Group Term Life Insurance
Members of the Alternate Benefit Program are eligible for life insurance coverage in the amount of three and one-half times the employee's annual base wage.
Members of the Public Employees' Retirement System receive life insurance coverage totaling three times the employee's annual base wages, which consists of contributory and non-contributory coverage. For the contributory portion, PERS members contribute .0050% of base wages.
Members of the Police and Firemen's Retirement System receive life insurance coverage totaling three and one-half times the employee's final compensation, the total base salary upon which your pension contributions were based during the year preceding your death. If you die during the first year of creditable service, the benefits will be three and one-half times your creditable base salary upon which pension contributions were paid.
Designation of Beneficiary
- PERS/TPAF/PFRS Members may verify beneficiary information or change/update a beneficiary online using MBOS! (MBOS registration required)
- ABP Members may change/update a beneficiary using the following form:
For further information regarding designating a beneficiary for life insurance purposes, you may visit: http://www.state.nj.us/treasury/pensions/pdf/factsheets/fact68.pdf.
Is my Group Life Insurance benefit taxable?
The Internal Revenue Service (IRS) classifies all life insurance coverage over $50,000 as a fringe benefit subject to taxation. The amount of life insurance coverage is not taxable but rather the premium required to pay for the life insurance coverage is taxable. There are several factors involved in the calculation of the taxable benefit. Those employees who are determined to have a taxable benefit in a calendar year will see Social Security and Medicare tax deductions related to Group Life Insurance in the second pay period of December.