Air Force

May 2, 2014

SGLI premium adjustment effective July 1, 2014

WASHINGTON — The Servicemembers’ Group Life Insurance program will adjust its monthly premium rate from 6.5 cents per $1,000 back to the 2006 rate of seven cents per $1,000 of insurance, a modest increase to ensure the SGLI program remains in a strong financial position.

The Department of Veterans Affairs continues to place the interests of service members first and foremost by keeping SGLI premiums as low as possible while also maintaining the necessary reserve levels to ensure funds are available to pay claims to service members’ beneficiaries. Since the start of the SGLI Program in 1965, monthly premiums have decreased from 20 cents per $1,000 to the current 6.5 cents per $1,000. There have been periodic increases and decreases, but over the past 30 years premiums have fluctuated only 2.5 cents per $1,000 of insurance.

In order for the program to remain in good financial condition, it is now necessary to increase the premium rate by half a cent per $1,000 of insurance. Since 2008, as a result of the half-cent reduction and decreases in interest rates, reserve funds have decreased. Insurance companies hold reserve funds to ensure they can pay future claims. It is common practice in the group insurance industry to adjust premium rates as reserve funds increase and decrease. VA also uses actuaries, individuals who deal with financial impact of risk, to conduct program experience studies when evaluating and adjusting reserve assumptions; and each year, an independent auditor verifies the accuracy of their reserve calculations.

For a service member with the maximum $400,000 of life insurance, this change will mean an increase of two dollars a month.

The new premium rate will take effect on July 1, 2014.

Individual Ready Reserve members who are drilling for points toward retirement or who do not receive pay for other reasons will be billed by their branch of service for the higher premium beginning in July 2014. For information on the new rates, visit http://benefits.va.gov/insurance/sgli.asp.




All of this week's top headlines to your email every Friday.


 
 

 

CHIEFchat: Cody addresses new EPR form, Course 15

FORT GEORGE G. MEADE, Md. — Chief Master Sgt. of the Air Force James A. Cody addressed several topics during his latest CHIEFchat, including the new enlisted performance report and Course 15, at the Defense Media Activity here. Cody said Air Force Chief of Staff Gen. Mark A. Welsh III handed off the task of...
 
 
U.S. Air Force photograph by Airman 1st Class Rachel Loftis

Red Flag offers B-52 crews training that ‘can’t be beat’

U.S. Air Force photograph by Airman 1st Class Rachel Loftis A B-52 Stratofortress assigned to the 69th Bomb Squadon, Minot Air Force Base, N.D., taxis for take off during Red Flag 15-3 at Nellis Air Force Base, Nev., July 15. T...
 
 
Air Force photograph by Brad Camara

ACC, AMC training centers collaborate to increase warfighter support

Air Force photograph by Brad Camara Maj. Gen. Jay Silveria, U.S. Air Force Warfare Center commander, is greeted by Col. Robert J. Levin Jr., 621st Air Mobility Advisory Group commander, and Chief Master Sgt. Kevin P. Edwards, 6...
 

 

Decorations processing now initiated through virtual Personnel Center

JOINT BASE SAN ANTONIO-RANDOLPH, Texas — Supervisors of active-duty Airmen can now use the virtual Personnel Center via myPers to initiate and track decorations throughout the review and approval process. “The online application allows for automated routing and approval, in addition to prepopulating certain personnel data in the forms,” said Christine Stingley, the military future...
 
 

AF releases first-term Airman retraining quotas

JOINT BASE SAN ANTONIO-RANDOLPH, Texas — Eligible first-term enlisted Airmen interested in retraining opportunities can review the fiscal year 2016 online retraining advisory on myPers. Air Force officials approved 1,599 fiscal 2016 first-term Airman retraining quotas in 45 Air Force specialty codes. Airmen can retrain into a variety of AFSCs, including cyber, intelligence, pararescue, flight...
 
 
page-one-SA

First week of RF 15-3 wraps up

U.S. Air Force photo by Staff Sgt. Siuta B. Ika An F-15E Strike Eagle assigned to Mountain Home Air Force Base, Idaho, flies during a Red Flag 15-3 sortie at Nellis Air Force Base, Nev., July 13. The 366th Fighter Wing, assigne...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>