51.1-512 - Optional life insurance.
§ 51.1-512. Optional life insurance.
A. The Board shall, under the terms and conditions specified by the Board,make available to each active insured employee optional life, accidentaldeath, and dismemberment insurance in incremental additional amounts not toexceed a maximum amount determined by the Board. Such maximum shall bereviewed at least once every five calendar years by the actuary of theVirginia Retirement System and increased by the Board upon the recommendationof the actuary. The amount recommended by the actuary shall be based upon theannual increases in the United States Average Consumer Price Index for allitems, all urban consumers (CPI-U), as published by the Bureau of LaborStatistics of the United States Department of Labor.
B. The optional life, accidental death, and dismemberment insurance shall bemade available to each active insured employee under conditions prescribed bythe Board. The conditions prescribed by the Board shall provide that offeringthe optional insurance does not materially increase the rates for any grouplife insurance policy provided pursuant to § 51.1-505.
C. All optional insurance on an employee shall cease upon the earlier of (i)the date the employee's basic coverage ceases or (ii) the date insurancebeing continued in retirement terminates pursuant to subsections D and E.
D. The optional amount of life insurance in force on an employee who retiresfor disability on an immediate retirement allowance may be continued, subjectto payment of any required premium by the employee, during continuance ofsuch disability but not beyond the end of the month in which the employeeattains age 65.
E. The optional amount of life insurance in force on an employee who retiresfor service on an immediate retirement allowance, or for an employee whoretired for disability on an immediate retirement allowance and who attainsage 65, may be continued provided the retiree was continuously insured underthis section for a period of at least 60 continuous months prior toretirement, or prior to reaching age 65 for a disability retirement. Thiscontinued insurance shall be in incremental amounts not to exceed a maximumamount determined by the Board and the amounts and corresponding maximumcoverage shall reduce beginning at age 65 as determined by the Board. Thismaximum coverage amount shall be reviewed at least once every five calendaryears as provided for under subsection A. The life insurance continued underthis subsection shall cease upon the earliest of (i) the date the retireeattains age 80, (ii) lapse for nonpayment of premium, or (iii) return toemployment and eligibility for active employee life insurance under Chapter 5(§ 51.1-500 et seq.) of Title 51.1. All accidental death and dismembermentinsurance shall cease at retirement.
F. The cost of the optional insurance shall be determined periodically by theBoard on the basis it considers appropriate. The Board may discontinue theoptional insurance plan at any time upon determination that employeeparticipation is not sufficient to continue the plan on a sound actuarialbasis.
G. The amount of optional life, accidental death, and dismemberment insurancein force on any employee at the date of his death shall be paid as providedin this chapter.
H. The Board shall determine the form and content of the accounting reportsto be made by the insurance company with respect to the optional insurance.Any expenses incurred by the Retirement System for operating andadministering the optional insurance programs provided in this section may berecovered by the Board from the advance premium deposit reserve required bysubsection B of § 51.1-514.
(1980, c. 643, § 51-111.67:12.1; 1990, c. 832; 1995, c. 360; 1997, c. 273;2001, c. 696; 2005, c. 57; 2006, c. 252; 2010, c. 751.)