Insurance
CHANGES IN UU GROUP RATES EFFECTIVE OCTOBER 1, 2005
The Metropolitan Life Insurance Company (MetLife) has informed us of an open enrollment period and changes in the UU Group Insurance rates that take effect this fall.
| This year, MetLife has agreed to permit "open enrollment" in the dental plan during the month of October 2005. After November 1, enrollment for dental insurance after 30 days on the job will result in a possible six-month delay in benefits. |
It is recommended that UU congregations offer these insurance programs to all employees who work at least half-time. Not all employees of a particular congregation must accept all types of this insurance or pay for coverage. Congregations are billed monthly by the UU Group Insurance Office, and the premiums may be paid either by the congregation as a personnel benefit, or by the employee on a pre-tax salary reduction basis.
Ordinarily, new employees must enroll within 30 days of their date of hire for the dental, term life, or long-term disability coverage. This is to assure that persons don't decline the insurance when they think, "I don't need it," and then change their mind and try to enroll when they discover they have an illness.
Dental Insurance
The dental policy provides Preventive Services every six months at no charge (complete checkup with X-rays and cleaning with no deductible). The plan then pays 80 percent of Basic Services and 50 percent of Major Services after a $25 deductible, to a maximum of $1,000 per person per year. Enrollees may use any dentist with this program, but MetLife has contract dentists who have agreed to reduced fees that lower expenses. If patients use a non-contract dentist, the benefits paid are based on a percentage of the usual, customary, and reasonable rates for that area. To locate a contract dentist in your area, look at www.metlife.com/dental  or www.metlife.com/mybenefits , or call 800/474-7371.
Effective October 1, 2004, the monthly dental premiums will be $41.90 for individual employees or $101.60 for families of any size, including domestic partners. This represents a 4% change.
Term Life Insurance
Group term life insurance policies have a face value of 200 percent of annual salary (salary plus housing allowance in the case of ordained ministers), up to a maximum of $150,000.
The October 1, 2005 term life premium is a flat unisex rate of 32 cents per month per thousand dollars of coverage. This life insurance is offered without a medical exam and without regard to age if the person enrolls within the first 30 days of employment.
Examples: A minister with a combined salary and housing allowance of $52,000 per year receives $104,000 in life insurance protection for a monthly premium of $33.28, regardless of gender or age (104 x.32). An employee whose annual wages are $28,750 will have a policy for $57,500 for a premium of $18.40 per month (57.5 x.32).
In order to adjust for actuarial risk, the amount paid in the event of death is reduced by 35 percent at age 65 and 50 percent at age 70. New employees over age 70 will be limited to $1,000 of life insurance. The life insurance policy pays the face value if the insured suffers blindness or several other grievous injuries and pays double the face value if death results from an accident. Premiums are waived if the policyholder is disabled for longer than 90 days. The life insurance stays in force during disability.
Life insurance policies worth $5,000 are offered for children of enrolled employees for $2.00 per month; $4.00 per month for spouse or domestic partner; $5.00 per month for spouse or domestic partner and all family members.
Long-term Disability Insurance (LTD)
Long-term disability insurance is considered "income guarantee insurance" to replace wages lost by being unable to work for longer than 90 days due to disease or injury. Benefits in the UUA plan provide 60 percent of the salary of the insured person (salary plus housing allowance in the case of ordained clergy). Most employer/congregations "self-insure" the first three months of long-term disability of their ordained ministers.
LTD benefits are paid for two years to disabled persons who cannot work in their primary occupation, and to age 65 to persons whose disability prevents employment in any occupation. Benefits are paid for 24 months to persons disabled due to mental health disorders. After age 65, the maximum payment period declines until it is one year of benefits at age 69 or older.
The October 1, 2005 monthly premium for this long-term disability coverage remains at 1.2% of the amount insured.
Examples: the monthly LTD premium for a minister with a combined salary and housing allowance of $57,000 will be 57,000 x 1.2% divided by 12 or $57.00. The premium for a staff member with earnings of $28,000 will be $28.00 per month. If long-term disability premiums are paid out of after-tax earnings, any benefits received are exempt from federal income tax. One way to accomplish this if the employer/congregation has paid the premiums from church funds is to add the amount of the annual LTD premiums to the employee's wages reported on the W-2 Form. In the example of the minister above, $684 would be added to the minister's W-2 Form in Box # 1.
To obtain MetLife dental, life, and disability application forms or claim forms, Contact Tracy Withy-Browne at the UUA, 617/948-6401, or twithy@uua.org  .
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