HR Notes for Support Staff, Supervisors, and Managers

 

 

 

New Banner Process for Supplemental Life Insurance Premiums

 

 

 

Effective with the July 13, 2007, paycheck, a process in the new Banner HR/Payroll system will automatically deduct the premiums, before taxes, up to the first $40,000 of supplemental, group-term life insurance coverage for all participating employees.

 

This new process happens automatically behind the scenes in the Banner system on a monthly basis which may result in a slight fluctuation in participating employees paychecks.  Participating faculty may experience an increase in premiums of a dollar or so due to the combining of their base salary and educational component in the new system.  You will not see this on your paycheck stub.

 

IRC section 79 provides an exclusion for the first $50,000 of group-term life insurance coverage provided under a policy carried directly or indirectly by an employer.  For Valencia employees, the first $10,000 represents the basic, term life insurance policy provided to all employees by the college.  The remaining, up to $40,000, is applicable only to those employees that participate in the supplemental, group-term life insurance program.

 

Enrollment in the supplemental, group-term life insurance is voluntary.  Newly hired employees have the option to purchase 1-times their annual salary without proof that they are insurable and may apply to Florida Combined Life Insurance Company for 2-times or 3-times their annual salary with proof that they are insurable.  Employees who did not enroll within their first thirty (30) days of employment with the college must apply for coverage and show proof that they are insurable in order to be approved by Florida Combined Life Insurance Company.

 

According to IRS Publication 525, life insurance proceeds paid to a beneficiary because of the death of an insured person are not taxable.

 

Should you or any of your faculty or staff have any questions, feel free to contact us.

 

 

 

Your Human Resources Benefits & Retirement Team:

 

                                    Laurie Youngman                       x8116

                                    Linda Marcia                              x8038

                                    Beverly Ceasor                          x8024

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                                    HR Notes #71

                                                                                                                                    June, 2007