State of California

  M E M O R A N D U M

  REFERENCE CODE:
  PML 97-040

  DATE:
  November 17, 1997

  TO:
  Personnel Officers
  Personnel Transactions Supervisors
  Personnel Transactions Staff
  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, CALNET 454-0533
  FAX: (916) 322-3769
  OFFICE VISION: DPA(DXRODRIG)
  INTERNET: DXRODRIG@SMTP.DPA.CA.GOV


  This memorandum is to advise you of the annual age/salary
  updates which will be implemented by the State
  Controller's Office (SCO) effective January 1, 1998 for
  employees' enrolled in the life insurance and long term
  disability plan.  These updates may result in premium
  changes for certain employees.
  
  Basic Group Term Life Insurance
  
  The life insurance policy states that once active
  employees reach age 70, their employer-paid life insurance
  benefits and premium will be reduced by 50% on January 1
  of the following year.  Employees who experienced an age
  change during the current year (1997) will have the State-
  paid premium reduced by 50% effective January 1, 1998
  (i.e., December, 1997 pay period warrant).
  
  Supplemental Life Insurance
  
  An annual age update will be executed by Metropolitan Life
  Insurance Company (MetLife) for employees enrolled in the
  supplemental life insurance plan.  Since the supplemental
  monthly premium is based on an employee's age, an audit is
  conducted annually by MetLife to 
  determine the new rates based on age changes.  For
  example, an employee whose age changed from 49 to 50
  during 1997 will now pay $4.37 per $10,000 coverage.
  MetLife will notify the SCO of any premium changes which
  will then become effective January 1, 1998 (i.e.,
  December, 1997 pay period warrant).
  
  Long Term Disability 
  
  On January 1 of each year, an annual age/salary update is
  conducted for all employees enrolled in the LTD plan.  The
  State Controller's Office will audit the payroll history
  files to identify any employees who have experienced
  salary/age changes during the previous year that would
  result in them moving to the next higher age factor.
  Those employees that have changes to the next age factor
  (i.e., age 39 to 40, 49 to 50, etc.) will receive a
  monthly premium change effective January 1, 1998, this
  will be reflected on the December, 1997 pay period
  warrant.
  
  If you have any questions regarding this memo, please
  contact Desi Rodrigues at (916) 324-0533 or Calnet 454-
  0533.
  
  
  
  
  Kathie Vaughn, Chief
  Benefits Division