PURPOSE: This rule establishes guidelines for the continuance of basic and optional life insurance and long-term disability by former employees who are on layoff status. It also describes how former employees earn service credit upon reinstatement.

1. (1) For purposes of this rule, a “layoff” occurs when an employer lays off an employee by reason of a shortage of work or funds, the abolition of the position, or other material change in the duties or organization, or for other related reasons which are outside the employee’s control and which do not reflect poor job performance by the employee.
2. (2) Former employees on layoff status may continue their basic and optional group life 16 CSR 30-2

insurance and long-term disability coverage at their own expense. The continuation of such insurance is subject to the terms of coverage for such insurance but in no event may such insurance be continued beyond twelve (12) months after the employee is laid off. The monthly premium for an individual on layoff status for basic and optional life insurance will be based on the premium that would have been paid by the state for basic coverage and by the individual for optional if the individual had been on active status during the layoff period. The amount of life insurance will be limited to the amount in effect at the date of the layoff. The monthly charge to an individual for long-term disability coverage will be based on the rate of pay in effect at the time of the layoff and the long-term disability rates in effect for active employees during the layoff period.

1. (3) Upon reinstatement of an employee on layoff status, the system will reestablish prior service credit for the employee as of the date of reinstatement.

AUTHORITY: sections 104.500.5 and 104.519.1, RSMo (1994).* Original rule filed Jan. 30, 1995, effective July 30, 1995. Amended: Filed Dec. 16, 1996, effective June 30, 1997. *Original authority: 104.500, RSMo (1957), amended 1981, 1984, 1988 and 104.519, RSMo (1988), amended 1992.