CHAPTER 43

An Act to amend and reenact §§ 51-111.67:4, 51-111.67:5 and 51-111.67:6
of the Code of Virginia, relating to amounts of life and accident insur-
ance for members of the retirement system, and providing for ter-
mination thereof; providing for and limiting contributions by such
members for such insurance; and authorizing payroll deductions from
the salaries of such members for such insurance and providing for
regulation thereof.

[H 118]
Approved February 13, 1962

Be it enacted by the General Assembly of Virginia:

1. That §§ 51-111.67:4, 51-111.67:5 and 51-111.67:6 of the Code of
Virginia be amended and reenacted as follows:

§ 51-111.67:4. (a) Each employee to whom this act 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
deat oo dismemberment insurance, in accordance with the following
schedule:
f annual compensation is— _

II III The maximum amo
The amount of group accident

I But not of group life death and dismemk
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 23,000 23,000
23,000 24,000 24,000 24,000
24,000 25,000 25,000 25,000
25,000 2 heen 26,000 26,000

fith respect to any employee who is reemployed and insured in
ice with the provisions of this act, the foregoing otherwise applics
it of group life insurance shall be reduced by the amount of ins
provided by any policy of insurance issued under the convers
ge of any policy issued pursuant to the provisions of this act.
ubject to the conditions and limitations of the policy or policies p
| by the Board under this act, the group accidental death and «
2rment insurance shall provide payments as follows:
Loss Amount Payable
ss of life Full amount shown in Column IV of
schedule shown in this section
f one hand or of one foot One-half of the amount shown in Co
ss of sight of one eye umn IV of schedule shown in this
section
f two or more Full amount shown in Column IV of
. members schedule shown in this section
or any one accident the aggregate amount of group accidental de
smemberment insurance that may be paid shall not exceed the mz
amount of group accidental death and dismemberment insura
in Column IV of the schedule in paragraph (a) of this section.
0) The amounts of life and accidental death and dismemberment
-e on employees who remain employed after age sixty-five shall
od by two per centum thereof at the end of each full calendar mo
ing the date the employee attains age sixty-five; but such reduct
not decrease the amount of insurance on an employee to less tl
twenty-five per centum of the insurance in force immediately preceding the
first reduction therein; provided, that the amounts of life and accidental
death and dismemberment insurance in force from time to time on an em-
ployee who becomes insured under this act 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 act.

(c) The amount of life insurance on each employee who retires (for
service or because of disability) 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, 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 begin-
ning of the next school year the reduction, whether for age or retirement
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 act 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 insured
under this act; provided that the Board may, in the case of a disabled
retirant who returns to service in a position covered by this act, provide
for the insuring of such person for an amount and in the same manner
as if then originally employed but the insurance applicable to such person
shall be deemed to have been issued as of the time such person was first
insured under the group insurance provided for in this act.

(d) All accidental death and dismemberment insurance 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 or upon his retire-
ment, 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 pay-
ments, whichever first occurs, subject to a temporary extension of such
life insurance 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 discontinuance of his salary payments, whichever first
occurs, and upon payment 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 dis-
ability or other supplementary benefits in any one of the forms then cus-
tomarily issued by the insuring company, except term insurance, in an
amount equal to the amount of his life insurance under such group insur-
ance policy at the time of such separation or discontinuance, whichever
first occurs.

(f{) 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 act until service normally will be resumed the
beginning of the next school year shall, for insurance purposes, be deemed
to be tn service as an employee through the period to which the payments
apply; tf during such period such employee is retired for service or dis-
ability or attains age sixty-five, contributions made by the employee,
§ 51-111.67:5 notwithstanding, shall be accepted and retained as proper.

§ 51-111.67:5. Each employee so insured shall contribute to the cost
of such life insurance and accidental death and dismemberment insurance
an amount to be determined, and within the time specified, by the Board
but not to exceed the * rate of seventy cents per month * for each thou-
sand dollars of such employee’s life insurance; provided, however, that
employees retired for service or disability and employees in service who
have attained age sixty-five shall not be required to contribute to the cost
of their life insurance except as otherwise provided in § 51-111.67:4 (f);
and further provided that if an employee is separated from the service of
any State institution of higher education or of any local school board prior
to completing a school year the premiums paid shall be accepted and re-
tained as proper to date of separation.

§ 51-111.67:6. Notwithstanding any statute, law, regulation or rule
presently in force, during any period in which an employed employee is
insured under a policy of insurance purchased under the authority of this
act, the Comptroller, in the case of all State officers and employees paid
by warrants on the State Treasurer, and, in the case of any other State
employee, the department, division, institution or agency by which the
salary is paid, and the employer in the case of teachers and other em-
ployees, shall, except as otherwise provided in § 51-111.67:5 of this act,
cause to be deducted from the salary of each employee for each and every
payroll period subsequent to the effective date of such insurance, an
amount determined by the Board, but not to exceed the rate of seventy
cents per month * for each thousand dollars of his group life insurance;
provided, that an employee who is paid on other than a monthly basis
shall have an amount so deducted, determined at a proportionate rate,
which rate shall be adjusted to the nearest cent. All amounts so deducted
shall be retained in or paid into the treasury of Virginia to the credit of
the Board and shall be available to the Board for the purpose of carrying
out the provisions of this act.

Any policy of insurance purchased under the authority of this act shall
provide that all employees eligible under the terms of this act will be auto-
matically insured thereunder commencing on the date they first become so
eligible; provided, that any employee desiring not to be so insured shall,
prior to July 1, 1962, on an appropriate form to be prescribed by the Board,
give written notice to his employing office that he desires not to be insured.
If such notice is received prior to July 1, 1962, and before the employee
shall have become insured under such policy, he shall not be so insured; if
it is received prior to July 1, 1962, and after he shall have become insured,
his insurance under the policy will cease effective with the end of the pay
period during which the notice is received by the employing office. Any
such employee so notifying his employing office that he desires not to be
insured may thereafter become insured only upon presentation at his own
expense of evidence of insurability satisfactory to the insuring company.