Open Enrollment 2018Voluntary Supplemental Benefits Guide

Enrollment 2018 is Open Now, until Nov. 22nd.

  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. 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, 2018, the amount of insurance elected, and the corresponding rate on the following chart:

2018 Supplemental Life Insurance Rates
Age Rate Per $1,000 per month
Under 30 $0.030
30 – 39 $0.040
40 – 44 $0.082
45 – 49 $0.120
50 – 54 $0.186
55 – 59 $0.282
60 – 64 $0.404
65 – 69 $0.634
70 – 74 $1.288
75 & over $2.060
Effective: Jan. 1 - Dec. 31, 2018

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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.

2018 Supplemental AD&D Rates
-- Rate per Month
Employee Only $1.80
Employee and Family $2.70
Effective: Jan. 1 - Dec. 31, 2018

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Disability Benefits Insurance

Short-Term Disability (STD) provides a weekly benefit of 60% of the first $962 of your pre-disability earnings. The maximum weekly benefit is $577, and minimum is $20. The maximum benefit period is 180 days of disability. 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.

2018 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 & over $0.54 $1.13
Effective: Jan. 1 - Dec. 31, 2018

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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 proof of certain diagnoses. Diagnoses include cancer, heart attack, major organ transplant, kidney failure, Alzheimer’s disease, and other illnesses.

2018 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, 2018

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Who will receive your benefits if you die?

There are valuable benefits to be paid to your beneficiaries if you die. Many people complete beneficiary forms when they are first hired, but forget to update them when they marry, divorce, have a child, or experience a death in the family. Often beneficiaries move, but their addresses are not updated. This means your benefits could be paid to someone you would prefer not to pay, or benefit payments could be delayed while attempts to locate your beneficiary are made. If you cannot remember the last time you submitted a beneficiary form or who you designated, fill out a new form to ensure your benefits go to the people you want.

The following is a list of benefits that may be available upon your death:

  • Pension Benefits
  • Group Life Insurance Plan
    • Basic Life and AD&D Insurance
    • Travel Accident Insurance
    • Select Life Insurance
  • Supplemental Annuity Plan
  • Supplemental Life Insurance/AD&D
  • Alaska Deferred Compensation Plan
  • Unpaid Compensation (last paycheck plus leave not taken) and Travel Accident Insurance

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