CHAPTER 594

An Act to amend and reenact § 51-111.67:4, as amended, of the Code of
Virginia, relating to amounts of group life and accident insurance
for which certain employees are eligible under the Virginia Supple-
mental Retirement Act.

[H 742]

Approved March 31, 1964

Be it enacted by the General Assembly of Virginia:

1. That § 51-111.67:4, as amended, of the Code of Virginia be amended
and reenacted as follows:

§ 51-111.67:4. (a) Each employee to whom this article applies shall,
subject to the terms and conditions thereof, be eligible to be insured for
an amount of group life insurance plus an equal amount of group accidental
death and dismemberment insurance, in accordance with the following
schedule:
If annual compensation is—

IV
Ill The maximum amount
II The amount of group accidental

I But not of group life death and dismember-

Greater greater insurance ment insurance
than— than— shall be— shall be—

0 $ 1,000 $ 1,000 $ 1,000
$ 1,000 2,000 2,000 2,000
2,000 3,000 3,000 3,000
3,000 4,000 4,000 4,000
4,000 5,000 5,000 5,000
5,000 6,000 6,000 6,000
6,000 7,000 7,000 7,000
7,000 8,000 8,000 8,000
8,000 9,000 9,000 9,000
9,000 10,000 10,000 10,000
10,000 11,000 11,000 11,000
11,000 12,000 12,000 12,000
12,000 13,000 13,000 13,000
13,000 14,000 14,000 14,000
14,000 15,000 15,000 15,000
15,000 16,000 16,000 16,000
16,000 17,000 17,000 17,000
17,000 18,000 18,000 18,000
18,000 19,000 19,000 19,000
19,000 20,000 20,000 20,000
20,000 21,000 21,000 21,000
21,000 22,000 22,000 22,000
22,000 23,000 28,000 23,000
23,000 24,000 24,000 24,000
24,000 25,000 25,000 25,000
25,000 26,000 26,000

The Board may, with respect to employees while in service and under
age sixty-five, increase the amounts of insurance set forth in Columns IIT
and IV above for such period as may be specified by the Board if the
Board determines (1) that such increase can be made without exceeding
the rate of employee contributions specified in §§ 51-111.67:5 and
§1-111.67:6 and (2) that, after applying to the cost of such increase any
reserve funds held by, or to the credit of the Board, resulting from the
annual accounting required by § 51-111.67:7, such increase in amount
of insurance can be made without increasing, during such specified
period, the premiums, charges or portions thereof not paid for by employee
contributions which would have been incurred had such increase tn
amounts of insurance not been made.

With respect to any employee who is reemployed and insured in
accordance with the provisions of this article, the foregoing otherwise
applicable amount of group life insurance shall be reduced by the amount
of insurance provided by any policy of insurance issued under the con-
version privilege of any policy issued pursuant to the provisions of this
article.

Subject to the conditions and limitations of the policy or policies
purchased by the Board under this article, the group accidental death and
dismemberment insurance shall provide payments as follows:
een err ner oete ET ees ee er ES

For loss of life Full amount shown in Column IV
of schedule shown in this section
Loss of one hand or of one foot or One-half of the amount shown In
loss of sight of one eye Column IV of schedule shown in
this section
Loss of two or more such members Full amount shown in Column IV
of schedule shown in this section
For any one accident the aggregate amount of group accidental death
and dismemberment insurance that may be paid shall not exceed the
maximum amount of group accidental death and dismemberment insurance
shown in Column IV of the schedule in paragraph (a) of this section.
_ (b) The amounts of life and accidental death and dismemberment
insurance on employees who remain employed after age sixty-five shall be
reduced by two per centum thereof at the end of each full calendar month
following the date the employee attains age sixty-five; but such reduction
shall not decrease the amount of insurance on an employee to less than
twenty-five per centum of the insurance in force immediately preceding
the first reduction therein; provided, that the amounts of life and acci-
dental death and dismemberment insurance in force from time to time
on an employee who becomes insured under this article after having
attained the age of sixty-five shall be the same as would be in force had
he been insured at age sixty-five and shall be based on the lesser of his
annual compensation (1) at the time he becomes so insured, or (2) at age
sixty five provided he was eligible at that time to be insured under this
article. |
(c) The amount of life insurance on each employee who retires (2)
for service * on an immediate annuity shall be reduced by two per centum
of the amount of insurance in force at such employee’s age sixty-five, or
other lesser age if so retired prior to age sixty-five, at the end of each full
calendar month following the date the employee attains age sixty-five or
other lesser age if so retired prior to age sixty-five or (ii) because of dis-
ability on an immediate annuity shall be reduced at the end of each full
calendar month following the date such employee attains age sixty-five
by an amount equal to two per centum of the amount of insurance in force
on the date such retirement commenced, except if the employee by statute
or Board regulation has pursuant to subsection (f) of this section, been
construed to be in service to the beginning of the next school year the re-
duction, whether for age or retirement for service, or because of disability
on immediate annuity, shall not apply until the beginning of such next
school year. But such reduction shall not decrease the amount of life insur-
ance on an employee to less than twenty-five per centum of the insurance
in force immediately preceding the first reduction therein; provided, that
the amounts of life insurance in force from time to time on an employee
who becomes insured under this article after having attained the age of
sixty-five and later so retires shall be the same as would be in force had
he been insured and so retired at age sixty-five and shall be based on the
lesser of his annual compensation (1) at the time he becomes so insured,
or (2) at age sixty-five provided he was eligible at that time to be in-
sured under this article; provided that the Board may, in the case of a
disabled retirant who returns to service in a position covered by this article,
provide for the insuring of such person for an amount and in the same man-
ner as if then originally employed but the insurance applicable to such per-
3on shall be deemed to have been issued as of the time such person was first
insured under the group insurance provided for in this article.
(d) All accidental death and dismemberment insurance on an em-
ployee shall cease upon his separation from service or twelve months (two
months in the case of any employee on leave of absence for military, naval
or air service) after discontinuance of his salary payments or upon his re-
tirement, whichever is earliest. _

(e) Except in case of service or disability retirement, all life insur-
ance on an employee shall cease upon his separation from service or twelve
months (two months in the case of any employee on leave of absence for
military, naval or air service) after discontinuance of his salary payments,
whichever first occurs, subject to a temporary extension of such life insur-
ance for not more than thirty-one days and to the right of the employee to
convert, without evidence of insurability and within such thirty-one days
after such separation from service or end of such twelve months after dis-
continuance of his salary payments, whichever first occurs, and upon pay-
ment of the premium applicable to the class of risk to which he belongs and
to the form and amount of the policy at his then attained age, his life
insurance into a policy of life insurance without disability or other sup-
plementary benefits in any one of the forms then customarily issued by the
insuring company, except term insurance, in an amount equal to the amount
of his life insurance under such group insurance policy at the time of such
separation or discontinuance, whichever first occurs.

Each employee of a State institution of higher education or of a
local school board who remains in the service of such institution of higher
education or local school board until the completion of the school year end-
ing in June and who makes contributions required to provide insurance
coverage under this article until service normally will be resumed the be-
ginning of the next school year shall, for insurance purposes, be deemed to
be in service as an employee through the period to which the payments
apply; if during such period such employee is retired for service or disabil-
ity or attains age sixty-five, contributions made by the employee, § 51-
111.67:5 notwithstanding, shall be accepted and retained as proper.