SOP Library
SOP NO:
HR-PB03
(List of Exhibits/Attachments)
Missi
on
:
Finance and Administration
Area:
Human Resource (HR)
Activity:
Personnel Benefits and Services (HR-PB)
Title:
Group Term Life Insurance (GTLI)
Date Approved/Issued:
10/09/1985
Date Effective:
12/01/1984
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
B.
Scope of Coverage
The policy provides for a one-year (renewable annually), twenty four (24) hours a day, seven (7) days a week coverage against:
1. Death from any cause, and
2. Total and permanent disability subject to the following conditions:
1. The insured individual is totally and permanently disabled before reaching his 65th birthday and prior to the date his insurance terminates.
2. The insured individual's disability has continued uninterruptedly for at least six (6) months.
3. The insured individual has been terminated from employment because of his total and permanent disability.
4. Proof of disability of the insured individual is received and approved by the Insurance Company.
C.
Eligibility for Membership
All regular and casual employees of the National Food Authority and the Commission on Audit detailed at the NFA not otherwise excluded below.
Exclusions:
1. Any individual whose insurance age on his eligibility date is below 18 years.
2. Any individual whose insurance age on his eligibility date is above 65 years.
D.
Date of Eligibility
Each individual shall become eligible on the following dates:
CLASSIFICATION OF INDIVIDUAL
ELIGIBILITY DATE
An individual whose employment December 01, 1984
commenced on or prior to December 1, 1984.
An individual whose employment Date of entrance
commenced after December 1, 1984 to duty.
E.
Effective Date of Individual Insurance
The insurance of an individual shall take effect on his eligibility date, provided he is then actively at work for the NFA or NFA-COA, otherwise, his insurance shall take effect on the first day of the month coincident with or immediately following his return to active full time work.
F.
Amount of Insurance
1. Each individual shall be insured in accordance with following:
CLASSIFICATION
AMOUNT OF INSURANCE
Class I - Minister P150,000.00
Class I I - Deputy Administrator/Auditor 120,000.00
Class III - Asst. Administrator/Department)
Manager, Asst. Department ) 100,000.00
Manager (Grade 24 to 25) )
Class IV - *Division Chief/Provincial Manager/Other)
NFA Executives not in classes I, II and ) 70,000.00
III. (Grade 22 to 23) )
Class V - *Central Office - Grade 20 to 21 ) 40,000.00
Field Office - Grade 19 to 21 )
Class VI - *Regular Rank and File 30,000.00
Class VI - Casual Rank and File 20,000.00
*Including NFA-COA personnel with equivalent rank.
2. The basis of classification shall be the position or designation (whichever is higher) of the individual at the beginning of the policy year as supported by approved appointment of Special Order.
G.
Schedule of Premiums
Cost of premiums shall be shared equally by the insured and the NFA under the following schedules.
ANNUAL PREMIUM
CLASSIFICATION EMPLOYEE SHARE NFA SHARE TOTAL
I 258.75 258.75 517.50
II 207.00 207.00 414.00
III 172.50 172.50 345.00
IV 86.25 86.25 172.50
V 69.00 69.00 138.00
VI 51.75 51.75 103.00
VII 34.50 34.50 69.00
1, The premium cost for newly hired employees whose date of entrance to duty falls on a date later than the start of the policy year shall be prorated as follows:
NO. OF DAYS REMAINING
PREMIUM COST = ANNUAL PREM: COST X
IN THE POLICY YEAR
NO. OF DAYS IN THE YEAR
2, Premium paid shall be refunded on prorated basis in case of termination of insurance due to resignation, termination or retirement.
NO. OF DAYS REMAINING
R E F U N D = ANNUAL PREM: COST X
IN THE POLICY YEAR
NO. OF DAYS IN THE YEAR
H.
Beneficiaries
1. All employees eligible under the Group Term Life Insurance Plan shall designate a beneficiary using the
GTLI Beneficiary Designation Form
(See Exhibit 1).
2. In case of change in beneficiary, the employee shall accomplish the form Request for Change in GTLI Beneficiary (See Exhibit 2).
L.
Claims Settlement
1. Disability/Death compensable under the plan shall be reported to the Personnel Benefits Division - HRMD and the Grains Insurance Agency Corporation within 15 days from date of occurrence.
2. Documents in support of the claim shall be submitted to the Personnel Benefits Division - HRMD and the Grains Insurance Agency Corporation within 60 days from date of occurrence.
3. In case of death, the supporting documents shall be as follows:
1. Birth Certificate of the Insured
2. Death Certificate
3. Birth Certificate of Children of the designated beneficiaries
4. Marriage Contract of the spouse if the designated beneficiary
5. Claimant's Statement
6. Certificate of Employment of Insured
4. Should the beneficiary be a minor and irrevocably designated, a judicial guardian for such minor need not be appointed if the amount of insurance does not exceed twenty thousand pesos (P20,000.00).
5. If there be no beneficiary designated by the insured individual or if there be no designated beneficiary surviving at the death of the insured individual the following classes of beneficiaries, in this order of preference, shall be deemed named by the insured individual as his contingent beneficiary or beneficiaries.
1. widow or widower;
2. surviving legitimate, legitimated, legally adopted and recognized natural children;
3. surviving illegitimate children without distinction;
4. surviving brothers and sisters of the full blood;
5. surviving parents;
6. surviving brothers and sisters of the half blood; or,
7. executors, administrators or assigns.
If there be two or more beneficiaries in the same class entitled to the proceeds of the insurance, they shall share equally.
J.
Deduction of Employee Share
1. The share of a newly hired employee shall be deducted from his first salary/wage payment through voucher. Accounting and Budget Directorate shall deduct the premiums and not through the computerized payroll.
2. Deduction of renewal premiums
1.
Central Office
1. Deduction shall be made in the February computerized payrolls.
2. Renewal premium of casual employees shall be collected in two (2) payments (50% from wages and 50% from allowances).
3. Renewal premium of regular employees shall be collected in one payment only.
2.
Field Office
Renewal premium of regular and casual employees shall be deducted full in the December payroll.
K.
Remittance of Premium Payments
1. Premium payments (employee and NFA shares) shall be remitted directly to Grainscor.
2. Premium payments of new hires shall be remitted to Grainscor within 15 days for Field Offices and within the succeeding month for Central Office from the date of deduction of the employee.
3. Premium payments for renewal of coverage shall be remitted to Grainscor on or before March 15 for Central Office and on or before January 31 for field offices.
III. RESPONSIBILITIES
I.
Administrative Assistant/Officer
A.
Central Office
Reporting
1. Report changes on insurance coverage due to new hires and resignations/terminations/retirements thru the Basic Personnel data Form.
2. Furnish employees with beneficiary designation forms (Exhibits 1 and 2) and submit to the Personnel benefits Division - HRMD in three (3) copies.
Claims Processing
1. Notify the Personnel Benefits Division - HRMD within 15 days from the date of occurrence of disabilities/deaths compensable under the plan.
2. Prepare the necessary supporting documents for claims and transmit to the Personnel benefits Division - HRMD within 60 days from the date of occurrence of the disability/death.
B.
Field Office
Reporting
1. Report changes on insurance coverage due to hiring of new employees and terminations/resignations/retirements to the Personnel Services Division - HRMD thru the Roster of Personnel.
2. Furnish employees with beneficiary designation forms (Exhibits 1 and 2) and submit to the Personnel Benefits Division - HRMD.
Claims Processing
1. Notify the Personnel Benefits Division - HRMD within 15 days from the date of occurrence of disabilities/deaths compensable under the plan.
2. Prepare the necessary supporting documents for claims and transmit to the Personnel Benefits Division - HRMD within 60 days from the date of occurrence of the disability/death.
II.
Personnel Services Division - HRMD
Reporting
1. Verify the correctness of Rosters of Personnel submitted by the field offices.
2. Certify correctness of the employment data contained in the Basic Personnel data Forms prepared by the employees.
3. Furnish Grainscor with the Rosters of Personnel of Field Offices every January 31 and July 31.
4. Verify the
Group Term Life Insurance Masterlist
generated by MSD-EDP and submit two corrected copies to Grainscor and one corrected copy to MSD-EDP.
Claims Processing
Prepare certificates of employment of employees with claims.
III.
Personnel Benefits Division - HRMD
Reporting
Transmit to Grainscor the beneficiary designation forms (Exhibit 1 and 2) accomplished by the employee.
Claims Processing
1. Notify Grainscor in cases of disabilities/deaths compensable under the plan.
2. Evaluate/review the supporting documents for claims.
3. Submit supporting documents for claims to Grainscor.
IV.
Grainscor
Reporting
1. Transmit to the Insurance Company, the Rosters of Personnel and the
Group Term Life Insurance Masterlist
submitted by the Field Offices and the Central Office, respectively.
2. Transmit the beneficiary designation forms to the Insurance Company.
Collection and Payment of Premium
1. Transmit bills for premium payments to the Director for Accounting and Budget (for CO bill) and to the concerned NFA field office.
2. Remit premium payments of the Agency to the Insurance Company.
Claims Processing
1. Notify the Insurance Company in cases of disabilities/deaths compensable under the plan.
2. Evaluate/review and then transmit supporting documents for Claims to the Insurance Company.
3. Forward the Insurance Company's check payment for claims to the Personnel Benefits Division - HRMD.
V,
Employees Claims Section - Claims and Pre-Audit Division - DAB
Collection and Remittance of Premium of New Hires
1. Deduct from the first payment of salary/wage of a newly hired employee the GTLI employee premium share.
2. Prepare the statement of remittance.
Collection and Remittance of Renewal Premiums
1. Process the computerized payroll
2. Process the GTLI Remittance List generated at MSD-EDP.
VI,
Miscellaneous Claims Section - Claims and Pre-Audit Division - DAB
Prepare and process the voucher based on the processed statement of remittance.
VII.
Directorate for Treasury and Fund Management
Prepare checks for the payment of premium payable to Grainscor.
VIII.
MSD-EDP
1. Generate every first week of January the
Group Term Life Insurance Masterlist
in four copies and transmit to the Personnel Services Division - HRMD.
2. Deduct the GTLI renewal premium employee share thru the February computerized payroll system.
3. Generate the GTLI Remittance List in four copies and forward to the Claims and Pre-Audit Division - DAB.
IX.
NFA-Commission on Audit
1. Prepare the
Group Term Life Insurance Masterlist
of their employees and forward two copies to Grainscor not later than January 15 of every year.
2. Prepare the
GTLI Statement of Changes
in case of new hires and resignations/terminations/retirements and submit two copies to Grainscor every January 15 (to cover June 1 to December 31 changes) and July 15 (to cover January 1 to June 30 changes).
3. Deduct the employee share for renewal premiums and remit to Grainscor every first week of December.
4. Deduct employee share of new hires and remit to Grainscor on or before the 15th of the following month from the date of deduction.
]
IV. FLOW CHART
Top Page
EXHIBITS
GTLI Beneficiary Designation Form
GTLI Statement of Changes
GTLI Masterlist
GTLI Beneficiary Designation FormGTLI Statement of ChangesGTLI Masterlist