The first $50,000 of your basic life insurance benefit is considered non-taxable income under federal tax law. However, the employer's cost of the benefit over $50,000 is taxable and the imputed income is added to your final W-2 earnings as required under Section 79 of the Internal Revenue Code.
In addition to the basic life insurance benefit, this plan will also pay your beneficiary a $100,000 duty death benefit if your death is caused by an accidental personal injury arising out of (or in the course of) your employment with the State of Michigan. Duty death benefits are not payable for illness-related death or if death occurs while you are traveling to and from work, unless you are in official travel status.
OR
2This life insurance limit may not be applicable to employees who are covered by certain collective bargaining agreements.
DEPENDENT LIFE INSURANCE OPTIONS
You have the option of enrolling your legal spouse and/or eligible children in one of the Dependent Life Insurance Plans. All plan premiums are paid by the employee via payroll deductions.
Each of these plans will cover your unmarried children between the ages of 14 days and 23 years for whom you provide at least 50% of their support (even if they are no longer students).
Coverages for a child who is documented as being incapacitated by a physical or mental impairment will continue at and beyond age 23, provided coverage does not terminate for any other reason. Carefully read information on Dependent Eligibility, for more specific information.
You will be the sole beneficiary of your dependent's life insurance. If you are also not living when a death benefit is payable, benefits will be paid to your legal spouse, if living; otherwise to your surviving children in equal shares; otherwise to the estate of the last survivor.
Note: If you are a State employee married to another State employee/retiree, you are both covered as employees under a Life Insurance Plan: thus, you are not eligible to also be covered as a spouse under any of the Dependent Life options. Children can be covered by either parent, but not both.
EMPLOYEE LIFE INSURANCE BENEFICIARY DESIGNATION
You may designate as your life insurance beneficiary any person or institution except a funeral home. A divorce automatically cancels a spouse as life insurance beneficiary. If you want to keep your ex-spouse as a beneficiary, you must file a new Beneficiary Designation Form stating ex-spouse.
If you list more than one beneficiary, you must designate the percentage each beneficiary is to receive or it will be shared equally. You can designated a contingent beneficiary who will receive your covered benefit in the event the named beneficiary(ies) die(s) before you. If the named beneficiary dies before you, and no contingent beneficiary is named, your covered benefit amount will be paid as follows:
- First, to your spouse, if living
- Otherwise, equally to your natural and adopted child(ren)
- Otherwise, equally to your surviving parents
- Otherwise, equally to your brother(s) or sister(s)
- Otherwise, to your estate
Accidental Duty Death Insurance
Accidental Duty Death Insurance is a benefit for all employees, if their death results from an accidental personal injury arising out of or in the course of state service and the death occurs within 180 days of the accident.
Final Compensation Beneficiary Designation
The appointing authority shall pay the final wages due to you at the time of your death, in accordance with a primary and secondary beneficiary designated and filed by you under the regulations issued by the state personnel director. In the absence of a valid beneficiary designation, the payment is made in accordance with the instruction of a court. It is not mandatory that you file a final compensation beneficiary designation, however it is highly recommended. Monies payable to the beneficiary shall include, but may not be limited to, earned compensation, payment for remaining leave balances due, longevity pay and reimbursement of expenses.
If you have questions on your life beneficiary designation or final compensation, you may contact the MI HR Service Center.
STATE POLICE EMPLOYEES ONLY
RELIANCE SHORT TERM DISABILITY
State Police employees are no longer required to submit an application to enroll in the Reliance Short Term Disability insurance program. This year, enrollment will be completed as part of the on-line enrollment process in MI HR Self-Service. Your benefit choice will continue if no changes are made.
You can also access the program booklet from your State Police intranet website. Click the "Divisions/Districts" link then "Human Resources Division".
If you have any questions regarding this process, please contact the MI HR Service Center at (877) 766-6447.
ReliaStar LIFE INSURANCE
In addition to the Basic Life Insurance provided by the State of Michigan, you may purchase additional supplemental term life insurance for yourself and/or your family.
The third party administrator is ReliaStar Life. Your bi-weekly cost of insurance will depend on your age and the amount of insurance you purchase.
During the open enrollment period, you may opt to increase or enroll in the ReliaStar Life Insurance Plan. You must complete and mail or fax the Evidence of Insurability (EOI) form and Life Insurance Enrollment Form to the MI HR Service Center no later than August 29, 2014. Your benefit choice will continue if no changes are made.
Information is also available on your State Police intranet website. Click the "Divisions/Districts" link then "Human Resources Division".
Upon receipt of your EOI form and Life Insurance Enrollment form, the MI HR Service Center will submit the EOI form to the third party administrator. Once determination of insurability has been made, you will be notified of approval or denial by mail. The MI HR Service Center will then complete the enrollment process for all approvals effective the beginning of the following pay period.
If you have any questions regarding this process, please contact the MI HR Service Center at (877) 766-6447.
