85
   
   Employee age 65 & over $7.25
   
   
   Long Term Disability
   
   Premiums for participants in the Long Term Disability(LTD)
   program will be adjusted effective January 1, 1997 to
   reflect changes in the employee's salary and/or age. This
   annual salary/age update will impact the monthly premium
   of enrolled employees who have experienced a salary change
   or an age change that has moved them to a higher age
   factor (i.e. the formula used to compute the monthly
   premium).
   
   If you have any questions regarding this memo, please
   contact Desi Rodrigues at (916) 324-0533 or Calnet 454-
   0533.
   
   
   
   
   Patricia Pavone, Chief
   Benefits Division