PRINTER'S NO. 1658
No. 1455 Session of 1981
INTRODUCED BY GALLEN, MOWERY AND FRYER, MAY 12, 1981
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 12, 1981
AN ACT
1 Reenacting and amending the title and the act of September 26,
2 1961 (P.L.1661, No.692), entitled "An act providing for group
3 life insurance for State employes; establishing a schedule;
4 providing for payment; providing for reduction of insurance
5 upon retirement; authorizing the Secretary of Property and
6 Supplies to act as exclusive agent for the purpose of
7 contracting for insurance; and providing for administration
8 and advisory services by the Department of Property and
9 Supplies," bringing the group life insurance plan into
10 conformance with Federal legislation and making it more
11 flexible.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The title, act of September 26, 1961 (P.L.1661,
15 No.692), entitled "An act providing for group life insurance for
16 State employes; establishing a schedule; providing for payment;
17 providing for reduction of insurance upon retirement;
18 authorizing the Secretary of Property and Supplies to act as
19 exclusive agent for the purpose of contracting for insurance;
20 and providing for administration and advisory services by the
21 Department of Property and Supplies," is reenacted and amended
22 to read:
1 AN ACT
2 Providing for group life insurance for State employes;
3 establishing a schedule; providing for payment; [providing
4 for reduction of insurance upon retirement; authorizing the
5 Secretary of Property and Supplies to act as exclusive agent
6 for the purpose of contracting for insurance;] and providing
7 for administration and advisory services by the Department of
8 [Property and Supplies] General Services.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 2. The act, reenacted and amended July 31, 1968
12 (P.L.691, No.229), is reenacted and amended to read:
13 Section 1. Group Life Insurance for State Employes.--The
14 Department of [Property and Supplies] General Services, with the
15 approval of the Governor, with the advice [of the Auditor
16 General, Attorney General and] of the Insurance Commissioner,
17 shall procure from one or more life insurance companies,
18 authorized to do business in the Commonwealth of Pennsylvania, a
19 policy or policies of group life insurance covering permanent,
20 continuously scheduled employes of the executive, legislative
21 and judicial [branch] branches of the Commonwealth of
22 Pennsylvania, its commissions, boards, departments, and
23 authorities. For the [purposes] purpose of this act, the term
24 "employes" shall include the members of the General Assembly.
25 Each such employe in active service shall be eligible for
26 insurance under sections 1 to 5, inclusive, provided he shall
27 have completed three months continuous service as such employe.
28 [Seasonal and temporary] Temporary employes [and any employe
29 insured under any other group life policy, the premium of which
30 is paid, in whole or in part, by the State or any authority
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1 thereof,] shall not be eligible.
2 Section 2. Amount of Insurance.--The amount of such life
3 insurance for any [insured] eligible employe shall be based on
4 the employe's [yearly gross compensation] annual pay rate from
5 the State in accordance with the following schedule:
6 [Schedule of Group Life Insurance
7 Class Yearly Gross Compensation]
8 Annual Pay Rate Amount of Life Insurance
9 1 less than $2500 $2500
10 2 $2500 and less than 3500 3000
11 3 3500 and less than 4500 4000
12 4 4500 and less than 5500 5000
13 5 5500 and less than 6500 6000
14 6 6500 and less than 7500 7000
15 7 7500 and less than 8500 8000
16 8 8500 and less than 9500 9000
17 9 9500 and less than 10500 10000
18 10 10500 and less than 11500 11000
19 11 11500 and less than 12500 12000
20 12 12500 and less than 13500 13000
21 13 13500 and less than 14500 14000
22 14 14500 and less than 15500 15000
23 15 15500 and less than 16500 16000
24 16 16500 and less than 17500 17000
25 17 17500 and less than 18500 18000
26 18 18500 and less than 19500 19000
27 19 19500 and over 20000
28 The amount of such life insurance for any [insured] eligible
29 employe sixty-five years of age or older shall be [one-half the
30 amount of life insurance provided under the above schedule]
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1 reduced in accordance with the Federal Age Discrimination in
2 Employment Act. For employes older than those covered by the
3 Federal Age Discrimination in Employment Act, the amount of such
4 life insurance shall be no less than one-half the amount
5 provided above.
6 Any [increase] change in the amount of life insurance made
7 [possible] necessary by [an increase] a change in [compensation]
8 pay shall take effect on the next succeeding [policy] program
9 anniversary[, but no reduction in the amount of life insurance
10 shall be required on account of a reduction in compensation but
11 if such reduction is requested the reduction shall take effect
12 on the next succeeding policy anniversary.] For the purpose of
13 this section, [yearly gross compensation] annual pay rate shall
14 [not include any mileage reimbursement or overtime pay] mean
15 base pay rate annualized, and in the case of [hourly workers]
16 wage employes, shall be computed on the basis of [scheduled
17 required] expected work hours.
18 Section 3. Contributions.--Each employe so insured shall
19 pay, either directly or by means of a payroll deduction
20 authorized by the employe, the cost of the insurance in such an
21 amount, as may be determined from time to time on the basis of
22 the actual total costs of the insurance policy or policies
23 contracted for by the State: Provided, That [the employe's
24 contribution shall not exceed twenty cents (20¢) bi-weekly for
25 each thousand dollars ($1000) of insurance. The contribution of
26 an employe who is paid on other than a bi-weekly basis shall not
27 exceed the equivalent of twenty cents (20¢) bi-weekly for each
28 thousand dollars ($1000) of insurance, adjusted to the nearest
29 cent. There shall be contributed from the respective
30 appropriations or other legislative or executive authorizations
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1 which are made available for this purpose an amount equal to the
2 difference between the employe's contribution and the cost of
3 the insurance.] the Commonwealth may agree to pay all or any of
4 the costs for such life insurance.
5 Section 4. Termination of [Employment] Life Insurance.--The
6 insurance on any [insured] eligible employe shall cease on
7 termination of employment[, subject to any conversion privilege
8 provided in the group life insurance policy or policies:
9 Provided, That the insurance may remain in effect during periods
10 of suspension and during continuous periods of leave of absence
11 without pay which do not exceed twelve months.] or upon
12 nonpayment of any contribution due from an employe, or after
13 twelve continuous months of unpaid absence, subject to any
14 conversion privilege, provided that the life insurance will be
15 continued for employes who terminate after becoming permanently
16 and totally disabled while covered under this program.
17 Section 5. All Employes to Be Automatically [Insured]
18 Covered.--Any policy of insurance purchased as authorized [in]
19 by this act shall provide that all employes eligible under the
20 terms of this act will be automatically [insured] covered
21 thereunder commencing on the date they first became so eligible.
22 [Any employe desiring not to be so insured shall, on an
23 appropriate form to be prescribed, give written notice to his
24 employing office that he desires not to be insured. If such
25 notice is received before the employe shall have become insured
26 under such policy, he shall not be so insured; if it is received
27 after he shall have become insured, his insurance under the
28 policy will cease effective with the end of the pay period
29 during which the notice is received by the employing office.]
30 Section 6. Secretary of [Property and Supplies] General
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1 Services to [Be] be Agent.--The Secretary of [Property and
2 Supplies] General Services is hereby authorized, and his duty
3 shall be to transact all business necessary for the purpose of
4 contracting for insurance under the provisions of this act, and
5 his powers and duties to act in this capacity shall be
6 exclusive.
7 The life insurance company or companies from whom such
8 insurance is procured shall compute commissions in accordance
9 with their standard practice followed in other similar plans.
10 The said commissions shall be paid to the Secretary of [Property
11 and Supplies] General Services to offset administrative and
12 other expenses incurred in the administration of the insurance
13 plan. [The residue over and above the amount necessary to offset
14 administrative and other expenses incurred in the administration
15 of the plan shall be used to reduce the cost of such insurance.]
16 Section 7. Applicability of Insurance Laws.--[Except as
17 otherwise specifically provided, all] All insurance contracted
18 under the provisions of this act shall be subject to the laws of
19 this Commonwealth relating to insurance.
20 [Section 8. Effective Date.--This act shall take effect
21 immediately.]
22 Section 3. This act shall take effect in 90 days.
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