51.1-512.1 - Optional life insurance for the spouse and minor dependents of employees.
§ 51.1-512.1. Optional life insurance for the spouse and minor dependents ofemployees.
A. The Board shall, under the terms and conditions specified by the Board,make available to any active insured employee optional life, accidentaldeath, and dismemberment insurance on the employee's spouse and minordependents in the following amounts:
1. For the spouse of an active insured employee: an amount up to fiftypercent of the maximum amount of optional insurance available to the employeeunder § 51.1-512.
2. For any minor dependent of an active insured employee in incrementsspecified by the Board. The Board shall adjust these amounts periodically toaccount for changes in the purchasing power of money over time.
B. All optional insurance on an employee's spouse shall cease upon theearliest of (i) the date the employee's basic coverage ceases, (ii) the entryof a final divorce decree terminating the marriage of the employee and theemployee's spouse, or (iii) the date the insurance being continued inretirement terminates pursuant to subsections C and D. All optional insuranceon an employee's minor dependent shall cease upon the earliest of (i) theminor dependent attains the age of twenty-one, unless the minor dependent isa full-time college student, then age twenty-five or unless the minordependent is under a mental or physical disability, in which event coverageshall not terminate until three months following cessation of the disability,(ii) marriage of the minor dependent, or (iii) the date the employee's basiccoverage ceases.
C. Subject to foregoing limitations, the optional amount of life insurance inforce on the spouse or minor dependent of an employee who retires fordisability on an immediate retirement allowance may be continued, subject topayment of any required premium by the employee, during continuance of suchdisability but not beyond the end of the month in which the employee attainsage sixty-five.
D. Subject to the foregoing limitations, the optional amount of lifeinsurance in force on the spouse or minor dependent of an employee whoretires for service on an immediate retirement allowance, or for an employeewho retired for disability on an immediate retirement allowance who attainsage sixty-five, may be continued, subject to payment of any required premiumby the employee, and provided the employee had such spouse or dependentinsurance for a period of at least sixty continuous months prior toretirement, or prior to reaching age sixty-five for a disability retirement.Life insurance on the spouse that is eligible to be continued shall be anamount specified by the Board and available to the retiree under § 51.1-512and shall begin to reduce when the retiree attains age sixty-five under theterms and conditions specified by the Board. Life insurance on dependentchildren that is eligible to be continued shall be in increments as specifiedby the Board. The Board shall adjust these amounts periodically to accountfor changes in the purchasing power of money over time. All optional lifeinsurance on a retiree's spouse or dependent ceases at the earliest of (i)the retiree attaining age eighty, (ii) the death of the retiree, (iii) for aspouse, the entry of a final divorce decree terminating the marriage of theretiree and the retiree's spouse, (iv) for a minor insured dependent, thedate the dependent attains the age of twenty-one, unless the minor insureddependent is a full-time college student, then the date the dependent attainsage twenty-five, unless the minor insured dependent is under a mental orphysical disability, in which case coverage shall not terminate until threemonths following cessation of the disability, or (v) for a minor insureddependent, the date of his marriage. All accidental death and dismembermentinsurance ceases at retirement.
E. 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.
F. The amount of optional life, accidental death, and dismemberment insurancein force on an employee's spouse or minor dependent at the date of his or herdeath shall be paid as provided in this chapter. All accidental death anddismemberment insurance ceases at retirement. The amount of optional lifeinsurance in force on the retiree's spouse or minor dependent at the date ofhis death shall be paid as provided in this chapter.
G. 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.
H. As used in this section, an employee's "minor dependent" means a childmember of the employee's or retiree's family who is eligible for coverageunder the family membership program offered under policies and procedures ofthe Department of Human Resource Management governing health insurance plansadministered pursuant to § 2.2-1204 or § 2.2-2818.
I. The provisions of this chapter applicable to the provision of groupinsurance policies to insure eligible employees or retirees shall apply tooptional insurance insuring the spouses and minor dependents of eligibleemployees or retirees pursuant to this section, with the respectivedifferences having been considered.
(1995, c. 360; 1997, c. 273; 2000, cc. 66, 657; 2001, c. 696.)