For all employees (other than Paraprofessionals), Group Term Life Insurance and AD&D amount is 125% of their basic salary, rounded to the next higher $1,000, if not an exact multiple of $1,000. The minimum amount is $7,000 and the maximum amount is $50,000. In the event of accidental death, the insurance is doubled.

For Paraprofessionals, Group Term Life Insurance is 125% of their earnings, rounded to the next higher $1,000, subject to a minimum of $20,000 and a maximum of $50,000. The Life Insurance plan includes the following features:

• waiver of premium if disabled prior to age 60
• a living benefit rider (for the terminally ill), up to 75% of the face value
• a limited portability provision
• a conversion plan available upon separation
• additional enhanced coverage available

The Enhanced Life Insurance and AD&D benefit is in addition to the Basic Life Insurance benefit and AD&D. The coverage is affordable and convenient; premiums are remitted through payroll deductions. You are able to purchase additional group term life insurance at competitive rates. Newly eligible employees may purchase the lesser of 1.25 times salary up to 5 times salary, not to exceed $500,000 on a Guarantee Issue basis. In the event of accidental death, the insurance is doubled.

Employees (other than Paraprofessionals earning less than $16,000) may choose additional life insurance:

Option1

1.25 times of basic annual salary, rounded to the next highest $1,000 to a maximum of $50,000. (Paraprofessionals earning $16,000 or less receive a minimum election of $20,000 for Option 1.) The monthly cost is $0.255 cents per $1,000 of coverage.

Option 2

2.50 times of basic annual salary, rounded to the next highest $1,000 to a maximum of $100,000. (Paraprofessionals earning $16,000 or less receive a minimum election of $40,000 for Option 2). The monthly cost is $0.29 cents per $1,000 of coverage.

Option 3

3 times of basic annual salary, rounded to the next highest $1,000. The monthly cost is $0.29 cents per $1,000 of coverage.

Option 4

4 times of basic annual salary, rounded to the next highest $1,000. The monthly cost is $0.29 cents per $1,000 of coverage.

Option 5

5 times of basic annual salary, rounded to the next highest $1,000. The monthly cost is $0.29 cents per $1,000 of coverage.

Medical Underwriting is required for late enrollment and any amounts over $500,000.

If you select Enhanced Life Insurance when you initially enroll for basic insurance benefits, no medical evidence of insurability is required, unless you are applying for amounts over the Guarantee Issue amounts and/or exceeding and increase of more than one level.

If you do not select Enhanced Life Insurance at time of employment, you may only enroll during subsequent Open Enrollment periods, at which time evidence of insurability will be required if increasing two levels. During the annual Open Enrollment periods no evidence of insurability will be required if increasing only one level.

Enhanced Examples

Value of Core Coverage	Value of Enhanced (x1)	Premium (x1)	Value of x5 Basic Annual Salary	Premium (x5)
$20,000	$20,000	$4.60/MONTH	$20,000/100,000	$17.50/MONTH
$40,000	$40,000	$9.20/MONTH	$45,000/$225,000	$39.38/MONTH
$50,000	$50,000	$11.50/MONTH	$95,000/$475,000	$83.13/MONTH

The Living Benefit is available to employees who meet certain criteria. It is an innovative feature, which allows an insured employee to apply for an accelerated death benefit. This benefit will be paid during his/her lifetime if the employee has a terminal condition, which is expected to result in death within twelve months. The maximum Living Benefit for which an employee can apply is 75% of his/her total life insurance amount with a maximum benefit of $375,000. The amount paid under the Living Benefit Rider will reduce the Beneficiary Life Insurance benefit.

You have the opportunity to convert to individual life insurance coverage if your insurance ends or it is reduced for any reason other than plan termination or if you fail to pay the required premium. If coverage is terminated, you will have 31 days to file an application to convert your coverage.

The portability feature allows you to continue the life insurance program for yourself should you leave your employer for any reason, without having to provide evidence of insurability (information about your health). A completed and signed form must be mailed to Mutual of Omaha within 60 days after insurance has ceased under the group plan for your request to be considered.

Portability is subject to plan provisions, such as age limits, specifically, if an employee has passed the age of 70 years old, the employee is NOT eligible for Life Insurance Portability; however, an employee will be eligible for Life Insurance Conversion. Please note that this is just an example and is not inclusive of all provisions.

The IRS considers the value of group term life insurance in excess of $50,000 as income to an employee. This concept is known as “imputed income” and appears on the remuneration statement under NonCash Txbl. The value of the insurance is determined by calculating the amount of an employee’s group term life insurance in excess of $50,000, and multiplying that amount by an IRS factor based on the employee’s age as of the last day of the calendar year (see table below).

The imputed income based upon the District's group term life insurance will be reported on each employee's Form W-2 as taxable wages. This may cause the taxable wage to be greater than the gross income on the employee's remuneration statement. Take for example, a 52-year-old employee with $80,000 of group term life insurance during calendar year 2008. Of that $80,000, the value of $30,000 (the amount in excess of $50,000) is taxable to the employee. Under IRS rules, the value of that $30,000 excess group term life insurance equals the difference between the value of that excess determined under the IRS table below, minus the actual after-tax deductions the employee makes for that coverage.

In this example, the annual imputed income would equal $82.80 - $51.12= $31.68.

Here’s how that $82.80 was calculated. The employer multiplies the IRS factor applicable to a 52-year old (which is $0.23) by 30 (the number of thousands of excess), and then multiplies that number by 12 (the number of months during the calendar year). So, $0.23 x 30 x 12 = $82.80.

Here’s how that $51.12 was calculated. The employer multiplies the rate of $0.142 (District rate) by 30 (the number of thousands of excess), and then multiplies that number by 12 (the number of months during the calendar year). So, $0.142 x 30 x 12 = $51.12.

$31.68 is the annual imputed income, reported on your W2 ($82.80 - $51.12 = $31.68 additional).

IRS Tables
Age of Employee Under 25 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 65 to 69 70 and over	Monthly cost per $1,000 of Excess Coverage $.05 $.06 $.08 $.09 $.10 $.15 $.23 $.43 $.66 $1.27 $2.06