Open Enrollment 2017Voluntary Supplemental Benefits Guide

Open Enrollment is now closed.

  1. Introduction to Voluntary Supplemental Benefits (VSB)
  2. Changing Your Coverage
  3. Supplemental Life Insurance
  4. Accidental Death and Dismemberment (AD&D) Insurance
  5. Disability Insurance
  6. New! Critical Illness Insurance
  7. Who will receive your benefits if you die?

Introduction to Voluntary Supplemental Benefits (VSB)

The State of Alaska Voluntary Supplemental Benefits (VSB) plan is administered by MetLife. This enrollment guide provides the choices available to you under the VSB plan. In addition to enrolling when you are first eligible or during annual Open Enrollment for the subsequent benefit year beginning January 1, benefits may be changed within 30 days of a qualified change in family or employment status.

Voluntary Supplemental Benefits offer you the opportunity to obtain benefits that best suit the needs of you and your family. Enrollment in any plan is optional – choose only the plans and coverage levels that meet your needs. Premiums are paid through payroll deductions and are subtracted from gross wages before taxes are deducted – an added advantage to the plan. Some restrictions apply for life insurance premiums. You can select from the following options:

  • Supplemental Life Insurance
  • Supplemental Accidental Death and Dismemberment
  • Disability Benefits (short-term and long-term)
  • Critical Illness

The plans you make now—and the benefits you choose—can make a difference to your family later. Customize the amount of life insurance for your situation. The IRS limits group-term life insurance coverage paid for by the employer or with pretax premiums to $50,000. If your Basic Life policy increased to $10,000, this leaves a remainder of $40,000 in coverage that can be purchased with a pretax premium without exceeding the IRS limit. For example, if you have $10,000 in Basic Life and you chose $100,000 in VSB Life, the portion of the premium representing the coverage amount over $50,000 will be taxable. Select Life is a post-tax payroll deduction and is not counted when determining imputed income.

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Changing Your Coverage

You may change your mind about any benefit choices as long as you re-enroll in your final choices before the enrollment deadline. Reminder–each time you re-enroll, a new enrollment is processed. The previous enrollment will no longer exist. Make sure to re-select each of your elections.

The only time you can change your coverage other than during Open Enrollment is within 30 days of a "qualified status change." These include:

  • gaining or losing a dependent through birth, adoption, marriage, divorce, or death.
  • dependent is no longer eligible under the terms of the plan.
  • spouse terminating employment, beginning an extended period of layoff or leave without pay, or beginning new employment.
  • you or your spouse changing employment status from full-time to part-time or vice versa.

Your change in benefits must be consistent with the status change.

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Supplemental Life Insurance

Supplemental life insurance is available in the following volumes:

  • $10,000
  • $50,000
  • $100,000
  • $200,000
  • $300,000

To determine your monthly premium, find your age as of January 1, 2017, the amount of insurance elected, and the corresponding rate on the following chart:

2017 Supplemental Life Insurance Rates
Age Rate Per $1,000 per month
Under 30 $0.03
30 – 39 $0.04
40 – 44 $0.08
45 – 49 $0.12
50 – 54 $0.19
55 – 59 $0.28
60 – 64 $0.40
65 – 69 $0.63
70 – 74 $1.29
75 – 79 $2.06
80 – 84 $2.06
85 & over $2.06
Effective: Jan. 1 - Dec. 31, 2017

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Accidental Death and Dismemberment (AD&D) Insurance

Accidental Death and Dismemberment (AD&D) can be added to your VSB package. If you enroll in AD&D you must enroll in a minimum of $10,000 of Supplemental Life Benefits. This plan pays benefits if your death or dismemberment is caused by an accident. It pays in a lump sum, with the benefit dependent on loss and family structure.

2017 Supplemental AD&D Rates
-- Rate per Month
Employee Only $1.80
Employee and Family $2.70
Effective: Jan. 1 - Dec. 31, 2017

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Disability Benefits Insurance

Short-Term Disability (STD) now covers 60% of your monthly base pay, up to a maximum of $580 per week. The cost for this benefit is $2.04 per month.

Long-Term Disability (LTD) is available in 2 levels. You can elect to have either 50% or 70% of your monthly base pay covered.

2017 Long-Term Disability Rates
Age Rate Per $100 of covered payroll
Plan B (50%) Plan C (70%)
under 25 $0.28 $0.63
25-29 $0.29 $0.64
30-34 $0.29 $0.65
35-39 $0.30 $0.66
40-44 $0.31 $0.70
45-49 $0.34 $0.75
50-54 $0.37 $0.82
55-59 $0.41 $0.89
60-64 $0.42 $0.91
65-69 $0.44 $0.94
70+ $0.54 $1.13
Effective: Jan. 1 - Dec. 31, 2017

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New! Critical Illness Insurance

The State of Alaska is pleased to offer you an opportunity to enroll in the new Critical Illness Supplemental Insurance plan that can pay a lump sum upon certain diagnoses. Diagnoses include cancer, heart attack, major organ transplant, kidney failure, Alzheimer’s disease, and other illnesses.

2017 Critical Illness Rates & Structure
Age Tiers Rate Basis (multiple by $15,000 or $30,000)
Employee Only Employee + Spouse Employee + Children Employee + Spouse & Children
Under 25 $0.19 $0.33 $0.36 $0.50 Per $1,000/mth
25–29 $0.21 $0.35 $0.37 $0.52 Per $1,000/mth
30–34 $0.29 $0.48 $0.45 $0.64 Per $1,000/mth
35–39 $0.41 $0.67 $0.58 $0.84 Per $1,000/mth
40–44 $0.63 $1.00 $0.79 $1.17 Per $1,000/mth
45–49 $0.95 $1.50 $1.12 $1.66 Per $1,000/mth
50–54 $1.39 $2.17 $1.55 $2.33 Per $1,000/mth
55–59 $1.95 $3.05 $2.12 $3.21 Per $1,000/mth
60–64 $2.82 $4.40 $2.99 $4.57 Per $1,000/mth
65–69 $4.27 $6.65 $4.44 $6.81 Per $1,000/mth
70+ $6.49 $10.04 $6.66 $10.21 Per $1,000/mth
Effective: Jan. 1 - Dec. 31, 2017
  • Important Note

    Your Critical Illness certificate provides limited benefits – read your certificate carefully. By enrolling for Critical l Illness Insurance, you declare that no person proposed for Critical Illness coverage is covered under any Title XIX program (Medicaid or any similarly named program); that all persons to be insured have medical coverage in force that provides benefits for medical treatment, including hospital, surgical and medical expenses; you acknowledge you have read Shopper’s Guide to Cancer Insurance; and you have received and read a copy of the Outline of Coverage or other disclosure document for the group Critical Illness plan. By enrolling in Critical Illness you agree you have read the enrollment documentation and declare that all information you have given is true and complete to the best of your knowledge and belief; and, you have read the applicable Fraud Warning(s) provided.

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Who will receive your benefits if you die?

Depending on who you name as your beneficiary, your benefit could go to an individual, an institution, your estate, or a trust. It can also go to a combination of beneficiaries. If you are married, your spouse is automatically your 100% primary beneficiary unless they consent to another beneficiary.

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