FAQs about My Other Benefits
Basic Life Insurance (Company-Paid)
1. While I am on furlough, does my Basic Life Insurance continue?
Yes. During the current furlough related to COVID-19, your Basic Employee Life Insurance, equal to two times (2x) your base annual pay, will be continued at no cost to you during the term of your employment.
Optional Life and AD&D Insurance (Employee-Paid)
1. While I am on furlough, does Optional Life and AD&D Insurance continue?
Optional Employee and Dependent Life and AD&D Insurance, up to the amounts in effect while you were actively employed, are continued during the current furlough related to COVID-19, subject to the insurance company’s (MetLife) rules, terms and conditions described below. This includes Optional Employee Life, Spouse Life, Child Life, Employee Accidental Death and Dismemberment (AD&D), and Spouse AD&D insurance.
For a furlough related to COVID-19, MetLife is providing a special grace period of 60 days. The 60-day period begins on the day after the last pay period you worked. Your coverage will continue as long as premium payment is received by MetLife within the 60-day grace period. If there is a death or loss during the 60-day grace period, and your premiums are not current, MetLife has indicated that your beneficiary will receive the death or loss benefit payment, minus the premiums you owed during the 60-day grace period. Please note that MetLife is the insurer of these policies. Any claim or payment decision made with respect to these policies is entirely subject to the rules, terms and conditions of MetLife and is outside the scope and control of your employer.
2. Upon return to work after the furlough, what will happen with my Optional Life and AD&D Insurance premium payroll deductions?
Upon your return to work, Alliance will begin deducting the same Optional Life and AD&D Insurance premiums from your pay that were authorized prior to your furlough. In addition, MetLife may make arrangements to collect from your future paychecks the necessary amounts to satisfy the premiums during the 60-day grace period (details from MetLife are not yet available).
Note: If you have made Conversion or Portability elections (as discussed in the next question), MetLife may require you to stop your Conversion or Portability insurance in order for Optional Life and AD&D Insurance to continue.
3. What are my options for continuing my Optional Life Insurance through MetLife, if it would otherwise end?
You or your dependent may be eligible to continue your Optional Life Insurance coverage(s) currently in place. Depending on the type of coverage, MetLife provides two options for continuing Optional Employee Life, Spouse Life, and/or Child Life insurance — Portability and Conversion. AD&D insurance is not eligible for these options.
To obtain a portability request form or conversion application form, or to ask questions about these options, contact MetLife at (877) 275-6387 and provide the contract number 154622-1-G. To request continuation of your coverage with MetLife, you must complete the applicable form, and such form must be received by MetLife within 31 days of your coverage termination.
For information and a side-by-side comparison of these options, see the MetLife brochure Understanding Your Options: Portability and Conversion.
For more information about Life and AD&D Insurance benefits, see the benefit highlights and SPD. Life and AD&D insurance benefits are subject to the terms and conditions of the group insurance policy issued by MetLife. In the event of any discrepancy, the MetLife Certificate of Insurance will govern and be the final source document for all benefit payments.
Retirement - 401(k) Plan
1. I am on a COVID-19-related furlough and have a 401(k) loan. Upon return to work after the furlough, what will happen with my weekly payroll deduction loan repayment?
Upon return to work after the furlough, your weekly 401(k) loan repayment will resume (unless you defer repayments as explained in question #2) at the same amount as before you began your furlough. At the end of 2020, you will be notified of adjustments to your loan repayment amount and amortization schedule taking effect in 2021.
2. I have been impacted by COVID-19. Can I defer my 401(k) loan repayments?
Yes. If you are a qualified individual (see question #4, below), you can elect to defer for a period of one year loan repayments that would be due during the period beginning on March 27, 2020 and ending on December 31, 2020. All subsequent repayments with respect to such loans shall be adjusted to reflect the deferral end due date and any interest accruing during the deferral period.
3. I have been impacted by COVID-19. Can I take a Coronavirus-Related Distribution (CRD) from my 401(k) account?
If you are a qualified individual (see question #4, below), you may take an in-service CRD of up to $100,000 (or 50% of your vested account balance, if less) before December 31, 2020. The $100,000 limit applies to the aggregate of the distributions you take from the PSSP, any other employer-qualified retirement plan, and/or IRA.
A CRD generally is a taxable distribution but is not subject to the 10% penalty tax on early (pre-age-59½) distributions. You can spread the income tax over a three-year period beginning with 2020. Alternatively, you may choose to repay the amount of the CRD to the Plan (or to another qualified plan or an IRA) within the three-year period in which case the CRD will not be taxable.
4. What are the eligibility requirements to take a CRD or defer loan repayments?
Under the requirements of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), you are a qualified individual if:
- You, your spouse, or dependent are diagnosed with COVID-19 by a test approved by the Centers for Disease Control and Prevention, or
- You experience adverse financial consequences as a result of being quarantined, being furloughed or laid off or having work hours reduced due to COVID-19, being unable to work due to lack of child care due to COVID-19, closing or reducing hours of a business owned or operated by the individual due to COVID-19, or other factors as determined by the Treasury Department.
5. Can I waive my RMD for 2020?
If you are receiving required minimum distributions (“RMDs”), you may request to waive your RMD for calendar year 2020. You do not have to be a qualified individual to request a waiver.
Time Extensions for All Applicable Benefit Plans
1. What time extensions apply to my benefits as a result of COVID-19?
See question #5 in FAQS About My Alliance Health Plan Benefits.
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