ADMINISTRATIVE MESSAGE
 
ROUTINE       
 
R 142230Z MAR 01 ZYB MIN PSN 088548J33
 
FM CNO WASHINGTON DC//N1//
 
TO NAVADMIN
 
UNCLAS //N01770//
NAVADMIN 065/01
 
MSGID/GENADMIN/N1//
 
SUBJ/SGLI PROGRAM CHANGES//
 
REF/A/DOC/PL 106-419/01NOV2000//
 
AMPN/REF A IS THE VETERAN'S BENEFITS AND HEALTH CARE IMPROVEMENT ACT
OF 2000, P. L. 106-419, 1 NOVEMBER 2000.  CHANGES TO THIS PROGRAM
ARE EFFECTIVE 1 APRIL 2001.//
 
RMKS/1.  REF A STATES THAT NEW MAXIMUM COVERAGE FOR SERVICEMEMBERS'
GROUP LIFE INSURANCE (SGLI) WILL INCREASE TO $250,000 EFFECTIVE
1 APRIL 2001.  THE INCREASE IS AUTOMATIC UNLESS THE SERVICEMEMBER
ELECTS A LOWER AMOUNT.  THE EFFECTIVE DATE OF THIS INCREASE IS
WORLDWIDE ON 1 APRIL 2001 AS DETERMINED AT THE INTERNATIONAL
DATELINE.  THE SGLI INCREASE IS AN IMPORTANT BENEFIT TO HELP OUR
NAVY FAMILIES IF TRAGEDY STRIKES.  NAVY LEADERS SHOULD ENCOURAGE
SAILORS TO TAKE ADVANTAGE OF THE MAXIMUM AMOUNT OF SGLI COVERAGE TO
PROVIDE SECURITY FOR THEIR FAMILIES.
 
2.  SHOULD A SERVICEMEMBER DESIRE LESS THAN THE AUTOMATIC MAXIMUM
COVERAGE, THE MEMBER MUST COMPLETE SGLV FORM 8286
(APRIL 2001 VERSION) INDICATING THE AMOUNT OF COVERAGE DESIRED
(INCLUDING NO COVERAGE) AND PRESENT THIS FORM TO THEIR PSD OR
PERSONNEL OFFICE AS SOON AS POSSIBLE.  MEMBERS MAY ELECT NO COVERAGE
OR LESSER AMOUNTS OF COVERAGE IN $10,000 INCREMENTS.  THE MONTHLY
PREMIUM FOR SGLI WILL REMAIN $.80 PER $10,000 OF COVERAGE, OR $20 A
MONTH FOR THE FULL AMOUNT OF COVERAGE.
 
3.  ALL MEMBERS WILL BE FULLY INSURED FOR $250,000 THROUGHOUT THE
MONTH OF APRIL 2001, REGARDLESS OF ANY ELECTION FILED DURING THE
MONTH.  HOWEVER, ANY MEMBER WHO ELECTS TO REDUCE OR DECLINE COVERAGE
DURING APRIL 2001 WILL NOT BE REQUIRED TO PAY THE APRIL PREMIUM
ASSOCIATED WITH FULL COVERAGE.  IF THE FULL PREMIUM IS DEDUCTED FROM
THE MEMBER'S APRIL PAY, THE EXCESS PREMIUM WILL BE REFUNDED.  ANY
MEMBER WHO DOES NOT MAKE A REDUCED ELECTION OR DECLINES COVERAGE
DURING APRIL 2001 WILL BE CHARGED FOR THE FULL $250,000 OF COVERAGE
FOR APRIL, AS WELL AS FOR ANY OTHER MONTH IN WHICH THE LEVEL OF
COVERAGE REMAINS IN EFFECT.  IF A MEMBER COMPLETES AND TENDERS SGLV
FORM 8286 ON OR AFTER 1 MAY 2001, TO REDUCE OR DECLINE COVERAGE, THEN
THE REDUCTION OR DECLINATION WOULD BEGIN ON THE FIRST DAY OF THE
FOLLOWING MONTH AFTER THE FORM IS TENDERED.
 
4.  SGLI BENEFICIARY PAYMENTS FOR DEATHS ON OR AFTER THE EFFECTIVE
DATE OF THE NEW COVERAGE AND BEFORE COMPLETION OF A NEW SGLV 8286
(APRIL 2001 VERSION) WILL BE ALLOCATED IN THE SAME PROPORTIONS AS THE
LAST VALID SGLV FORM 8286 COMPLETED BY THE MEMBER.
 
5.  THE REVISED SGLV FORM 8286 WILL BE AVAILABLE ON THE DEPARTMENT
OF VETERAN'S AFFAIRS (DVA) WEBSITE (WWW.INSURANCE.VA.GOV) ON
1 APRIL 2001.  FOR MEMBER'S CONVENIENCE, IT IS A FILLABLE FORM
(ENTRIES CAN BE MADE ON THE PAGE, THEN DOWNLOADED).  ORIGINAL
SIGNATURES MUST APPEAR ON ALL COPIES.  DISTRIBUTION OF THE COPIES OF
THIS FORM ARE AS FOLLOWS:
     A.  ORIGINAL, FORWARD TO THE COMMANDER, NAVY PERSONNEL COMMAND
(PERS-313) FOR FILING IN THE PERMANENT PERSONNEL RECORD.
     B.  FIRST COPY:  PROVIDE TO THE MEMBER FOR PERSONAL USE.
     C.  SECOND COPY:  FOR OFFICERS, FILE IN THE COMMAND'S
CORRESPONDENCE FILES.  FOR ENLISTED MEMBERS, PROMPTLY FILE BEHIND THE
NAVPERS 1070/602, RECORD OF EMERGENCY DATA/DEPENDENCY APPLICATION
(PAGE 2) IN THE MEMBER'S SERVICE RECORD.  THESE CHANGES OF
DISTRIBUTION WILL BE REFLECTED IN A FORTHCOMING CHANGE TO THE NAVY
PERSONNEL MANUAL, SECTION 1741-020.
 
6.  UPON A COVERED SERVICEMEMBERS DEATH, THE SGLI BENEFIT WILL BE
AWARDED TO THE DESIGNATED BENEFICIARY.  TO ASSIST THE FAMILY IN
MANAGING THIS LARGE SUM OF MONEY, SURVIVORS MAY RECEIVE FREE
BENEFICIARY FINANCIAL COUNSELING SERVICES THROUGH ERNST & YOUNG.
THIS SERVICE IS PROVIDED FREE THROUGH THE DEPARTMENT OF VETERAN
AFFAIRS AND ASSISTS FAMILY MEMBERS WITH FINANCIAL DECISIONS AND
DEVELOPING A PERSONAL FINANCIAL PLAN, GIVING FAMILY MEMBERS PEACE OF
MIND.  PROGRAM BENEFICIARIES WILL INITIALLY RECEIVE A BROCHURE ON
THIS PROGRAM IN THE EVENT OF A MEMBER'S DEATH.  BEFORE THE INITIAL
MEETING WITH AN ERNST & YOUNG FINANCIAL COUNSELOR, AN INFORMATION
KIT WILL BE FURNISHED TO THE BENEFICIARY.
 
7.  SERVICEMEMBERS ARE NOT RESTRICTED TO THEIR ELECTION OF
BENEFICIARIES.  HOWEVER, CAREFUL CONSIDERATION SHOULD BE GIVEN WHEN
DESIGNATING A MINOR CHILD AS THE BENEFICIARY.  BEFORE MAKING SUCH A
DESIGNATION, MEMBERS SHOULD CONSULT WITH A PROBATE LAWYER OR NAVY
LEGAL SERVICE OFFICE.  VARYING STATE PROBATE LAWS MAY HINDER THE
RECEIPT OF MONIES LEFT TO A MINOR CHILD.
 
8.  REQUEST THIS MESSAGE BE GIVEN THE WIDEST DISSEMINATION
POSSIBLE.
 
9.  POC AT NPC IS MS. SANDY DUBOIS AT (901) 874-4299/DSN 882 OR
E-MAIL P621B@PERSNET.NAVY.MIL.
 
10.  RELEASED BY VADM NORB RYAN, JR., N1.//
 
BT