                                 CODE OF VIRGINIA

OPTIONAL LIFE INSURANCE (§ 51.1-512)

A. The Board shall, under the terms and conditions specified by the Board, make
available to each active insured employee optional life, accidental death, and
dismemberment insurance in incremental additional amounts not to exceed a
maximum amount determined by the Board. Such maximum shall be reviewed at least
once every five calendar years by the actuary of the Virginia Retirement System
and increased by the Board upon the recommendation of the actuary. The amount
recommended by the actuary shall be based upon the annual increases in the
United States Average Consumer Price Index for all items, all urban consumers
(CPI-U), as published by the Bureau of Labor Statistics of the United States
Department of Labor.

B. The optional life, accidental death, and dismemberment insurance shall be
made available to each active insured employee under conditions prescribed by
the Board. The conditions prescribed by the Board shall provide that offering
the optional insurance does not materially increase the rates for any group life
insurance policy provided pursuant to &#xA7; 51.1-505.

C. All optional insurance on an employee shall cease upon the earlier of (i) the
date the employee&#8217;s basic coverage ceases or (ii) the date insurance being
continued in retirement terminates pursuant to subsections D and E.

D. The optional amount of life insurance in force on an employee who retires for
disability on an immediate retirement allowance may be continued, subject to
payment of any required premium by the employee, during continuance of such
disability but not beyond the end of the month in which the employee attains his
&#8220;normal retirement date&#8221; as defined in &#xA7; 51.1-124.3.

E. The optional amount of life insurance in force on an employee who retires for
service on an immediate retirement allowance, or for an employee who retired for
disability on an immediate retirement allowance and who attains his
&#8220;normal retirement date&#8221; as defined in &#xA7; 51.1-124.3, may be
continued provided the retiree was continuously insured under this section for a
period of at least 60 continuous months prior to retirement, or prior to
reaching his &#8220;normal retirement date&#8221; as defined in &#xA7;
51.1-124.3 for a disability retirement. This continued insurance shall be in
incremental amounts not to exceed a maximum amount determined by the Board and
the amounts and corresponding maximum coverage shall reduce beginning at the
employee&#8217;s &#8220;normal retirement date&#8221; as defined in &#xA7;
51.1-124.3, as determined by the Board. This maximum coverage amount shall be
reviewed at least once every five calendar years as provided for under
subsection A. The life insurance continued under this subsection shall cease
upon the earliest of (i) the date the retiree attains age 80, (ii) lapse for
nonpayment of premium, or (iii) return to employment and eligibility for active
employee life insurance under Chapter 5 (&#xA7; 51.1-500 et seq.) of Title 51.1.
All accidental death and dismemberment insurance shall cease at retirement.

F. The cost of the optional insurance shall be determined periodically by the
Board on the basis it considers appropriate. The Board may discontinue the
optional insurance plan at any time upon determination that employee
participation is not sufficient to continue the plan on a sound actuarial basis.

G. The amount of optional life, accidental death, and dismemberment insurance in
force on any employee at the date of his death shall be paid as provided in this
chapter.

H. The Board shall determine the form and content of the accounting reports to
be made by the insurance company with respect to the optional insurance. Any
expenses incurred by the Retirement System for operating and administering the
optional insurance programs provided in this section may be recovered by the
Board from the advance premium deposit reserve required by subsection B of
&#xA7; 51.1-514.

HISTORY: 1980, c. 643, § 51-111.67:12.1; 1990, c. 832; 1995, c. 360; 1997, c.
273; 2001, c. 696; 2005, c. 57; 2006, c. 252; 2010, c. 751; 2012, c. 696.