GENERAL ANSWERS TO QUESTIONS ON GROUP LIFE INSURANCE PLAN FOR FEDERAL CIVILIAN EMPLOYEES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00679A000100040077-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 12, 2016
• Document Release Date: November 9, 2001
• Sequence Number: 77
• Content Type: REPORT

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General Anew ea to Qua etious or Groep Life Inserance
Plan for Fedora Civilian Employees
Q, What are the principalleatures of the new group life insurance plan. for
Federal employees?
A. Here are the highlights of the plant
..ifith few exceptions, all Federal civilian employees will be eligible
to participate.
- The plan will provide for low-cost life insurance without a medical
examination and with payment of double indenniier for accidental death
and payment for accidental loss of eyesight or one or more limbs (die.
memberment).
. Eligible employees will be automatically covered unless they specifie
cally state in writing that they do not want the insurance,
. The cost will be shared by employees and the Government. The employee
will pay 25 cents per 01,000 of insurance each blaweslaly par period,
until he reaches age 65, after which he will pay nothing. If be is
paid an other than a bi-weekly basis, the cost will be proportionate.
? The Government will help to pay
tne cost or thee insurance by contributing half at much as the em-
ployee.
. Each employee who participates will be insured for an amount approxie
mating his annual salary to the nearest upper thousand. For example,
an employee earning 33,200 per year will be insured for $14,000, An
amp) oYee earning more than 04000 but not over 05,000mill be insured
for 05,000, and as an,
. Employees %years of age or older will be insured free, but in re.
duced WO1Dt80?
. Employees who retire will continue to be covered by the life insurance
provisions without cost to them..but their coverage will be reduced.
La.xtelailMtio.n
Q, Who will be ,eligible to participate in this program?
A. All Federal civilian employees in the executive, legislative, and judi-
cial
branchee and eepleyees of the District of Columbia Government mill'
be eligible to participate except: (1) non-citieens stationed overseas,
(2) employees serving in certain corporations under the supervision of
the Farm Credit Administration, and (3) employees excluded by the Civil
Service Commission (after consultation with agencies) because of con.
ditions of epOloyment, such as seasonal, intermittent, or part-time em.
ployment.
Will employees in hazardous occupations be excluded?
A. An employee will not be excluded solely In theKrerids tlekk
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Q. Will Members of Congrese be eligible?
A. Yes -- Membersiof Congress, cabinet officers, judges -- all will be eligible.
Q. Will there be any bar to participation because of physical condition, age or
sex?
A. No. However, if an employee declines insurance, and later vents to partici-
pate, he will have to weft one year and then produce evidence of insurability --
through a medical examination. Also, when an employee declines to participates
he will not be eligible for insurance after he has reached the age of 50 years.
If both man and wife are employed by the Gevernment, will both be eligible?
A. Yes,
Q. What about employees who participate, quit the Government, and later return?
A, They will be eligible to participate upon their return just as though they
had not been previously employed.
Q. What must an employee do to participate in the program?
A. Nothing, Eligible employees: will be covered automatically, unless they state
in writing that they do not 'want to be covered under the plena
Q, What about employees who are insured under group insurance policiae through
their unions or associations?
A. Employees can participate in this program and continue the insurance purchased
through unions and associations,
Q. Are employees who retired prior to the enactment of this program eligible?
A. No,
Q. When will coverage terminate?
A. The insurance is discontinued on separation from service or 12 months atter
salary stops, whichever occurs first. However, the life insurance provisions
are continued if an employee retires under any Federal retirement ystem on
an immediate annuity, either for disability or after at least 15 years of
civilian service.
Q. Then employees who quit the government will lose their coverage?
A. That it correct. However, the life insurance will continue in effect for 31
des during which they have the right to purchase an individual life insurance
policy at standard rates from insurance companies approved by the Governmeat.
No medical examination will be required.
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vglAt airoutJ, oe insurance will tae timp,oyee 'ho leaves-tho Uovernmene be able
'ave
A. The same amount of his coverage while employed by the Government, or any
lesser amount.
1,1
Will this right of purchase allow an employee to bee a policy which will give
hia all the benefits of his Government insurance, such as double payment for
accidental deaths payment for eccidental loss of Useless etc.?
A. No. The right of purchase will be for the life insurance only, without double
indemnity or dismemberment protection.
Amount of insurance
Q. For what amount will an employee be insured?
A. At ages below 65 years, the insurance will be an amount that approximates his
annual salary to the nearest upper thousand. if he makes more than $2,000 a
year, he will be insured for $3,000. If he makes more than $3,000 a year, he
will be insured for $40000, and so on.
If he is 65 years old or more, the fare amount of his Insurance will be reuuced
by 2 percent for each month after his 65th birthday anniversary until a
reduction of 75 percent is reached. The remaining 25 percent will stay in
effect.
Q. Will an employee be able to carry leas insurance than the amount to which he
will be entitled?
A. No, he must carry the full amount or none.
Q. Will the amount of insurance to which an employee will be (entitled change
with his annual rate of salary?
A. Yes, if the changes in the employee's annual rate of salary are sufficiently
great. For example if an employee earns $3,200 when he enters. the program,
he is entitled to $4,000 worth of insurance. If his salary goes over $4,000
but not beyond $5,000, he will be entitled to $5,000 worth of insurance; if it
drops to $3,000 or below but not to $20000, he will be entitled to $3,000
worth of insurance. The Changes in coverage and salary deductions will
become effective in the pay period in which the employee's salary rate changes.
Q.
When will this insurance be paid out to the employee or his survivor(s)?
A. Upon death of the employee, the survivor(s) will be paid the face amount of the
insurance. If the death is accideptal? twice the face amount of the insurance
will be paid. If the employee suffers accidental loss of one hands one foot,
or the sight of one eye, he will be paid one-half of the face amount. The
total face amount will be payable to the employee for the loss of two or more
such members or for the loss of sight of both eyes.
Q. Must an employee name a beneficiary?
A. No. Most employees will not find it necessary to designate a beneficiary.
Per those who do not, life insurance and accidental death benefits are payable
in the following order of precedence: (1) widow or widowers (2) children,
(3) pareaur*oxstil FatgaiptaeleylOMONfre 6114-10W80-00679A000100040077-9
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EN.mLent ler Insurance
Qu How will an employee pay for this insurance?
A. The cost to the employee will be deducted automatically from his pay cheek
each pay period. .
Q. Will an employee be able to withdraw the money he has paid in at any time?
A. No. His salary deductions will pay for his day-toeday insurance protection.
Q. If an employee is 65 years or older when the program goes into effects will
deductions for insurance be made from his salary? -
A. No. He will receive the insurance without cost to himself.
Q. Will aneemployee pay for his insurance after he retires?
A. NOThe life insurance will be free After retirement on an immediate annuity
under any Federal retirement eyetams either for disability or after 15 years
of civilian service. The double indemnity and dismemberment (loss of limb
or eyesight) protection will stop.
Q. What will be the total cost to the Government?
A. It is estimated that the Governmentls cost will be about $221,7500000eper
years assuming that at least 75 percent of the eligible employeei'deeide
bartieipate.
IS it possible that the cost of insurance for employees might increase?
Q-
A. It would require a change in the law to increase the employeeus rate of payment.
Q. Will an employee be able to cancel this insurance later?
A. Yee At any time.
Q. When will, this plan go into effect?
A. It is hoped that coverage of Commission employees will begin with the pay
period which starts on August 29, 1954.
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