Attention all RCUH Regular employees, 75%FTE or more:
We are pleased to announce a few enhancements to the RCUH Group Long Term Disability and Group Life Insurances which will be effective on July 1, 2010:
1) Long Term Disability Insurance:
Beginning July 1, 2010, the RCUH Group Long Term Disability Insurance will be provided and administered by the Standard Insurance Company (previously administered by the Northwestern Mutual Life).
In addition, the Group Long Term Disability (LTD) maximum monthly benefit will be increased from $10,000 to $15,000.
2) Group Life Insurance:
Also beginning July 1, 2010, the RCUH Group Life Insurance will be provided and administered by the Standard Insurance Company (previously administered by Pacific Guardian Life).
Currently, coverage is provided at two (2) times annual salary not to exceed $250,000. Under the new plan, eligible employees will receive:
Two (2) times annual salary not to exceed $600,000 (default option)
Since the IRS requires employees to be taxed on the value of employer-provided group term life insurance over $50,000 (i.e., imputed income), the RCUH will be providing employees an opportunity to decrease their life insurance benefit to reduce or avoid “imputed income”. It is important to note that employees wishing to decrease their benefit now, but later wish to increase coverage, will be required to complete a medical questionnaire (subject to review and approval by The Standard Insurance Company). Reduced options include:
Two (2) times annual earnings not to exceed $200,000
Two (2) times annual earnings not to exceed $100,000
Two (2) times annual earnings not to exceed $50,000 (not subject to imputed income)
Group Life Insurance Open Enrollment:
As a result of these new benefit options, the RCUH will hold a one-time Open Enrollment Period for the Group Life Insurance Benefit from Thursday, June 10, 2010 to Thursday, June 24, 2010.
A Group Life Election /Beneficiary Designation Form will be mailed to eligible employees on/around June 10, 2010. Employees are asked to submit their benefit option and to update their beneficiary designation. If an enrollment change form is not received, the employee will receive the default option and no changes to their beneficiaries will be made. Deadline to submit the form will be Thursday, June 24, 2010. Form may be returned to: 2530 Dole Street, Sakamaki Hall D-100, Honolulu, HI 96822 or via fax at (808) 956-5022.
Should you have any questions, please contact Kristen Stevens at (808) 956-3100 or [email protected].