Post-Retirement Group Term Life

This information pertains only to Duke employees currently holding Provident Life and Accident Post-Retirement Group Term Life contracts. This plan is not open to new enrollees.

The current IRS code allows pre-tax premiums for this voluntary, employee paid life insurance program. The death benefits are also presently income tax-free. The amount of life insurance offered is limited by law to $50,000. The policy is paid up at the projected retirement date. This program is paid through payroll deduction. Active employees regularly scheduled to work at least 30 hours per week and active faculty regularly scheduled to work 40 hours per week are eligible to participate in the plan.

Benefit Amount

You can buy up to $50,000 worth of coverage that is "paid-up" at the time of your retirement. "Paid-up" means that you don't make any more premium payments.

In the event of your death prior to retirement, your beneficiary would receive a death benefit equal to either all of the premiums you paid or the value of the "retired lives reserve fund," whichever amount is greater. If you leave Duke or retire prior to your target retirement date, you would receive a certificate of paid-up insurance for a lesser amount than you originally enrolled to purchase. This reduced death benefit would be payable after the date you targeted for your retirement when you signed up for coverage.

Cost

Your premium will depend on how far you are from your target retirement date when you enroll and how much life insurance coverage you select. The premium is deducted from your paycheck before your taxes are calculated, reducing the premium impact to your take home pay. The premiums you pay into your plan are added to a "retired lives reserve fund." The interest rate supporting your reserve is guaranteed never to drop below 5%. The reserve fund pays death benefits only, and no cash or loan values are available through this plan.

Effective Date

Your insurance will be "paid up" to your elected coverage amount when you retire, if you retire at your same projected retirement date and have not missed any payroll deductions.

Funding

The benefit is entirely paid by the participants of the plan by the amounts determined by the insurance company.

Duke reserves the right, in its sole discretion, to modify, suspend or terminate this program at any time, for any reason.