DOT Workers Still Paying Into Insurance Cancelled In 2001

It turns out dozens of state highway workers have been paying for a life insurance policy that was cancelled more than eight years ago. Now the state is refunding thousands of dollars in payroll deductions.

The DOT told 93 employees the deductions would immediately stop and refund money for the policies to CIGNA. The Employee Insurance Committee cancelled the policy in 2001 but never notified employees. Only after a review by the new Transportation Secretary did they discover the mistake.

"We regret that this lapse in coverage occurred, and we'll do all that we can to help the affected employees," said Secretary of Transportation Gene Conti, who learned of the problem after he came into office last year and directed an investigation. "We are taking steps to ensure that it does not happen again."

The DOT says another 641 employees had their policies cancelled at the same time, but they have not been paying premiums. They too will get some cash back because of the cancelled policies.

They're also is notifying another 390 employees who participated in the program that their policies also were cancelled, but their policies were fully paid up before the cancellation, and their coverage is in force.

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  • by MrT Location: LaNC on Mar 4, 2010 at 05:26 PM
    It was going into Bev's travel budget!
  • by TT Location: ENC on Mar 4, 2010 at 02:28 PM
    These people thought they had a life insurance policy in place. Imagine the surprise their families would have gotten had one of them passed away.
  • by Mike Location: Edenton on Mar 4, 2010 at 12:55 PM
    OK, when is the other shoe going to drop? This money had to be going SOMEWHERE! Is there another public employee who has been pocketing this loot?
  • by nothing new on Mar 4, 2010 at 12:53 PM
    This happened to me at evans machinery in wilson nc aswell as other employees on multiple types if insurance. No insurance but they gladly garnished every check for up to 10 yrs for some people. Where did the money go? someone needs to investigate them too.
  • by neigh Location: pitt on Mar 4, 2010 at 12:20 PM
    What happened to the maximum speed with the plow trucks? Watching them clear snow off the roads, they sure were going faster than 18 mph. They were traveling too fast!
  • by Justice on Mar 4, 2010 at 12:12 PM
    We need to do a full audit of this...

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