Voluntary Long-Term Disability Insurance Plan
Please Note: The Long Term Disability (LTD) plan provides a 60% income benefit by the University at no additional cost. The LTD plan changed effective October 1, 2006. Current LTD participants receiving a benefit payment under the current plan OR employees approved for LTD benefits prior to October 1, 2006 will continue under the current plan and are considered "grandfathered" LTD participants and their benefits will not change. Claimants that file applications and who are approved for benefits on October 1, 2006 or after will have benefits based on the new schedule.
Employees will have the option to purchase a buy-up option equal to 10% of base salary to be effective October 1, 2006. The additional Voluntary Long Term Disability benefit raises the aggregate income benefit to 70%. The premiums for the benefit are payroll deducted (after tax) and will begin in October. Click here to learn more.
Eligibility
You are eligible for LTD coverage if you are a regular full-time employee and have completed 12 months of service. It is not necessary to enroll for this coverage once you have met the service requirement for eligibility. With approval by the Employee Benefits Office, this 12-month waiting period maybe waived if you were covered by an employer-sponsored comparable LTD plan in the six months before you started working for the University. Regular part-time, regular half-time and temporary employees are not eligible.
Overview
Long-Term Disability (LTD) coverage continues a percentage of your monthly salary if you are totally disabled and unable to engage in any occupation for which you are reasonably qualified by training, education or experience. LTD is provided by the University at no cost to eligible employees. An employee approved for LTD benefits receives primary and supplemental payment benefits based on the employee's basic regular monthly salary at the time of onset of the disabling condition. Primary income benefits provide payment of 60% of the basic regular monthly salary less any disability received from government programs and/or other employers for the same condition. Basic salary for medical faculty is defined as the tenure base salary. Other sources of income used in the benefit formula include Social Security, workers' compensation or other similar government programs, veterans' or other governmental disability payments, or other employer-sponsored disability benefits. The University provide supplemental payment benefits for 42 months following the date of disability onset based on the following schedule (for current LTD participants OR employees approved for LTD benefits prior to October 1, 2006):
Months |
Percentage of Salary |
| 1-6 | 100% |
| 7-18 | 90% |
| 19-30 | 80% |
| 31-42 | 70% |
| 43-End of Benefit | 60% |
Claimants that file applications and who are approved for benefits on October 1,2006 or after will have benefits based on the following new schedule:
Months |
Percentage of Salary |
| 1-6 | 100% |
| 7-End of Benefit | 60% |
Long Term Disability (LTD) Participants
- Participants are eligible for health coverage.
- A participant becomes eligible for Medicare Part B 24 months after being approved by Social Security for LTD benefits.
- Participants who were enrolled in a health plan at the time their disability benefits began are eligible for health coverage.
- Medicare Participants become eligible for Medicare Part B once you have been entitled to social security disability benefits for 24 months after being approved by Social Security for LTD benefits.
- Once eligible for Medicare, a participant must enroll in Medicare Part B and select the UK Medicare Carve-out plan.
