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2003 SESSION
Be it enacted by the General Assembly of Virginia:
1. That § 51.1-505 of the Code of Virginia is amended and reenacted as follows:
§ 51.1-505. Amounts of life and accident insurance for each employee; reduction and termination of insurance.
A. Each employee to whom this chapter applies shall, subject to the terms and conditions thereof, be eligible to be insured for an amount of group life insurance plus an amount of group accidental death and dismemberment insurance, each amount equal to twice the amount of his annual salary. If an employee's annual salary is not an even multiple of $1,000, his annual salary for purposes of this section shall be considered to be the next higher $1,000. For purposes of this section, the annual salary of a member of the General Assembly shall be his creditable compensation for his last full calendar year of service or his salary under § 30-19.11, whichever is greater, and shall include the full amount of any salaries payable to such member for working in covered positions, regardless of whether such salaries were paid, reduced, or not paid because of such member's service in the General Assembly. The annual salary for an employee retired for service or disability on an immediate retirement allowance may be adjusted by the Board in accordance with the provisions of Chapter 1 (§ 51.1-124.1 et seq.) of this title.
Subject to the conditions and limitations of the group insurance policy, the accidental death and dismemberment insurance shall provide payments as follows:
Loss Amount Payable For loss of life Full amount determined in accordance with the provisions of this section Loss of one hand or One-half of the amount of one foot or loss determined in accordance of sight of one eye with the provisions of this section Loss of two or Full amount determined in more such members accordance with the provisions of this section.
For any one accident, the aggregate amount of accidental death and dismemberment insurance that may be paid shall not exceed the maximum amount of accidental death and dismemberment insurance determined in accordance with this section.
Notwithstanding the provisions of § 51.1-124.8, the amount of life insurance for which an employee shall be eligible shall be equal to twice the amount of his annual salary without regard to the date of the employee's qualification for a retirement allowance.
B. The amount of life insurance on an employee who retires for service on an
immediate retirement allowance or who elects to postpone the receipt of his
retirement allowance to some date other than his last day of service shall be
the amount set forth in subsection A, reduced by an amount equal to twenty-five
25 percent thereof on the January 1 following the first full year from the date
the employee is separated from service and each January 1 thereafter. The amount of life
insurance on an employee who retires for disability on an immediate retirement
allowance shall be the amount set forth in subsection A on the date the
employee last rendered service reduced by an amount equal to twenty-five 25
percent thereof on January 1 of the first full year following the date the employee
attains age sixty-five 65, and each January 1 thereafter. If the employee
by statute or Board regulation has been construed to be in service to the beginning of the next
school year, the reduction shall not apply until the beginning of the next
school year. The reduction shall not decrease the amount of life insurance on
an employee to less than twenty-five 25 percent of the amount of life insurance
to which the initial reduction is applied. For purposes of this subsection, an employee shall be
deemed to have retired only if the employee has five or more years of
continuous service as an employee prior to the date of retirement. This
requirement shall not be applicable if the employee is retired for disability.
Any employee who was denied membership in the Retirement System because of
having attained age sixty 60 at the time of being employed or reemployed and
who has five or more years of continuous service immediately prior to
separation from service shall retain the life insurance coverage as though he had retired
on an immediate retirement allowance.
C. The amount of life insurance for an employee who is retired for disability
on an immediate retirement allowance, who also has attained age fifty-five 55,
and who elects to receive a retirement allowance as set forth in subsection C
of § 51.1-160, shall be reduced as set forth in subsection B of this section.
The reduction shall begin the January 1 following the first full year from the date
the employee elects a service retirement allowance.
D. All accidental death and dismemberment insurance on an employee shall cease
upon the earliest of (i) his separation from service, (ii) his failure to pay,
in the manner prescribed by the Board, the contribution required for the first
twenty-four 24 months of leave without pay, (iii) if the employee has not
returned to pay status, the expiration of twenty-four 24 months of leave
without pay, or (iv) his retirement.
E. Except in case of retirement as provided in subsections B and C of this
section, all life insurance on an employee shall cease upon the earliest of (i)
his separation from service, or (ii) his failure to pay, in the manner
prescribed by the Board, the contribution required for the first twenty-four 24
months of leave without pay, or, (iii) if the employee has not returned to pay status, the expiration
of twenty-four 24 months of leave without pay. Except in the case of
retirement, life insurance shall be subject to a temporary extension of
thirty-one 31 days. During this thirty-one 31-day extension, the employee
may convert his life insurance into an individual policy of life insurance (without disability or other supplementary
benefits) in any one of the forms, except term insurance, then customarily issued by the insuring company. The amount
of life insurance which may be converted shall not exceed the amount of his
life insurance under the group insurance policy at the time coverage is
terminated. The insurance shall be converted to an individual policy (a)
without evidence of insurability, (b) at the premium applicable to the class of
risk to which he belongs, and (c) to the form and amount of the individual
policy at his then attained age, provided application for the individual policy
and payment of the first premium thereon is made to the issuing company within
the thirty-one 31 days. The right to convert to an individual policy as
provided in § 38.2-3333 shall not apply upon termination of this group policy
or elimination of a class of insured employees.
The amount of life insurance on each insured employee who retires shall be determined under the provisions of this chapter as it exists on the employee's date of retirement.
F. Each employee of a state institution of higher education or of a local school board who remains in service until the completion of the school year and who makes contributions required to provide insurance coverage until service normally will be resumed the beginning of the next school year shall be deemed to be in service as an employee through the period to which the payments apply. If the employee is retired for service or disability during this period, contributions made by the employee shall be accepted and retained as proper.
G. That the provisions of this section shall apply to all members of the Virginia Retirement System who, on and after July 1, 1995, are covered under the group life insurance program created pursuant to this section and whose effective date of retirement is (i) before July 1, 1970, or (ii) on and after July 1, 1970.