Update on Life Insurance through the ACC Pension

Open Enrollment for Voluntary Life is June 14 - June 30, 2010.

October 2009
This year, because of changes in the tax code, was the first time you were not able to have automatically deducted your life insurance premiums from your pension contribution.  We all knew there was a chance that our Group Plan with its $25K benefit might not continue.  Our group plan allowed a basic amount of coverage without any limitation for health at a standard rate regardless of age up to age 65.

We are writing to inform you that the ACC Group Basic Life and Accidental Death & Dismemberment insurance did not receive sufficient enrollment to sustain the group insurance plan.  Jaeger and Flynn sent out 4 notices over a 3 month period including a final notice asking for premium remittals, which explained the need for participation in order to continue this special group plan.  We received a positive response from 50% of our participants, but we needed a minimum of 75% participation in order to sustain the plan.  Our insurance company, Jaeger & Flynn, has worked with Lincoln Financial to maintain a voluntary group plan; however, with this plan, each individual will have premiums and coverage based on age and condition of health. 

Those of you who sent in an insurance premium payment will retain the Basic Life insurance coverage of $25,000 through December 31, 2009.  The premium of $6 per month for the coverage will be applied for the October through December coverage, for a total of $18 which will be debited from the $72 premium submitted for the year’s coverage.  Those of you who were in the Basic Plan and/or held additional voluntary insurance choose to keep only your voluntary (additional) amount of insurance, and will be reimbursed the $54 from the basic plan, or you may calculate the premium of adding $25,000 to your additional voluntary amount of insurance. 

Since the group plan in its present form will end on December 31, 2009, those of you who did submit a premium received personalized enrollment forms from Jaeger & Flynn to complete should you choose to continue your coverage beyond 12/31/09.  As of January 1, 2010, the plan’s rates will be based on your age.  If you choose not to continue in a new voluntary plan, Jaeger & Flynn will send you a refund check of $54.  Please note that if you did not send any premium payment, you were automatically terminated from the plan and sent a conversion notice via email.

We regret any inconvenience or hardship that this has caused any of you, and hope that the voluntary plan that is now available will be able to suit your needs.  Our aim is always to provide the most service and support that we are able to for our members. 

In friendship,

Susan Caro, ACC VP Internal Administration and Policy