Public Employee Financial Protection Plan

NCPERS offers a supplementary survivor's benefit and insurance program to enhance the financial security of the members of its participating retirement systems. It has paid $105 million in benefits to members over the past 40+ years.

Custom Designed
The plan is uniquely designed to augment your retirement system's survivor benefits to maximize the security when it is needed the most. While some members may not need the coverage those who do, may need it badly.

Voluntary
Retirement systems have found that it is better to offer voluntary supplemental benefits, than to increase the survivor benefits that apply to all members.

Benefits for Life
Most group life insurance benefits stop or are reduced at retirement. This plan may be continued for life at retirement.

The NCPERS life insurance plan offers public sector employees and retirees an affordable and flexible way to protect their loved ones. With over 75,000 enrollees, this voluntary program provides coverage without requiring medical proof of insurability during initial eligibility periods. Members can opt-in within 90 days of hire or during open enrollment. The plan offers comprehensive benefits, including automatic coverage for spouses and dependent children, Accidental Death & Dismemberment (AD&D) protection, and even student loan repayment for members under 45 in case of total disability. Death benefits are payable through various settlement options, giving beneficiaries financial flexibility.

Sponsored by NCPERS and administered by Prudential, this plan ensures financial security for public employees and their families.

KEY FACTS

• The Plan is completely voluntary.
• There are currently more than 75,000 enrollees in the Plan.
• Eligible members may join within 90 days of hire (or effective date of membership with the retirement system) or at open enrollment, without medical proof of insurability.
• The Plan will pay its benefit in addition to other insurance plans.
• The member can terminate benefits at any time by stopping the monthly contributions.
• Subject to applicable state law, Prudential’s Alliance Account® is the standard settlement option for death benefits of $5,000 or more. ¹ We will establish an interest-bearing account in the beneficiary’s name. Beneficiaries earn interest as long as the account remains open. They can withdraw the full amount immediately, write drafts ² against the balance, or leave the funds in the account to collect interest.  For death benefits of less than $5,000, claims will be settled via a lump sum check.
• The following settlement and payment options are available as an alternative to the Alliance Account:
  • Lump Sum: The beneficiary may receive the full death benefit in a single lump sum check.
  • Payment for a Fixed Period: The death benefit plus interest may be paid over a fixed number of years (1 to 25) either monthly, quarterly, semiannually, or annually. ³
  • Payment in Installments for Life: The death benefit may provide monthly payments in installments for as long as the beneficiary lives.
  • Payment of a Fixed Amount: The beneficiary may choose an income payment of a stated fixed amount either monthly, quarterly, semiannually, or annually.
  • Interest Income: All or part of the proceeds may be left with Prudential to earn interest, which can be paid annually, semiannually, quarterly, or monthly. The minimum deposit is $1,000 
• Coverage for spouse and eligible dependent children automatically included, as well as Accidental Death and Dismemberment (AD&D) for employee/ retiree.
• At no added cost, for members age 45 and under, Prudential will reimburse the amount of Student Loans members owe up to a maximum of $50,000, should you become totally disabled and have an outstanding student loan balance.
• The Plan is administered by Member Benefits, Inc.
• The NCPERS life insurance program is sponsored by NCPERS.  The life insurance program is issued by The Prudential Insurance Company of America (“Prudential”), Newark, NJ.   Membership in NCPERS is required for the Program.   Prudential, and not NCPERS, is solely responsible for administering the benefits under the policy.  The benefits under the policy are guaranteed by Prudential’s general account and are subject  to Prudential’s claims paying ability.

If interested in knowing more about the plan for your retirement system contact the Gallagher Team at GBS.COAZ.NCPERS@ajg.com.

¹ _{Beneficiaries may wish to consult a tax advisors regarding interest earned on the account.
There are fees for special services, such as stop payment requests. Prudential’s Alliance Account is a registered trademark of The Prudential Insurance Company of America.} 
² _{Alliance Account drafts are considered checks under federal law for certain purposes.}
³ _{Interest rates may change.}

_{The Bank of New York Mellon is the Administrator of the Prudential Alliance Account Settlement Option, a contractual obligation of The Prudential Insurance Company of America, located at 751 Broad Street, Newark, NJ 07102-3777. Draft clearing and processing support is provided by The Bank of New York Mellon.  The Bank of New York Mellon is not a Prudential Financial company. Alliance Account balances are not insured by the Federal Deposit Insurance Corporation (FDIC).  All funds are held within Prudential's general account, which is not FDIC insured because is not a bank account or bank product.}