A retiring employee must be participating in the life insurance plan as an active employee at the time of his retirement in order to continue coverage as a retiree. A retiring employee may continue term life insurance coverage in the amount of $5,000, $10,000 or $20,000. To ensure coverage is continued, the retiring employee should apply at least 31 days before retirement, but no later than 31 days after losing coverage as an employee, and must make the appropriate premium contributions to continue coverage. This will be the retiring employee's only opportunity to continue coverage, as late retiree applications will not be accepted. Employees should contact their Human Resources office for forms and application instructions.
Note: Retiring employees may also be eligible to port or convert some or all of the coverage they had as an active employee. Please refer to the Portability to a Term Life Policy section.
Cost of Coverage for Retired Employees
A retiree must pay the full premium cost for his coverage. Similar to retiree health insurance coverage provisions, the premiums for term life insurance must be deducted from the retiree's monthly Public Employees Retirement System (PERS) retirement benefit if the benefit amount is sufficient. Otherwise, the retiree will be billed the appropriate premium amount each month. The premium cost is actuarially determined and will vary based on the retiree's age and the benefit level selected. Refer to the Plan's website - https://www.dfa.ms.gov/insurance for current life insurance rates.