Supplemental Income Continuation Insurance (ICI)

Eligibility and Enrollment Questions

February 2005

 

 

1.  Who is eligible?

 

Employees eligible to apply for the supplemental ICI coverage are those who meet/met the eligibility requirements for the standard ICI coverage and whose annual earnings exceed $64,000.  Eligible employees electing supplemental ICI coverage must insure their entire salary above $64,000 up to a maximum of $120,000.  There is no partial supplemental coverage.  Enrollment in the supplemental ICI coverage is voluntary.

 

2.  When may employees apply?

 

Any employee whose standard ICI coverage effective date is on or before April 1, 2005, and with earnings exceeding $64,000, may apply during the initial open enrollment period that runs from February 21 – March 11, 2005.  Employees who do not enroll during this initial open enrollment period will have an opportunity in enroll in the supplemental plan on an annual basis concurrent with the annual ICI deferred enrollment (held each January).

 

Employees newly eligible for ICI coverage or applying for ICI coverage through deferred coverage after April 1, 2005, with earnings exceeding $64,000, may apply for supplemental ICI coverage at the same time they apply for standard ICI coverage.

 

Employees with standard ICI coverage and earnings exceeding $64,000 who fail to enroll during the initial open enrollment period may enroll on an annual basis (concurrent with the annual deferred enrollment period or annual adjustment period).

 

Employees with standard ICI coverage cannot obtain supplemental ICI coverage by furnishing medical evidence of insurability.

 

Employees without standard ICI coverage whose earnings exceed $64,000 may apply for both standard ICI and supplemental ICI coverage by furnishing medical evidence of insurability.

 

3.  May an employee apply for supplemental ICI coverage as soon as their salary tops $64,000?

 

No.  Employees who receive salary increases after the annual adjustment period may apply for supplemental ICI coverage during the next annual deferred period/annual adjustment period, provided standard ICI coverage is in force.  ICI covered employees whose earnings, as a result of a change in appointment level (i.e. a change from 50% to %100), now exceed $64,000 will not have an opportunity to enroll in supplemental ICI coverage until the next annual deferred enrollment/annual adjustment period.  (However, premiums for ICI coverage are adjusted at the effective date of the change in appointment level.)  Premiums for ICI covered employees receiving salary increases unrelated to a change in appointment level, remain unchanged until the next annual deferred enrollment/annual adjustment period.

 

For classified employees and twelve-month  UW Faculty/Academic Staff receiving salary increases unrelated to a change in appointment level, benefits are based on the most recent pay rate (subject to the ICI maximums.)  Benefits for nine-month UW Faculty/Academic Staff are based on the previous year earnings.

 

4.  An employee transfers from one State agency or University campus to another with new annual earnings expected to exceed $64,000.  The employee intends to continue standard ICI coverage and is required to complete a new ICI application for the standard coverage.  Does this transfer create an opportunity to enroll in supplemental ICI coverage?

 

No, it does not create an enrollment opportunity for supplemental coverage.  The employee may apply for supplemental ICI coverage during the next annual deferred enrollment period.

 

 

5.  Some employees may have previously completed ICI applications for future coverage effective dates.  Assuming the annual earnings are greater than $64,000, is this employee eligible to apply for supplemental ICI coverage now?

 

Yes.  Employees newly eligible for ICI coverage after April 1, 2005, with earnings exceeding $64,000 may apply for supplemental ICI coverage at the same time they apply for standard ICI coverage.  If an application is already on file, the employee must complete another application provided the same coverage effective date is used.

 

6.  How does a reduction in salary—to an annual earnings level under $64,000—for an employee enrolled in supplemental coverage affect coverage and premiums?  How does a reduction in salary affect potential benefits?

 

If a change in appointment has occurred, the premium and benefit levels should be adjusted at that point, based on projected salary.  The level of coverage is adjusted when the premium is adjusted.

 

However, premiums for classified staff and twelve-month UW Faulty/Academic Staff—receiving a decrease in salary level unrelated to a change in appointment level, remain unchanged until the next annual deferred enrollment/annual adjustment period.  Any benefit is based on the most recent pay rate.  Premiums and potential ICI benefits remain based on previous calendar year earnings for nine-month UW Faculty/Academic Staff receiving a decrease in salary unrelated to a change in appointment.

 

7.  An employee has appointments with two State agencies or UWS campuses.  Neither appointment has annual earnings exceeding $64,000.  Combined, however, the two earnings amounts do exceed $64,000.  Is the employee eligible for supplemental ICI coverage?

 

If the employee has two like positions within the UW System, these can be combined for ICI purposes (including determining eligibility for the ICI Supplemental plan). However, if one appointment is with the UWS and one is with another WRS employer (i.e., state or local government, the two earnings amounts cannot be combined.  The employee is eligible for standard ICI coverage on each salary amount.