Board approves disbursement of Prudential funds
The University of South Carolina Board of Trustees unanimously approved a recommendation Friday (Oct. 8) to disburse $4.8 million to approximately 1,800 current and former USC policyholders of Prudential accidental death and life insurance policies.
Distribution of the funds to individuals who were actively participating in the Prudential plan on Dec. 15, 2000, or who were eligible for a life insurance benefit on that date, are eligible for a payout, said Dr. Ted Moore, USC vice president for finance and planning.
That date is when Prudential made the decision to convert from a company owned by policyholders to one owned by stockholders, a process called “demutualization.” USC is the policyholder.
The decision is the culmination of a seven-month (February – September) study by a committee of university officials and insurance and legal experts who examined options for managing the funds.
Moore said the funds will be distributed to employees or former employees who, on Dec. 15, 2000, were:
- 1) Actively employed by the university and insured for full benefits through Prudential;
- 2) Retired with death benefits;
- 3) Disabled with death benefits;
- 4) Participants with paid-up cash value.
The amount distributed to plan participants will vary, Moore said. The amount paid out to individuals who had a paid-up policy will be based on the amount of dividends applied to purchase the paid-up insurance compared to total contributions of other eligible participants. The amount paid to other individuals will be based on their premium contributions compared with the total contributions of all other eligible participants.
Moore said the Benefits Office researched employee records and compiled a thorough list of current and former employees who will be notified of their eligibility in a letter that will be mailed within the next two weeks. Disbursement of funds is expected to take place by Dec. 31, 2010.
For additional information, visit http://hr.sc.edu/prudential.html.