The ORP provides Group Term Life Insurance and Long-Term Disability Insurance policies for active Participants (those receiving current contributions). The cost of this coverage is paid by the Commonwealth as part of the 5% Employer Matching Contribution to the ORP.
The Group Term Life Insurance policy provides two benefits:
The ORP Group Term Life Insurance coverages are separate and distinct from those available from the Group Insurance Commission.
The Long-Term Disability Insurance policy provides four benefits:
Participants do not have to be fully disabled to receive Monthly Income and Annuity Premium Benefits under the plan. Employees may be eligible for benefits if they are unable to earn at least 80% of their Monthly Wage.
How does this policy relate to the Group Insurance Commission's long-term disability insurance policies?
The ORP long-term disability policy is separate and distinct from the plan offered by the Group Insurance Commission.
ORP Participants may also purchase the Group Insurance Commission’s (GIC) voluntary disability insurance. ORP Participants generally are not well served by purchasing the GIC coverage because they will likely find that they are under-insured rather than over-insured. This is because both group insurance policies offset for benefits from the other policy. Consequently, both companies will pay the minimum benefit possible. The sum of the Minimum Benefit from both policies is less than the Participant would receive from either policy individually.
An exception arises when an employee enrolls in the ORP but anticipates participation in the SERS at a later date. In these cases, Participants may choose to purchase the GIC disability insurance at the time of ORP enrollment in order to preserve their insurability for the disability coverage later.