OFFICE OF STATE UNIFORM PAYROLL MEMORANDUM #98-58



May 19, 1998

To: All UPS Agencies
From: Ronald S. Mitchell, Director
Subject: American Public Life Insurance Company Rate Increase

American Public Life Insurance Company will be implementing an across the board rate increase effective July 1998 for certain cancer policies. American Public has mailed letters to all agencies affected by this rate increase, along with a list of the employees' current deduction amount and the increased amount. However, American Public inadvertently mailed the wrong letter showing an effective date of January 1. You should be receiving the corrected letter in the next few weeks. The list, however, did include the correct information.

Letters have also been mailed from American Public to employees affected, notifying them of this change. Included with the letter was a new payroll authorization form (SED4) with the new cancer rates. The employees have until July 1, 1998 to sign the forms and bring them to their payroll office. Employees who do not turn in the signed form by July 1, 1998 will have their policies canceled effective July 1998. Agencies should have all deduction changes entered for the July 3, 1998 payday. Agencies can process a one-time deduction the second pay day of July for those forms received between June 29 and July 1.

American Public will use the July deduction information from UPS to determine which employees did not agree to the increase. They will forward a list of these employees to the payroll offices in September advising agencies to stop the deduction and refund premiums from 7/1/98 to present. The list will include the employee name, social security number, amount to be refunded and time period of the refund. A new payroll authorization form (listing existing products and/or no deduction amount for cancer) will also be mailed to the employee and agency indicating that coverage has been canceled.

If you have any questions about the rate increase contact Sharon Starnes, coordinator for American Public, at (601) 936-6600 x314. Any other questions should be directed to Andrea Hubbard at (504) 342-5337.

RSM:APH:mmh

c:
Ray Harrison, Group Benefits

Sharon Starnes, American Public Life


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