MA Optional Retirement Program (ORP) Life Insurance

The Commonwealth of Massachusetts purchases life insurance for active members of the Optional Retirement Program (ORP). ORP life insurance coverage is a multiple of the member's base salary based on the member's age. Covered members may be eligible for an 'accelerated death benefit', resulting in partial payment of life insurance to the member while alive.

Taxability of Premium Paid by the Commonwealth
The Internal Revenue Service considers the value of employer-provided group term life insurance in excess of $50,000 to be imputed income for covered employees. Consequently, the value of the life insurance provided under the ORP and the basic life insurance provided by the Commonwealth through the Group Insurance Commission (GIC) can be taxable to active participants each year. The Commonwealth determines the amount of any imputed income attributable to your group life insurance coverage and includes it on Form W2 each year.


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