Life Insurance for Part-Time Regular Employees


KPERS Employee Life

The Kansas Public Employees Retirement System (KPERS) automatically provides JCCC part-time regular employees with Basic group term life insurance coverage in an amount equal to 150 percent of their annual KPERS gross salary. As a new part-time regular employee of JCCC, KPERS will additionally allow you to purchase, within 30-days of your hire date, Optional Group Life Insurance, in $5,000 increments, to a maximum of $300,000. Evidence of insurability is required on amounts in excess of $50,000.

KPERS Spouse and Child Life Coverage

KPERS additionally provides JCCC part-time regular employees with the opportunity to purchase life insurance coverage on their spouse and children within 30-days of their hire date. Eligible employees may purchase spouse life insurance coverage in $5,000 increments, to a maximum of $100,000.

You do not have to elect KPERS Optional Group Life Insurance in order to purchase KPERS spouse life coverage. A new JCCC employee may purchase up to $25,000 of guaranteed issue spouse life insurance coverage. Evidence of insurability is required on amounts in excess of $25,000. No KPERS participant can be both a covered employee and a covered spouse.

You may purchase KPERS child life insurance coverage in one of the following amounts without evidence of insurability:

$10,000, or

$20,000

Life Insurance Taxability

According to federal tax law, up to the first $50,000 of college-provided life insurance is available to you tax-free. Once the face amount of your life insurance grows larger than $50,000, the value of the college-provided insurance is taxable to you. The value of the coverage over $50,000 is commonly called imputed income and is added to your taxable pay. The amount of any KPERS term life insurance coverage you have (Basic and Optional, if any) is purchased by you on a pre-tax basis. Because the insurance is purchased on a pre-tax basis, the total amount of the coverage (less the first $50,000 of coverage) is deemed "college-provided" and must be reported by JCCC as taxable income.

The Internal Revenue Service (IRS) table used for calculating imputed income is provided below for reference.

IRS Imputed Income Table

Age

Monthly Cost per $1,000

   Under 25 years

        $0.05

   25 to 29 years

        $0.06

   30 to 34 years

        $0.08

   35 to 39 years

        $0.09

   40 to 44 years

        $0.10

   45 to 49 years

        $0.15

   50 to 54 years

        $0.23

   55 to 59 years

        $0.43

   60 to 64 years

        $0.66

   65 to 69 years

        $1.27

   70 years or above

        $2.06

Note: Your age at the end of the year applies to the calculation of your imputed income for the whole year.