Group Term Life Insurance (GTLI)
State Employees' Assurance Department (SEAD) Group term life insurance.
The Group Term Life Insurance (GTLI) benefit is administered by the State Employees’ Assurance Department (SEAD) Boards. The GTLI benefit provides coverage to both active and retired members of ERS (Old Plan, New Plan), LRS and certain JRS members. No new members can be added to the GTLI plan per legislation passed in 2008 and 2009.
For active members, ¼% contribution is deducted from each paycheck entitling them to life insurance coverage for that month. Coverage is equal to 18 times their monthly salary should they pass away while in active status. (Note: At age 60, benefits begin to reduce. Refer to the ERS Plan Handbook for more details.) The SEAD Board may at anytime cancel this coverage, change the benefit structure or reduce coverage.
Whole life policy
If an active member terminates from employment and has a minimum of 18 years of service, but is not eligible to retire, they may still continue GTLI coverage. Premiums will continue to accrue from the date of termination to the date of retirement, or payment. This coverage is automatic, but can be cancelled in writing by the member. As with the active members, coverage is equal to 18 times their monthly salary.
For retirees, coverage continues under GTLI at a reduced level (70% of their age 60 level). Retirees are no longer required to contribute for this benefit and the benefit continues until payout at time of death.
Currently, Employers are not required to contribute to this program based on recent valuations by the Plan’s actuaries. However, this is analyzed each year and employers will be required to contribute should the valuation results deem it necessary.
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