- 8683-IRS CHANGE TO BENEFITS - LIFE INSURANCE PREMIUMS
- Posted for Business Affairs by Michael Mingus on Feb, 25 2013
ATTENTION: All employees buying term life insurance through Pan American
As communicated earlier in the February newsletter, the University Of Texas System - Office Of Employee Benefits has determined that effective February 1, 2013, voluntary group term life insurance will no longer be offered on a pre-tax basis . This means that all premiums for voluntary life insurance must be deducted from your payroll earnings on a post-tax basis. Voluntary life insurance premiums on the first $30,000 of coverage were previously paid with pre-tax dollars so you will see a minor change in your payroll tax deductions beginning with paychecks issued to you on or after February 22, 2013. This change only impacts premiums for voluntary life insurance coverage amounts up to $30,000 and will generally result in a premium increase in the $1.00 to $3.00 range. Handling of premiums for voluntary life insurance coverage amounts in excess of $30,000 remains the same. This change will be reflected on your statement of earnings for March 1, 2013. For any questions, please contact Mike Mingus, Benefits Manager, X 7465.