The following descriptions are general. For more specific information about plan benefits and limitations, refer to both the Benefits at a Glance and the Certicate and Summary Plan Description.
Term Disability (LTD) Benefit Description
provides long term disability insurance (LTD) at no cost to regular eligible
employees. This insurance provides that an employee who has been disabled
for six months and who is determined by the insurance carrier to meet
the contract definition of disability will receive 60 percent of the
pre-disability monthly salary, up to the current maximum monthly benefit
allowed. If an employee becomes disabled prior to age 62, LTD benefits may be payable up to age 65. If an employee becomes disabled at age 62 or later, the benefit duration is determined by the age the disability begins.
The University's LTD insurance also provides retirement contributions on those LTD benefit payments.
A person who is
on total disability is no longer an employee of the University and,
therefore, all other employee benefits cease at the time of termination
of employment. According to the provisions of the Consolidated Omnibus
Budget Reconciliation Act (COBRA), medical insurance for persons qualified
by the Social Security Administration to receive total disability
benefits may be continued for 29 months, at the employee's expense.
Long term disability payments are taxable for Federal Income Tax (FIT)
but not FICA.
Defined as the
salary earned in the month immediately prior to the date of disability.
For the faculty member on a two quarter sabbatical receiving half
salary for each quarter, pre-disability salary will still be based
on the salary month prior to the disability, not the full salary.
also provided for a person who is confirmed by the long term disability
insurance carrier as having a partial disability. "Partial disability"
is defined within the long term insurance carrier plan booklet and
contract. The long term insurance carrier will replace a portion
of the employee's lost pre-disability salary, based on the stated
formulas, after the completion of the six month waiting period.
are eligible for the disability benefit after six months of continuous
employment in a
regularly budgeted position in which the employee works a minimum
of 30 hours per week (.75 FTE).
employees and employees scheduled to work fewer than 30 hours per
week are not eligible for this long term disability insurance benefit.
of a shorter duration are covered under the provisions of the Sick
Pay Policy, Short Term Disability Leave and Extended Short Term Disability