Employer Bulletin

State Agencies
Vol. 22, State A
January 6, 2005

ICI Deferred Enrollment Period Concludes January 30, 2005

The Income Continuation Insurance (ICI) Program deferred enrollment period ends January 30, 2005. The deferred enrollment provision gives eligible employees the opportunity to enroll for ICI coverage based on accumulated sick leave without furnishing proof of insurability. Deferred enrollment is permitted if the following conditions apply:

• It is the first time an employee becomes eligible for an increase in state contribution toward premium under premium category 3, 4, or 5. In addition, all ICI eligible employees have an enrollment opportunity at the end of any calendar year in which their accumulated sick leave exceeds 130 days.
• 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 prorating 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 2004 is 1B (December 12, 2004 through December 25, 2004).

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 earnings from the previous 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.

Since the enrollment deadline falls on a Sunday, applications are due at the employer’s office on Friday, January 28, 2005. (Please note: Applications received by the employer on Saturday, January 29 or Sunday, January 30 are acceptable.)

Coverage for those who enroll during this period is effective April 1, 2005. Premiums should be deducted from the employee’s paycheck during the 8A payroll (March 20 - April 2) and remittance reports are due at ETF on or before Friday, May 20, 2005.

Annual Premium Updates for Employees Currently Enrolled in ICI

Please remember to complete the annual ICI premium updates in January for an effective date of February 1, 2005. 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 28, 2003 through December 25, 2004.

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, limited term employee, or employed on a seasonal or academic year appointment of less than 12 calendar months, is based on WRS-reported earnings from the previous 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, round these earnings to the next higher thousand and divide by 12 to determine the monthly basis for earnings and premiums.

Premiums should be deducted from the employee’s paycheck in February. Remittance reports are due to ETF by Monday, March 21, 2005.

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