PURDUE UNIVERSITY
OFFICE OF THE BUSINESS MANAGER AND ASSISTANT TREASURER
WEST LAFAYETTE, INDIANA 47907

 July 6, 1954

To: Administrative Officers and Heads of Departments

Re: BUSINESS OFFICE MEMORANDUM NO. 29

Group Insurance

 

At its meeting on June 30, 1954, the Board of Trustees approved changes in the eligibility requirements for participation in the Group Hospitalization and Surgical Benefits Insurance Plan and in the Group Life -and Accidental Death and Dismemberment Insurance Plan.

For new employees, appointed on or after July 1, 1954, participation will be determined as follows:

"All full-time employees shall be eligible for and required to participate in both group insurance plans from the date of employment, subject to the following:

1. Eligibility shall not extend to graduate assistants.

2. Eligibility for participation on the basis of total salary shall extend to those employees whose salary is paid in part by other governmental units but whose terms and conditions of employment are fixed by the University; provided such employees are not eligible for participation under similar plans with the other governmental units.

3. Eligibility shall not extend to temporary employees. For this purpose, temporary employment will be defined as that which is not expected to continue for more than one year in the case of clerical and service employees, or for more than two years in case of other employees.

4. Any temporary employee whose status changes to that of a continuing full-time employee shall become a participant in both plans at the date of such change.

5. Any participant whose status changes to temporary or part-time may continue to participate in the plans upon recommendation by the head of his department and approval by the Business Manager. If participation is continued, it shall be on the same basis as before the change, without modification because of salary changes while on temporary or part-time status.

Heretofore, you will recall that eligibility for the life insurance was limited to regular monthly employees while the hospitalization insurance was available to such personnel and to full-time extra 1abor employees as we11. Now, all full-time, personnel who are appointed on a continuing basis will participate in both plans regardless of whether the, appointment is on a regular or extra labor basis.

Married women on the clerical staff will no longer bc excluded from participation as a class, but will be considered on the basis of permanency of employment.

Because of the exclusion of temporary employees it will be necessary for the employing Department to mark the appointment Pay Roll Change form in the case of any new employee who is considered temporary. Any new, full time employee will automatically be placed in both plans, unless temporary status is so indicated or unless the period of the appointment is shown as terminating prior to the following June 30.

Similarly, under No. 4 above, reappointed temporary personnel will be placed in both insurance, plans unless the reappointment form or the position in a subsequent budget is marked to show that temporary status continues under the reappointment.

In connection with No. 2 above, the employing, Department Head or Dean should mark the appointment Pay Roll Change form to show ineligibility for the group insurance, when it is known that the new appointee is eligible for similar contributory plans with governmental unit.

Employees in service prior to July 1, 1954, who were non participants in one or both of the plans because of ineligibility under previous requirements, but who are eligible by reason of the changes, will not be solicited individually for participation. However, in any office, department or division of the University, if seventy-five percent of such employees in that particular area complete enrollment cards prior to July 31,1954, they may become participants as of July 1, 1954 without the necessity of providing evidence of insurability. The administrative officer in charge in each such area will be responsible for making the insurance available on this basis and sending, the necessary percentage of completed enrollment cards to the Insurance Division of this office.

Please note that the insurance cannot be offered to any one who has previously refused the insurance or to any one to whom the insurance company has previously refused the insurance (for medical reasons).

If there remains any question concerning the above, further information may be obtained by calling the Insurance Division, 92-2127 or 92-2128.

 

L. J. Freehafer
Comptroller and
Assistant Business Manager

 

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