Long Term Disability Questions

How long is the waiting period after an injury or illness before long-term disability takes effect?

There is a six-month waiting period from the date last worked.

How long does long-term disability last once I start collecting?

If under age 60 at the time of disability, it will continue to age 65. Between the ages of 60-64, long term disability benefits will last for 5 years. Between ages 65 - 68 benefits will last until age 70. Age 69, benefit will last for 1 year. You will receive this benefit if you are totally disabled.

Are long-term disability payments taxable?

If you pay your long-term disability premiums with pre-tax dollars, your benefit will be taxed. If you pay your premium with after-tax dollars, your benefit will not be taxed. As income will be lower during a period of disability, most employees choose the after-tax option to receive a benefit that is not taxed.

What's the difference between the high and low options?

High option pays 66 2/3% of your salary and the LTD carrier will continue to pay your Defined Contribution Plan and a cost of living adjustment every year. Low option pays 50% of salary and the LTD carrier does not pay into the DCP or pay a cost of living adjustment.

How is disabled defined?

When, according to a doctor's opinion, an employee can no longer perform the essential requirements of their job, they are considered disabled.

Will long-term disability also pay for re-training me for another job?

Job re-training is possible on a case-by-case basis.

Will Social Security disability payments reduce my long-term disability policy payments?

Yes. Social Security and LTD will coordinate with one another to ensure an employee will not receive an amount greater than 66 2/3% or 50% of salary.

How much does long-term disability cost?

High Option- 66 and 2/3 % of salary, continuing DCP contributions, and cost of living adjustments: $.82 a month per hundred dollars of salary.

Low Option- 50% of salary- .38 cents per month per hundred dollars of salary.

* A third option is available for individuals with a salary of $80,000 or more. Call the benefits office for details.

What are the minimum/maximum benefits?

Option: 50%
Maximum Benefit: $2,000.00
Minimum Monthly Benefit: $100.00
Option: 66 2/3%
Maximum Benefit: $5,000.00
Minimum Monthly Benefit: $100.00

Can I work part-time while on disability?

No. Once the employee gains any type of employment, the LTD benefit ceases.