Most members of the New Jersey State-administered retirement systems are covered by group life insurance benefits.
ACTIVE EMPLOYEE ENROLLED IN AN ALTERNATE BENEFITS PLAN (ABP) PLAN
All eligible employees are enrolled in a Non-Contributory Group Term Life Insurance plan with a benefit of 3.5 times the base salary. If this is not a multiple of $1,000, it will be rounded to the next higher multiple of $1,000. Employees are taxed on imputed income for any life insurance amount over $50,000.
*If you do not wish to become insured for an amount, which exceeds $50,000, you may limit your coverage to $50,000 provided you do so in writing on a form satisfactory to Prudential.*
ACTIVE EMPLOYEE ENROLLED IN PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS)
Group life insurance coverage may be of one or two types:
Contributory Group Life Insurance is life insurance for which you pay. The cost of the insurance is 0.5 percent (.005) of your base salary. Employees are taxed on imputed income for any life insurance amount over $50,000.
*If you do not wish to become insured for an amount, which exceeds $50,000, you may limit your coverage to $50,000 provided you do so in writing on a form satisfactory to Prudential.*
Noncontributory Group Life Insurance is provided by the employer through the retirement system where there is no cost to the employee for coverage.
