Retirement

Basic Life Insurance

The State's contribution toward your basic life insurance premium ends upon retirement. Retirees have the option to continue this coverage at their own expense according to the Minnesota state continuation law. This states that group life insurance can be continued for up to 18 months, or until you are eligible for coverage under a new group plan, whichever occurs first.  

1. Talk with your Human Resources benefits representative or contact Minnesota Management & Budget (MMB) for instructions on how to obtain and complete the necessary paperwork. Upon MMB's receipt of the retiree's request for continuation, MMB will send a bill and instructions for premium remittance to the retiree's home. For the current "continuation" premiums rates, contact MMB.
2. At the end of the 18-month continuation period, group eligibility ends. Retirees have the option of converting this coverage to a policy of individual life insurance. If the retiree converts coverage within 31 days, conversion to the new policy is guaranteed; there are no health questions, no physical exam to take - you cannot be denied coverage.
   
   Minnesota Management & Budget will notify you when are nearing the end of your 18-month period with instructions on how to pursue the Conversion Privilege.

Optional life Insurance - No-cost post-retirement death benefit (PDB)

To qualify, you must be eligible as a retiree under your collective bargaining agreement or plan as set forth in MN Statute Section 43A.27, Subdivision 3.

Retirements beginning January 1, 2024

Retiring at or over age 65

Employee coverage

A No-cost post-retirement death benefit will be provided for you if you retire at age 65 or later. In order to receive this benefit, you must have the optional life insurance for at least 5 years prior to the date you retired or turned 65, whichever occurs later. The benefit is provided at no cost to you, and will be 20% of the smallest amount of optional insurance you had during the 5-year qualifying period.

Example

If you carried $100,000 of life insurance during the 5 years before you retired at age 65, at retirement (age 65) you would have $20,000 (20%) of term life insurance for the remainder of your life without having to pay any premium.

Employees may continue the remaining 80% of coverage that ends at age 65 under the Minnesota Continuation law. At the end of the 18-month continuation period, coverage may be converted to a policy of individual life insurance.

Spouse coverage

A No-cost post-retirement death benefit (PDB) will also be provided for your spouse if he/she is age 65 or over when you retire, if you are already retired, or when your spouse reaches age 65. To qualify, you must be eligible as a retiree as stated above and you must have had Spouse insurance for at least 5 years prior to your retirement date or your spouse's 65th birthday, whichever occurs later.

If your spouse is not yet age 65 when you retire, you may continue his/her coverage until he/she is 65 by remitting premium directly to Securian. The benefit is provided at no cost to you or your spouse in the amount of 20% of the smallest amount of Spouse insurance you carried on your spouse during the 5-year qualifying period.

If your spouse is 65 years or older upon your retirement, you may continue the remaining 80% of your spouse's coverage under the Minnesota Continuation law. At the end of the 18-month continuation period, that coverage may be converted to a policy of individual life insurance.

Retirees cannot increase optional insurance amounts after retirement. However, coverage can be decreased any time by contacting Securian.

If you don't qualify as a "retiree," you are not eligible for the No-cost post-retirement death benefit, however you are eligible to continue optional group life insurance coverage through the State according to the Minnesota Continuation law as explained above.   

Retiring prior to age 65

Employee coverage

If you retire prior to age 65 and meet the retiree qualifications, you may elect to continue your optional life insurance until your 65th birthday by continuing to pay the required premiums directly to Minnesota Life. The Post-retirement death benefit will then be provided for you at age 65. The 20% benefit amount will be based upon the smallest amount of coverage you carried during the 5-year period preceding age 65.

When the 20% Post-retirement death benefit goes into effect at age 65, retirees will also have the option of converting any amount of the remaining 80% of coverage to an individual policy of insurance.

Spouse coverage

You may also elect to continue your spouse optional life insurance until your spouse's 65th birthday by continuing to pay the required premiums directly to Minnesota Life. The Post-retirement death benefit (20%) will be based upon the smallest amount of coverage you carried during the 5 years immediately preceding his/her 65th birthday.

When the 20% Post-retirement death benefit goes into effect at age 65, retirees will also have the option of converting any amount of the remaining 80% of coverage to an individual policy of insurance.

Premium rates and payment

The premium rates for continuing coverage to age 65 are the same group rates that apply for active State employees. Employees receive invoices from Securian Financial at their home in 6-month intervals. Premiums must be sent directly to Securian Financial to ensure continued coverage.

Retirees cannot increase optional insurance amounts after retirement. However, coverage can be decreased any time by contacting Securian.

If you don't qualify as a "retiree," you are not eligible for the No-cost post-retirement death benefit, however you are eligible to continue optional group life insurance coverage through the State according to the Minnesota Continuation law as explained above.