Human Resources Policy and Procedure
Number 95.0: Long Term Total Disability Program
The University provides Long Term Disability (LTD) benefits for eligible regular full-time employees. This coverage is provided on the first day of the month after the employee completes one full year of service. To be covered, an employee must be actively at work on this date. The LTD program is intended to make monetary benefits available to an employee in the event of long term total disability and is not a job protection program.
1) With approval from the Human Resources Office of Employee Benefits (Employee Benefits), a new employee who has been covered by a comparable employer-sponsored LTD plan at a prior employer within six months prior to employment at the University may be covered as of the first date of employment. Application for immediate coverage should be made in writing to Employee Benefits and include a comparable coverage plan document and certificate of coverage within the first 30 days of eligible employment.
2) Total disability is defined as the inability of the employee, due to sickness or bodily injury, to engage in any occupation for which the employee is fitted by education, training or experience for more than twelve calendar months.
3) The University may decide to outsource certain administrative functions of the LTD program to a third party plan administrator.
4) The University and the plan administrator have the right to require medical and/or vocational examinations. The participant may be required to undergo rehabilitative training which would consider the nature and limitations of the disability. Failure to follow requests to submit to such examinations may result in a denial or termination of benefits.
5) LTD eligibility terminates as follows:
6) LTD payments are provided under two separate income benefit components.
7) LTD payments cease at the following occurrences:
8) The benefit formula for LTD payments is as follows:
9) For primary benefits, the University’s LTD trust pays 60% of the basic regular monthly salary, less offsets. Trust payments are made at the end of the month. Offsets include, but are not limited to, the following:
10) The supplemental Benefit policies and payments, administered by an insurance company or similar entity, may differ in structure from the University of Kentucky Long Term Disability Plan and Salary Continuation Plan. Therefore, the terms and conditions of the University of Kentucky Long Term Disability Plan and any insured product may differ.
11) The University reserves subrogation rights should the disability arise as a result of third party negligence. Failure to protect the University’s rights may result in denial of all benefits under this program.
12) This program does not cover long term disability conditions that arise from or in conjunction with the following:
13) Benefits are not payable for any period of incarceration as a result of a conviction.
14) Benefits are limited to a maximum of 24 months during the lifetime of an individual for conditions involving:
Administration of the LTD program is a function of the Employee Benefits Office. The appropriate administrator in this office shall have approval authority for LTD payments.
1) To apply for benefits under this program, an employee shall contact Employee Benefits and complete the required application.
2) An employee may appeal if a claim is denied. The appeal shall be made within 60 days of the denial. This appeal shall be sent to the Associate Vice President of Human Resources. An employee shall be separated from employment if the Long Term Disability claim is denied. If the employee is eligible to retire, the employee must initiate the retirement process within 30 days of LTD claim denial or the individual may forfeit retirement eligibility. The effective separation or retirement date shall be the date of initial LTD claim denial.
3) University payments made to employees during the first six months are charged to the department where the employee’s salary was budgeted as of the date of the onset of the disability. Payments for month 7 and after are charged to a University miscellaneous fringe benefit account established for that purpose and administered by Employee Benefits.
4) By submitting an application for LTD benefits, the applicant will be required to assert that they are totally disabled pursuant to the Plan Document with or without reasonable accommodation. The department is not required to hold positions open during the LTD application process and the applicant is not guaranteed continued employment if the Long Term Disability claim is denied.
5) Health Care Coverage
6) Other benefits
Previous Version (Revision Date - 04/01/06)