51.1-505 - Amounts of life and accident insurance for each employee; reduction and termination of insurance.
§ 51.1-505. Amounts of life and accident insurance for each employee;reduction and termination of insurance.
A. Each employee to whom this chapter applies shall, subject to the terms andconditions thereof, be eligible to be insured for an amount of group lifeinsurance plus an amount of group accidental death and dismembermentinsurance, each amount equal to twice the amount of his annual salary. If anemployee's annual salary is not an even multiple of $1,000, his annual salaryfor purposes of this section shall be considered to be the next higher$1,000. For purposes of this section, the annual salary of a member of theGeneral Assembly shall be his creditable compensation for his last fullcalendar year of service or his salary under § 30-19.11, whichever isgreater, and shall include the full amount of any salaries payable to suchmember for working in covered positions, regardless of whether such salarieswere paid, reduced, or not paid because of such member's service in theGeneral Assembly. The annual salary for an employee retired for service ordisability on an immediate retirement allowance may be adjusted by the Boardin accordance with the provisions of Chapter 1 (§ 51.1-124.1 et seq.) of thistitle.
Subject to the conditions and limitations of the group insurance policy, theaccidental death and dismemberment insurance shall provide payments asfollows:
Loss Amount Payable
For loss of life Full amount determined in accordance with the
provisions of this section
Loss of one hand or One-half of the amount
of one foot or loss determined in accordance
of sight of one eye with the provisions of this section
Loss of two or Full amount determined in
more such members accordance with the provisions of this section.
For any one accident, the aggregate amount of accidental death anddismemberment insurance that may be paid shall not exceed the maximum amountof accidental death and dismemberment insurance determined in accordance withthis section.
Notwithstanding the provisions of § 51.1-124.8, the amount of life insurancefor which an employee shall be eligible shall be equal to twice the amount ofhis annual salary without regard to the date of the employee's qualificationfor a retirement allowance.
B. The amount of life insurance on an employee who retires for service on animmediate retirement allowance or who elects to postpone the receipt of hisretirement allowance to some date other than his last day of service shall bethe amount set forth in subsection A, reduced by an amount equal to 25percent thereof on the January 1 following the first full year from the datethe employee is separated from service and each January 1 thereafter. Theamount of life insurance on an employee who retires for disability on animmediate retirement allowance shall be the amount set forth in subsection Aon the date the employee last rendered service reduced by an amount equal to25 percent thereof on January 1 following the first full year from the datethe employee attains age 65, and each January 1 thereafter. If the employeeby statute or Board regulation has been construed to be in service to thebeginning of the next school year, the reduction shall not apply until thebeginning of the next school year. The reduction shall not decrease theamount of life insurance on an employee to less than 25 percent of the amountof life insurance to which the initial reduction is applied. For purposes ofthis subsection, an employee shall be deemed to have retired only if theemployee has five or more years of service as an employee prior to the dateof retirement. This requirement shall not be applicable if the employee isretired for disability.
Any employee who was denied membership in the Retirement System because ofhaving attained age 60 at the time of being employed or reemployed and whohas five or more years of service immediately prior to separation fromservice shall retain the life insurance coverage as though he had retired onan immediate retirement allowance.
C. For any employee, who at any time has at least 20 years of creditableservice in any retirement plan administered by the Virginia Retirement Systemor other Virginia public plan participating in the group life programestablished by this chapter, the amount of group life insurance shall be anamount equal to twice the amount of the highest annual salary earned duringsuch employment.
The provisions of subsection B providing a reduction in the amount of lifeinsurance shall apply to the amount of group life insurance as determinedunder this subsection for such employees with at least 20 years of creditableservice.
D. The amount of life insurance for an employee who is retired for disabilityon an immediate retirement allowance, who also has attained age 55, and whoelects to receive a retirement allowance as set forth in subsection C of §51.1-160, shall be reduced as set forth in subsection B of this section. Thereduction shall begin the January 1 following the first full year from thedate the employee elects a service retirement allowance.
E. All accidental death and dismemberment insurance on an employee shallcease upon the earliest of (i) his separation from service, (ii) his failureto pay, in the manner prescribed by the Board, the contribution required forthe first 24 months of leave without pay, (iii) if the employee has notreturned to pay status, the expiration of 24 months of leave without pay, or(iv) his retirement.
F. Except in case of retirement as provided in subsections B, C, and D ofthis section, all life insurance on an employee shall cease upon the earliestof (i) his separation from service, or (ii) his failure to pay, in the mannerprescribed by the Board, the contribution required for the first 24 months ofleave without pay, or, (iii) if the employee has not returned to pay status,the expiration of 24 months of leave without pay. Except in the case ofretirement, life insurance shall be subject to a temporary extension of 31days. During this 31-day extension, the employee may convert his lifeinsurance into an individual policy of life insurance (without disability orother supplementary benefits) in any one of the forms, except term insurance,then customarily issued by the insuring company. The amount of life insurancewhich may be converted shall not exceed the amount of his life insuranceunder the group insurance policy at the time coverage is terminated. Theinsurance shall be converted to an individual policy (a) without evidence ofinsurability, (b) at the premium applicable to the class of risk to which hebelongs, and (c) to the form and amount of the individual policy at his thenattained age, provided application for the individual policy and payment ofthe first premium thereon is made to the issuing company within the 31 days.The right to convert to an individual policy as provided in § 38.2-3333 shallnot apply upon termination of this group policy or elimination of a class ofinsured employees.
Except as provided in subsection C, the amount of life insurance on eachinsured employee who retires shall be determined under the provisions of thischapter as it exists on the employee's date of retirement.
G. Each employee of a state institution of higher education or of a localschool board who remains in service until the completion of the school yearand who makes contributions required to provide insurance coverage untilservice normally will be resumed the beginning of the next school year shallbe deemed to be in service as an employee through the period to which thepayments apply. If the employee is retired for service or disability duringthis period, contributions made by the employee shall be accepted andretained as proper.
Each state employee of a public institution of higher education or a teachinghospital affiliated with a public institution of higher education who (i) isemployed pursuant to a contract (a) that is for a term of employment of atleast nine months and (b) that does not coincide with the normal scholasticyear, (ii) remains in service until the completion of the contract year, and(iii) makes contributions required to provide insurance coverage untilservice normally will be resumed at the beginning of the next contract yearshall be deemed to be in service as an employee through the period to whichthe payments apply. If the employee is retired for service or disabilityduring this period, contributions made by the employee shall be accepted andretained as proper.
H. The limit of 24 months of leave without pay, after which accidental deathand dismemberment insurance and life insurance shall cease, referred to insubsections E and F of this section shall not apply to an employee who is onleave without pay while performing active duty military service in the armedforces of the United States.
I. The provisions of this section shall apply to all members of the VirginiaRetirement System who, on and after July 1, 1995, are covered under the grouplife insurance program created pursuant to this section and whose effectivedate of retirement is (i) before July 1, 1970, or (ii) on and after July 1,1970.
(1960, c. 604, §§ 51-111.67:2, 51-111.67:4; 1962, cc. 43, 542; 1964, c. 594;1966, c. 174; 1968, c. 736; 1970, c. 774; 1971, Ex. Sess., cc. 88, 89, 185;1972, c. 708; 1973, cc. 545, 546; 1974, cc. 353, 484; 1975, cc. 306, 309,597, 611; 1976, cc. 551, 654; 1977, c. 620; 1978, c. 841; 1980, cc. 595, 637,638; 1981, cc. 151, 478; 1982, cc. 467, 478, 639; 1984, c. 430; 1986, c. 474;1990, c. 832; 1991, c. 700; 1995, cc. 52, 307, 605; 1999, c. 111; 2001, c.696; 2002, c. 313; 2003, cc. 9, 220; 2004, c. 102; 2005, cc. 147, 933, 945;2006, c. 640; 2009, c. 362; 2010, c. 751.)