Employer Bulletin

State Agencies
Vol. 18, State G
December 18, 2001

Deferred Enrollment, Annual Premium Updates and Ordering ICI Forms

ICI Deferred Enrollment Period Concludes January 30

The Income Continuation Insurance (ICI) deferred enrollment period ends on January 30, 2002. The deferred enrollment provision allows eligible employees the opportunity to enroll for ICI coverage based on accumulated sick leave without furnishing proof of insurability. For instance:

• It is the first time an employee becomes eligible for an increase in state contribution toward premium under premium category 3, 4, 5, or 6.
• Category 3 permits employees to qualify for employer contribution by accruing 80 hours of sick leave in the previous calendar year. Premium category 3 is also available to part-time employees on a prorated basis. For example, those employees on a half-time basis only have to accumulate 40 hours (5 days) of sick leave in the prior year instead of 80 hours (10 days) required for full-time employees. This proration applies only to category 3.

According to section 2.10 (1) of the ICI Plan, for most employees, premium determinations and eligibility are predicated on the accrual or total accumulation of sick leave recorded and credited to the last complete pay period for the previous calendar year. The last complete pay period for calendar year 2001 is 1C (December 16, 2001 through December 29, 2001).

Premium for an employee who is a project or limited term employee, or employed on a seasonal or academic year appointment of less than 12 calendar months, is based on WRS-reported state earnings from the prior calendar year, rounded to the next higher thousand and divided by twelve. For breaks in service of more than three consecutive months, you must estimate the project, limited term, seasonal, or academic earnings to be received during the next 12 months. Then, round these earnings to the next higher thousand and divide by 12 to determine the monthly basis for earnings and premiums. Divide the monthly earnings by 2.175 in order to calculate biweekly earnings.

Applications are Due at the Employer's Office on Wednesday, January 30, 2002.

Coverage for those who enroll during this period will be effective April 1, 2002. Premiums should be deducted from the employee's paycheck in April for April 1 coverage and remittance reports are due to ETF on or before Monday, May 20, 2002.

Annual Premium Updates

Please remember to complete the annual premium updates for ICI in January for an effective date of February 1, 2002. These updates reflect basic salary (excluding overtime) and accumulated sick leave in the last complete payroll period in the previous calendar year. The previous calendar year for this purpose is December 31, 2000 through December 29, 2001.

Premium category (1, 2, 3, 4, 5, or 6) is based on the employee's accumulated sick leave hours credited as of the last complete payroll period in the previous calendar year. Monthly or biweekly salary is based on the last complete payroll period in the previous calendar year for most employees.

Annual premium update for an employee who is a project or limited term employee, or employed on a seasonal or academic year appointment of less than 12 calendar months, is based on WRS-reported state earnings from the prior calendar year, rounded to the next higher thousand and divided by twelve. If such an employee is newly hired, or if there has been a break in service of more than three consecutive months, you must estimate the project, limited term, seasonal, or academic earnings to be received during the next 12 months. Then, you round these earnings to the next higher thousand and divide by 12 to determine the monthly basis for earnings and premiums. Divide the monthly earnings by 2.175 in order to calculate biweekly earnings.

Premiums should be deducted from the employee's paycheck in February. Remittance reports are due to ETF by Wednesday, March 20, 2002. Please write "Annual review and update completed" on the bottom of your February 2002 report.

For more information about ICI coverage, contact the Employer Communication Center at (608) 264-7900.

Ordering Income Continuation Insurance Forms

Income Continuation Insurance (ICI) booklets, claims packets or forms are ordered directly from CORE, INC. via e-mail at ICILTDI@COREINC.com or by calling 1-800-960-0052. The order form can be faxed to CORE, INC. at (310) 348-7126.