Long Term Disability (LTD) Insurance

The following descriptions are general. For more specific information about plan benefits and limitations, refer to both the Certificate and Summary Plan Description & Amendment as well as how to report a long-term disability claim

Long Term Disability (LTD) Benefit Description

The University provides long term disability insurance (LTD) at no cost to regular eligible employees. This insurance provides that an employee who has been disabled for 90 days 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 to continue to be made while an LTD claimant 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.


Pre-Disability Salary

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.

Partial Disability

Benefits are 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.

Eligibility Requirements

Employees 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).

Limitations and Exclusions

Temporary employees and employees scheduled to work fewer than 30 hours per week are not eligible for this long term disability insurance benefit. Disabilities of a shorter duration are covered under the provisions of the Sick Pay PolicyShort Term Disability Leave, and Extended Short Term Disability Leave.