In November 2022, the Group Insurance Board approved changes to the Income Continuation Insurance (ICI) Program that will go into effect on February 1, 2024.
The changes consolidate the separate standard and supplemental coverage levels into a single coverage level. The goal is a simplified program that is easier to understand and administer.
Currently, standard coverage only covers an employee’s earnings up to $64,000 per year. An employee whose annual earnings are more than that amount can elect supplemental coverage to cover their full earnings, up to a maximum of $120,000 per year.
Beginning February 1, 2024, employees enrolled in the ICI Program will have their full earnings, up to $120,000 per year, covered automatically. Employees will no longer be required to apply for supplemental coverage if or when their earnings exceed $64,000 per year.
ICI Premiums
Currently, employers pay a portion of the standard ICI premium. Employers do not pay any portion of the supplemental ICI premiums; these are entirely paid by the employee. After February 1, 2024, employers will contribute a portion of the premium for the full amount of an employee’s earnings, up to $120,000 per year.
What Do I Need To Do?
If you are currently enrolled in the ICI Program, you do not need to take any action. However, if you earn more than $64,000 and are not currently enrolled in supplemental coverage, you should be aware that your premiums will likely increase due to your increased coverage. If you do not want to pay the additional premiums, you have the option to cancel your ICI coverage at any time.
If you are currently enrolled in supplemental coverage, you may see a decrease in your premiums due to the new employer contribution towards premiums for coverage over $64,000.
How Much Will I Pay For My ICI Coverage?
This tables below list the monthly ICI Premium per $1,000 of Annual Income, Effective February 1, 2024.
State Employees
| ICI Premium Category | Total | Employer | Employee |
|---|---|---|---|
| 1 | $0.875 | $0.000 | $0.875 |
| 2 | $0.657 | $0.000 | $0.657 |
| 3 | $0.473 | $0.317 | $0.156 |
| 4 | $0.342 | $0.263 | $0.078 |
| 5 | $0.280 | $0.238 | $0.042 |
| 6 | $0.280 | $0.280 | $0.000 |
UW Faculty and Academic Staff
Employees With More Than 1 Year of State Service
| ICI Premium Category | Total | Employer | Employee |
|---|---|---|---|
| 30-Day Elimination Period | $0.733 | $0.271 | $0.462 |
| 90-Day Elimination Period | $0.396 | $0.271 | $0.125 |
| 125-Day Elimination Period | $0.367 | $0.271 | $0.096 |
| 180-Day Elimination Period | $0.271 | $0.271 | $0.000 |
Employees With Less Than 1 Year of State Service
| ICI Premium Category | Total | Employer | Employee |
|---|---|---|---|
| 30-Day Elimination Period | $0.733 | $0.000 | $0.733 |
| 90-Day Elimination Period | $0.396 | $0.000 | $0.396 |
| 125-Day Elimination Period | $0.367 | $0.000 | $0.367 |
| 180-Day Elimination Period | $0.271 | $0.000 | $0.271 |
In order to calculate your monthly premium, you will need to know what premium category you are in (state employees) or the elimination period you selected when you enrolled for coverage (UW faculty and academic staff).
Your earnings from the previous calendar year, as reported to the Wisconsin Retirement System, is used to calculate your monthly premium. If you are a new employee, your estimated annual earnings are used. Your earnings are then rounded up to the next higher $1,000.
Premium Calculation Examples
The below sample calculations show how you can determine your premium, as a state employee or UW faculty and academic staff , after February 1, 2014:
State Employees
- *2023 WRS-reportable earnings: $56,267
- Earnings Rounded Up to Next Thousand: $57,000
- Premium Category: 3
- Monthly Premium Calculation: The rates table shows the monthly premium per $1000 of earnings. Therefore, the monthly premium calculation would be: 57 x $0.156 = $8.89
Note: If you are paid bi-weekly, divide the monthly premium by 2 to get your “per pay period” deduction amount.
*Earnings are capped at $120,000 for ICI purposes.
UW Faculty and Academic Staff
- *2023 WRS-reportable earnings: $125,000
- Earnings Rounded Up to Next Thousand: $120,000 (due to cap)
- Elimination Period: 90 days
- Does employee have more that 1 year of State service? Yes
- Monthly Premium Calculation: The rates table shows the monthly premium per $1000 of earnings. Therefore, the monthly premium calculation would be: 120 x $0.125 = $15.00
Note: If you are paid bi-weekly, divide the monthly premium by 2 to get your “per pay period” deduction amount.
*Earnings are capped at $120,000 for ICI purposes.
Can I Enroll in the ICI Program Now?
If you were previously eligible for ICI but waived coverage, you may apply when you are eligible through “deferred coverage.” You may also apply at any time by completing an “evidence of insurability” application. Your application will be reviewed, and you will be notified as to whether your coverage has been approved.
For More Information
See the Income Continuation Insurance page on the ETF website for resources.
Please contact your employer’s Human Resources office with questions or for more information on enrollment opportunities.