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Overview of ORP Insurance Benefits

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.

Group Term Life Insurance

The Group Term Life Insurance policy provides two benefits:

  1. Death Benefits are payable upon the death of an Active Participant. The proceeds are payable to the Participant's named beneficiaries. The benefit schedule is a multiple of annual salary that is reduced in five-year age bands.
  2. Accelerated Death Benefits are payable to an Active Participant who is terminally ill and expected to die within a year. The participant may take up to 100% of the benefit that would otherwise be paid upon their death.

How does this policy relate to the Group Insurance Commission's life insurance policies?

The ORP Group Term Life Insurance coverages are separate and distinct from those available from the Group Insurance Commission.

Long-Term Disability Insurance

The Long-Term Disability Insurance policy provides four benefits:

  1. Monthly Income Benefits (MIB) are payable directly to an Active Participant who becomes disabled. The definition of disability is in the Long-Term Disability Certificate of Insurance (.PDF). The MIB is equal to 60% of the Participant's monthly wage. Benefits are payable after satisfying the Elimination Period.
  2. Annuity Premium Benefit (APB) is a monthly contribution to a disabled Participant's retirement account. The APB is equal to 10% of the Participant's monthly wage and helps ensure an adequate retirement income when Monthly Income Benefits end (typically at age 65). The APB is paid to the Plan Administrator who remits the funds to the Participant's retirement account Provider.
  3. Survivor Income Benefits (SIB) are payable to a qualified beneficiary upon the death of a disabled ORP Participant. The SIB is equal to three months' Monthly Income Benefit.
  4. Employee Assistance Program (EAP) is available to all insured ORP Participants. The EAP contact information is available in the EAP booklet.

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.

More Information

For more information about these policies, refer to the Group Life Certificate of Insurance (.PDF) and the Long-Term Disability Certificate of Insurance (.PDF).

 

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