This optional Contributory Group
Life Insurance program is separate from the Noncontributory
Group life Insurance that judges currently have provided by
the JRS. Under this optional program, JRS members name beneficiaries
to receive the Contributory Group Life Insurance benefit they
select (see Plan Description
below). The beneficiaries can be the same as, or different from
the beneficiaries designated under their Noncontributory Group
Life Insurance coverage. The beneficiaries named under the Contributory
Group Life Insurance would not change the Noncontributory Group
Life Insurance beneficiary designations.
While the Division of Pensions
and Benefits administers the contracts of this coverage, the
day-to-day administration of the program falls to the Administrative
Office of the Courts (AOC) and the Prudential Life Insurance,
Co. What follows is a descriptive overview of the program only;
the document, Judicial
Retirement System Optional Contributory Group Life Insurance
Program, provides additional information. For a prospectus
of the program and to obtain pertinent forms, members should
contact their Human Resource Office at AOC.
Offered under the provisions of Chapter
74, P.L. 2001, Prudential Insurance Company will underwrite and
administer the program with assistance from the Administrative
Office of the Courts (AOC) and Centralized Payroll. The Division
of Pensions and Benefits is responsible for overseeing the program.
The choices offered under the Optional Contributory Group Life
Insurance Program are:
The Contributory Group Life Insurance
program is mandatory for newly appointed judges under age 60 for
the first year of membership. The member may choose to enroll
in either the GTLI or GVUL. If a JRS member does not wish to continue
enrollment after the first year, he or she may disenroll. The
member who disenrolls may choose to enroll at a later date, but
will be subject to providing evidence of good health.
- Group Term Life Insurance
(GTLI) equal to 1.5, 2, 3, 4, or 5 times a member's annual
judicial salary; or
- Group Variable Universal
Life (GVUL) insurance equal to 1.5, 2, 3, 4, or 5 times
the member's annual judicial salary; or
- An after-tax investment option
that comes with the GVUL insurance allowing a judge
to direct funds (by check or payroll deduction) to any of
sixteen variable investment options; or
- A $5000 dependent group
term life insurance policy for the judge's spouse, civil union partner, or eligible same-sex domestic partner, and/or
an eligible dependent child (or children) if the judge enrolls
in either of the two insurance policies.
Evidence of Good Health
a judge enrolls in the Contributory Group Life Insurance program,
he or she will not have to provide evidence of good health for
insurance valued at 1.5 times base salary or for dependent coverage
the member may select.
A judge will have to provide evidence of good health under
the following conditions:
If a member must provide evidence
of good health, Prudential will contact the member directly, explain
what is needed, and make the necessary arrangements.
- If the judge selects an insurance
amount of 2, 3, 4, or 5 times annual salary; insurance for
1.5 times salary will go into effect without evidence of good
health if the member is under age 60 and enrolling for the
first time. The higher amounts of insurance go into effect
after the member provides Prudential with evidence of good
- If the judge declines to enroll
during the initial offering period but chooses to enroll later;
- If the judge enrolls now and
decides to decrease the level of insurance later.
Other Important Program Information
rates shown by Prudential are guaranteed for three years beginning
May 1, 2001. Thereafter, the rates will be experience-based
and can be changed annually.
premium rate a judge pays will be based on his or her age as
of the effective date of the program (May 1, 2001). Changes
to member rates based on age will take effect on the anniversary
date of the policy (actually, the first day of the pay period
that includes May 1st).
to a member's insurance based on an annual salary increase (due
either to legislatively directed increases for all judges, appointment
as an Assignment Judge, or elevation to a higher bench) will
take effect at the same time as the rate changes due to age.
may increase the level of coverage or add dependent coverage
as often as he or she likes and may do so at any time. (The
member will have to provide evidence of good health whenever
there is a request to increase the level of insurance coverage
or if dependent coverage is added). The member may also switch
between GTLI and GVUL once a year.
The Group Variable Universal
Life insurance is portable. That is, it can be continued
after a judge retires or leaves the bench for any other reason.
The Group Term Life Insurance
is not portable and will end when a judge retires or leaves
the bench. GTLI may be converted to an individual whole life
policy with Prudential without having to provide evidence of
A judge's selection of insurance
under this program will not increase his imputed income like
the Noncontributory Program does. The particular structure of
the program excludes it from Section 79 of the Internal Revenue
Code, which governs imputed income for employer-provided benefits.