Policy Library

510.1.1 Master Policies Govern. Brief descriptions of the various University benefits plans follow. Every effort has been made to make these descriptions as accurate as possible. However, should any conflict arise between the descriptions presented in this University Policy Library and the text of the master policies, the text of the master policies shall govern in all cases.  This University Policy Library is for informational purposes and is not intended to serve as legal interpretation of benefits. Reasonable effort is made to have this University Policy Library represent the intent of the master policy language. However, master policy language stands alone and is not considered as supplemented or amended in any way by the explanations or examples included in this University Policy Library.

510.1.2 ISU Board of Trustees Reserve the Right to Modify. The ISU Board of Trustees reserves the right to amend, modify, or eliminate any programs at any time without notice. University benefits programs are administered in accordance with the laws of the State of Indiana.

510.1.3 Plan Administrator.  The Board of Trustees delegates the administration of employee benefit plans to the Vice President for Finance and Administration. The Plan Administrator shall have the authority to control and manage the operation and administration of employee benefit plans.

510.3.1 General. Effective January 1, 1975, the life insurance program became mandatory for all new benefits-eligible employees. On August 1, 1985, employees could elect coverage under a Revised Schedule of benefits or could continue under the schedule of benefits in effect at that time. Benefits-eligible employees hired on and after August 1, 1985, are required to participate in the Revised Schedule of life insurance benefits.

510.3.2 Revised Schedule. The Revised Schedule of life insurance benefits offers coverage of two and one-half (2.5) times salary, rounded up to the next whole thousand, based on a schedule of benefits with a $100,000 maximum coverage. Following retirement under the University Retirement Policy (Section 510.2.1.1), coverage is reduced to $5,000.

510.3.2.1 Schedule Pre-August 1, 1985. Employees who elected to remain on the schedule in effect before August 1, 1985 have coverage of two (2) times salary, based on a schedule of benefits with a maximum coverage of $75,000. Following retirement under the University Retirement Policy (Section 510.2.1.1), coverage is reduced by one-half (1/2), not to exceed $20,000.

510.3.3 Reduced Coverage During Leaves of Absence. During an approved leave of absence without pay, life insurance will be reduced to no more than $50,000, and the employee has the option to purchase any coverage reduced within 31 days of the date the coverage was reduced. Any reduced coverage purchased by the employee will be billed by the insurance carrier. 

510.3.3.1 Return to Work. Upon return to work on a regular schedule, the life insurance will be increased to the amount of coverage based upon the plan in force at the time the leave was begun.

510.3.3.2 Maximum Time During Leaves of Absence.  Life insurance may be carried for a maximum of 24 months during an approved leave without pay.

510.3.4 Imputed Income. There shall be imputed income calculated and taxes withheld on University-paid premiums on life insurance coverage in excess of $50,000.

510.3.5 Benefits for Accidental Death & Dismemberment. Group Life Insurance coverage includes accidental death and dismemberment coverage, which doubles the life insurance coverage amount in cases of accidental death.  Benefits may also be provided in cases of accidental dismemberment. Accidental death and dismemberment coverage terminates upon retirement.  The plan does not pay Repatriation Charges. Detailed schedules of life insurance benefits are available in the Office of Employee Benefits.

510.3.6 Conversion and Portability upon Separation from Employment. A separated or retired employee may convert reduced or terminated group life insurance coverage.

510.3.6.1 Rates. Rates for converted life insurance coverage are determined by the life insurance carrier and are based upon age and class of risk at the time of conversion.

510.3.6.2 No Proof of Insurability. There is no evidence of insurability required for conversion coverage.

510.3.6.3 Contact Employee Benefits. Additional information is available in the Office of Employee Benefits.

510.3.6.4  Portability. This plan has a portability clause, based upon the insured guidelines, may allow an employee to maintain coverage directly with the carrier after separation or service or retirement.

510.5.1 University-Provided Benefit. The University's group health plan is self-insured and administered by a third-party administrator. Employee contribution rates are set annually depending on medical cost trend factors and claims experience within the University group and budgetary considerations.

510.5.2 Dependent Child Coverage. Dependent children are eligible for coverage through the last day of the calendar year in which they reach age 26. Further detailed information is available in the Office of Employee Benefits.

510.5.3 Dependents of Deceased Employees. Health plan coverage may be continued for dependents of deceased employees if the deceased employee had worked the number of years of service required by the University Retirement Policy (Section 510.2.1.1) at the time of the employee’s death. If a dependent spouse of a deceased Uni­versity employee or retiree remarries, then such dependent spouse is not eligible for continuation of the health benefits coverage beyond the date of remarriage.

510.5.4 Removed.

510.5.5 Enrollment Period. The group health benefits plan is an optional program. Eligible employees desiring this coverage must enroll in the program within 31 days of employment. Coverage is effective on the first day of the month following the enrollment date.

510.5.6 Additions and Changes in Covered Individuals. New births or adoptions must be reported within 31 days of the event to add such dependents to the employee’s coverage as of the date of such birth or adoption. Status changes of employees and dependents must be reported within 31 days of such change in order for coverage to be effective upon the date of such change.  See Section 510.5.8 Special Enrollment.  Documentation of such changes is required.

510.5.7 Open Enrollment. An open enrollment period for the health benefits plan will be offered in the fall of earch year for coverage effective the following January. 

510.5.8 Special Enrollment. Special enrollment is available only if applied for within 31 days following a qualifying event, as follows:

a. Loss of group health coverage with another group health plan (voluntary or involuntary).

b. Loss of health coverage due to divorce from the spouse who has other group health coverage.

c. Loss of group health coverage due to death of the spouse/relative who has other group health coverage.

d. Termination of group health plan coverage by the employer of spouse/relative.

A dependent may be added through special enrollment if an application is received within 31 days of the following qualifying events:

a. Marriage to a benefits-eligible employee who is enrolled in the health coverage.

b. Birth of a child of a benefits-eligible employee who is enrolled in the health coverage.

c. Legal adoption or placement of a child for adoption with a benefits-eligible employee who is enrolled in the health coverage.

d. In addition to the above, employees and/ or their dependents may have special enrollment rights if applied for within 60 days following one of the following:

1. Coverage is lost under Medicaid or a State health insurance program.

2. When the employee and/or their dependents gain eligibility for state premium assistance.

510.5.9 Contact Employee Benefits. For more information regarding health benefits, please contact the Office of Employee Benefits.

510.7.1 Medicare Integration for Employed Individuals over 65. Employees and spouses over age 65 are given a choice of retaining the University coverage or dropping the University coverage and having Medicare (Part A and B) as primary payor, according to the Tax Equity and Fiscal Responsibility Act of 1986 (TEFRA) while employed.

510.7.1.1 Impact of Election to Retain University Benefits. Should the employee/spouse working beyond age 65 select to retain the University’s health benefits plan, the plan will pay as a primary payor. If enrolled, Medicare will pay as secondary. A summary of the benefits provided under the provisions of the coverage is available in the Office of Employee Benefits.

510.7.1.2 Impact of Election for Medicare to be Primary Payor. Should the employee/spouse working beyond age 65 elect to have Medicare as the primary payor, the ISU health plan must be dropped for the person making the election. If the employee elects to have Medicare as the primary payor, health benefits on the entire membership must also be terminated.

510.7.2 Medicare Integration for Retired Individuals over 65. Following retirement and upon attainment of age 65 or eligibility for Medicare, the retiree and spouse are required to enroll in Medicare (Parts A and B) (hospital and medical insurance) when eligible in order to participate in the University’s retiree health benefits plan.

Voluntary flexible spending accounts for eligible medical and dependent care expenses are available. These accounts allow employees to set aside pre-tax money each tax year to be used to pay for eligible medical and dependent care expenses. The maximum amount that can be deferred is determined by the IRS each year. Deductions for these accounts are for calendar year purposes and may not be changed except within 31 days of a qualifying life event.

510.11.1 General. Disability benefits are provided under the provisions of the Social Security Act for those persons fully insured after it has been determined that a permanent disability exists. In some cases, there is a five-month waiting period which begins on the first day of the month following the date of onset of the sickness or injury. In order to determine benefits payable, employees should consult the local Social Security Office.

510.11.2 INPRS Disability Benefits. The Indiana Public Retirement System (INPRS) provides disability benefits for those employees who are currently in an INPRS eligible position with a minimum of five (5) years of service credit. Estimates of benefits payable are determined by INPRS.

510.11.3 Contact Employee Benefits. Questions regarding benefits and procedures under the Indiana Public Employees' Retirement Fund should be directed to the Office of Employee Benefits.

Employees of the University are covered under workers compensation for injuries incurred while engaged in regular assigned duties, and claims are processed in accordance with the State of Indiana workers compensation statutes.  The benefits received for such injuries are dependent upon the nature of the injury.