VRS Life Insurance
Use this page to configure the following Virginia Retirement System (VRS) Life Insurance plans:
Group Life over $50,000
You must set up the deduction code, rate, plan, and coverage information for the following Life Insurance plan types:
Mandatory
Voluntary
Imputed Life
The Life Insurance plan type is assigned in the Insurance Type field on the Deduction Codes tab.
After setting up the deduction code, rate, plan, and coverage information, the following Life Insurance deductions, contributions, and adjustments are calculated automatically:
Voluntary
After setting up Voluntary Life Insurance codes, the system executes the following procedure:
Determines the employee's age and salary.
Calculates the deduction amount.
Adds the recalculated amount to the appropriate field on the Employee Deductions page.
Records the change on the Employee Activity page.
Imputed Life
Imputed income is based on the value of life insurance over $50,000, as determined by the Internal Revenue Service (IRS). It is subject to Federal Insurance Contributions Act (FICA) and income taxes and is reflected in the employee’s W-2. After retirement, VRS deducts FICA taxes and reports taxable or imputed income for as long as the group life insurance benefit exceeds $50,000.
After setting up Imputed Life Insurance codes, the system executes the following procedure:
Determines the employee's age and salary.
Calculates the total coverage amount of all group insurance plans the employee is enrolled in. The employee's contribution amount is calculated using total coverage less $50,000 multiplied by the rate retrieved from the Rates tab on the VA VRS Life Insurance page.
Subtracts the employee’s calculated total coverage from the mandatory life insurance deduction amount.
Adds the recalculated amount to the appropriate field on the Employee Deductions page.
Records the change on the Employee Activity page.
Payroll Pre-Calculation
During payroll processing, the system executes the following procedure:
Verifies the deduction/contribution amounts for employees with the following deductions:
Group Life over $50,000
Updates the deduction records if the current date exceeds the Optional Life Start Date on the VA VRS Life Insurance - Setup page.
Adjusts the deduction/contribution amounts.
Creates a report.
Records the change on the Employee Activity page.
Increments the Optional Life Common Date and Optional Life Start Date fields on the VA VRS Life Insurance - Setup page by one year.
Menu Path
From the Human Resources menu, select State. From the State - VA menu, select VRS Life Insurance.
Prerequisites
Perform the following procedures:
Set up Optional Life deduction codes.
Configure deduction codes.
You must configure one Imputed life insurance code.Configure Rates.
Configure Plan structure for mandatory group insurance rates using employee number 9999999. Optional insurance codes can have multiple plans.
You must set up one Plan.Configure Coverage.
Set up Participants.
Set up Exceptions.
Complete the Setup procedure.
VRS allows a maximum of 24 transactions annually. For bi-weekly or more frequent deductions/contributions, you must turn off deduction/contribution amounts for the third and later pay periods of the month.