Pension Plan and Retirement Programs

Group Life Insurance
In general, insurance coverage is available to members of the state retirement systems without a medical examination. Contact the Benefits Office in the Division of Human Resources for exceptions.

PERS
Members of the PERS are provided non-contributory group life insurance coverage underwritten by Prudential equivalent to 1.5 times their preceding annual base salary. During the first year of employment, the employee must participate in the contributory life insurance program, which provides an additional 1.5 times the base salary for a benefit totaling three times the employee's annual salary. Continued participation in the contributory life insurance program is optional after the first year.

PFRS
Members of the PFRS are provided non-contributory group life insurance coverage underwritten by Prudential equivalent to 3.5 times their preceding annual base salary.

ABP
Members of the ABP are provided non-contributory group life insurance coverage underwritten by Prudential equivalent to 3.5 times their preceding annual base salary.

While on a leave of absence with pay, insurance will continue during the entire period of the leave. In order to guarantee continued coverage while on a leave without pay, the length of time of continued coverage depends upon the reason for the leave. Refer to the Leave of Absence section for additional information.

Waiver of Non-Contributory Life Insurance over $50,000
Members of state-administered retirement programs may waive their Non-Contributory Life Insurance over $50,000 to avoid possible federal and state tax liability on that benefit by completing a waiver form. The Benefits Office in the Division of Human Resources notifies affected individuals in November of each year. Employees may complete and return the waiver to the Benefits Office. Waiver forms are forwarded to the Division of Pensions and Benefits on or before December 31 to be effective January 1 of the next calendar year. Once a waiver form has become effective, it shall be irrevocable for the entire calendar year.

The waiver will remain in effect until the employee requests to rescind by completing a reinstatement form. The reinstatement will not become effective until January 1 of the following year. Any employee who waives the Non-Contributory Life Insurance must waive the total amount of coverage in excess of $50,000. Waivers of partial amounts are not permitted.

New enrollees will be required to retain the total amount of their group life insurance during their first year of membership.

If the waiver is in effect upon termination of employment or retirement, the employee will be unable to convert any amount of his/her Non-Contributory Life Insurance coverage in excess of $50,000.

Waiver and reinstatement forms can be obtained in the Benefits Office in the Division of Human Resources.