Post-Retirement Group Term Life Insurance
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.
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