As provided under Internal Revenue Code Section 79 the cost of group term
life insurance coverage in excess of $50,000 provided to an employee by an
employer is required to be included in employee federal and state taxable
gross income. Employees covered by KPERS death and disability insurance being
paid more than $1282.05 per biweekly pay cycle (based on 26 pay dates) are
subject to the provisions of Code Section 79. Per recent changes in IRC 79
regulations the IRS Uniform Premium Table I will be modified to include a
25 to 29 age category and reduced uniform premiums for all other age groups.
Effective with the pay period beginning June 13, 1999, paid July 9, 1999,
the new table values will be as follows:
Age Group |
Monthly Cost per $1,000 in Excess of
$50,000 for Group Term Life Insurance |
| Under 25 |
$0.05 |
| 25-29 |
$0.06 |
| 30-34 |
$0.08 |
| 35-39 |
$0.09 |
| 40-44 |
$0.10 |
| 45-49 |
$0.15 |
| 50-54 |
$0.23 |
| 55-59 |
$0.43 |
| 60-64 |
$0.66 |
| 65-69 |
$1.27 |
| 70 and above |
$2.06 |
The calculation to determine an employee's age is based on the employee's attained age on the
last day of the taxable year.
Board of Regents' Institutions operating under the Regents' Payroll system are responsible for
implementing this change in their Payroll Systems effective with the pay period beginning June 13,
1999 paid July 9, 1999.
SAM:JJM:eh
