MIT Faculty Newsletter  
Vol. XIX No. 6
May / June 2007
Stating Our Core Values: Does MIT Need a Statement of Ethical Principles?
Bish Sanyal New Faculty Chair
Your Newsletter
MIT Communications:
Diversity, Vitality, and Openness
MIT Responds to the Tragedy
at Virginia Tech
Student Responses to Virginia Tech
and How Faculty Can Help
MIT Community Confronts Issues
of Safety and Grieving
An Interview with MIT Chief of Police
John DiFava
MIT and the World Economic Forum
MIT Administration Support
for the Faculty Newsletter
Two Statements from the Biological Engineering Faculty Regarding the
Tenure Case of Prof. James L. Sherley
Units, Schmunits: What Do You Care?
Looking Forward to Changes in the Undergraduate Commons:
Perspectives from a "Large" Program
Bordereline Jesus; The Diviners
Solving the Energy Problem
The Task Force on Medical Care for the MIT Community: An Update from MIT Medical
A New Cooperative Residence
for the MIT Community
Error Results in Some Faculty Being Overcharged for Supplemental Life Insurance
Newsletter Adopts New Policies and Procedures: Includes Direct Election of Editorial Board Members
From the Senior Survey
Women Faculty (as of October 2006)
Percent of Faculty Who are Women (as of October 2006)
Printable Version

Error Results in Some Faculty Being Overcharged
for Supplemental Life Insurance

Newsletter Staff

Several MIT faculty members who reached their 65th birthday as of July 1 of 2006 were inadvertently overcharged for supplemental life insurance under the Plan provided by MIT.

MIT provides all employees up to $50,000 of Basic Life Insurance. Additionally, all faculty (and staff) may purchase up to 5 times their salary in Supplemental Life Insurance. However, on the July 1st following their 65th birthday, the amount of available Basic and Supplemental Life Insurance decreases. Between the ages of 65 and 70, employed faculty may purchase up to 3.3 times their salary in Supplemental Insurance. After age 70, the amount decreases to 2.2 times their salary. After age 75, 1.6 times their salary, and so on, until after age 95 it is reduced to 0.6 times their salary.

Recently, the Faculty Newsletter learned that several employed faculty over the age of 65 were mistakenly charged for their elected 5 times salary Supplemental Life Insurance when they were only eligible for 3.3 times their salary and therefore should have been paying a correspondingly lower rate.

When contacted by the Faculty Newsletter, Vice President for Human Resources Alison Alden replied, “I am aware of this situation and am happy that it is being resolved. . . .In this unique circumstance, the overpayment resulted when a necessary override prevented the automated coverage reduction process from functioning correctly – so I ask that we keep this in mind.” The Benefits Office has corrected this situation and is in the process of reimbursing affected faculty for the overpayment.

If any faculty have specific concerns about their life insurance they can contact Elizabeth Parr by calling x3-6151.

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